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21 October 2016
Ft. Thompson Man Charged with Kidnapping and AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Ft. Thompson, South Dakota, man has been indicted by a federal grand jury for Kidnapping, Assault with Intent to Commit Murder, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury.
Matthew Long Crow, age 38, was indicted on October 12, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to any term of years up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March 10, 2016, and March 19, 2016, Long Crow kidnapped and assaulted his girlfriend with a knife, with the intent to murder her. As a result of the assault she suffered serious bodily injury.
The charge is merely an accusation and Long Crow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Long was released on bond pending trial. A trial date has not been set.
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Franklin Insurance Agent Pleads Guilty to Fraud Against Elderly ClientRead the Press Release
Scott Rolin, 55, of Franklin, Tenn., pleaded guilty today to one count of wire fraud, announced United States Attorney David Rivera. During a plea hearing before U.S. District Court Judge Waverly Crenshaw, Rolin admitted stealing more than $50,000 from an elderly client of Steele Rolin Co., his Franklin-based insurance agency.
Specifically, Rolin admitted that, between 2011 and 2015, he made unauthorized withdrawals from certain annuity policies that he controlled on behalf of this client, and did so without this client’s knowledge or permission. Rolin forged his client’s endorsement signature on the resulting checks, and deposited funds derived from these checks into his personal checking account and into a business account he controlled. Rolin used these embezzled funds to pay various personal expenses.
Rolin faces up to 20 years in prison and a fine of up to $250,000. In addition, the Court will order Rolin to pay restitution to his former client. Rolin will be sentenced by Judge Crenshaw on January 27, 2017. Rolin’s 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 Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former United States Tax Court Judge Pleads Guilty to Conspiring to Defraud the IRS of $450,000 in TaxesRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of DIANE L. KROUPA, 61, to conspiring to defraud the United States. KROUPA, who was indicted on April 4, 2016, pleaded guilty today before United States District Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn.
“Abusing her position of public trust, Diane Kroupa conspired to defraud the government and break the very tax laws she was sworn to uphold,” said United States Attorney Andrew Luger. “My Office remains committed to prosecuting individuals who engage in fraud schemes such as this, regardless of their position or profession.”
“Those charged with upholding the laws are not above the law. While serving as a United States Tax Court Judge, Diane Kroupa conspired to break the law by evading the taxes she owed. Her actions were not only unlawful and dishonest, but they were a theft from the American public. No matter what your position, it is unacceptable to cheat the system that provides the government services and protections that we all enjoy. IRS Special Agents will continue to pursue tax cheats at all levels of society, regardless of position or status,” said Shea Jones, Special Agent in Charge of the St. Paul Field Office.
According to the plea agreement and KROUPA’s testimony at the plea hearing, KROUPA was a former judge who was appointed to the United States Tax Court on June 13, 2003 for a term of 15 years. During the same period, KROUPA was married to Robert E. Fackler, a self-employed lobbyist and political consultant who owned and operated a business known as Grassroots Consulting. From 2004 to 2013, KROUPA and Fackler owned a home in Plymouth, Minnesota. From 2007 to 2013, they also leased a second residence in Easton, Maryland, where KROUPA lived while fulfilling her duties as a Tax Court Judge in Washington DC.
According to the plea agreement and KROUPA’s testimony at the plea hearing, between 2002 and 2012, KROUPA and Fackler conspired to obstruct the Internal Revenue Service (IRS) from accurately determining their joint income taxes. As part of the conspiracy, KROUPA and Fackler worked together each year to compile numerous personal expenses for inclusion as supposed “business expenses” for Grassroots Consulting in their joint tax return. Those expenses included: rent and utilities for the Maryland home; utilities, upkeep and renovation expenses of the Minnesota home; pilates classes; spa and massage fees; jewelry and personal clothing; wine club fees; Chinese language tutoring; music lessons; personal computers; and expenses for vacations to Alaska, Australia, the Bahamas, China, England, Greece, Hawaii, Mexico and Thailand. In total, from 2004 through 2010, the defendants fraudulently deducted at least $500,000 of personal expenses as purported Schedule C business expenses. At times, KROUPA prepared and provided to Fackler summaries of personal expenses falsely described according to business expense categories. On other occasions, KROUPA herself compiled and provided to their tax preparer the fraudulent personal expenses.
According to the plea agreement and KROUPA’s testimony at the plea hearing, KROUPA made a series of other false claims on their tax returns, including failing to report approximately $44,520 that she received from a 2010 land sale in South Dakota. KROUPA also falsely claimed financial insolvency to avoid paying tax on $33,031 on cancellation of indebtedness income that she and her husband received.
According to the plea agreement and KROUPA’s testimony at the plea hearing, KROUPA and Fackler purposely concealed documents from their tax preparer and an IRS Tax Compliance Officer during an audit for their 2004 and 2005 tax returns.
According to the plea agreement and KROUPA’s testimony at the plea hearing, during a second audit in 2012, KROUPA and Fackler caused false and misleading documents to be delivered to an IRS employee in order to convince the IRS employee that certain personal expenses were actually business expenses of Grassroots Consulting. After the IRS requested documents pertaining to their tax returns, KROUPA and Fackler removed certain items from their personal tax files before giving them to their tax preparer because the documents could reveal they had illegally deducted numerous personal expenses. During the audit, KROUPA also falsely denied receiving money from the 2010 land sale. Later, when they learned the 2012 audit might progress into a criminal investigation, KROUPA instructed Fackler to lie to the IRS about her involvement in preparing the portion of their tax returns related to Grassroots Consulting.
According to the plea agreement and KROUPA’s testimony at the plea hearing, between 2004 and 2010, KROUPA and Fackler purposely understated their taxable income by approximately $1,000,000 and purposely understated the amount of tax they owed by at least $450,000.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the United States Postal Inspection Service.
Assistant U.S. Attorneys Benjamin Langner and Timothy Rank are prosecuting the case.
Defendant Information:
DIANE L. KROUPA, 61
Minnetonka, Minn.
Convicted:
- Conspiracy to Defraud the United States, 1 count
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Former State Senator Ronald Calderon Sentenced to 42 Months in Federal Prison for Receiving over 150,000 Dollars in BribesRead the Press Release
LOS ANGELES – Former California State Senator Ronald S. Calderon was sentenced today to 3½ years in federal prison after pleading guilty to a federal corruption charge and admitting that he accepted tens of thousands of dollars in bribes in exchange for performing official acts as a legislator.
Ron Calderon, 59, of Montebello, received the 42-month sentenced this afternoon from United States District Judge Christina A. Snyder, who also ordered the defendant to serve 150 hours of community service.
Ron Calderon pleaded guilty in June to one count of mail fraud through the deprivation of honest services. In a plea agreement filed in this case, Ron Calderon admitted accepting bribe payments from the owner of a Long Beach hospital who wanted a law to remain in effect so he could continue to reap tens of millions of dollars in illicit profits from a health care fraud scheme. Ron Calderon also admitted taking bribes from undercover FBI agents who were posing as independent filmmakers who wanted changes to California’s Film Tax Credit program.
Ron Calderon’s brother, Thomas M. Calderon, 62, also of Montebello, a former member of the California State Assembly who became a political consultant, was sentenced last month to 10 months in custody for his conviction on a money laundering charge for allowing bribe money earmarked for his brother to be funneled through his company.
“Former Senator Calderon repeatedly violated the trust of the voters by taking nearly $160,000 in bribes in exchange for abusing his position as an elected official,” said United States Attorney Eileen M. Decker. “The Calderons are now being punished for their roles in a bribery scheme that involved multiple forms of payments, as well as the attempted concealment of the scheme through money laundering and lies made to residents of his district. Politicians who violate their oaths by selling their offices will be discovered and will be prosecuted.”
“Mr. Calderon used the power of the state Senate to dole out favors in exchange for bribe payments and a flashy lifestyle, rather than governing honestly for the people of California,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “I’m proud of the agents and prosecutors who made this case a success using innovative techniques to uncover a variety of schemes and abject corruption by a state official.”
“At the heart of this case are two brothers – one a politician, the other the facilitator – who thought they were above the law and could exchange political favors for bribery payments,” stated IRS Criminal Investigation’s Acting Special Agent in Charge, Anthony J. Orlando. “Regardless of circumstances, no one is granted an exemption to commit crimes with impunity. As today’s sentence shows, the government will hold accountable those who use fraud and deceit to line their pockets with money, especially when those individuals are serving the California public.”
Ron Calderon admitted participating in a bribery scheme involving two areas of legislation and the hiring of a staffer who was also an undercover FBI agent.
In the first part of the bribery scheme, Ron Calderon took bribes from Michael Drobot, the former owner of Pacific Hospital in Long Beach, which was a major provider of spinal surgeries that were often paid by workers’ compensation programs. The spinal surgeries are at the center of a massive healthcare fraud scheme that Drobot orchestrated and to which he previously pleaded guilty. Ron Calderon was not charged in the healthcare fraud scheme that led to well over $500 million in fraudulent billings. Drobot, who was described in court papers filed by prosecutors as “a greedy fraudster robbing taxpayer-funded federal programs,” was a client of Tom Calderon’s political consulting firm.
California law known as the “spinal pass-through” legislation allowed a hospital to pass on to insurance companies the full cost it had paid for medical hardware it used during spinal surgeries. As Drobot admitted in court, his hospital exploited this law, typically by using hardware that had been purchased at highly-inflated prices from companies that Drobot controlled and passing this cost along to insurance providers.
Drobot bribed Ron Calderon so that he would use his public office to preserve this law that helped Drobot maintain a long-running and lucrative healthcare fraud scheme, which included Ron Calderon asking a fellow senator to introduce legislation favorable to Drobot and attempting to recruit other senators to support Drobot. The payments from Drobot came in the form of summer employment for Ron Calderon’s son, who was hired as a summer file clerk at Pacific Hospital and received a total of $30,000 over the course of three years, despite the son doing little actual work at the hospital.
In another part of the bribery scheme, Ron Calderon accepted bribes from people he thought were associated with an independent film studio, but who were in fact undercover FBI agents. In exchange for the payments – including $30,000 in payments to Ron Calderon’s daughter for services she never provided – Ron Calderon agreed to support an expansion of a state law that gave tax credits to studios that produced independent films in California. The Film Tax Credit applied to productions of at least $1 million, but, in exchange for bribes, Ron Calderon agreed to support new legislation to reduce this threshold to $750,000, according to the plea agreement.
Ron Calderon took several official actions with respect to reducing the threshold for the Film Tax Credit. Ron Calderon signed a letter on his official Senate letterhead indicating that he would propose legislation lowering the threshold, introduced a “spot bill” he told an undercover agent would be used to propose such legislation, and promised that he would vote in favor of that proposed legislation.
In addition to the payments to his daughter for work she did not do, Ron Calderon had one of the undercover agents make a $5,000 payment toward his son’s college tuition and a $25,000 payment to Californians for Diversity, a non-profit entity that Ron Calderon and his brother used to improperly pay themselves.
In a sentencing memorandum filed with the court, prosecutors write that Ron Calderon “sold his vote not just to help pay for the expenses of living beyond his means, but for the more banal and predictable aims of corruption -– fancy luxuries, fancy parties, and fancy people.”
The memorandum further argues that a significant term of imprisonment was necessary to send a message to other political officials and the electorate because, without such a sentence, “the trust already eroded by individual detections of corrupt politicians will spread like cancer and threaten the fundamentals of a trusted democracy. It is not hyperbole to insist that nothing less is at stake in defendant’s sentencing.”
As part of the agreement with the undercover agents, Ron Calderon performed official acts that led to the hiring of another undercover agent as a staffer in his district office at an annual salary of $45,105.
