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Monday 29 August 2016
Former Car Dealership Employee Sentenced for her Participation in a Stolen Identity Tax Fraud SchemeRead the Press Release
Defendant stole customer information to promote tax fraud scheme
A Jensen Beach resident was sentenced to 30 months in prison, to be followed by three years of supervised release for her participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Micheline Eppolito, 29, of Jensen Beach, was previously convicted at trial of one count of possessing fifteen or more unauthorized access devices, affecting interstate commerce, in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1).
According to evidence presented at trial, Eppolito worked at Treasure Coast Lexus car dealership on US 1 in Fort Pierce. Eppolito accessed and printed 44 automobile printouts, from a database shared by automobile dealerships, which contained 68 customers’ personal identifying information from a work computer located in her office. The defendant then sold the printouts to Patrick J. Ward [Case No. 14-CR-14006]. Ward paid Eppolito approximately $80 worth of oxycodone pills for the printouts.
According to court documents, a prison cell mate of Ward’s was interested in buying any Social Security numbers that Ward could come across to be used to prepare false tax returns. Ward admitted that he bought all the notebooks and papers from Eppolito to resell for a profit.
On January 20, 2015, Ward was sentenced to 70 months in prison, to be followed by three years of supervised release. Ward previously pled guilty to one count of possessing fifteen or more access devices and one count of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI and thanked the St. Lucie County Sheriff’s Office for its assistance. This case was prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and Courtney L. Coker.
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.
Florida Man Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A Miami Gardens, Florida, resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Edwin Fana, 37, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services. Fana also pleaded guilty to one count of wire fraud and one count of aggravated identity theft. Sentencing will be scheduled for a later date before U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Fana and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Fana admitted that the conspirators then trafficked in the cellphone customers’ telecommunication identifying information, using that data as well as other software and hardware to reprogram cellphones that they controlled to transmit thousands of international calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the victims’ compromised accounts, he admitted.
Fana’s role in the scheme included operating a “call site” in his residence in Miami Gardens, according to the plea agreement. He admitted that he would receive telecommunication identifying information associated with victims’ accounts from his co-conspirators and use that data to re-program cellphones that he controlled. According to the plea agreement, Fana’s co-conspirators would then transmit international calls over the internet to Fana’s residence, where he would route them through the re-programmed cellphones. In October 2012, the FBI executed a search warrant on Fana’s residence and discovered approximately 88 cellphones connected to networking equipment and actively routing calls.
Fana admitted that law enforcement seized nearly 11,000 telecommunications identifying numbers from him and that the scheme caused at least $1 million in losses.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Final Defendant in Scheme That Sought More Than $1.5 Million in Fraudulent Tax Refunds Sentenced to over 4 years in Federal PrisonRead the Press Release
LOS ANGELES – The last of six defendants who conspired to use stolen identities to file fraudulent tax returns with the Internal Revenue Service that sought more than $1.5 million in false tax refunds was sentenced today to 51 months in federal prison.
Wesley Wade Hunter, 47, a former Los Angeles resident who was in a California prison when he committed the federal tax offense, was sentenced by United States District Judge George H. Wu. In addition to the prison term, Judge Wu ordered Hunter to pay the IRS $104,283 in restitution.
Hunter, who also goes by the moniker “Godfather,” pleaded guilty in April to one count of conspiracy to defraud the United States by obtaining the payment of false claims, namely tax refunds.
“This defendant was able to victimize both the United States government and individuals who had tax returns fraudulently filed in their names while an inmate in a state prison,” said United States Attorney Eileen M. Decker. “Fortunately, the hard work of IRS personnel enabled them to identify and reject the majority of the defendant’s fraudulent tax refund claims. The defendant’s persistent criminal conduct warranted the significant federal sentence imposed today.”
According to court documents, during the course of the scheme that was shut down in May 2012, Hunter filed or assisted in the filing of fraudulent tax returns that sought refunds using the identities of over 250 individuals. Hunter and the other co-conspirators obtained the names, Social Security numbers, dates of birth, and other personal identification information of individuals without their knowledge and consent. Hunter and others knowingly filed false federal income tax returns that claimed fraudulent tax refund payments based upon fraudulent wage and withholding amounts under their own names and under the names and Social Security numbers of the identity theft victims. Members of the conspiracy cashed the fraudulently obtained refund checks.
In all, Hunter’s conduct resulted in an intended loss of more than $1.5 million and an actual loss of approximately $104,283 to the United States government.
“Using the names and identities of over 250 taxpayers, Mr. Hunter operated a massive tax fraud and identity theft conspiracy scheme which attempted to defraud the U.S. government of over $1.5 million,” stated Anthony J. Orlando, Acting Special Agent in Charge of IRS Criminal Investigation. “Let this conviction serve as a warning to others contemplating the same type of scheme – IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by stealing identities and filing false income tax returns.”
Hunter is one of six defendants who pleaded guilty to this scheme, which operated in both San Luis Obispo and Los Angeles counties. In January of 2015, a federal grand jury returned a 17-count indictment charging Hunter and five others with identity theft and the tax refund conspiracy scheme. The others named in the indictment are:
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Crystal Coleman, 59, of Los Angeles, who pleaded guilty to conspiracy, was sentenced to 17 months in prison and was ordered to pay restitution in the amount of $207,071;
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Latasha Coates, 36, of Los Angeles, who pleaded guilty to conspiracy, was sentenced to two months in prison and was ordered to pay $65,648 in restitution;
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Guadalupe Flores, 34, of Los Angeles, who pleaded guilty to theft of public money, was sentenced to three years of probation and was ordered to pay restitution in the amount of $153,169;
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Lisa Tavra, 44, of Las Vegas, Nevada, who pleaded guilty to conspiracy, was sentenced to three years of probation and was ordered to pay $30,026 in restitution; and
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Lourdes Brown, 48, of Modesto, who pleaded guilty to conspiracy, also was sentenced to three years of probation and was ordered to pay $124,234 in restitution.
This investigation was conducted by IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney Ryan White of the General Crimes Section.
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Dennis Crawford Pleads Not Guilty to Wire FraudRead the Press Release
The United States Attorney for the District of Vermont announced that Dennis Crawford, 47, of Newport, pled not guilty last Friday in U.S. District Court in Burlington to a charge of wire fraud. U.S. Magistrate Judge John M. Conroy released Crawford on conditions pending trial, which has not been scheduled.
On July 25, 2016, a federal grand jury returned a one-count indictment charging Crawford with wire fraud. According to the indictment and other court records, in April 2015, Crawford was appointed power-of-attorney for his elderly step-father. Under the terms of the power-of-attorney, Crawford was permitted to make financial decisions on his step-father's behalf. After acquiring the power-of-attorney, Crawford placed his name on bank accounts his step-father held. According to court records, between June and August 2015, Crawford transferred approximately $200,000 from his step-father's bank accounts to accounts controlled only by Crawford. Crawford allegedly used much of this money to buy several vehicles for himself and family members, as well as furniture and other household items. In August 2015, the Vermont State Police learned Crawford may have been abusing his step-father and started an investigation. Crawford's power-of-attorney was revoked, and in November 2015, Crawford was charged in state court with financial exploitation of a vulnerable adult. The state charge was dismissed when the federal grand jury returned its indictment.
If convicted, Crawford faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Vermont State Police and the Federal Bureau of Investigation.
Crawford is represented by the Office of the Federal Public Defender. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Chehalis Tribal Member Sentenced for Defrauding Housing ProgramRead the Press Release
The former Chairman of the Board of the Chehalis Tribal Housing Authority was sentenced today in U.S. District Court in Tacoma to thirty days in jail, two years of supervised release and $37,400 in restitution for theft from a tribal organization, announced U.S. Attorney Annette L. Hayes. HECTOR RAY CANALES, SR., 55, pleaded guilty to conversion of tribal funds in May 2016. At the sentencing hearing U.S. District Judge Ronald B. Leighton said CANALES had betrayed the trust of his tribe.
According to records filed in the case, in 2009 CANALES applied for down payment assistance from the Chehalis Tribal Housing Authority knowing that he did not qualify for such assistance because he already owned a home. CANALES engaged in a sham transaction to transfer his existing ownership to a relative, so that he could collect $37,400 from the down payment assistance program which he used to pay for a second home in the Chehalis area. Even as he was “transferring” ownership of his current home, CANALES was listing the home as an asset on his mortgage application to Wells Fargo Bank. CANALES used his position in the Tribe and his knowledge of the internal fiscal controls to illegally collect the down payment funds. The fraud meant that other eligible Chehalis Tribal members did not get down payment assistance.
CANALES has since repaid just over $24,000 to the tribe.
The case was investigated by the Chehalis Tribal Police Department and the FBI.
The case was prosecuted by Assistant United States Attorney J. Tate London.
Charleston felon sentenced to federal prison for gun chargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced to two years and three months in federal prison for a gun crime, announced United States Attorney Carol Casto. Fitzgerald Ingram, 24, entered his guilty plea to illegally possessing a firearm after being convicted of a felony.
Ingram admitted that on July 29, 2015, he was apprehended by law enforcement after firing a rifle into a dumpster in the 6th Avenue area of Charleston. After firing the rifle, Ingram disposed of the gun in an alley where it was located by someone who took the gun to police officers who had responded to the scene that day. Ingram is prohibited from possessing any firearm under federal law because of several previous felony convictions in North Carolina Circuit Court, including taking indecent liberties with a child, failure to register as a sex offender, and assault with a deadly weapon causing serious injury.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Arizona Real Estate Developer Sentenced to 24 Months in Prison for Falsifying Bankruptcy RecordRead the Press Release
An Arizona real estate developer was sentenced today to 24 months in prison for submitting false statements in his bankruptcy petition with the intent to conceal assets and property transfers from the bankruptcy trustee.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John S. Leonardo of the District of Arizona and Acting Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
Alexander Papakyriakou, aka Alex Papas, 62, of Phoenix, was sentenced by U.S. District Court Judge Susan R. Bolton of the District of Arizona, who will impose restitution at a hearing on Oct. 21, 2016. Papakyriakou pleaded guilty on Feb. 9, 2016, to one count of falsification of records in bankruptcy.
According to admissions made in connection with his plea agreement, in 2011, Papakyriakou filed a voluntary bankruptcy petition in which he claimed he had less than $1 million in assets and over $144 million in liabilities. In connection with his bankruptcy petition, Papakyriakou filed a statement of financial affairs (SFA), a declaration under penalty of perjury, about his assets and property transfers, which he admitted that he knew contained false entries and concealed his assets and transfers.
As part of his guilty plea, Papakyriakou admitted that at the time of the filing of the SFA, he had transferred all of his significant holdings into the names of other entities while still maintaining control of those entities by proxies. According to the plea agreement, these assets included an approximately $4.995 million beach house in Laguna Beach, California; a warehouse; several vintage collector automobiles; and funds from bank accounts. Papakyriakou further admitted that he filed the falsified SFA with intent to impede, obstruct or influence an investigation or the proper administration of his bankruptcy case.
The USPIS Criminal Investigations Group investigated the case. Trial Attorney Sarah Hall and Senior Litigation Counsel David Bybee of the Criminal Division’s Fraud Section prosecuted the case. Former Fraud Section Senior Litigation Counsel Jack Patrick provided substantial assistance. Assistant U.S. Attorney Raymond Woo of the District of Arizona also provided assistance in this matter.
Another Meth Trafficker Heads to Federal PrisonRead the Press Release
LAREDO, Texas – A 45-year-old Springtown man has been ordered to prison for 11 years following his conviction of transporting approximately 10 kilograms of crystal methamphetamine, announced U.S. Attorney Kenneth Magidson. Wilburn Harmon Jr. pleaded guilty April 13, 2016.
Today, U.S. District Judge Marina Garcia Marmolejo imposed the 132-month-term and further ordered Harmon to serve five years of supervised release following the prison sentence.
Harmon was arrested July 12, 2014, at the Border Patrol checkpoint just north of Laredo. He had arrived there driving a pickup truck containing 9.856 kilograms of crystal methamphetamine within its driveshaft.
Harmon told authorities he had been hired and was to be paid $400 by someone he knows as a methamphetamine dealer in his hometown of Springtown. He was supposed to travel to Laredo in a van, leave it there and return with the truck. He drove to Laredo, staying awake by injecting himself with methamphetamine. He then picked up the truck from someone who had just driven it into the United States from Mexico a few hours prior.
He began his drive back, but was detained at the checkpoint after authorities discovered the narcotics. Agents also found a bridge crossing receipt which confirmed the truck’s travel from Mexico.
Harmon will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation along with Border Patrol and Customs and Border Protection. Assistant U.S. Attorney Jose Homero Ramirez prosecuted the case.
Albuquerque Man Sentenced to Prison for Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Kelly S. Hobbs, 38, of Albuquerque, N.M., was sentenced today in federal court to 26 months in prison followed by five years of supervised release for violating the Sex Offender Registration and Notification Act (SORNA). Hobbs will be required to register as a sex offender after completing his prison sentence.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Hobbs pled guilty on April 20, 2016, to a felony information charging him with violating SORNA by failing to update his sex offender registration from Nov. 18, 2015 through Feb. 17, 2016, in Dona Ana County, N.M., and violating the conditions of his supervised release on a prior felony conviction. In entering the guilty plea, Hobbs admitted that he was convicted of sexual abuse of a minor in 2010 and was sentenced to 51 months in prison. On June 11, 2015, Hobbs was released from prison and was required to reside at a halfway house in Albuquerque for six months. Hobbs further admitted that on Nov. 18, 2015, he failed to return to the halfway house and did not notify the Sheriff’s Office of his change of residence as required under SORNA.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
12 Collectively Sentenced to More Than 83 Years for Roles in Meth Trafficking ConspiracyRead the Press Release
Memphis, TN – Twelve defendants in a multi-state narcotics trafficking conspiracy have been collectively sentenced to 998 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to information presented in court, between March 2014 and July 2015, the defendants conspired with each other to distribute large quantities of methamphetamine. The defendants utilized the United States Postal Service to ship the drugs from California to Memphis for distribution.
The defendants and their respective sentences:
• Dexter White, 27, of Memphis, TN: 216 months
• Travis Huston, 34, of Turrell, AR: 180 months
• Fred Wilson, 32, of Gates, TN: 120 months
• Johnnie Wilborn, 26, of Merced, CA: 78 months
• Carlos Lewis, 39, of Memphis, TN: 77 months
• Patrice Lee, 34, of Memphis, TN: 18 months
• Brittany Huston, 28, of Cordova, TN: 80 months
• Deontoe Huston, 33, of Turrell, AR: 41 months
• Larry Cassidy, Jr, 36, of Turrell, AR: 70 months
• Robert Earl Williams, 35, of Marion, AR: 60 months
• Phillip Sean Mosley, 31, of Turrell, AR: 40 months
• Janice White, 51, of Memphis, TN: 18 months
Law enforcement’s investigation into the criminal organization revealed that Dexter White and Travis Huston were the drug trafficking organization’s leaders. They recruited family members and friends for their illicit enterprise, including White’s girlfriend (Brittany Huston) and mother (Janice White) and Huston’s brother (Deontoe Huston).
Over the course of the conspiracy, Dexter White and Travis Huston shipped meth to Memphis from California. They teamed up with Wilborn, based in California, who helped the men expand their operation. And they later added Wilson to their criminal organization. Furthermore, Brittany Huston and Janice White helped the men launder the money acquired as drug proceeds.
In July 2015, all of the defendants were indicted on multiple charges, which included conspiracy to possess with the intent to distribute and to distribute meth and money laundering.
Each defendant pleaded guilty to charges within the indictment.
Between May and August 2016, they were all sentenced by U.S. District Judge Sheryl H. Lipman to federal imprisonment.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Reagan M. Taylor prosecuted this case on the government’s behalf.
Friday 26 August 2016
Webster Woman Sentenced on Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.— U.S. Attorney William J. Hochul, Jr., announced today that Janet Faticone, 51, of Webster, NY, who was convicted of fraud, was sentenced to 12 months in prison and three years supervised release by U.S. District Judge the Hon. David G. Larimer, United States District Judge after pleading guilty to one count of wire fraud.
Assistant U.S. Attorneys Tiffany H. Lee and Bradley Tyler, who handled the case, stated that between December 2012 and January 2014, Faticone managed a business, NYS Title and Abstract. The defendant prepared title insurance commitments, HUD forms, invoices and maintained client accounts. Faticone was aware that a title insurance underwriter is needed to prepare commitments. Neither the defendant nor NYS Title and Abstract were authorized title insurance underwriters.
Faticone caused false title insurance commitments, and in one instance, a false title insurance policy to be sent via wires. The defendant invoiced for fees totaling approximately $13,000 for the provision of mortgage loan title insurance that neither she nor NYS Title and Abstract had the authority to issue.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and Investigator Bill Fedrau of the New York State Department of Financial Services’ Financial Frauds and Consumer Protection Division, under the direction of Assistant Chief Sean Ralph, Director Frank Orlando, Executive Deputy Superintendent Joy Feigenbaum and Superintendent Benjamin M. Lawsky.
Violent Member of Robbery Crew Sentenced in Manhattan Federal Court to 70 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Charlie Patterson, Acting Special Agent in Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced that ANTHONY GREEN was sentenced on Wednesday, August 24, 2016, by U.S. District Judge Ronnie Abrams to 70 months in prison for being a member of a robbery crew that committed 11 commercial robberies, and numerous other street robberies of individuals, in August and September 2015. ANTHONY GREEN personally participated in three of those robberies, and was arrested in the midst of attempting to commit a fourth. During one of the robberies, ANTHONY GREEN assaulted a 61-year-old robbery victim, throwing the victim to the floor and beating him. GREEN pled guilty before Judge Abrams on February 26, 2016.
According to the Indictment and statements made at court proceedings and in court filings:
From at least on or about August 27, 2015, through on or about September 3, 2015, ANTHONY GREEN joined with his co-defendants Lennox Josephs and Cameron Green (as well as another individual) to commit at least three commercial robberies of gas stations and convenience stores in the Bronx and Elmsford, New York, and they planned to commit a fourth such robbery in Pleasantville, New York. These robberies were the last in a weeks-long spree that Josephs and Cameron Green had been on since at least August 12, 2015, during which they robbed at least 11 commercial businesses and individuals engaged in commercial activity, such as restaurant deliverymen and taxi cab drivers. Prior to August 27, 2015, ANTHONY GREEN had also joined Josephs and Cameron Green to commit street robberies, during which they physically assaulted victims and snatched wallets and cellphones.