Ron Calderon “knowingly concealed his bribery scheme from the public by submitting a false Statement of Economic Interest, California Form 700, to the California Fair Political Practices Commission, which failed to disclose the money and other financial benefits defendant he had received from Drobot” and the undercover agents, Ron Calderon admitted in his plea agreement.
Tom Calderon pleaded guilty to money laundering and admitted that he agreed to conceal bribe payments for his brother from the two undercover FBI agents by having the money go through his company, the Calderon Group. Tom Calderon allowed payments to be made to the Calderon Group “to conceal and disguise the fact that the money represented the proceeds of bribery,” according to his plea agreement.
The investigation into the Calderons was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney Mack E. Jenkins of the Public Corruption and Civil Rights Section.
Former Pinnacle Director Pleads Guilty to Insider TradingRead the Press Release
Former lead director of Pinnacle Financial Partners Inc. (“Pinnacle”) and Rutherford County Attorney, James Cope, 67, of Murfreesboro, Tenn., pleaded guilty today to insider trading in connection with Pinnacle’s 2016 acquisition of Avenue Financial Holdings Inc. (“Avenue”), announced Jack Smith, Acting U.S. Attorney for the administration of this case.
“Mr. Cope abused his position of trust as a member of Pinnacle’s board of directors to make a quick profit” said Acting United States Attorney Jack Smith. “His actions undermine the investing public’s confidence in our securities markets. This office will continue to vigorously investigate and prosecute all manner of securities fraud in the Middle District of Tennessee.”
“This plea is the outcome of an aggressive investigation by the FBI and our law enforcement partners into the unfair, fraudulent and illegal activity of an individual who abused his position of trust for personal profit,” said Michael T. Gavin, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “Trading on inside information undermines confidence in our financial markets, and the FBI will continue to work to detect, disrupt and dismantle these types of schemes.”
In a parallel case, the United States Securities and Exchange Commission today announced civil charges against Cope.
According to documents filed in this case and statements made in court, James Cope is a licensed attorney with more than 20 years of experience as a bank director. Pinnacle is a publicly-traded bank headquartered in Nashville, Tennessee. The defendant was a member of the Board of Directors of Pinnacle, served as Chair of the Pinnacle Board of Directors Compensation Committee, and had previously served as Lead Director for Pinnacle.
Pinnacle maintained and enforced a policy prohibiting insider trading by its employees and directors. Under Pinnacle’s “Statement of Policy on Prevention of Insider Trading,” utilization of inside information to transact personal investment decisions was expressly forbidden. Pinnacle’s policy specifically stated that “it is illegal to engage in ‘insider trading,’ which is purchasing or selling securities when one is in possession of material nonpublic information relating to those securities.”
In December 2015, executives of Pinnacle and Avenue began discussions regarding a potential acquisition of Avenue by Pinnacle. On December 1, 2015, the Executive Committee of Pinnacle’s Board of Directors, including Cope, was informed by Pinnacle’s CEO that he had reached out to executives at Avenue to express interest in a merger between Pinnacle and Avenue.
In late December 2015, Cope and other Pinnacle directors were provided certain information in advance of an upcoming Executive Committee meeting to be held on January 5, 2016. This material was not publicly available and discussed a potential acquisition of an unnamed bank. This material also discussed a potential price per share of $19.00 for the proposed acquisition.
On January 5, 2016, Pinnacle executives briefed the Executive Committee on a potential acquisition of Avenue, using the aforementioned information. Cope was present for and participated in this meeting. This meeting included discussion of the proposed Pinnacle/Avenue transaction, including discussion of financial specifics of the target acquisition price of $19.00 per share of Avenue stock. During this meeting, all of the Executive Committee members, including Cope, stated that they were in favor of Pinnacle acquiring Avenue.
On the same day, after learning the aforementioned information regarding Pinnacle’s interest and efforts to acquire Avenue, Cope purchased 6,179 shares of Avenue stock. The approximate price per share for these purchased shares was $13.81. Six days later, on January 11, 2016, he purchased another 4,000 shares of Avenue stock.
On January 29, 2016, after Pinnacle publicly announced its agreement to acquire Avenue, Avenue’s stock price rose to $19.24 per share, resulting in an unrealized profit of over $56,000 for Cope.
According to the terms of his plea agreement, Cope will serve two years of federal probation, the first nine months to be served on home confinement. Cope will also pay a fine of $55,000. Cope will be sentenced by U.S. District Judge Aleta Trauger on November 14, 2016.
Pinnacle disclosed Cope’s conduct and cooperated fully with the federal investigation. The investigation did not reveal any indication of wrong-doing by Pinnacle or any of its other board members or employees.
The case was investigated by the Federal Bureau of Investigation, with assistance from the United States Securities and Exchange Commission’s Atlanta Regional Office. The case is being prosecuted by Assistant U.S. Attorney Henry Leventis.
Former Effie Post Office employee pleads guilty to stealing more than $6,000Read the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Cottonport woman pleaded guilty Wednesday to stealing more than $6,000 from the Effie Post Office.
Chelsa Dobison, 26, of Cottonport, La., pleaded guilty before U.S. District Judge Dee D. Drell to one count of issuing fraudulent money orders. According to the guilty plea, Dobison was an employee of the Post Office in Effie, La. From January 2016 to April 2016, she issued $6,631.55 in money orders to herself without prepaying for them. This caused a financial loss to the Post Office. She resigned her position in April of 2016.
Dobison faces five years in prison, three years supervised release, restitution and a $250,000 fine. A sentencing date of January 26, 2017 was set.
The U.S. Postal Service Office of Inspector General investigated the case. Assistant U.S. Attorney Mary J. Mudrick is prosecuting the case.
Former Cook County Correctional Officer Charged with Federal Civil Rights ViolationRead the Press Release
CHICAGO — A former correctional officer for the Cook County Sheriff’s Office has been indicted on a federal civil rights charge for allegedly using unreasonable force against a detainee while on duty.
ROBERT DARTT, 46, of Jacksonville, Fla., is charged with one count of deprivation of rights under color of law, and one count of filing a false report. Dartt is alleged to have used unreasonable force while on duty as a correctional officer for the Cook County Sheriff’s Office on Oct. 31, 2011. The victim suffered bodily injury as a result of the unreasonable force, the indictment states.
The false report charge arises from false statements Dartt filed with the Sheriff’s Office and the Cook County Department of Corrections after the incident, according to the indictment.
The indictment was returned Thursday in federal court in Chicago. An arraignment date has not yet been set.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Deprivation of rights is punishable by up to ten years in prison, while filing a false report carries a maximum sentence of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Matthew Kutcher.
Former Chairman of the Board of Payroll Services Company Pleads Guilty to Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – Frank Alton Moody, II, 56, of Arden, N.C., pleaded guilty to federal charges for his role in conspiring to steal over $2 million from client companies and using the money to fund their exorbitant salaries, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Two of Moody’s conspirators, Jerry Wayne Overcash, 67, of Charlotte, and John Bernard Thigpen, 60, of Rock Hill, S.C., previously pleaded guilty and were sentenced for their roles in the conspiracy.
U.S. Attorney Rose is joined in making today’s announcement by Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to documents filed with the court, Moody was the Chairman of the Board of CenterCede Services Inc. (CenterCede), a payroll services company with clients in Charlotte and elsewhere. CenterCede was established in August 2010 by Overcash and Moody, to assume business operations of The Resource Solutions Group (TRSG). Court documents in related cases indicate that, similar to CenterCede, TRSG had been a payroll services company until it was shut down by IRS in August 2010, for failing to pay more than $9 million in federal payroll taxes TRSG collected from its clients. Moody served as Chairman of the Board at TRSG.
Court documents show that from November 2010 to November 2011, CenterCede purportedly provided payroll preparation and processing services to its clients. As such, CenterCede collected funds from its clients to pay the client companies’ federal tax obligations, gross payroll for the clients’ employees, worker’s compensation, and unemployment insurance, among others, as well as fees due to CenterCede. Contrary to their representations to clients, the conspirators did not pay the clients’ federal taxes in appropriate amounts and by the applicable deadlines.
Instead, Moody and his co-conspirators agreed, with the intent to defraud the company’s clients and the IRS, not to remit to the IRS the full tax liabilities of CenterCede’s clients. Client funds were then diverted to pay the salaries of Moody, Overcash and others, and to cover CenterCede’s growing liabilities.
To keep the scheme afloat, the conspirators paid only those obligations necessary to keep their ongoing cash flow crisis a secret from clients. As reflected in court documents, the conspirators favored what they called “priority” clients, attempted to keep those priority clients from learning about monthly cash shortfalls and frequently paid those clients’ obligations ahead of other non-priority clients. “Priority” clients generally had large payrolls with deposits necessary to fund CenterCede’s short-term cash needs and keep the scheme afloat.
Court records show that when clients inquired about failures to pay obligations, the conspirators took steps to conceal the fraud by providing false excuses and misleading explanations. According to the indictment to which Moody pleaded guilty, when a client company asked why its tax payments had not been paid, Moody wrote “John [Thigpen] has told me it was a over site [sic] in the Tax department and all is fixed. No problems with [victim client company].” In truth and fact, that client’s taxes had been intentionally unpaid in favor of the payment of “priority” client obligations.
The conspiracy charge carries a maximum of five years in prison and a $250,000 fine. As part of his plea agreement, Moody has agreed to pay restitution to his victims, the amount of which will be determined by the Court.
The investigation for the case is being handled by USPIS and IRS-CI. Assistant U.S. Attorneys Corey F. Ellis and Taylor J. Phillips of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Federal jury finds Raleigh County man guilty of crimes involving witness tampering and obstruction of justiceRead the Press Release
BECKLEY, W.Va. – A federal jury sitting in Beckley returned a guilty verdict yesterday in the trial of a Raleigh County man for conspiracy to tamper with a witness and aiding and abetting obstruction of justice, announced United States Attorney Carol Casto. Mark Radcliffe, 59, of Shady Spring, was convicted following a three-day jury trial.
On December 23, 2015, Seth Radcliffe, the son of Mark Radcliffe, was facing kidnapping charges in an unrelated case. Witnesses for the United States testified that Mark Radcliffe directed Jimmie Harper, a codefendant, to take actions to illegally influence Seth Radcliffe’s case. Harper testified that immediately following Seth Radcliffe’s arrest for kidnapping on December 23, 2015, he and Mark Radcliffe began discussing how they needed to get a witness to minimize Seth Radcliffe’s actions. Harper further testified that he and Mark Radcliffe formed a plan on December 24, 2015, to have a witness lie to law enforcement about the kidnapping.
Harper additionally testified that on January 24, 2016, he met with witnesses in Seth Radcliffe’s case in an attempt to influence testimony before a federal grand jury. Before the meeting, Harper testified that he spoke to Mark Radcliffe about the plan and obtained a letter written by Seth Radcliffe that was read aloud during the meeting. Harper also testified that during the same meeting, at Mark Radcliffe’s direction, he emphasized that the kidnapping charges against Seth Radcliffe needed to go away because of the severe penalties. Harper additionally testified that he suggested, also at Mark Radcliffe’s direction, limiting answers that could be damaging to Seth Radcliffe by responding with “I don’t know” or “I don’t remember.” Harper testified that Seth Radcliffe’s letter was not factually correct, and that he and Mark Radcliffe intended to corruptly influence witness testimony.
Text messages and phone calls admitted into evidence during the trial showed significant communication between Mark Radcliffe and Jimmie Harper prior to Harper’s meeting with the witnesses. Additionally, calls between Seth Radcliffe and Mark Radcliffe that were also admitted into evidence showed extensive communication regarding an unlawful strategy to get Seth Radcliffe’s charges dismissed.