During the three commercial robberies in which ANTHONY GREEN participated, the defendants wore masks and used BB guns that appeared to be real firearms. The victims of the robberies were terrorized and in several instances subjected to physical violence by ANTHONY GREEN and his associates, including one robbery in which Cameron Green dislocated a pregnant woman’s shoulder.
Mr. Bharara praised the outstanding investigative work of the SPARTA Task Force, which comprises agents and detectives of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New York City Police Department, and the U.S. Marshals Service.
Cameron Green pled guilty on February 19, 2016, and was sentenced by Judge Abrams on July 8, 2016, to 78 months in prison. Lennox Josephs pled guilty on March 9, 2016, and was sentenced by Judge Abrams on August 8, 2016, to 78 months in prison.
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The case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello and Jared Lenow are in charge of the prosecution.
U.S. Attorney's Office Partners with Hickory Police Department to Launch Youth-Oriented Outreach InitiativeRead the Press Release
CHARLOTTE, N.C. –United States Attorney Jill Westmoreland Rose announced today that the U.S. Attorney’s Office partnered with the Hickory Police Department to present the Law Enforcement Guiding Adolescent Lives (LEGAL) program in Hickory, N.C. LEGAL is a youth-oriented community outreach initiative designed to offer young people guidance on having positive interactions with members of the law enforcement community.
The one-day program was held earlier today in Hickory, at LP Frans Stadium. Hickory Police Chief Thurman Whisnant and his officers worked closely with the U.S. Attorney’s Office to implement the initiative and to develop a curriculum that was informative, meaningful and fun for its participants. Volunteer officers with the Hickory Police Department and 20 youths selected from the Young People of Integrity group and the Hickory Youth Council participated in the program.
This was the second event held as part of the LEGAL outreach initiative. Over the summer, the U.S. Attorney’s Office partnered with the Buncombe County Sheriff’s Office and the Asheville Police Department to launch the pilot program, with the goal of collaborating with local law enforcement in Western North Carolina to implement the initiative throughout the district.
“This program is extremely valuable both to the young people and the volunteer law enforcement officers who participated today. The goal of the initiative is to establish positive police/youth relationships through education and open dialogue, and to foster the principles of mutual respect by learning from each other,” said U.S. Attorney Rose. “In doing so, we seek to foster a life changing experience for the participants and to develop a scenario whereby law enforcement officers and young people have more effective and ultimately more safe interactions within their communities.”
The four-hour program began with youth participants receiving legal and practical skills orientation. During this session, participants received basic legal background information on searches related to traffic stops, public area encounters, and home encounters. Participants also received practical instruction on their rights and on interacting with law enforcement in a sae and respectful manner.
Following the legal orientation, youth participants had an opportunity to utilize their newly acquired skills by engaging with law enforcement officers in mock police interactions. After each mock interaction, participants and law enforcement officers engaged in role-reversals, designed to foster a better understanding of each group’s standpoint and an opportunity to share each other’s perspective. Following the mock encounters, participants engaged in free dialogue with officer volunteers during a roundtable luncheon.
“The young men and women who took part in today’s program will benefit greatly from their participation. My officers volunteered many hours and worked diligently to make sure this program was a success. Those who participated were given very good practical information and each group had an opportunity to learn from each other. I want to thank the U.S. Attorney’s Office for partnering with the Hickory Police Department to bring this important initiative to Hickory’s youth,” said Chief Whisnant.
U.S. Attorney Rose thanked Chief Whisnant for his support of the LEGAL initiative. U.S. Attorney Rose also thanked the law enforcement officers and youth for participating in the program, and emphasized the importance of continuing to develop and support initiatives that promote positive youth development and enhance interactions between police and youth.
Two San Antonio Men Charged with Bank RobberyRead the Press Release
In San Antonio, FBI agents have arrested 32-year-old Jason Lynn Hathorn and 30-year-old David Lee Sartin for their alleged role in a bank robbery earlier this month, announced United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; and, San Antonio Police Chief William McManus.
A criminal complaint unsealed today in San Antonio charged Hathorn and Sartin with one count of bank robbery. According to the complaint, on August 8, 2016, a confidential human source identified Sartin as a suspect in four bank robberies in the San Antonio area. During each robbery, the perpetrator used a unique silicone “old man” mask which the source claimed was similar to one owned by Sartin. Later that day, an individual wearing the “old man” mask robbed the Amegy Bank of Texas branch on West Military Drive. The individual left the bank with approximately $8,100 and a surreptitiously placed GPS tracking device.
The complaint further states that upon learning that the suspect wore a silicone “old man” mask, FBI agents established surveillance at Sartin’s apartment. The GPS tracker alerted authorities as Sartin arrived home. As Sartin was taken into custody, authorities recovered an iPhone, a tie and a pair of sunglasses which matched the description of items worn by the Amegy Bank robbery suspect. Authorities subsequently reviewed video surveillance of Sartin’s apartment complex and discovered that Hathorn, Sartin’s roommate, had arrived shortly after Sartin and proceeded to enter the apartment complex recreation room carrying a blue bag. Surveillance video showed that Hathorn hid the bag behind the sofa in the recreation room and was observed peering out the window in the direction of where Sartin was being arrested. Law enforcement officers were able to recover the blue bag which contained the “old man” mask, three ball caps used in prior robberies, $8,100, GPS tracker and the demand note from the Amegy Bank robbery. The complaint alleges that Hathorn had assisted Sartin by meeting him after the Amegy Bank robbery and taking custody of the mask and money derived from the robbery.
Sartin and Hathorn were arrested based on states charges related to aggravated robbery. Sartin remained in state custody while Hathorn was released on bond. FBI agents arrested Hathorn today based on the federal criminal complaint. They remain in custody pending a detention and probable cause hearing before a U.S. Magistrate Judge next week in San Antonio. Hathorn and Sartin face up to 20 years in federal prison upon conviction.
This case is being investigated by the FBI together with the San Antonio Police Department. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Two Men Charged in Leawood Bank RobberyRead the Press Release
KANSAS CITY, KAN. - Two men were charged in U.S. District Court here Thursday with robbing a Leawood bank, Acting U.S. Attorney Tom Beall said.
Terry Lovelady, 57, Kansas City, Mo., and Chad English, 42, Kansas City, Mo., were charged with one count of bank robbery. A criminal complaint alleges that on Aug. 24, 2016, Lovelady robbed the Central Bank of the Midwest at 4801 Town Center Drive in Leawood and fled in a getaway car driven by English. The robbers led police on a high speed chase, running red lights and cutting off other drivers. Eventually, the getaway car jumped a curb, rolled down a hill and came to a stop in a parking lot at St. Joseph Medical Center. The robbers fled the car on foot and were soon arrested.
If convicted, the defendants face up to 20 years in federal prison and a fine up to $250,000. The FBI and the Leawood Police Department investigated. Assistant U.S. Attorney Leon Patton is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Three Individuals Indicted for $2.5 Million High-Yield Investment FraudRead the Press Release
Three individuals were charged in an indictment unsealed yesterday for their roles in a $2.5 million high-yield investment fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Robert Leslie Stencil, 59, of Charlotte, North Carolina; Daniel Thomas Broyles Sr., 59, of Beverly Hills, California; and Kristian Francis Sierp, 45, of Costa Rica, all U.S. citizens, were charged in an indictment returned on Aug. 18, 2016, in the Western District of North Carolina with one count of conspiracy to commit wire fraud and mail fraud, five counts of mail fraud and eight counts of wire fraud. In addition, Stencil and Broyles were charged with two counts of money laundering and Sierp was charged with four counts of international money laundering. Stencil surrendered to authorities this morning and will have his initial court appearance today. Sierp was previously arrested in Fort Lauderdale, Florida, on separate charges and has been detained pending trial. A trial date has not been set.
The indictment alleges that since January 2012, Stencil, Broyles and Sierp worked to sell stock in Niyato Industries Inc., a Nevada corporation that Stencil owned and operated from Charlotte. Through various publications and sales pitches, Stencil, Broyles and Sierp allegedly marketed Niyato as a manufacturer of compressed natural gas (CNG) automobiles and a distributor of CNG fuel that had patented technology, valuable contracts and high-profile executives. According to the indictment, Stencil, Broyles and Sierp also sold investors on a promise that Niyato was planning an imminent stock IPO that would reap pre-IPO investors a tenfold return on their investments.
Stencil, Broyles and Sierp are alleged to have known that, in reality, Niyato had no facilities, products, patents or plans for an imminent IPO, but rather was merely a vehicle for inducing investor funds. Broyles and Sierp allegedly directed investors to mail or wire funds to Stencil, who then paid half the funds to Broyles and Sierp and kept the remainder for personal expenses. In addition, Broyles and Sierp are alleged to have used high-pressure sales tactics to encourage investments from their victims, many of whom were elderly. According to the indictment, Sierp operated under a fake name from a telemarketing call center that he owned and operated in Costa Rica.
According to the indictment, Stencil, Broyles, Sierp and their co-conspirators were responsible for causing at least $2.5 million in losses to more than 140 U.S. citizens and businesses.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Postal Inspection Service and Internal Revenue Service-Criminal Investigation conducted the investigation, which was supervised by the Criminal Division’s Fraud Section. Fraud Section Trial Attorneys William Bowne and Gustav Eyler are prosecuting the case.
Shreveport felon sentenced to 10 years in prison for illegal possession of a firearmRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced Tuesday to 120 months in prison for possessing a loaded revolver after being convicted of a felony.
Joseph Dominic Pronnette Jr., 34, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession of a firearm and ammunition by a convicted felon. He was also sentenced to three years of supervised release. According to the April 20, 2016 guilty plea, members of the U.S. Marshal’s Fugitive Task Force executed an arrest warrant on September 13, 2015 on Pronnette for a prior felony and for violating his parole. He was found in the driver’s seat of a car parked behind a residence in Shreveport and resisted arrest. After he was removed from the car and taken into custody, a loaded .38 caliber revolver was found on the driver’s seat. During the guilty plea, the defendant admitted the weapon was his.
It is unlawful for Pronnette to possess a firearm or ammunition as he has prior felony convictions for felony theft, simple burglary of an inhabited dwelling, unauthorized entry of an inhabited dwelling and domestic abuse aggravated assault.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF, U.S. Marshals Service Fugitive Task Force, and the Louisiana Department of Corrections Probation and Parole conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
San Antonio Man Sentenced to 18 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
In San Antonio today, 29-year-old John Michael Rymers was sentenced to 18 years in federal prison for receipt of child pornography announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Fred Biery ordered that Rymers pay $20,000 restitution to his victims and be placed under supervised release for the remainder of his life after completing his prison term.
On October 23, 2015, FBI agents executed a search warrant at the defendant’s residence and seized a laptop computer and related media. A forensics examination on the seized items revealed the presence of approximately 150 videos and 1,150 images depicting child pornography.
According to court records, Rymers has engaged in the sexual exploitation of minors over the past six years including attempts to hack into the computer systems of minors as young as 14 in order to obtain nude and sexually explicit images and videos of these individuals; and, using false personas, mainly of young women, in order to persuade, coerce and entice minor females to create and send to him sexually explicit images and videos of themselves.
Rymers has remained in custody since being arrested in October 2015. On May 12, 2016, Rymers pleaded guilty to one count of receipt of child pornography.
This case was investigated by the FBI’s San Antonio Child Exploitation Task Force. Assistant United States Attorney Tracy Thompson prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
Roswell Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Cipriano Anaya, 34, of Roswell, N.M., pled guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges. Under the terms of his plea agreement, Anaya will be sentenced to 108 months in prison followed by a term of supervised release to be determined by the court.
Anaya is one of 41 individuals charged in Sept. 2015, with drug trafficking offenses as a result of an eight-month multi-agency investigation by the FBI, the DEA, Chaves County Metro Narcotics Task Force, Roswell Police Department, Chaves County Sheriff’s Office and New Mexico State Police. Twenty-one of the defendants were charged with federal offenses and the remaining 20 with state crimes.
The investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, initially targeted a drug trafficking organization (DTO) allegedly led by Joseph Ray Mendiola, 35, of Roswell, that allegedly distributed methamphetamine in Chaves County. It later expanded to include drug traffickers who allegedly supplied methamphetamine to the Mendiola DTO and other drug traffickers operating in Chaves County. The OCDETF program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Sixteen of the 21 defendants facing federal charges were charged in a 24-count indictment filed on Sept. 22, 2015. The remaining five federal defendants were charged in criminal complaints. The 20 state defendants were charged by criminal complaints.
Count 1 of the Indictment charged 15 of the 16 defendants with conspiracy to distribute methamphetamine between June 2015 and July 2015. Count 2 charged three defendants with conspiracy to distribute cocaine in July 2015. Counts 3, 4, 5, 6 and 7 charged certain defendants with possession of methamphetamine with intent to distribute in July 2015. Counts 8 through 24 charged certain defendants with using communications devices (telephones) to facilitate drug trafficking crimes. All crimes charged in the federal indictment occurred in Chaves County.
During the course of the investigation, law enforcement officers executed 14 federal search warrants for 10 residences in Roswell, one residence in Dexter, N.M., and three vehicles. During the execution of those search warrants, the officers seized approximately 5600 grams of methamphetamine, $35,960.00 in cash, and multiple firearms including two assault rifles. Five of the federal defendants, including Mendiola, were arrested on July 31, 2015, the date on which the officers executed the 14 federal search warrants.
During today’s proceedings, Anaya pled guilty to conspiracy and use of a communication device to facilitate a drug trafficking crime. In entering the guilty plea, Anaya admitted to conspiring with his co-defendants to distribute methamphetamine in Chaves County from June 2015 through July 31, 2015. Anaya further admitted that on July 26, 2015, he used a telephone in furtherance of the drug trafficking conspiracy. Anaya remains in federal custody pending a sentencing hearing which has yet to be scheduled.
To date, five other defendants charged by indictment have entered guilty pleas. The remaining 16 defendants facing federal charges have entered not guilty pleas to the indictment and criminal complaints. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The federal cases were investigated by the Roswell office of FBI’s Albuquerque Division, the Las Cruces office of DEA, Roswell Police Department, Chaves County Sheriff’s Office, the Chaves County Metro Narcotics Task Force, the New Mexico State Police and the U.S. Marshals Service. The state cases were investigated by the New Mexico State Police. Assistant U.S. Attorneys Randy M. Castellano and John Balla are prosecuting the federal cases, and the Fifth Judicial District Attorney’s Office is prosecuting the state cases.
The HIDTA Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Riverside Gang Leader and Three Associates Arrested in Meth CaseRead the Press Release
RIVERSIDE, California – Four individuals associated with the Eastside Riva gang – including its leader, Ernie “Gordo” Hernandez, 55 – were arrested yesterday after being charged earlier this week in federal court with distribution of methamphetamine.
The other defendants arrested– Angel “Bundy” Hernandez, 34, who is the son of Ernie Hernandez; Gilberto Diaz, 30; and Bryan Deniz, 25 – are also named in a criminal complaint that alleges they distributed methamphetamine from July 20 through August 9. Several of the drug transactions discussed in the complaint affidavit occurred at Primestone Tires Auto Repair on 14th Street in Riverside.
“Criminal street gangs like Eastside Rivera bring violence and drugs into our communities,” said United States Attorney Eileen M. Decker. “As yesterday’s arrests demonstrate, law enforcement will continue to prosecute gang leaders and members to make our neighborhoods safer.”
The case against the four defendants is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Los Angeles Division.
“Criminal street gangs that claim its territory and attempt to traffic drugs and use firearms to bring violence into our communities for their profit will not be tolerated,” said ATF Los Angeles Special Agent in Charge Eric Harden. “ATF has zero tolerance for this criminal activity and will continue to eradicate it from our communities.”
Yesterday’s arrests stem from an investigation targeting violent activity in and around the Riverside area, where the Eastside Riva gang claims territory. The criminal complaint filed by the United States Attorney’s Office on Wednesday alleges that the defendants engaged in two transactions each involving approximately one pound of methamphetamine and another transaction involving about one-half pound of the drug.
The four defendants arrested appeared in federal court yesterday afternoon in Riverside. The defendants remain in custody and are set for arraignment in Los Angeles on September 29, 2016 at 1 PM PDT.
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.
If they are convicted of the drug trafficking offense alleged in the indictment, Ernie Hernandez, Deniz and Diaz would each face a mandatory minimum sentence of 10 years in federal prison and a sentence of up to life. If convicted, Angel Hernanez would face a mandatory minimum sentence of five years and a sentence of up to 40 years in federal prison.
The Riverside Police Department and Los Angeles Police Department were both instrumental in the Eastside Riva investigation.
This case is being prosecuted by Assistant United States Attorney Reema El-Amamy.
Rio Arriba Man Sentenced to Prison for Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Glenn Gene Fernandez, 47, of Alcalde, N.M., was sentenced today in federal court to a year in prison followed by five years of supervised release for violating the Sex Offender Registration and Notification Act (SORNA). Fernandez will be required to register as a sex offender when he completes his prison sentence.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Fernandez was charged in a criminal complaint on Dec. 1, 2015, with violating SORNA by failing to update his sex offender registration. Fernandez was required to register as a sex offender as a result of a 2004 state conviction in Santa Clara, Calif., for criminal sexual battery involving a restrained person. Fernandez last complied with his sex offender registration requirements in California in Aug. 2011. In Nov. 2015, the U.S. Marshals Service received a request to assist the Rio Arriba County Sheriff’s Office with charging Fernandez with a SORNA violation. The U.S. Marshals Services’ investigation revealed that Fernandez had been residing in New Mexico since at least Feb. 2013, and had not registered as a sex offender in New Mexico as required by SORNA.
On March 8, 2016, Fernandez pled guilty to a felony information charging him with failing to update his registration between Feb. 2013 and Dec. 2015 in Rio Arriba County, N.M. Fernandez entered the guilty plea without the benefit of a plea agreement.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Remarks from United States Attorney Nancy Harr on the Recent Officer Shooting Deaths in TennesseeRead the Press Release
KNOXVILLE, Tenn. – Earlier this month TBI Special Agent De’Greaun Frazier was murdered while performing his duty to serve and protect the public. Thursday afternoon, tragedy again struck our state when Maryville Police Officer Kenny Moats was shot and killed while responding to a call for help.
Words alone cannot express the bravery of these professionals or the loss to their families and the communities they served. During this difficult time, as the law enforcement community gathers to mourn and support the families of these officers, we hope that the residents of east Tennessee will take this time to support law enforcement and show them that they are a valuable asset to our communities. We at the U.S. Attorney’s Office see the dedication and sacrifice of the men and women in law enforcement on a daily basis and will continue to do our best to support them.