Radcliffe faces up to 20 years in federal prison for conspiracy to tamper with a witness and up to 10 years in federal prison for aiding and abetting the obstruction of justice. He is scheduled to be sentenced on February 1, 2017. Harper was sentenced in August 2016 to seven years for an unrelated federal arson crime, followed by a consecutive sentence of two years for the witness tampering crime.
The West Virginia State Police, the Raleigh County Sheriff’s Office, and the FBI conducted the investigation. Assistant United States Attorneys Monica D. Coleman and Haley Bunn handled the prosecution and tried the case before a federal jury. United States District Judge Irene C. Berger presided over the trial.
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Evansville man convicted at trial in child pornography caseRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today that Alan E. Claridge, Jr., 46, of Evansville, Indiana, has been convicted of two counts of possession of sexually explicit material involving minors and three counts of receipt of sexually explicit material involving minors. Claridge was convicted following a two-day jury trial before United States District Court Chief Judge Richard L. Young, in Evansville. The investigation which led to the charges against Claridge was a cooperative effort by the Federal Bureau of Investigation and the Evansville Police Department.
“Protecting the most vulnerable of our society is a responsibility I take personally and remains a high priority in this office,” said Minkler. “Every time child pornography is viewed on the internet it revictimizes a child.”
Government attorneys presented evidence at trial that on August 10, 2012, an FBI task force officer (“TFO”) conducted an online investigation to identify persons possessing and sharing suspected child pornography using the internet. The TFO connected to a computer which contained child pornography that was made available for downloading by others through a shared folder accessible to the public. Several files from the computer were downloaded from the internet and determined to depict minors engaged in sexual poses and sex acts.
A subpoena was issued to the internet service provider and determined that the IP address was assigned to a customer named Alan E. Claridge, with an address in Evansville, Indiana. On February 19, 2013, the United States District Court issued a search warrant for the Evansville address based on the evidence law enforcement had gathered during their on-line investigation.
On February 19, 2013, the TFO and agents assisting him executed the search warrant at the Evansville address. Claridge was alone in his residence at the time of the search. When law enforcement executed the search, they observed that Claridge had been actively downloading file names indicative of child pornography.
Claridge agreed to make a statement about his computer use after being advised of the nature of the investigation. Claridge verified that he used the internet to search for and download pornography and further told investigators that he used a search term commonly associated with child pornography to search for material on the internet.
After the search was completed, the laptop computer and other storage media devices found during the search were examined and Claridge was arrested. During the forensic examination, numerous videos depicting minors engaged in sexually explicit conduct were discovered on the laptop and storage media devices.
According to Assistant United States Attorneys Todd Shellenbarger and Kyle Sawa who are prosecuting this case for the government, Claridge faces a term of imprisonment up to 20 years. A sentencing hearing has been set for January 17, 2017, before Chief Judge Richard L. Young.
Dupree Man Indicted for AssaultsRead the Press Release
United States Attorney Randolph J. Seiler announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and two counts of Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Miles Condon, age 25, was indicted on October 12, 2016. He appeared before U.S. Magistrate Judge Mark Moreno on October 14, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction of the two non-officer related assault charges is up to 10 years in custody. The maximum penalty upon conviction of the two officer-related assault charges is up to 8 years in custody. In each instance, the maximum fine is up to $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on August 3, 2016, in Dupree, Condon unlawfully assaulted the victim with a golf club, and that the victim sustained serious bodily injury as a result. The indictment also alleges that on August 3, 2016, and again on September 7, 2016, in Dupree, Condon forcibly assaulted, resisted, opposed, impeded, intimidated and interfered with a federal law enforcement officer who was engaged in, and on account of, the performance of his official duties, and that said conduct involved physical contact with the federal officer.
The charge is merely an accusation and Condon is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services, and the Ziebach County Sheriff’s Office. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Condon was remanded to the custody of the United States Marshals Service pending trial. A trial date has not been set.
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Drug Arrests Lead to Recovery of 119 Pounds of Cocaine and Stacks of CashRead the Press Release
NEWPORT NEWS, Va. – Criminal charges were filed this morning in Newport News against four men for their alleged involvement in a large-scale cocaine trafficking conspiracy. When the men were arrested on Thursday law enforcement officers seized approximately 54 kilograms (119 pounds) of cocaine and 100 bundles of shrink wrapped cash containing $5,000 to $10,000 each.
Marvin O’Neal Carter, Sr., 49, of Newport News; Daniel Rodriguez, aka Daniel Lopez-Rodriguez, 49, of California; Hilario Rodriguez, aka Hilario Lopez-Rodriguez, 50, of California; and Michael Stephen Kuna, 42, of Canada, were charged by criminal complaint with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. The men are scheduled to make their initial appearances today at 4 p.m. at the federal courthouse in Norfolk.
According to the affidavit on support of the criminal complaint, yesterday agents observed the arrival of a tractor trailer at a garage leased by Carter. The tractor trailer eventually off-loaded the trailer next to the garage, and shortly thereafter agents observed Michael Kuna, and Daniel and Hilario Rodriguez arrive and park in Carter’s garage parking lot. The four men then allegedly worked together to unload cocaine from hidden compartments located underneath the trailer. A short time later, Kuna was observed loading two large duffel bags with green straps into a vehicle before leaving the area. Law enforcement agents conducted a traffic stop on Kuna and located the two duffle bags which emanated with the odor of wet currency.
According to the affidavit on support of the criminal complaint, as Kuna was being detained, members of the DEA, FBI, and Newport News Police executed two federal search warrants on the garage and on the trailer. During the search, agents recovered approximately 54 kilograms of cocaine and 100 bundles of cash in $5,000 to $10,000 stacks. The search of the garage also led to the recovery of a firearm and a quantity of heroin, in addition to approximately $42,000 in cash from a safe.
Each defendant faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; Jonathan F. Trimble, Acting Special Agent in Charge of the FBI’s Norfolk Field Office; Richard W. Myers, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after the charges were filed. Assistant U.S. Attorney Howard J. Zlotnick and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-mj-200.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
District Man Sentenced to 60 Years in Prison for Home Invasions and Sexual AssaultRead the Press Release
WASHINGTON – Antwon Pitt, 22, of Washington, D.C., was sentenced today to 60 years in prison on charges involving two home invasions, including one in which he sexually assaulted a woman in Southeast Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
In one of the two incidents, Pitt was found guilty by a jury on June 8, 2016, of charges of first-degree sexual abuse, kidnapping, first-degree burglary, robbery, threats, and felony assault. In the other, he pled guilty on Sept. 29, 2016, to a charge of second-degree burglary.
The Honorable Florence Pan sentenced Pitt to the 60-year prison term. Following completion of that time, he will be placed on supervised release and required to register as a sex offender for the rest of his life.
“Antwon Pitt terrorized two women in separate attacks over one week, invading their homes while one was sleeping and the other doing work,” said U.S. Attorney Phillips. “Today’s sentence will protect our community from this dangerous predator for decades.”
According to the government’s evidence, the first incident took place on Oct. 6, 2015, at approximately 6:15 a.m. Pitt entered an apartment unit on Michigan Avenue NE, with the intent to steal. Once inside the apartment, he entered a bedroom where a young woman was sleeping. She woke up and saw the defendant, whom she did not know, with her cell phone in his hand. After a brief verbal exchange, Pitt left the apartment, taking with him several items belonging to the woman, including her cell phone, a tote bag, her wallet, multiple identification cards, a debit card, a Metro card, and other personal items. This case led to Pitt’s guilty plea.
The second incident took place on Oct. 13, 2015, at approximately 2:10 p.m. According to the government’s evidence, the victim was alone and working at home on her computer. Suddenly she saw Pitt standing in her apartment. He had entered through an unlocked door. After learning that the woman was alone, he grabbed her and slammed her onto the floor. He proceeded to violently press his hand over the victim's mouth and nose as he forced her down the hall with his other hand around her throat. Once in the victim's bedroom, he raped the victim on her own bed. After the rape, he took the victim's phone, demanded her passcode, and left. The victim was taken to the hospital where she was treated for her injuries, which included fractured facial bones requiring surgery.
The Metropolitan Police Department (MPD) obtained surveillance footage from the alley by the victim's building showing a suspect walking through the alley after the rape wearing a backpack and bright orange shoelaces. MPD was then able to track the victim's phone to a gas station in Mitchellville, Md., where Pitt, who matched the description of the person in the surveillance footage and the description provided by the victim, was stopped. At the time of his stop, Pitt had the victim's phone and checks made out to the victim's husband, as well as a pair of gloves. Pitt’s DNA and the victim's DNA were found on gloves. Pitt also had the wallet and various other items belonging to the victim of the first home invasion.
At the time of the crimes, Pitt was on release in a pending drug case. He has remained in custody since his arrest.
In announcing the sentence, U.S. Attorney Phillips and Interim Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Secret Service, the FBI, the U.S. Marshals Service, the Metro Transit Police Department, the District of Columbia Department of Forensic Sciences, Sorenson Forensics, and Signature Science, LLC. He acknowledged the efforts of a team that worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donhue Troy Griffith and D’Yvonne Key, Victim/Witness Advocates Tracey Hawkins and Veronica Vaughan, and Criminal Investigator John Marsh. Finally, they commended the work of Assistant U.S. Attorneys Sarah McClellan and Luke Jones, who investigated and prosecuted the case.
District Man Sentenced to 15 Years in Prison for Shooting in Northeast WashingtonRead the Press Release
WASHINGTON – Jason Edwards, 32, of Washington, D.C., was sentenced today to 15 years in prison on charges stemming from an incident last Halloween in Northeast Washington in which he shot a man, U.S. Attorney Channing D. Phillips announced.
Edwards was found guilty in June 2016 by a jury in the Superior Court of the District of Columbia of one count of assault with intent to kill while armed, one count of assault with significant bodily injury while armed, two counts of possession of a firearm during a crime of violence, and one count of unlawful possession of a firearm. He was sentenced by the Honorable Anita Josey-Herring. After his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on October 31, 2015, Edwards arranged to purchase marijuana from the victim, his former coworker. The two men communicated via text message to set up the meeting. Edwards had the victim meet him in the 3100 block of Channing Street, NE. Instead of purchasing marijuana, Edwards—who was wearing a Batman costume—took out a gun and shot the victim in the upper chest. As the victim ran away, Edwards chased him down the street and fired six additional shots, one of which struck the victim in his leg. Fortunately, neither gunshot wound was fatal. The victim was able to identify Edwards by first name within minutes of police arriving on the scene. During its investigation, the government obtained cell site data from Edwards’ phone that placed him in an area consistent with where the shooting took place.
In announcing the sentence, U.S. Attorney Phillips praised the work of those who worked on the case from the Metropolitan Police Department, the District of Columbia Department of Forensic Sciences, and the FBI. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Jennifer Clark and Jennifer Allen; Litigation Technology Specialists Leif Hickling, Anisha Bhatia and Aneela Bhatia; Investigative Analyst Zachary McMenamin, and Paralegal Specialist Donville Drummond, Nicole McGhee, and Kalisha Johnson-Clark. Finally, he commended the work of Assistant U.S. Attorneys Kondi Kleinman and Laura Crane, who investigated and prosecuted the case.
District Elections Officers Available Nov. 8 to Receive Complaints of Election Fraud or Voting Rights AbusesRead the Press Release
U.S. Attorney Joyce White Vance announced today that Assistant U.S. Attorneys Pat Meadows and Ramona Albin will lead the efforts of her office in connection with the Justice Department’s nationwide Election Day Program for the upcoming Nov. 8 general elections.