On behalf of the employees of the U.S. Attorney’s Office for the Eastern District of Tennessee, I would like to say a heartfelt “THANK YOU” … a phrase most officers don’t hear enough.
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Portland Company Pleads Guilty to Lacey Act ViolationsRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that ISF Trading Company (“ISF”), of Portland, pleaded guilty in U.S. District Court to violating the Lacey Act. The Lacey Act is a federal law that prohibits trade in wildlife that has been illegally taken, possessed, transported or sold.
ISF is a Maine company engaged in the business of buying seafood, including live sea urchins, from Maine and Canadian suppliers, processing that seafood, and selling it to domestic and foreign, mostly Asian, markets. According to court records, ISF bought Canadian sea urchins from a Canadian supplier, TGK Fisheries of Grand Manan, that was not authorized under Canadian law to export them to the United States. ISF brought them across the Calais Port of Entry under the false label of another Canadian supplier, Matthews Seafood (“Matthews”) of New Brunswick, Canada. At times, Matthews was authorized to export them. On seven occasions between December 31, 2010 and February 1, 2011, ISF illegally imported a total of about 48,000 pounds of sea urchins, whose processed roe was worth at least $172,800, from TGK through Calais under the Mathews label. The scheme was discovered in February 2011, when ISF attempted to import 8,000 pounds of sea urchins, using an invoice in the name of Matthews. A U.S. Customs and Border Protection Officer became suspicious when he noticed that the totes containing the sea urchins did not have the labels required by law.
ISF faces up to five years of probation. Under its agreement with the United States, ISF faces up to $1,250,000 in fines and forfeitures for the violations.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the National Oceanic and Atmospheric Administration.
Physician Pleads Guilty to Illegally Distributing OxycodoneRead the Press Release
PITTSBURGH - A resident of Pittsburgh pleaded guilty in federal court to charges of possession with intent to distribute and distribution of Oxycodone, a Schedule II controlled substance, United States Attorney David J. Hickton announced today.
Dr. Alan Barnett, 69, of Pittsburgh, Pennsylvania pleaded guilty to the two felony counts before Chief United States District Judge Joy Flowers Conti.
According to information presented to the Court at the guilty plea, Dr. Barnett, a medical doctor, illegally distributed Oxycodone, a controlled substance. On December 1, 2015, Dr. Barnett was interviewed by agents of the Drug Enforcement Administration and Federal Bureau of Investigation and surrendered his Drug Enforcement Administration License.
Judge Conti scheduled sentencing for Dec. 9, 2016 at 3:30 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Dr. Barnett on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Drug Enforcement Administration conducted the investigation leading to the Information in this case.
Pensacola Armed Career Criminal Sentenced to 210 Months for Firearms PossessionRead the Press Release
PENSACOLA, FLORIDA – Robert Lamar Gerald, 37, of Pensacola, was sentenced today to 210 months in federal prison, after pleading guilty in April 2016 to possessing a firearm as a convicted felon. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In June 2015, an Escambia Country Sherriff’s Deputy on patrol stopped the vehicle Gerald was driving. After the stop, Gerald fled on foot and was apprehended after a brief chase. The search of his vehicle revealed a loaded 9 millimeter pistol.
The indictment lists 14 prior state felony convictions for Gerald. As a previously convicted felon, Gerald is prohibited from possessing firearms or ammunition under federal law. Because his prior criminal record includes several violent felonies and drug offenses, Gerald qualifies for enhanced sentencing as an Armed Career Criminal under federal law.
This case resulted from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Escambia County Sheriff’s Office, and the Gun Crime Response Team. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Owner and Finance Manager of Norman Used Car Lot Plead Guilty to Bank Fraud in Connection with Bank of Union FailureRead the Press Release
Oklahoma City, Oklahoma – TIMOTHY JAY WILLIAMS, 54, from Edmond, Oklahoma, and STEPHEN L. BUTZ, 53, from Blanchard, Oklahoma, both pleaded guilty to bank fraud this week, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Williams was the owner of Lindsey Street Motors, a used car lot in Norman, Oklahoma, and Butz was his finance manager. According to court documents, Williams entered into a Commercial Security Agreement with The Bank of Union on behalf of Lindsey Street Motors that granted the bank a secured interest in all used motor vehicles, proceeds, and products of Lindsey Street Motors. In return, The Bank of Union extended to Williams and Butz a line of credit to purchase used vehicles and hold them as inventory until sold. After obtaining the loan proceeds, Williams and Butz sold collateralized vehicles out of trust, without the knowledge or permission of The Bank of Union, and did not use the sales proceeds to repay the Bank. In addition, after purchasing vehicles with The Bank of Union financing, Williams and Butz obtained duplicate vehicle titles from the Oklahoma Tax Commission, which they provided to buyers, without notifying the Bank of Union of the vehicle sales or repaying Lindsey Street Motors’ line of credit.
At their plea hearings this week, Williams and Butz each admitted their conduct caused a loss in an amount between $550,000.00 and $1,500,000.00. At sentencing, each of the defendants face up to 30 years in prison, a $1,000,000 fine, and up to five years of supervised release. Per the terms of their plea agreements, they will also be ordered to pay restitution to the victims of their conduct in an amount to be determined by the court at the time of sentencing. A sentencing date will be set by the court in approximately 90 days.
This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Nine-Time Felon Sentenced to over 6 Years in Prison for Illegal ReentryRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jose Ygnacio Sosa-Ramirez, 55, a citizen of the Dominican Republic, was sentenced yesterday for illegally reentering the United States after having been previously removed, and violating the terms of his supervised release on a prior federal conviction. Chief District Judge Christina Reiss sentenced Sosa-Ramirez to a 50-month term of incarceration for having illegally reentered the United States, and a consecutive 24-month term of incarceration for violating the terms of his supervised release, resulting in a total sentence of 74 months.
According to Court records, in June of 2014, Sosa-Ramirez was convicted of conspiracy to distribute more than a kilogram of heroin in the United States District Court for the Southern District of New York, sentenced to time served (approximately 23 months), and a 2-year term of supervised release. He was subsequently deported from the United States on October 8, 2014. On October 19, 2015, Sosa-Ramirez entered the United States at the Highgate Port of Entry in Highgate Springs, Vermont, as a passenger aboard a Greyhound Bus. Sosa-Ramirez presented the Customs and Border Protection Officer an official United States passport in the name of Walter Kahigas. The Customs and Border Protection Officer referred Sosa-Ramirez to secondary inspection, after discovering a database alert associated with that identity. Sosa-Ramirez subsequently admitted the Walter Kahigas passport was obtained through fraudulent statements. Investigation of Sosa-Ramirez’s criminal history revealed he had nine prior felony convictions, including convictions for gun trafficking, document fraud, possession with intent to distribute heroin, and conspiracy to distribute heroin.
United States Attorney Eric S. Miller commended the efforts of United States Customs and Border Protection, in the arrest and prosecution of Sosa-Ramirez.
Sosa-Ramirez was represented by Bradley Stetler, Esq. The United States was represented by Assistant U.S. Attorney Jonathan A. Ophardt.
Natick Attorney and Former City of Worcester Housing Official Indicted on Fraud ChargesRead the Press Release
BOSTON – A real estate developer and a former City of Worcester housing official were charged in U.S. District Court in Worcester this week in connection with a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester.
James E. Levin, 57, of Natick, a real estate developer and attorney, and Jacklyn M. Sutcivni, 43, of Dracut, a former employee of the City of Worcester’s Housing Development Office and Executive Office of Economic Development, were indicted for conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims. Levin was arrested yesterday and released on conditions. Sutcivni appeared in court today and was also released on conditions.
As alleged in court documents, from July 2010 to September 2011, Levin submitted fraudulent payment requests to the City of Worcester for funding from the U.S. Department of Housing and Urban Development (HUD) to purportedly rehabilitate a multi-unit apartment building at 5 May Street in Worcester. Specifically, Levin, as the manager of 5 May Street Apartments, LLC, applied for and obtained federal funds from HUD, through the City of Worcester, to rehabilitate the building. Since the City of Worcester distributes grant funds on behalf of HUD and Massachusetts Department of Housing and Community Development (DHCD), Levin submitted seven payment requests to the City for work he fraudulently claimed he completed on the building and associated costs. Sutcivni, in her job in the City of Worcester’s Housing Development Office, approved the payment requests submitted by Levin although she knew the requests were fraudulent. It is alleged that this caused the City of Worcester to pay approximately $2,365,050 to Levin. After the City issued the payment, Sutcivni or other City officials submitted reimbursement requests to HUD or DHCD for HUD funds.
The charges of conspiracy to commit wire fraud and wire fraud each provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of conspiracy to defraud the United States provides for a sentence of no greater than10 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of submission of false claims provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The indictment also seeks monetary forfeiture in the amount of $2,365,050. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mission Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
LaShay Shields, age 21, was indicted on July 19, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 23, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years each in custody and/or a $250,000 fine, 3 years each of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 13, 2016, Shields assaulted, resisted, opposed, impeded, intimidated and interfered with several officers from the Rosebud Sioux Indian Tribe, while said officers were engaged in their official duties.
The charges are merely accusations and Shields is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Shields was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Charged with Kidnapping, Assault by Strangulation and Suffocation, and Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Kidnapping, Assault by Strangulation and Suffocation, and two counts of Child Abuse.
Paris James Bordeaux, age 26, was indicted on August 16, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 23, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 24, 2016, Bordeaux knowingly and willfully seized, confined, inveigled, decoyed, kidnapped and carried away his intimate and dating partner and held her for the purpose of assaulting her. On that same date, Bordeaux unlawfully assaulted his partner by strangling, suffocating, and attempting to do so. Two young children were subjected to the assault.
The charges are merely accusations and Bordeaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Bordeaux was released on bond pending trial. A trial date has not been set.
Milton Man Sentenced to 210 Months for Federal Child Pornography OffensesRead the Press Release
PENSACOLA, FLORIDA – Winston D. Foster, 40, of Milton, was sentenced today to 210 months in federal prison, after pleading guilty in April 2016 to production and distribution of child pornography. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In January 2016, law enforcement agents became aware that Foster was communicating via Facebook with a 12-year-old child. These communications included Foster requesting the child perform and photograph sexually explicit acts and then send him the images. Foster also sent many sexually explicit images of himself to the child. In February 2016, a search warrant was executed at Foster’s residence, and agents seized his computers and cellular telephone. A forensic review of Foster’s electronic media revealed approximately 46 images of child pornography, of which approximately 33 were of the victim.
The case was investigated by the United States Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Florida Department of Law Enforcement, Walton County Sheriff’s Office, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Millersburg man indicted on tax chargesRead the Press Release
A Millersburg man was charged in a seven-count indictment with crimes related to fraudulently claiming more than $1.1 million in tax refunds to which he was not entitled, said U.S. Attorney Carole Rendon and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Dennis Dean Miller was indicted on six counts of false claims and one count of obstructing internal revenue laws.
Miller falsely reported that financial institutions had withheld large amounts of federal income tax on income that did not exist in reality. He falsely filed for tax refunds of $1,121,420 for tax years 2006 through 2011, according to the indictment.
"Mr. Miller unlawfully manipulated the tax code for his own personal gain, reaping hundreds of thousands of dollars in fraudulently procured tax refunds," Enstrom said. “Taxpayers thinking about engaging in tax defier conduct, such as filing IRS Forms 1099-OID, Original Issue Discount, to avoid their federal tax obligations should think twice.”
This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the IRS.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
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.
Mexican National pleads guilty to immigration crimeRead the Press Release
CHARLESTON, W.Va. – A Mexican national pleaded guilty today to an immigration crime, announced United States Attorney Carol Casto. Edilberto Sanchez-Galvan, 35, entered his guilty plea to illegally reentering the United States.
Sanchez-Galvan admitted that he had previously been convicted of the federal crime of illegally reentering the United States in February 2010. After that conviction, Sanchez-Galvan was deported from the United States to his home country of Mexico. Sanchez-Galvan then illegally reentered the United States and he was found in South Charleston by Department of Homeland Security agents on May 17, 2016.
Sanchez-Galvan faces up to 10 years in federal prison when he is sentenced in October 2016. He is also subject to deportation proceedings at the conclusion of the case.
The investigation was conducted by the Department of Homeland Security. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
Medical Device Company CEO Pleads Guilty to Tax EvasionRead the Press Release
SACRAMENTO, Calif. — Briant Benson, 59, of El Dorado Hills, pleaded guilty today to tax evasion, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, during the years 2004 through 2006, Benson failed to file tax returns or pay any personal income tax to the Internal Revenue Service, despite receiving at least $2 million dollars in income as the President and CEO of multiple medical device companies. Further, Benson used corporate funds to support his lavish lifestyle. He used corporate funds to purchase multimillion dollar homes, buy hundreds of thousands of dollars in jewelry and furniture, and pay for lavish travel accommodations such as luxury hotels, private jets, and limousines. Benson also used corporate funds to pay over half a million dollars in gambling debt. Nevertheless, when confronted by IRS officers, Benson denied using corporate funds for his personal use.
Benson’s failure to report his personal income and pay taxes due and owing on that income resulted in a tax loss of at least $249,000.
“In today’s economic environment, it is more important than ever that the American people feel that everyone is playing by the rules and paying the taxes they owe,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Mr. Benson concealed his true income from the IRS and rather than paying his taxes, he paid for multimillion dollar homes, private jets, limousines and luxury hotel stays. The prosecution of individuals who intentionally conceal income and evade taxes is vital in maintaining public confidence in our tax system.”
This case is the product of an investigation by the IRS Criminal Investigation. Assistant United States Attorneys Matthew D. Segal and Amy Schuller Hitchcock are prosecuting the case.
Benson is scheduled for sentencing on December 2, 2016, by U.S. District Judge Garland E. Burrell Jr. Benson faces a maximum statutory sentence of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Pleads Guilty in $35 Million Penny Stock Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – One of the members of a penny stock fraud conspiracy that defrauded investors of over $35 million, has pleaded guilty to felony securities fraud charges, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Jeffrey Turino, 60, pleaded guilty on Monday, Aug. 22, to one count of conspiracy to commit securities fraud. He faces up to 25 years in prison and a fine of up to $250,000, and is scheduled to be sentenced on Nov. 28, at 11 a.m. by U.S. District Judge Jennifer A. Dorsey. Turino, who is currently in custody, has requested to be released pending sentencing, and a hearing on the matter is scheduled for this afternoon at 2:30 p.m.
According to the plea agreement, beginning in about 1997 and continuing until about March 2010, Turino conspired with others to fraudulently issue, offer and sell stock issued by corporate shells which they controlled, including World Wide Cannery and Distribution, Global Diamond Exchange, Inc., Equitable Mining Corporation, ODMA Oil and Gas, Inc. and Grand Entertainment and Music, Inc. Turino and the other conspirators engaged in deceptive practices and issued misleading press releases to promote these companies and to give the impression that they were actively engaged in the importation and sale of products, when in truth, the companies were hollow shells that did not engage in regular or substantial business activities, did not produce any goods, services, or profits, and did not commercially import products as promoted in their news releases. Turino and other members of the conspiracy fraudulently induced investors to purchase billions of unregistered shares of stock in the companies, which the conspirators had deceptively issued without requisite restrictions and disclosures. Although these penny stocks typically traded for less than one cent per share, the billions of shares of stock that the conspirators offered and sold in the public market yielded proceeds of more than $35 million, which was divided and distributed among Turino and the other conspirators.
Ten co-conspirators were originally charged in the case. Four are scheduled for trial beginning Nov. 15. Two pleaded guilty and are awaiting sentencing, one is a fugitive, and two more are deceased.
KNOWDOPE Documentary Showing Sunday at Birmingham Sidewalk Film FestivalRead the Press Release
BIRMINGHAM – A documentary short following two lives in Alabama altered by heroin addiction will screen Sunday during the Birmingham Sidewalk Film Festival, announced U.S. Attorney Joyce White Vance.
Students at the University of Alabama at Birmingham, working with UAB Digital Media Director Rosie O’Beirne, produced KNOWDOPE: The Documentary last year as part of a series of public service announcements and the establishment of the larger KNOWDOPE campaign and website, www.knowdope.org. The U.S. Attorney’s Office, as part of the community Pills to Needles Initiative, contracted with UAB’s Digital Media Department to create content for the website that focused on raising awareness and prevention of opiate addiction. KNOWDOPE: The Documentary is a compelling look at one life lost and another irreparably altered by heroin addiction.
The UAB students who worked on the yearlong KNOWDOPE project won Best of Show in February in the student competition for the American Advertising Federation Birmingham Awards, or ADDYs. The students created the KNOWDOPE campaign name and logo, along with the 13-minute documentary and six brief video clip PSAs designed to be shown in area schools as part of drug awareness programs, or shared on social media. The documentary and PSAs, along with information and links to help educate and provide resources on drug abuse and addiction, all can be found on the website. It is critical for the community to understand the path from prescription opiate use and abuse to heroin addiction, and to focus on prevention and treatment opportunities, Vance said.
KNOWDOPE: The Documentary, will be shown Sunday at the Alabama School of Fine Arts’ Dorothy Jemison Day Theatre, 1800 Rev. Abraham Woods Jr. Boulevard, during Alabama Documentary Shorts, from 5:15 p.m. to 6:55 p.m. #KNOWDOPE buttons will be available.
The film’s directors are Matthew Henton and Sarah Buckalew. Run time is 13 minutes.
“Pills to Needles” is a collaborative initiative begun in 2014 to respond to the sharp spike in heroin deaths in northern Alabama. The initiative, originated thorough the U.S. Attorney’s Office for the Northern District of Alabama in conjunction with key partners including the UAB School of Public Health, the Jefferson County Department of Health and the Addiction Prevention Coalition. Its overarching goals are to create a comprehensive and responsive community infrastructure to address this serious public health issue; develop strategies to reduce the ill-effects of heroin and prescription drug abuse; and give voice to those affected by heroin and prescription drug abuse.
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Ieshia Jones of Winooski Sentenced for Heroin DistributionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Ieshia Jones, 27, of Winooski was sentenced today to time served, followed by a three-year term of supervised release. Chief Judge Christina Reiss further ordered that Jones be subject to a curfew with location monitoring for a term of six months.