Vance appointed Meadows and Albin to serve as the district election officers for the Northern District of Alabama, and in that capacity they are responsible for overseeing the district’s handling of any complaints of election fraud or voting rights abuses in consultation with Justice Department headquarters in Washington, D.C.
“Every citizen must be able to vote without interference or discrimination, and to have that vote counted without it being stolen because of fraud,” Vance said. 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 so the public may 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 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 right to vote is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they so 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 Nov. 8, and to ensure that such complaints are directed to the appropriate authorities, Vance said that the district election officers, Meadows and Albin, will be on duty in the Northern District while the polls are open. The public can reach them at the following telephone number: (205) 244-2001.
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 public can reach the local FBI field office at 205-326-6166.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, D.C., 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.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate,” Vance said. “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.”
Dauphin County Couple Charged with Social Security Fraud, Harboring an Illegal Alien and Confiscating A Passport for Forced Labor and ServicesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Dauphin County couple was indicted by a federal grand jury on October 19, 2016, for social security fraud, harboring an illegal alien and confiscating a passport for forced labor and services.
According to United States Attorney Bruce D. Brandler, the grand jury alleges that Stephayne McClure-Potts, age 51, provided false information to the Commissioner of Social Security on numerous occasions with the intent to obtain a social security card with a fictitious identity for another person. Additionally, the grand jury alleged that McClure-Potts confiscated the passport and immigration documents of that citizen of Ukraine for labor and services and threatened to have that individual deported.
Finally, Stephayne McClure-Potts and her husband, Michael McClure-Potts, age 60, are both charged with harboring an illegal alien from March 2013 through August 2015. The indictment was unsealed today following the arrest of the defendants.
This case was investigated by the Department of State Diplomatic Security Service, the Social Security Administration Office of Inspector General and the City of Harrisburg Bureau of Police. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law, for each of Counts 1 and 3 is five years’ imprisonment, a term of supervised release of three years and a $250,000 fine. The maximum penalty under federal law, for Count 2 is ten years’ imprisonment, a three term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Colorado Energy Company Executive Pleads Guilty to Filing a False Claim Against the U.S.Read the Press Release
PITTSBURGH – The President and owner of North American Power Group Ltd. (NAPG) pleaded guilty in federal court to a charge of filing a False Claim against the United States, United States Attorney David J. Hickton announced today.
Michael J. Ruffatto, 70, of Englewood, Colorado, pleaded guilty to one felony count before United States Chief District Court Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on Dec. 8, 2009, the Department of Energy’s National Energy Technology Laboratory, located in Pittsburgh, Pennsylvania, awarded a multi-million dollar cooperative agreement to NAPG, a corporation headquartered in Denver, Colorado, that is owned and controlled by Ruffatto, an attorney and graduate of Stanford University.
The purpose of the agreement was to study the carbon sequestration potential of an 880-acre site in Campbell County, Wyoming. The agreement required NAPG to conduct field studies and to drill wells necessary for the study.
Instead of performing the work required under the cooperative agreement, Ruffatto fraudulently transferred millions of dollars of award monies into his personal bank account and used the award monies to fund an extravagant lifestyle. Ruffatto secretly filtered millions of dollars of award monies through Ruffatto’s wholly owned subsidiary, North American Land and Livestock, LLC, while falsely representing to the Department of Energy that the subsidiary was doing work on the project.
“Protecting federal taxpayer funds dedicated to energy-related development projects is an important responsibility,” stated U.S. Attorney Hickton. “Recovery Act funds were awarded to spur job creation, not to provide personal enrichment.”
Chief Judge Conti scheduled sentencing for Feb. 3, 2017. The law provides for a maximum total sentence of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Ruffatto on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Department of Energy, Office of Inspector General, conducted the investigation leading to the conviction in this case.
Chicago Woman Arrested in $5 Million Fraud Scheme Involving Bogus Business to Re-Sell Tickets to Concerts and Sporting EventsRead the Press Release
CHICAGO — A Chicago woman was arrested today for allegedly operating a multi-million dollar fraud scheme that duped investors into believing she could earn profits on the secondary market for concert and sporting event tickets.
TRACY MONTI fraudulently obtained more than $5 million from investors by misrepresenting that she would purchase tickets for sporting events and concerts from primary market sources at face value and then re-sell them for a profit on the secondary market, according to a nine-count indictment returned Thursday in federal court in Chicago. In reality, Monti used the victims’ funds to purchase a house in Chicago and a vehicle, and to make Ponzi-type payments to other investors, according to the indictment.
Monti, 42, of Chicago, was arrested this morning. She pleaded not guilty during an arraignment today before U.S. District Judge Manish S. Shah. Monti was ordered released on a recognizance bond, and a status hearing was scheduled for Nov. 9, 2016.
The indictment charges Monti with seven counts of wire fraud and two counts of money laundering. Each count of wire fraud is punishable by up to 20 years in prison, while each money laundering count carries a maximum sentence of ten years.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation; and James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
According to the indictment, Monti misrepresented to investors that she had business relationships with multiple primary market sources, such as event promoters and venues, through which she purportedly purchased tickets at face value. The indictment alleges that these relationships didn’t actually exist, and that Monti did not purchase tickets at face value.
The indictment seeks forfeiture of a house in the Austin neighborhood of Chicago and approximately $5.02 million in cash.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Jessica Romero.
Burke Resident Convicted of Multiple Armed RobberiesRead the Press Release
ALEXANDRIA, Va. – Larry Pyos, Jr., of Burke, was convicted late yesterday by a federal jury on charges related to multiple armed robberies of businesses in Fairfax County and Falls Church. Pyos will be sentenced on Jan. 13, 2017.
On August 11, 2016, Pyos was charged in an indictment with conspiracy, armed robbery, using firearms in committing those robberies and being a felon in possession of firearms. In two of the robberies he fired shots at employees. According to court records and evidence presented at trial, Pyos’ crime spree started on Christmas Eve 2015, when he robbed the Good Fortune Supermarket in Falls Church. Pyos, who was armed with a handgun, fired at a store employee who followed him as he fled. Pyos later robbed the Shri Krishna grocery store, the Dollar Power store, and the Ding How Carryout all in Springfield. Pyos next robbed the Hong Kong Palace Restaurant in Falls Church on April 26, 2016, and was again armed with a handgun that he fired at a pursuing employee as he fled. Pyos’ final robbery was of a Subway sandwich shop in McLean on May 9, 2016. Pyos was arrested on May 11, 2016, and has been in custody since that date. The two handguns Pyos used in committing these robberies were purchased by his girlfriend and co-conspirator, who previously pleaded guilty to charges arising from these robberies and testified at Pyos’ trial.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI's Washington Field Office; and Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after the verdict was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Tyler McGaughey and Michael Rich are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-178.
Buffalo Man Arrested on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Eli Clark, 25, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute 28 grams or more of crack cocaine The charge carries a minimum penalty of five years and a maximum penalty of 40 years in prison and a $5,000,000 fine.
Assistant U.S. Attorney Laura Higgins, who is handling the case, stated that according to the complaint, during the early hours of October 21, 2016, a search warrant was executed at the defendant’s house on Crowley Avenue in Buffalo. Police recovered approximately 250 grams of suspected crack cocaine inside Clark’s kitchen.
The defendant made an initial appearance this afternoon before the U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and in being held pending a detention hearing scheduled for October 24, 2016 at 10:30 a.m.
The criminal complaint is the result of an investigation by the Niagara County Drug Task Force, under the direction of Sheriff James Voutour, the Drug Enforcement Administration under the direction of Special Agent in Charge James J. Hunt, the Erie County Sheriff’s Department, under the direction of Timothy Howard and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Brea Man Who Operated Physical Therapy Clinics Convicted in Scheme that Stole Millions from Medicare ProgramRead the Press Release
SANTA ANA, California – A Brea man who operated rehabilitation clinics in Walnut, Torrance and Los Angeles has been convicted by a federal jury of defrauding Medicare out of millions of dollars.
Simon Hong (who is also known as Seong Wook Hong), 54, was convicted Wednesday of eight counts of healthcare fraud, nine counts of illegal kickbacks related to healthcare referrals and two counts of aggravated identity theft.
The scheme revolved around clinics operated by Hong’s companies called Hong’s Medical Management, Inc., CMH Practice Solution, and HK Practice and Solution, Inc. According to the evidence presented at trial, Hong conspired with others to submit false claims to Medicare. As part of the scheme, Hong recruited Medicare beneficiaries and provided uncovered services like massage and acupuncture for them. Even though the beneficiaries did not receive actual physical therapy, the co-conspirators billed Medicare for physical therapy, and then funneled 56 percent of the reimbursement funds back to Hong.
Through this scheme Hong and his co-conspirators billed Medicare from the spring of 2009 until November 2013 and received approximately $2,929,775 in reimbursements, of which Hong received approximately $1,640,674.
After the jury returned its verdicts, United States District Judge David O. Carter set Hong’s sentencing hearing for January 9, 2017, at which time Hong will face a statutory maximum sentence of 129 years in prison and a mandatory minimum sentence of two years in prison.
“Schemes that steal money from the Medicare program harm taxpayers and raise healthcare costs,” said United States Attorney Eileen M. Decker. “This case is a prime example of the Department of Justice’s focus on protecting the assets of the Medicare program and the health of Americans who participate in it.”
Hong is one of 10 defendants who were charged in 2015 and early 2016 for healthcare fraud related to physical therapy. Eight others have pled guilty, and one, David Y. Kim, 54, of Los Angeles, remains a fugitive. Those previously convicted in the investigation are:
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Joseff Sales, 39, of Buena park, pleaded guilty last January to one count of healthcare fraud and one count of illegal kickbacks;
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Danniel Goyena, 39, of Buena Park, pleaded guilty last December to two counts of healthcare fraud;
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Marlon Sonco, 39, of Sylmar, pleaded guilty in June 2015 to conspiracy;
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Eddieson Legaspi, 40, of Lomita, an employee of Rehab Dynamics, pleaded guilty in August 2015 to conspiracy to commit healthcare fraud;
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Ohun Kwon, 50, of Fullerton, the owner/operator of E.K. Medical Management, which referred patients to Rehab Dynamics, pleaded guilty in August 2015 to conspiracy to commit healthcare fraud and was sentenced last week to 27 months in federal prison;
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Leovigildo Sayat, 39, of Torrance, an employee of RSG Rehab, pleaded guilty in October 2015 to conspiracy to commit health care fraud;
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Byong Chun “David” Min, 68, of Irvine, co-owner/operator of Glory Rehab Team, which operated as Dream Hospital in Orange County, pleaded guilty in May to healthcare fraud and illegal kickbacks; and
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Jason S. Min, 35, of Irvine, David Min’s son, who was the other owner/operator of Glory Rehab, pleaded guilty last month to Obstruction of Justice.
“Mr. Hong exploited the Medicare system to generate millions in fraudulent proceeds at the expense of honest taxpayers,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This case should serve as a warning to others involved in health care fraud as Mr. Hong faces significant prison time after being found guilty by a jury at trial.”
“Medicare provides legitimate health care services for millions of older Americans,” said Christian J. Schrank, HHS OIG Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “Fraudulently billing the program for therapies never provided could cost Mr. Hong years in prison. As this conviction shows, not just providers, but business owners who are partners in these schemes, will pay a price. Together with our law enforcement partners, we will pursue all those involved in stealing from the Medicare trust funds.”
The investigation in these cases was conducted by the FBI and HHS-OIG. This case is being prosecuted by Assistant United States Attorneys Byron J. McLain and Sarah Heidel of the Major Frauds Section.
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Arizona man sentenced to 7 years in prison for traveling to Louisiana to have sex with minorRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that an Arizona man was sentenced Thursday to 84 months in prison for traveling from Texas to Louisiana to engage in sexual activity with a minor.
Jonathan Glosch, 26, of Golden Valley, Ariz., was sentenced by U.S. District Judge Patricia Minaldi on one count of traveling with intent to engage in illicit sexual conduct. He was also sentenced to 10 years of supervised release and must register as a sex offender. According to the July 8, 2016 guilty plea, Glosch was traveling with an Arizona family in November of 2015 on their way to Louisiana. The family asked Glosch to leave the trip while in Texas. The mother believed he was having an inappropriate relationship with their 14-year-old daughter. Glosch stayed in contact with the daughter telling her that he had feelings for her and that they would run away together. He stole an automobile while in Texas and followed the family to Morgan City, La. On December 3, 2015, he picked up the daughter without the family’s knowledge and drove to Lafayette Parish. Law enforcement agents used information provided by the parents to track the defendant. The juvenile female was found with Glosch in the back of the vehicle.
The FBI, Lafayette Parish Sheriff’s Office and Morgan City Police Department investigated the case. Assistant U.S. Attorney Robert F. Moore prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. 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.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
Anchorage Man Convicted of Possession of Cocaine with Intent to Distribute and Possession of Firearms as a FelonRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that, on Wednesday, October 19, 2016, a jury in Anchorage found Arnold Wesley Flowers, II, guilty of possession of cocaine with the intent to distribute and possession of firearms as a felon. The jury also agreed that Flowers should forfeit $19,275 in drug proceeds and two firearms.
Flowers, 41, of Anchorage, was by tried before U.S. District Judge Sharon L. Gleason in Anchorage.
Flowers was convicted of one count of possession of cocaine with intent to deliver and one count of being a felon in possession of firearms. Flowers was initially charged by indictment in April 2016, and then charged by a superseding indictment in May 2016, regarding an incident that occurred at his residence located in the Bayshore neighborhood of Anchorage.
Assistant U.S. Attorney Kelly Cavanaugh and Special Assistant U.S. Attorney Erin Bennett prosecuted the case for the United States.
The evidence established that APD officers arrived at Flowers’ house on March 29, 2016, with a search warrant. When the officers loudly announced their presence and ordered the residents to come out, everyone did except for Flowers. When APD officers went inside to get him, they found him coming from the upstairs master bedroom and bathroom area. In that bathroom, APD Vice Unit detectives found two ounces of cocaine packaged in clear, plastic sandwich baggies clogging the toilet. They also found another four ounces of cocaine – similarly packaged and dripping with water – hidden under the lining of the trashcan next to the toilet.
In Flowers’ adjacent master bedroom, detectives found two portable safes that held a total of $28,000 in cash. Each safe also held a loaded firearm: one Smith & Wesson .40 caliber handgun and one Glock 9 mm handgun with an extended magazine. One of the safes also smelled distinctly of cocaine. In the top drawer of a dresser in that bedroom, detectives found drug packaging materials: three boxes of sandwich baggies, a bag of rubber bands, and counterweights for balancing digital scales. The jury heard evidence that digital scales are used to weigh illegal drugs for sale. The drawer also had that distinct cocaine smell. In the kitchen, detectives found another box of sandwich baggies next to a digital scale.
The jury also heard evidence that Flowers had $1,275 in cash in the front pocket of his pants during the search. Flowers maintained that the cash in his pocket and his safes derived from sales of high-end watches. However, during the search of the residence, the APD officers did not find any watch inventory or documents that would support that Flowers was actively engaged in the sale of watches.
At the time of the search, Flowers had previously been convicted of a felony crime punishable by more than one year of imprisonment and was prohibited from the possession of firearms or ammunition.
Flowers and his wife, Miranda Flowers, await trial on charges of wire fraud. That trial is scheduled to commence in U.S. District Court in Anchorage, Alaska, on December 5, 2016.
Ms. Loeffler commended the Anchorage Police Department, the Federal Bureau of Investigation Safe Streets Task Force, the State of Alaska Division of Insurance, the Bureau of Alcohol, Tobacco, and Firearms, the Drug Enforcement Administration, and the Internal Revenue Service Criminal Investigations Section for the investigation leading to the successful prosecution and conviction of Flowers. The Municipality of Anchorage has partnered with the U.S. Attorney’s Office since 2007 to address violent crimes and drug crimes by supplying prosecutorial resources to the U.S. Attorney’s Office. Ms. Bennett is an Anchorage municipal prosecutor.
Alleged Architect of $30 Million Mortgage Relief Fraud Scheme and Four Others Indicted in Conspiracy to Defraud Banks and HomeownersRead the Press Release
The alleged architect of a $30 million mortgage relief fraud scheme and four other former employees of a purported mortgage relief company were charged in an indictment unsealed today for their alleged participation in a conspiracy to defraud banks and homeowners.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Division, Acting Special Agent in Charge Charge Anthony J. Orlando of the Internal Revenue Service-Criminal Investigation (IRS-CI) Los Angeles Field Office, Special Agent in Charge Leslie P. DeMarco of the Federal Housing Finance Agency-Office of Inspector General’s (FHFA-OIG) Western Region and Sheriff Jim McDonnell of the Los Angeles County Sheriff’s Department made the announcement.
Yun Soon Matsuba, aka Dorothy Matsuba, 65; Thomas Matsuba, 64; Jane Matsuba Garcia, 40; and Jamie Matsuba, 31, all of Chatsworth, California, and Young Park, 53, of Koreatown, California, were each charged with one count of conspiracy to commit wire fraud, make false statements and commit identity theft. In addition, the 18-count indictment charges Dorothy Matsuba with five counts of wire fraud, five counts of making false statements and six counts of aggravated identity theft; Jane Matsuba Garcia with one count of wire fraud, two counts of making false statements and one count of aggravated identify theft; and Jamie Matsuba with one count of making a false statement.
Dorothy Matsuba, Thomas Matsuba, Jane Matsuba Garcia and Jamie Matsuba were all arrested this morning; Park remains a fugitive. Thomas Matsuba is Dorothy Matsuba’s husband and Jane Matsuba Garcia and Jamie Matsuba are Dorothy Matsuba’s daughters. Young Park is Dorothy Matsuba’s brother.
The indictment alleges that from 2005 to 2014, the defendants operated an interlocking web of companies, primarily under the names of Ownership Management Service LLC and Trust Holding Service LLC, which purported to help homeowners obtain relief from high mortgage debt through short sales, in which lenders agree to sell a mortgaged property for less than the amount owed on the mortgage. In a scheme to defraud both the banks and the homeowners the defendants allegedly convinced homeowners to deed their property to trusts set up and controlled by the Matsubas and also promised to pay their mortgages while negotiating with banks to short sell those properties. In the interim, the homeowners either remained in their properties or were relocated to another Matsuba-controlled property. Instead of performing short sales as promised, Dorothy Matsuba and the other defendants failed to make mortgage payments and submitted false and fraudulent short sale purchase offers to the banks in an effort to delay foreclosure and maximize the time period over which the Matsubas could collect rent from the homeowners and other third parties placed in the properties by the Matsubas, the indictment alleges. The Matsubas also routinely forged signatures, used false and stolen identities and filed fraudulent bankruptcy petitions—all in a scheme to delay foreclosure and maximize their profits at the expense of the homeowners and banks, the indictment alleges.
The scheme allegedly netted the defendants more than $30 million in rent during the conspiracy period.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Los Angeles Division, IRS-CI’s Los Angeles Field Office, FHFA-OIG’s Western Region and the Los Angeles County Sheriff’s Department’s Real Estate Fraud Unit investigated the case. Trial Attorney Niall O’Donnell and Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Nicholas Acker previously worked on the investigation.
Alleged Architect of $30 Million Mortgage Relief Fraud Scheme and Four Other Los Angeles Residents Indicted in Conspiracy to Defraud Banks and HomeownersRead the Press Release
WASHINGTON – The alleged architect of a $30 million mortgage relief fraud scheme and four other former employees of a purported mortgage relief company were charged in an indictment unsealed today for their alleged participation in a conspiracy to defraud banks and homeowners.
Yun Soon Matsuba, aka Dorothy Matsuba, 65; Thomas Matsuba, 64; Jane Matsuba Garcia, 40; and Jamie Matsuba, 31, all of Chatsworth, and Young Park, 53, of Koreatown, were each charged with one count of conspiracy to commit wire fraud, make false statements and commit identity theft. In addition, the 18-count indictment charges Dorothy Matsuba with five counts of wire fraud, five counts of making false statements and six counts of aggravated identity theft; Jane Matsuba Garcia with one count of wire fraud, two counts of making false statements and one count of aggravated identify theft; and Jamie Matsuba with one count of making a false statement.
Dorothy Matsuba, Thomas Matsuba, Jane Matsuba Garcia and Jamie Matsuba were all arrested this morning and are making court appearances this afternoon; Park remains a fugitive. Thomas Matsuba is Dorothy Matsuba’s husband and Jane Matsuba Garcia and Jamie Matsuba are Dorothy Matsuba’s daughters. Young Park is Dorothy Matsuba’s brother.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Division, Acting Special Agent in Charge Anthony J. Orlando of IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office, Special Agent in Charge Leslie P. DeMarco of the Federal Housing Finance Agency-Office of Inspector General’s (FHFA-OIG) Western Region and Sheriff Jim McDonnell of the Los Angeles County Sheriff’s Department made the announcement.
“These defendants are charged with preying upon distressed homeowners with false promises of keeping their homes,” said United States Attorney Eileen M. Decker. “Instead, the defendants callously pocketed tens of millions of dollars for themselves while hastening foreclosure of the victim homeowners’ properties.”
“Today’s arrests illustrate the FBI’s commitment to combat fraud targeting homeowners, as in the case of the Matsuba family, whose members are charged in a scheme that targeted emotionally distraught victims, many of whom were losing their jobs and facing the loss of their homes,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “In addition to giving false hope to their victims, the defendants enriched themselves while victims lost their homes and had their credit destroyed.”
The indictment alleges that from 2005 to 2014, the defendants operated an interlocking web of companies, primarily under the names of Ownership Management Service LLC and Trust Holding Service LLC, which purported to help homeowners obtain relief from high mortgage debt through short sales, in which lenders agree to sell a mortgaged property for less than the amount owed on the mortgage. In a scheme to defraud both the banks and the homeowners the defendants allegedly convinced homeowners to deed their property to trusts set up and controlled by the Matsubas and also promised to pay their mortgages while negotiating with banks to short sell those properties. In the interim, the homeowners either remained in their properties or were relocated to another Matsuba-controlled property. Instead of performing short sales as promised, Dorothy Matsuba and the other defendants failed to make mortgage payments and submitted false and fraudulent short sale purchase offers to the banks in an effort to delay foreclosure and maximize the time period over which the Matsubas could collect rent from the homeowners and other third parties placed in the properties by the Matsubas, the indictment alleges. The Matsubas also routinely forged signatures, used false and stolen identities and filed fraudulent bankruptcy petitions—all in a scheme to delay foreclosure and maximize their profits at the expense of the homeowners and banks, the indictment alleges.
The scheme allegedly netted the defendants more than $30 million in rent during the conspiracy period.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Los Angeles Division, IRS-CI’s Los Angeles Field Office, FHFA-OIG’s Western Region and the Los Angeles County Sheriff’s Department’s Real Estate Fraud Unit investigated the case. Trial Attorney Niall O’Donnell and Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section are prosecuting the case. Senior Trial Attorney Nicholas Acker previously worked on the investigation.