According to court records, law enforcement conducted four controlled purchases totaling 117 bags of heroin from Jones in April and May 2014 in St. Albans, Winooski, and Burlington. During an attempted controlled buy of heroin from Jones on May 13, 2014 in South Burlington, Jones took the informant’s money and fled the area in her car without providing the heroin. Law enforcement located and arrested Jones shortly thereafter in Essex. Upon arrest, Jones admitted that she had distributed heroin to the informant and others in the past.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of United States Border Patrol, the Federal Bureau of Investigation, and the Winooski Police Department. Assistant U.S. Attorney Kevin J. Doyle handled the prosecution of this case. Jones was represented by Steven L. Barth of the Federal Defender’s Office.
Hot Springs Man Sentenced to Twenty Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Cedric Easter, age 30 of Hot Springs, was sentenced yesterday to 240 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to the plea agreement, during the month of April, 2014, agents with Homeland Security Investigations (HSI) and detectives from the 18th East Judicial Drug Task Force began investigating Easter for selling methamphetamine in the Western District of Arkansas. In June, 2014, officers executed a state search warrant at a residence in Hot Springs and recovered documents associated with Easter as well as a large amount of U.S. currency and a 9mm pistol.
Investigators were able to review numerous phone records which showed incriminating text messages between Easter and others dating back to March, 2014 wherein drug amounts were discussed.
Between July 30, 2014 and December 9, 2014, law enforcement made four controlled buys of methamphetamine from Easter. Subsequent to the last controlled buy, agents executed a search warrant at Easter’s residence where he was located and arrested. During the search, agents located and seized marijuana, a 9mm pistol, and $5,560 in U.S. currency. Agents also executed a search warrant at Easter’s neighbor’s residence due to information that Easter was keeping drugs at that residence. Agents discovered approximately four ounces of methamphetamine and $9,000 in U.S. currency.
During a post-Miranda statement, Easter admitted to selling methamphetamine in the Hot Springs area with others and admitted that the drugs and money found at the neighbor’s residence were his. He also admitted that he knew about the two firearms seized during the investigation. The suspected substances obtained were sent to the Arkansas State Crime Lab where they tested positive for methamphetamine.
Easter was indicted by a federal grand jury on November 19, 2014 and pleaded guilty on July 31, 2015.
“Removing drugs and weapons from our communities makes them safer and will remain one of our top priorities”, said Special Agent in Charge of HSI New Orleans Raymond R. Parmer, Jr. “Together with our law enforcement partners we will continue to target these criminal elements.
This case was investigated by Homeland Security Investigations and the 18th East Judicial Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Herion Trafficker Sentenced to PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the results of another federal prosecution relating to a multi-state heroin trafficking ring. On August 24, 2016, Chief U.S. District Judge Brian A. Jackson sentenced DARYL WALKER, age 42, of Baton Rouge, Louisiana, to serve 5 years in prison, followed by 4 years of supervised release. WALKER was also ordered to forfeit $72,000 in drug-trafficking-related proceeds. On March 29, 2016, WALKER pled guilty to possession with intent to distribute heroin, in violation of Title 18, United States Code, Section 841, and possession of an illegal firearm, in violation of Title 26, United States Code, Section 5861.
U.S. Attorney Green stated: “My office, together with our federal, state, and local partners, will continue our work to eliminate to eliminate drug trafficking and possession of illegal firearms. In particular, our collaborative law effort has stayed the course in pursuing heroin traffickers who are directly responsible for the significant harmful effects on our community resulting from such distribution. I note that the heroin-trafficking ring, of which Walker was a willing participant, not only exposed the community to the horrific effects of heroin, but also the significant risk associated with disguising heroin as a prescription medication – a practice that has already been identified as resulting in greatly increased overdose deaths throughout the nation. I sincerely appreciate the hardworking team of federal, state, and local law enforcement agencies that allowed for the successful identification, arrest, and conviction of this heroin dealer.”
“The abuse of heroin and prescription drugs is a serious problem in our communities. All too often, this abuse leads to addiction, shattered lives, and even death. For the health and safety of our citizens, DEA and our law enforcement partners will continue to target those who illegally obtain and distribute these potentially dangerous drugs. This sentencing confirms that we will stand firmly to ensure that criminals who peddle in these poisons and wreak havoc in our communities will never escape from facing the consequences of their criminal activities,” said DEA Assistant Special Agent in Charge Brad L. Byerley.
This matter was investigated by the U.S. Drug Enforcement Administration’s Tactical Diversion Squad in the Baton Rouge Office and the Internal Revenue Service - Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, and Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorney Paul L. Pugliese.
Gulfport Resident Sentenced to Prison for Aggravated Identity TheftRead the Press Release
Gulfport, Miss – Gregorio Medina, a/k/a Gregorio Villanueva-Medina, 36, was sentenced by Chief U.S. District Judge Louis Guirola to two years in federal prison followed by one year of supervised release for aggravated identity theft, U. S. Attorney Gregory K. Davis announced today. Medina was also ordered to pay a $5,000 fine.
Medina, a resident of Gulfport and native of Honduras, was working at the Gulfport Shipyard using a stolen identity. The fraud was discovered when the victim, a resident of West Virginia, received a notice from IRS that he owed back taxes for his work at the shipyard. Medina began working at the shipyard in 2014 earning $48,610 and $64,805 in 2015. He used the victim’s identity and claimed to be a U.S. citizen to obtain the job.
This case was investigated by Gulfport Police Department and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Annette Williams.Former Greenwich Resident Pleads Guilty to Stealing More Than $700K in Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DEBRA BIAGI, 50, of Fogelsville, Pa., formerly of Greenwich, waived her right to indictment and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of wire fraud stemming from her theft of more than $700,000 from her employer and related companies and individuals.
According to court documents and statements made in court, BIAGI was employed by HB Nitkin Group of Greenwich, Connecticut, a privately owned business engaged in real estate management and development. BIAGI served as an assistant to the chairman of the company with responsibilities that included managing the accounts payable for the company.
From approximately February 2014 to December 2015, BIAGI defrauded the company, as well as key company individuals and members of their families who retained financial and banking information at the company. As part of the scheme, BIAGI created fraudulent invoices made out to fictitious companies detailing charges for items such as masonry, carpentry, electrical and plumbing work. She then used victims’ checkbooks to make checks out to the fictitious companies, purportedly to pay the fraudulent invoices. BIAGI then deposited the checks into her personal bank account, at times endorsing the check with an illegible signature to hide her misconduct, and subsequently withdrew the monies for her personal use.
To keep track of which invoices were fictitious and which checks were made to fictitious companies, BIAGI often included her initials “DB” in the fabricated company name listed on the invoice and check. BIAGI then noted the fictitious company as the payee in the relevant accounting records at the company and filed the fabricated invoices as business record. BIAGI also, as needed, misappropriated the signature stamp of the company’s chairman and used it to “sign” the misappropriated checks and to falsely suggest that the paid expenditure was both legitimate and authorized.
In addition, at different times during the scheme, BIAGI simply stole checks from employees of the company and either made the checks to cash, or endorsed to cash checks that already listed a payee.
In total, BIAGI stole $711,074.39 during the course of this scheme.
Judge Meyer scheduled sentencing for November 21, 2016, at which time BIAGI faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation and Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Federal Court Bars Two Fraudulent Tax Return PreparersRead the Press Release
A federal court in Charleston, South Carolina, has permanently barred two women from preparing federal tax returns for others, the Justice Department announced.
According to a civil complaint filed by the United States, Latasha Failey and her sister Latoya Windham prepared federal income returns in North Charleston from 2009 to 2012. They continually and repeatedly prepared income tax returns that claimed false deductions or credits in order to understate their customers’ tax liabilities, the complaint alleged. The defendants falsely claimed education credits; child and dependent care credits; itemized deductions on Schedule A; and dependency exemptions, according to the complaint. In 2013, Failey and Windham each pleaded guilty to two counts of aiding and assisting in the preparation and presentation of a false income tax return and were sentenced to prison and probation, respectively, the complaint states.
The court’s order also requires Failey and Windham to give the United States a list of all of their return preparation customers since Jan. 1, 2013.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Court Bars Two Fraudulent Tax Return PreparersRead the Press Release
Contact: Office of Public Affairs (202) 514-2007
Washington—A federal court in Charleston, South Carolina, has permanently barred two women from preparing federal tax returns for others, the Justice Department announced.
According to a civil complaint filed by the United States, Latasha Failey and her sister Latoya Windham prepared federal income returns in North Charleston from 2009 to 2012. They continually and repeatedly prepared income tax returns that claimed false deductions or credits in order to understate their customers’ tax liabilities, the complaint alleged. The defendants falsely claimed education credits; child and dependent care credits; itemized deductions on Schedule A; and dependency exemptions, according to the complaint. In 2013, Failey and Windham each pleaded guilty to two counts of aiding and assisting in the preparation and presentation of a false income tax return and were sentenced to prison and probation, respectively, the complaint states.
The court’s order also requires Failey and Windham to give the United States a list of all of their return preparation customers since Jan. 1, 2013.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Federal Authorities Charge 33 People with Crimes Against the U.S. Postal Service, including Theft of Mail by EmployeesRead the Press Release
LOS ANGELES – Thirty-three defendants were charged as part of a sweep targeting criminal activity that has victimized the United States Postal Service (USPS) and its customers. Most of the defendants charged as part of the sweep are USPS employees who allegedly stole mail, embezzled from the agency or, in one case, failed to deliver nearly 50,000 pieces of mail.
Arrest warrants were issued for 6 of the 33 defendants, who were recently charged as a result of investigations by the USPS’s Office of Inspector General. Most of the defendants were charged in indictments that were returned by federal grand juries on Wednesday and Thursday this week.