6 Charged with Unlawfully Entering Restricted Grounds Surrounding the Democratic National ConventionRead the Press Release
Name Age City and State of Residence Travis G. Martin 29 Houston, TX Lincoln E. Bohn 24 Manteca, CA Jacob J. Van Buskirk 34 Tacoma, WA Danny E. Nguyen 19 Gaithersburg, MD Natalie M. Fraver 27 Portland, OR Megan T. Munk 27 Forks, WA
The following people were charged by Information today with unlawfully entering restricted grounds surrounding the Democratic National Convention while the President was in attendance, in violation of 18 U.S.C. 1752(a)(1), announced United States Attorney Zane David Memeger.If convicted, each defendant faces a maximum possible sentence of one year imprisonment.
The case was investigated by Department of Homeland Security and is being prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
20 October 2016
Youngstown man indicted for failing to register as sex offenderRead the Press Release
A federal grand jury returned a one-count indictment charging Todd J. Kniseley, aka Todd J. Kniceley, 27, of Youngstown, with failing to register and update a registration as a sex offender as required by law, said U.S. Attorney Carole S. Rendon.
The indictment alleges that beginning at least as early as October 22, 2015 until in or about October 5, 2016, Kniseley traveled in interstate commerce and knowingly failed to register and update a registration pursuant to the Sex Offender Registration and Notification Act.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Jason M. Katz following an investigation by the United States Marshal Service.
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.
Woman Sentenced for Unlawful Transfer of Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SILVIA MARIA GARCIA-COYADO, age 34, last residing in Houma, was sentenced today after previously pleading guilty to a three-count Indictment for unlawful transfer of identification documents.
U.S. District Judge Nannette Jolivette Brown sentenced GARCIA-COYADO to 7 months imprisonment, followed by 1 year supervised release, and a $100 special assessment. Following GARCIA-COYADO’s release from prison, she will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, on or about January 20, 2016, GARCIA-COYADO provided a confidential informant with a Texas identification card and a Social Security card in exchange for $120. The documents provided had the name, photograph, and date of birth specified by the informant. The Social Security number on the card was associated with an actual person who was not the person identified on the card. On May 25, 2016, and June 2, 2016, GARCIA-COYADO provided an undercover agent with Texas identification cards and Social Security cards in exchange for money. The documents had the name, photograph, and date of birth specified by the agent. The Social Security numbers on the cards were associated with actual people who were not those identified on the cards.
U.S. Attorney Polite praised the Department of Homeland Security and the Louisiana State Police in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Wisconsin Man Pleads Guilty to Attempting to Provide Material Support to ISILRead the Press Release
Joshua Van Haften, 34, of Madison, Wisconsin, pleaded guilty to attempting to provide material support and resources, namely himself as personnel, to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord and U.S. Attorney John W. Vaudreuil for the Western District of Wisconsin.
Van Haften admitted that in 2014, he attempted to provide material support to ISIL, knowing that the organization was a designated terrorist organization that has engaged and engages in terrorism.
According to the government’s evidence, Van Haften traveled to Turkey in 2014 and attempted to cross into Syria. He posted online that he had taken an oath of allegiance to the leader of ISIL, and that “The only thing that matters to me is joining my brothers for the war against America [sic] liars.”
Van Haften was arrested at O’Hare Airport in Chicago, Illinois in April 2015, after his arrival in custody on an international flight from Turkey. He has been held in federal custody since his arrest.
U.S. District Judge James D. Peterson scheduled sentencing for February 17, 2017 at 1:00pm CDT. Van Haften faces a maximum penalty of 15 years in federal prison.
The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The charge against Van Haften is the result of an investigation by the Joint Terrorism Task Force, the members of which include the FBI; Wisconsin Department of Justice, Division of Criminal Investigation; Dane County Sheriff’s Office; and University of Wisconsin Police Department. Assistance was also provided by DHS.
The case is being prosecuted by First Assistant U.S. Attorney Jeffrey Anderson for the Western District of Wisconsin and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
Williamsport Man Charged with Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Scranton returned an Indictment on October 18, 2016, charging Morris Smith, age 33, a resident of Williamsport, Pennsylvania, with possession with intent to distribute cocaine.
According to United States Attorney Bruce D. Brandler, the Indictment charges Smith with possessing cocaine in March 2016, with the intent to distribute it in the Williamsport area. Smith was also charged with possession of a firearm in furtherance of his drug activities, and a separate felony charge for possessing a firearm as a convicted felon.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Williamsport Bureau of Police. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law include 20 years of imprisonment for possessing with intent to distribute cocaine, 10 years’ imprisonment for felon in possession of a firearm, a five year mandatory term of imprisonment for possessing a firearm in furtherance of a drug crime, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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West Virginia man indicted for inducing underage girl to engage in illicit conductRead the Press Release
Michael A. Wilt, 56, fo Buckhannon, West Virginia, was charged with enticement and travel with intent to engage in illicit sexual conduct, said U.S. Attorney Carole S. Rendon.
Wilt used a compuer and cellular phone from August 8 through September 15, 2016, to attempt to persuade, induce, entice and coerce a 14-year-old girl, to engage in illegal sexual activity with him. The indictment also charges on or about September 15, 2016, Wilt knowingly traveled from West Virginia to Ohio, for the purpose of engaging in illicit sexual conduct, as defined in Title 18, United States Code, Section 2423(f), with a 14 year‑old girl.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Ohio Internet Crimes Against Children Task Force and the Department of Homeland Security, Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Warren man sentenced to a year in prison for mailing white powder to former employerRead the Press Release
A Warren man was sentenced to one year and one day of incareceration for mailing an envelope containing white powder to his former workplace, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Anthony J. Natale, 38, previously pleaded guilty to with one count of conveying false information related to the use of a weapon of mass destruction.
Natale mailed an envelope containing white powder via the United States Postal Service to American Business Center, at 7677 South Avenue, Youngstown, on November 10, 2014. This was done with the intent to convey false and misleading information related to the use of a weapon of mass destruction, according to court documents.
Natale formerly worked at American Business Center. He was terminated on Oct. 6, 2014, according to court documents.
He was ordered to pay $9,834.13 to the victim company, and $14,361.90 to the first responders. He will also serve three years of probation and pay a $100 special assessment.
The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, and was investigated by the Federal Bureau of Investigation and Mahoning County Sheriff's Office.
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.
Vian Man Sentenced to 57 Months for Possession of Stolen FirearmsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that CHRISTOPHER JORDAN LEE FOREMAN, age 22, of Vian, Oklahoma, was sentenced to 57 months of imprisonment, followed by 3 years of supervised release, for POSSESSION OF STOLEN FIREARMS, in violation of Title 18, United States Code, Sections 922(j) and 2, punishable by not more than 10 years of imprisonment, up to a $250,000.00 fine or both.
The Indictment alleged that from on or about August 29, 2015, in the Eastern District of Oklahoma, FOREMAN did knowingly possess stolen firearms, all of which had been shipped and transported in interstate commerce either before or after being stolen.
The charges arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco and Firearms.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. FOREMAN will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Timothy Hammer represented the United States.
Vero Beach Couple Sentenced for Selling Fraudulent Immigration and Identification Documents to Undercover AgentsRead the Press Release
Yesterday, a Vero Beach couple was sentenced for their roles in making and selling homemade immigration and identification documents, by U.S. District Court Judge Robin L. Rosenberg in Ft. Pierce, Florida.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Leynadier Rodriguez Velasquez, 45, of Vero Beach, was sentenced to two years’ imprisonment, followed by 2 years’ supervised release. He also faces deportation proceedings upon release. Vanesa Fonseca, 27, of Vero Beach, was sentenced to 12 months’ house arrest and two years’ probation. Rodriguez Velasquez previously pled guilty to possession with the intent to use unlawfully and to transfer unlawfully, five or more false identification documents, in violation of Title 18, United States Code, Section 1028(a)(3); and immigration document fraud, in violation of Title 18, United States Code, Section 1546(a). Fonseca previously pled guilty to possession with the intent to use unlawfully and to transfer unlawfully, five or more false identification documents, in violation of Title 18, United States Code, Section 1028(a)(3).
According to court records, including stipulated facts supporting the guilty pleas, in December 2014, Rodriguez arranged to sell an undercover agent five sets of fraudulent immigration documents, each with a Legal Permanent Resident and Social Security card, for a total of ten documents for $1,500 in Vero Beach. The documents were later delivered by Fonseca. In April 2016, an undercover agent purchased four sets of documents, each with a Legal Permanent Resident and a Social Security card, for a total of eight documents for $1,500, directly from Rodriguez in Vero Beach. Pursuant to the investigation, on June 16, 2016, HSI agents executed a federal search warrant at the residence of Rodriguez and Fonseca. An HSI Computer Forensic Agent located over 400 false identification documents on the computer hard drives and cellular phone of Rodriguez, including Social Security, Legal Permanent Resident and Florida identification cards, some of which dated back to 2011. The documents included some of the items that had been sold to the undercover agent. Additionally, law enforcement discovered Rodriguez’s computer, printer, laminating plastic and the machine used to produce the fraudulent documents. Agents also found papers with driver’s licenses and a fraudulent Social Security card with Rodriguez’s name and photo.
Mr. Ferrer commended the investigative efforts of ICE-HSI, Florida Alcohol, Tobacco, and Business Regulation and United States Customs and Border Protection for their work on this case. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
United States Attorneys Jointly Announce Election Day ProgramRead the Press Release
United States Attorneys John W. Vaudreuil of the Western District of Wisconsin and Gregory J. Haanstad of the Eastern District of Wisconsin announced today that they have appointed Assistant United States Attorneys to lead the efforts of their respective offices in connection with the Justice Department’s nationwide Election Day Program for the November 8, 2016 elections.
AUSA Peter Jarosz has been appointed to serve as the Election Officer for the Western District of Wisconsin, which covers Madison and approximately the western 44 counties of the state. AUSAs Zachary Corey and Christopher Ladwig have been appointed to serve as the Election Officers for the Eastern District, which covers Milwaukee and approximately the eastern 28 counties of the state. As Election Officers, in consultation with Justice Department Headquarters in Washington, these AUSAs are responsible for overseeing the handling of complaints of voting rights abuses and election fraud in their respective districts.
“Wisconsin's proud history is one of expanding the opportunity to vote, and ensuring that every citizen votes without interference or discrimination” said United States Attorney Vaudreuil. “This Department will never yield in its commitment to protecting that most sacred of Americans' rights - the right to vote.”
United States Attorney Haanstad added, “The right to vote is the cornerstone of American democracy. We all must work to ensure that those who are entitled to vote are free to exercise that right if they choose, and that those who seek to interfere with that right are brought to justice.”
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 or 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.
In order to respond to complaints of voting rights abuses or election fraud on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, the Election Officers will be on duty in their districts while the polls are open.
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 in Madison can be reached by calling (608) 833-4600. The FBI in Milwaukee can be reached by calling (414) 276-4684.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington 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.
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Ukrainian National Pleads Guilty to Contraband CigarettesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Ukrainian national pleaded guilty in federal court today to transporting thousands of cartons of cigarettes from Missouri to Chicago, Ill., in order to avoid paying nearly $160,000 in excise taxes.
Yevhen Sychikov, 32, a citizen of Ukraine residing in Chicago, pleaded guilty before U.S. District Judge Dean Whipple to the interstate transportation of contraband cigarettes.
According to today’s plea agreement, Sychikov purchased large quantities of cigarettes at convenience stores in northwest Missouri then transported them back to Chicago, which has a much higher excise tax on cigarettes.
Sychikov purchased cigarettes from Trex Mart in Lathrop, Mo.; Discount Smoke and Liquor Store in Riverside, Mo.; and Tipsy Liquor in Smithville, Mo. On May 10, 2014, Sychikov purchased 20 cases (1,200 cartons) of cigarettes and transported them back to Chicago. On June 14 and 15, 2014, Sychikov purchased 1,395 cartons of cigarettes and transported them back to Chicago.
The tax rate on cigarettes in Missouri is 17 cents per pack. The Illinois state excise tax on cigarettes is $1.98 per package. Cook County, Ill., imposes an excise tax of $3 per package and the city of Chicago imposes an additional tax of $1.18 per package. Therefore, in the city of Chicago, the total excise tax is $6.16 per pack. The tax loss to Illinois, Cook County, and the city of Chicago was a total of $159,852.
Under federal statutes, Sychikov is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives NITRO Task Force.
USP Allenwood Inmate Charged with Assault and Possession of ContrabandRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on October 18, 2016, a grand jury in Scranton charged Robert Stoddard, age 46, an inmate at United States Penitentiary, Allenwood, Pennsylvania, (USP Allenwood) with assault with a dangerous weapon and possession of contraband.
According to United States Attorney Bruce Brandler, the Indictment alleges that Stoddard attacked another inmate with a weapon fashioned from a razor blade (commonly known as a “shank”). The victim required over fifty stitches for his wounds.
The investigation was conducted by the Federal Bureau of Investigation and officers at USP Allenwood. The case is being prosecuted by Assistant United States Attorney Sean A. Camoni.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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U.S. Attorney’s Office, DEA, and Challenge of Tarrant County Continue Efforts to Raise Awareness of Dangers of Prescription Drug AbuseRead the Press Release
FORT WORTH, Texas – At a press event held this afternoon, U.S. Attorney John Parker of the Northern District of Texas, Assistant Special Agent in Charge Calvin Bond of Dallas DEA, and Executive Director Jennifer Gilley of Challenge of Tarrant County discussed their combined and continued efforts in raising awareness of the dangers of prescription drug abuse. October 2016 has been proclaimed National Youth Substance Use and Substance Use Disorder Prevention Month by President Obama.
The press event was held at Cinemark Alliance Town Center in far north Fort Worth. Stay on Track, a program of Challenge of Tarrant County, is sponsoring the theatre campaign in which Cinemark Alliance Town Center will run a public service announcement (PSA) –recently produced by the U.S. Attorney’s Office to address the dangers of prescription drug abuse – in advance of its feature films.
Since the home medicine cabinet is the number-one source of prescription pills for teens and young adults, Assistant Special Agent in Charge Bond announced that this Saturday, October 22, 2016, is National Prescription Drug Take-Back Day, and stressed that Take-Back Day provides a safe, convenient and responsible means of disposing of unused prescription drugs. There are numerous collection sites throughout the Dallas-Fort Worth metroplex; find the location closest to you here.
Next week is also DEA Red Ribbon Week, the nation’s oldest and largest drug prevention program that reaches millions of Americans during the last week of October each year. By wearing red ribbons and participating in community “Living Drug Free” events, youngsters pledge to live a drug-free lifestyle and pay tribute to DEA Special Agent Enrique “Kiki” Camarena, whose tragic murder in 1985 by drug traffickers in Mexico, where he was investigating that country’s biggest marijuana and cocaine traffickers, brought needed attention to the dangers of drugs and the international scope of the drug trade.
Challenge of Tarrant County continues its anti-drug efforts with PSAs in movie theatres in Tarrant County as well as during football games at the Keller ISD Athletic complex. It has also sponsored billboards in Tarrant County with the messages “Don’t let a prescription become an addiction. Safe Use/Safe Storage/Safe Disposal,” and “Before it’s prescribed, you decide.” Challenge of Tarrant County also has implemented prescription drug abuse prevention campaigns throughout Keller and Keller ISD.
Last month, Challenge of Tarrant County sponsored two highly successful events that brought community leaders and stakeholders together to address substance abuse prevention priorities, including prescription drug misuse and abuse in adolescents and young adults, underage drinking, and binge drinking. One event, a Prescription Town Hall meeting in Keller was attended by more than 100 members of the Keller Community. The other, a day-long symposium, “When the Prescription Becomes the Problem: A Community Response to the Opiate Epidemic” was attended by more than 800 individuals.
During Saturday’s Take-Back Day, Challenge of Tarrant County will be working with the Keller Police Department and Cook Children’s Pediatric, and their Lock Your Meds Campaign will run in conjunction with DEA’s Red Ribbon Week.
For more information about Stay on Track Challenge of Tarrant County, contact Cynthia Velazquez, program director, at [email protected]
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U.S. Attorney’s Office provides 2016 elections informationRead the Press Release
SHREVEPORT / LAFAYETTE, La. – United States Attorney Stephanie A. Finley advises the public today of the U.S. Attorney’s Office’s role during the upcoming November 8, 2016 general elections and the Justice Department’s nationwide Election Day Program.
“Early voting begins on Tuesday, October 25th in Louisiana, and I want to provide the public with information regarding the enforcement of laws related to voting,” Finley stated. “Our staff will be available to assist in pursuing complaints of voting fraud and intimidation throughout the election cycle. Free and open elections are an essential part of our democracy, and we want to ensure that everyone’s rights are protected.”
State and local governments have primary responsibility for administering elections. The Justice Department is charged with and committed to protecting the rights of all citizens to access the ballot on Election Day, preventing and prosecuting voter fraud and discrimination at the polls, 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.
Early voting starts October 25th and continues to November 1st (except Sunday) from 8:30 a.m. to 6 p.m. for the November 8th general election, and November 26th to December 3rd (except Sunday) from 8:30 a.m. to 6 p.m. for the December 10th runoff election.
Residents should contact their local Registrar of Voters’ Office to determine their voting location. Voters can download a sample ballot or obtain other election information by visiting the Louisiana Secretary of State’s web page online at www.sos.la.gov/ElectionsAndVoting. To find out more, call the Louisiana Secretary of State’s Office at 225-922-0900.
For those seeking to register to vote, registration is open throughout the year. Registration to be eligible to vote in the November 8th election has ended, but registration is open for subsequent elections throughout the year. In Louisiana, eligibility to register to vote in an election ends 30 days before that election. To find out more, call the Louisiana Secretary of State’s Office at 225-922-0900.
Complaints of election fraud or voting rights violations should be directed to the FBI, who will have special agents available in each field office and resident agencies throughout the country to receive allegations. The local FBI field offices can be reached by the public at the following telephone numbers: Shreveport at 318-861-1890, Lafayette at 337-233-2164, Monroe at 318- 387-0773, Alexandria at 318-443-5097 and Lake Charles at 337-433-6353. The U.S. Attorney’s Office can be reached by the public at 318-676-3600 (Shreveport) or 337-262-6618 (Lafayette).
Complaints about ballot access problems or discrimination can also be made directly to the Civil Rights Division’s Voting Section in Washington, D.C., at 800-253-3931, 202-307-2767 or by fax at (202) 307-3961. The division’s email address is [email protected], and voter complaints can also be filed online at www.justice.gov/crt/complaint/votintake.
The Civil Rights Division’s Voting Section enforces six federal statutes. They are the Civil Rights Act, the Voting Rights Act of 1965, the Voting Accessibility for the Elderly and Handicapped Act of 1984, the Uniformed and Overseas Citizens Absentee Voting Act of 1986, the National Voter Registration Act of 1993, and the Help America Vote Act of 2002. For more information on the acts that the division enforces, visit www.justice.gov/crt/about/vot/overview.php.
U.S. Attorney's Office and DEA announce collection sites for DEA's National Prescription Drug Take Back DayRead the Press Release
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia and the Drug Enforcement Administration’s Charleston Regional Office announced today the location of collection sites for the Drug Enforcement Administration’s National Prescription Drug Take Back Day. The event provides safe venues for West Virginians to responsibly dispose of prescription drugs. National Prescription Drug Take Back Day is on Saturday, October 22, 2016, from 10:00 a.m. until 2:00 p.m. West Virginians will have the option of visiting several conveniently located sites that are equipped to properly dispose of prescription medication.
“Drug overdose is the leading cause of accidental death in the United States, and opioids are the leading cause of overdoses. Sadly, West Virginia leads the nation in drug overdose deaths,” said United States Attorney Carol Casto. “About 50 percent of opioids used for non-medical purposes come from a prescription. These drugs, often legitimately prescribed, are too readily available for abuse. By taking advantage of Prescription Drug Take Back Day, you can help us eliminate a large portion of the opiates that are available for abuse. Clean out your medicine cabinets, and get rid of unnecessary and dangerous prescription medications – you may be saving a life.”
“We encourage everyone to take a look at your existing medication and anything that is not being used or has expired and take it to your local drop off location and get rid of it,” said Acting Resident Agent in Charge David Gourley of the Drug Enforcement Administration’s Charleston Regional Office.
Nearby collection sites can be found by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and searching by zip code, county, city, and state. Another option for locating collection sites is to call 800-882-9529. West Virginians have the option of visiting over 100 sites throughout the state to dispose of prescription drugs. Only pills and other solids, such as patches, can be brought to collection sites – liquids, needles, or other sharps will not be accepted.
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Three Arrested in Connection with Pharmacy Forgery RingRead the Press Release
Three people involved in an elaborate scheme to obtain narcotic drugs by using forged prescriptions both online and in person now face federal charges, announced U.S. Attorney Annette L. Hayes. The conspirators used stolen DEA registration numbers to create phony prescriptions while using various online tools to make it appear the prescriptions were from legitimate providers. A criminal complaint filed in the case reveals the defendants obtained thousands of pills of narcotic pain medication, such as oxycodone, using the forged prescriptions.
“These investigations are critically important as our country experiences an epidemic of addiction, overdose and death due to the abuse of opioid painkillers,” said U.S. Attorney Annette L. Hayes. “Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing those from motor vehicle crashes or firearms. I commend the Drug Enforcement Administration’s Tactical Diversion Squad that investigated this scheme to stem the flow of illegally obtained narcotics.”
According to the complaint filed in the case, law enforcement began investigating the forgery ring in January 2016 following reports of an attempt to fill a forged prescription for oxycodone tablets at a Walgreens in Tacoma, WA. Investigators determined that the ring had created false profiles for legitimate physicians on websites such as healthgrades.com and patientfusion.com, and by using those profiles they had made it appear the prescriptions had come from those doctors. If a pharmacy questioned the prescription, they would call or email the contact information on the prescription or the websites, where a co-conspirator would assure them the prescription was legitimate.
Evidence uncovered in the investigation revealed that one or more of the conspirators appear to have gained unauthorized access to online-prescription delivery systems, which allowed them to send digital prescriptions to pharmacies in the victim doctors’ names.
Those arrested in connection with the scheme include:
ERIK ROAN, 31, of Tacoma, Washington
CHRISTOPHER LOVATA, 26, of Kent, Washington
LEA ESPY, 49, of Auburn, Washington.
ROAN, LOVATA and ESPY are each charged with three counts of obtaining a controlled substance by misrepresentation, fraud, forgery deception or subterfuge. Each of the charges is punishable by up to 4 years in prison and a $250,000 fine.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad which contains task force officers from Tacoma and Seattle Police Departments and the Washington State Patrol. The case is being prosecuted by Assistant United States Attorney Siddharth Velamoor.
Thieves Sentenced for Stealing 30 Firearms in BurglaryRead the Press Release
NEWPORT NEWS, Va. – Four residents of Newport News have been sentenced for stealing more than 30 firearms from Southern Police Equipment, a federally licensed firearms dealer in Chesterfield County, during a break-in on Aug. 7, 2015.
Xavier Greene, 21, Deshawn Shields, 20, Mariah Walker, 20, and Endyia Washington, 26, all pleaded guilty to the burglary. Greene, the final defendant to plead guilty, was sentenced today to 10 years in prison and, along with his co-defendants, was ordered to pay restitution of $26,582.76 to the victims in this case.
According to court documents, on Aug. 7, 2015, Greene, Shields, Walker and Washington drove from Newport News to Richmond with a plan to steal firearms from a pawn shop. The group abandoned one location due to heavy police presence and went to Southern Police Equipment on Midlothian Turnpike. Washington and Walker dropped off Greene and Shields behind the building while Greene and Shields attempted to disable security measures by ripping the power box off the building. Greene and Shields entered the store causing thousands of dollars in damage and gathered over 30 firearms, including rifles, handguns and a shotgun. Walker and Washington picked the men up and drove back to Newport News. Upon their return, Greene invited multiple gang members from 36th Street Bang Squad to come to Washington’s home to pick up firearms. Additional firearms were given to another 36th Street Bang Squad member in Hampton to sell. The 36th Street Bang Squad is a hybrid criminal street gang on the peninsula responsible for shootings, murders, robberies and other violent crimes, of which Greene was a member. Stolen firearms in this case have been recovered in Hampton, Newport News and Virginia Beach in other jurisdictions.
All four defendants have entered guilty pleas and been sentenced.
Name
Date of Sentencing
Sentence
Endyia Washington
April 20
60 months
Deshawn Shields
April 20
96 months
Mariah Walker
May 6
65 months
Xavier Greene
May 20
120 months
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Terry Sult, Chief of Hampton Police Division; and Richard Myers, Chief of Newport News Police Department, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Special Assistant U.S. Attorney Amy E. Cross prosecuted the case.
The case was investigated by the ATF’s Norfolk and Richmond divisions, with significant assistance from the Hampton Police Division, the Newport News Police Department, and Chesterfield Police Department.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-76.
Tennessee man Sentenced for Thayer Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Memphis, Tenn., man was sentenced in federal court today for robbing a bank in Thayer, Mo.
Bobby Laughton Yates, 26, of Memphis, was sentenced by U.S. District Judge M. Douglas Harpool on Oct. 11, 2016, to five years in federal prison without parole. The court also ordered Yates to pay $2,325 in restitution.
On March 16, 2016, Yates pleaded guilty to bank robbery. Yates admitted that he stole $2,325 from Great Southern Bank, 323 E. Walnut St., Thayer, on April 22, 2015.
Yates entered the bank on April 22, 2015, and asked for a deposit slip. A teller directed Yates to a kiosk to the right of the teller’s station. Yates went to the kiosk and wrote out a note on a withdrawal slip. Yates presented the slip, and a plastic bag, to the teller. The slip stated, “put ALL the Money in the BAG Dont do anything dumb.” Yates instructed the teller not to draw the attention of the bank manager. The teller noted Yates kept his hand in his left sweater pocket, where she observed a bulge that appeared to be a gun.
Yates told the teller to give him the money from all the drawers; however, the teller informed him she only had access to hers. The teller placed all the bills in her drawer, into the bag and handed it to Yates. As Yates was leaving, he ran into the door jam and dropped what appeared to be a handgun. Yates picked the item up, but part of a broken piece was left behind. The broken piece was later determined to be part of an Airsoft gun.
Yates was later arrested for robbing the Patriot Bank in Millington, Tenn., and has pleaded guilty to that bank robbery in a separate case.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Thayer, Mo., Police Department, the Missouri State Highway Patrol and the FBI.
Tax Preparer Sentenced to 30 Months in Prison for False Federal Tax ReturnsRead the Press Release
Oklahoma City, Oklahoma – RICKY COSTELLO WILLIAMS, of Lawton, Oklahoma, was sentenced today to serve 30 months in federal prison and ordered to pay $240,361 in restitution for tax fraud, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
For a number of years, Williams prepared tax returns for others under the business name W&B Financial. A criminal investigation by the IRS determined that in 2010 and 2011, he knowingly prepared returns with fraudulent deductions and falsified credits in order to illegally obtain refunds from the Internal Revenue Service. Williams had previously been convicted of preparing false tax returns in North Carolina and South Carolina.
On February 18, 2016, Williams pled guilty to assisting in the preparation of a fraudulent federal tax return. He has been in federal custody since May 26, 2016, based on a violation of his conditions of release. Yesterday, United States District Judge Vicki Miles-LaGrange sentenced Williams to 30 months in federal prison, to be followed by one year of supervised release.
This sentence is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigations. The case was prosecuted by Assistant United States Attorney Kerry A. Kelly with the assistance of IRS Agent Loy Smith.
Reference is made to court filings for further information.
Tampa Brothers Sentenced to A Total of Seventy Years for Sex Trafficking ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Antawan Hudson (31, Tampa) to 30 years in federal prison for sex trafficking minors. On September 28, 2016, Hudson’s brother, Maurice Williams (26, Tampa), was sentenced to 40 years in federal prison for sex trafficking minors. Hudson pleaded guilty on the first day of trial and a federal jury found Williams guilty on May 20, 2016.
According to evidence presented at trial, Williams conspired with Hudson to traffic underage females by fraud, force, and coercion in the commercial sex trade. Williams and Hudson worked together to post online prostitution ads for the victims and then transported the girls throughout central Florida to have sex with customers. After the victims had sex with the customers, Williams and Hudson took some or all of the money and, in exchange, offered the victims drugs, alcohol, and beauty appointments.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Stacie Harris and Daniel George.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Streetsboro man faces drug and firearms chargesRead the Press Release
A Streetsboro man was indicted in federal court of drug and firearms violations, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Theodore Elenniss, 39, of Streetsboro, was indicted on one count of maintaining a drug premises and one count of being a felon in possession of firearms and ammunition.
Elenniss maintained a place on State Route 303 in Streetsboro, for the purpose of manufacturing, distributing, and using controlled substances, those are: marijuana, amphetamine salts, Xanax, and Alprazolam. On Sept. 28, 2016, Elenniss possessed firearms, those are: a Remington, model 788 rifle; an AMT “Back Up”, .380 caliber pistol; a Mossberg, 12 gauge shotgun; a Savage Mark II, .22 caliber rifle; a Noble Company, model 235, .22 caliber rifle, and ammunition. He had those firearms despite having been previously convicted of a felony in the Portage County Court of Common Pleas in 2005, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the 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. Attorney David M. Toepfer following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Portage County Drug Task Force.
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.
St. Louis Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – Syed Tariq Ali, St. Louis, Missouri, was arrested this morning on a two-count indictment alleging false statements with respect to federal housing program and bank fraud.
According to the indictment, Ali accepted illegal payments outside of a HUD lease during 2013 and 2014 and granted his tenant an interest in the rental property, contrary to his landlord certifications. Ali is also accused of falsifying endorsements on checks intended for needy members of his mosque between 2008 and 2010.
If convicted, Ali faces up to five years in prison on the HUD false statement charge, a fine of $250,000 or both. Ali also faces up to 30 years in prison on the bank fraud charge, a fine of up to $1,000,000 or both. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. The government will also seek restitution to all victims.
The case was investigated by the U.S. Department of HUD-Office of the Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Springfield Man Sentenced for $1.1 Million Investment Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for a more than $1.1 million investment fraud scheme.
Christopher Hanson, 54, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to two years and nine months in federal prison without parole. The court also ordered Hanson to pay $1,134,500 in restitution to his victims.
On Sept. 14,2015, Hanson pleaded guilty to wire fraud and money laundering. Hanson, the owner of Hanson Holdings, LLC, admitted that he was responsible for losses that totaled $1,134,500 for three victims of his Ponzi scheme.
Hanson offered the three victims what he described as “an investment opportunity.” Hanson told two of the victims that he would take their investment monies and purchase a collateralized mortgage obligation (CMO). Hanson claimed that a line of credit would be obtained against the CMO and both victim investors would receive their original investment plus a substantial dividend within months. Hanson told the third victim that he would purchase bonds and securities with his $100,000 investment. Hanson claimed this investment would generate a 250 percent return and that the victim investor would receive double his original investment within 40 weeks.
Financial records revealed that none of the monies obtained by Hanson or Hanson Holdings from these three investors were used to purchase securities or a CMO as Hanson had promised. Agents determined that Hanson authorized the release of the investors’ monies from his Scottrade Account, ETrade Account, or StockCross Account, into his personal bank accounts. Hanson used the money for personal expenses, to pay off parties unrelated to the investment, or he would use the money to pay off earlier investors who were clamoring for a return of their money.
According to court documents, Hanson also engaged in an unrelated ongoing fraud in Apple Valley, Minn., for which he faces a civil suit. Hanson also faces state charges in Greene County Circuit Court for a similar, but unrelated, fraud scheme.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.
South Florida Tobacco Importer Charged with Failure to Pay over $13 Million in Federal Excise TaxesRead the Press Release
A South Florida tobacco importer was arrested and charged with fraudulently evading $13 million in federal taxes on imported cigars.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tom Crone, Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), and Thomas M. Jankowski, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, DC Field Office, made the announcement.
Gitano Pierre Bryant, Jr., 55, of Palmetto Bay, was charged by criminal complaint with violations of the Internal Revenue Code, including: keeping or making any false or fraudulent record, return, report, or inventory, in violation of Title 26, United States Code, Section 5762(a)(2); refusing to pay Federal Tobacco Excise Tax on large cigars, and attempting to evade or defeat the tax or payment thereof, in violation of Title 26, United States Code, Section 5762(a)(3); and willfully attempting to evade or defeat Federal Tobacco Excise Tax on large cigars, in violation of Title 26, United States Code, Section 7201. Each of these offenses carries a maximum penalty of five years’ imprisonment and a $250,000 fine.
Bryant was also charged with willfully aiding or assisting in the preparation or presentation of a fraudulent or false document, in violation of Title 26, United States Code, Section 7206(2): an offense punishable by up to three years’ imprisonment and a $250,000 fine.
According to the complaint, Bryant was the owner of Havana ’59 Cigar Company (“Havana 59”). Between 2008 and 2014, Havana 59 was a licensed importer of tobacco products, including “large cigars” weighing more than three pounds per 1,000 cigars.
The complaint alleges that Bryant consistently underpaid the Federal Tobacco Excise Tax due on imported large cigars and, in an attempt to cover up the scheme, altered documents to conceal the price he paid for foreign-made cigars.
According to the complaint, Bryant continued to underpay taxes on imported cigars after May of 2015, when he was convicted and placed on Federal probation for evading Federal Tobacco Excise Tax due on cigarettes.
The complaint further alleges that, between January of 2012 and June of 2016, Bryant evaded over $13 million in Federal Tobacco Excise Tax.
A pre-trial detention hearing for Bryant, on these charges, is scheduled before United States Magistrate Judge Jonathan Goodman for October 21, 2016, in Miami.
Mr. Ferrer commended the investigative efforts of the TTB and IRS-CI. The case is being prosecuted by Assistant United States Attorney Christopher B. Browne.
A complaint 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.
Social Security Administration Employee Indicted for Theft of FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MICHAELLE MARTINEZ, age 38, of Marrero, was indicted today for Theft of Government Funds.
According to the Superseding Indictment, MARTINEZ identified beneficiaries who were entitled to receive retroactive or back payments from the Social Security Administration (“SSA”). MARTINEZ would change the recipient’s deposit information and would divert the SSA money bank accounts controlled by the defendant. MARTINEZ then changed the deposit information back before the beneficiaries would notice a problem.
U.S. Attorney Polite reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, MARTINEZ faces a maximum penalty of ten years imprisonment, followed by up to three years of supervised release, and a $250,000 fine.
U.S. Attorney Polite praised the work of the Social Security Administration, Office of Inspector General in investigating this matter. Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.