The 33 defendants are charged across 28 cases, about half of which allege mail theft and/or possession of stolen mail by USPS employees and contractors. Other cases charge USPS employees with conspiracy, embezzlement, bank fraud, and false statements. Five of the cases allege crimes by non-employees, including mail theft and fraud related to the use of credit cards that had been stolen from the mail.
In one case announced today, the former local area president of the Mail Handlers Union was charged with conspiracy and possession of stolen mail. Jarol Garcia, 33, of Hemet, who formerly worked at the Moreno Valley Delivery Distribution Center as a mail handler, stole mobile phones from parcels going through the center and traded the phones after offering them for exchange on a website, according to an indictment, which also alleges that Garcia, in December 2015, possessed at least 166 mobile phones stolen from the mail.
Another case charges a mail carrier from the Mid-City District of Los Angeles with conspiracy to commit access device (credit card) fraud and to steal mail. The indictment alleges that Norman A. Muschamp, 48, was part of a conspiracy to use information belonging to identity theft victims to order pre-paid PayPal debit cards that were sent to primarily non-existent addresses on his mail route. Muschamp allegedly participated in the scheme by obtaining the PayPal debit cards from the mail and delivering them to co-conspirators in exchange for cash. Investigators who are continuing to investigate the overall scheme believe it caused hundreds of thousands of dollars in losses.
In another case, a postal carrier from the Sawtelle District of Los Angeles was charged with delaying the mail by effectively hoarding the mail she was entrusted to deliver. Sherry Naomi Watanabe, 48, was found to have more than 48,000 pieces of mail in her residence, according to a plea agreement, that was supposed to be delivered to mail customers on her route in Placentia.
“The mail system plays an important role in our country's commerce and social communication. Maintaining its integrity is vital,” said United States Attorney Eileen M. Decker. “Mail theft across Southern California has increased recently, which is significant since this type of crime tends to be a precursor to other crimes like identity theft and drug offenses. As a result, we are stepping up enforcement activities, including dealing aggressively with corruption within the Postal Service.”
“The overwhelming majority of Postal Service employees are honest and dedicated public servants who are worthy of our trust. However, when employees engage in criminal activity, our agency will aggressively investigate these matters to protect the overall integrity of the Postal Service,” said U.S. Postal Service Office of Inspector General Special Agent in Charge Brian Washington.
Other cases filed as part of the sweep include the following:
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Vince Johnson, 30, of Carson, who worked for a USPS contractor, was charged with possession of stolen mail;
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Jose Hernandez, 35, of Long Beach, who worked for a USPS contractor, was charged with mail theft;
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Tamika Deloach, 38, of Wilmington, a mail carrier, was charged with possessing stolen mail related to checks she allegedly stole from the mail and deposited into her credit union account;
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Charell Watson, 32, of West Covina, formerly a mail processing clerk, was charged with theft of mail by a postal employee;
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Nicole Elwood, 45, of Atascadero, was charged with theft of mail by a postal employee for allegedly stealing mail items containing medications, including medications sent from the U.S. Department of Veterans Affairs to veterans;
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Kayla Young, 23, of Diamond Bar, was charged with mail theft by a postal employee;
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Michael Smith, 43, of Lake Elsinore, was charged with mail theft by a postal employee for allegedly stealing money orders from a mail envelope;
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Justin Brewster, 25, of Lake Elsinore, a USPS mail processing clerk, was charged with mail theft by a postal employee for allegedly stealing video games that were mailed to or from Gamefly;
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Christian Wesley Johnson, 27, of Los Angeles (90044), a postal clerk, was charged with mail theft by a postal employee for stealing mobile phones, which, according to his plea agreement, were valued at approximately $15,000; and
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Deion Deshazier, 27, a former mail carrier, of Hawthorne, was charged with dumping and delaying mail;
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Betty Owens, 73, of Oakland, a former mail handler, was charged with a misdemeanor offense of theft of government property (for fraudulent mileage reimbursements).
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Lisa Thornberry, 31, of Rancho Cucamonga, and Ian McCown, 34, of Alta Loma, were charged with conspiring with each other to steal mail and possessing stolen mail;
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Chelsea Green, 24, of Canoga Park, a former mail carrier, was charged with bank fraud for allegedly misusing a USPS-issued gas card and fraudulently using the PIN of another USPS employee to fuel her personal vehicle;
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James Freeman, 30, of Lakewood, a former mail carrier, was charged with bank fraud for allegedly misusing a USPS-issued gas card;
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Mary Williams, 60, of Los Angeles (90002), a former USPS sales associate, was charged with making a false entry in an official record related to her alleged embezzlement of funds from USPS;
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Victoria Uribe, 48, of Rancho Cucamonga, a former USPS sales associate, was charged with making a false entry in an official record related to her alleged embezzlement of funds from USPS;
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Lucy Plambeck, 66, of Paso Robles, a former USPS sales associate, was charged with making a false entry in an official record related to her alleged embezzlement of funds from USPS;
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Monica Cavalier, 40, of Victorville, a former sales associate, was charged with making a false entry in an official record related to the sale of stamps related to her alleged embezzlement of funds from USPS;
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Johnnie Macon, 34, of Los Angeles (90011), a former postal support employee, who was charged with embezzlement of postal funds and making a false entry in an official record related to the fraudulent voiding of postal money orders;
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Gary Nygard, 49, of Mission Hills, a former contract driver, was charged with conspiracy to steal government property by siphoning approximately 385 gallons of diesel fuel (paid for by USPS) from contractor trucks;
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Raymond Coffin, 24, of Adelanto, a mail carrier, was charged with bank fraud for allegedly misusing a USPS-issued gas card;
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Eugene Brown, 43, of Compton, was charged with making a false statement relating to his criminal history in his employment application to work for the USPS;
An indictment or criminal information contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Defendants charged as part of the sweep will be arraigned in the United States District Court in Los Angeles, Santa Ana, and Riverside.
The cases announced today were filed by Special Assistant United States Attorney Ashwin Janakiram of the General Crimes Section.
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Eagle Butte Woman Charged with Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for three counts of Distribution of a Controlled Substance.
Ree Amber Eagle Staff, age 34, was indicted on August 16, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, at least 3 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on three different days in July of 2016, Eagle Staff knowingly and intentionally distributed methamphetamine, a Scheduled II controlled substance.
The charges are merely accusations and Eagle Staff is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Eagle Staff was released on bond pending trial. Trial has been set for October 18, 2016.
Eagle Butte Man Charged with Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Distribution of a Controlled Substance.
Tyson Curtis LeCompte, a/k/a Tyson Garreaux, age 22, was indicted on August 16, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 24, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on two different days in June of 2016, LeCompte knowingly and intentionally distributed methamphetamine, a Scheduled II controlled substance.
The charges are merely accusations and LeCompte is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
LeCompte was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for October 18, 2016.
Drug Supplier to Massena Sentenced to 36 MonthsRead the Press Release
ALBANY, NEW YORK – Matik Jones, age 26, of Jersey City, New Jersey, was sentenced yesterday to serve 36 months in prison, to be followed by 3 years of supervised release, for intending to supply heroin and crack cocaine to the Massena area.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
The sentence followed Jones’s November 24, 2015 guilty plea.
Senior U.S. District Judge Frederick J. Scullin, Jr. sentenced Jones exactly one year after Jones’s arrest following a traffic stop in Massena, in which Jones was found to possess approximately 103 grams of crack cocaine and 25 grams of heroin.
This case was investigated by HSI and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Detroit man sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Leon Fisher, 29, of Detroit, Michigan was sentenced to 30 months in prison for heroin distribution, United States Attorney William J. Ihlenfeld, II, announced.
Fisher pled guilty in April 2016 to one count of “Distribution of Heroin.”
Assistant United States Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Department of Justice Highlights Consumer Benefits of Competition Among Court ReportersRead the Press Release
Antitrust Division Urges California State Assembly to Consider Potential Anticompetitive Effects of Proposals to Ban or Limit Third-Party Court-Reporting Contracts
The Department of Justice’s Antitrust Division today submitted a statement on the potential anticompetitive effects of legislative proposals that could result in a ban or limitation on contracts between local California court reporters or service firms and third parties, such as insurance companies, for more than one deposition at a time, also known as third-party contracts. Such regulation of court-reporting services can raise barriers to entry, restrict competition and limit potentially cost-saving options available to consumers. Accordingly, the division recommended carefully weighing the potential competitive costs of any proposals to restrict competition in court-reporting services against any demonstrated risk these contracts could pose to the integrity of court reporting, and as a result, to the judicial process.
The division also noted that restrictions on the ability of court reports to enter third-party contracts should be imposed only where there is credible evidence of a significant risk of harm to the judicial process. Any restrictions should be narrowly tailored to address the harm and not discourage innovative contract terms to deliver court-reporting services for the benefit of consumers.
“Consumers benefit when a competitive marketplace presents them with a wider variety of services,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “When analyzing legislation that could result in a ban or limitation of third-party court-reporting contracts, the California State Legislature should consider a company’s ability to realize significant savings under a third-party court-reporting contract and pass savings on to its customers.”
The statement is in response to a request from California Assemblyman Scott Wilk. The request asked for views on potential legislative proposals that would subject out-of-state court reporter service provider firms to the jurisdiction of the California Court Reporters Board, which could have the effect of banning or limiting the use of multi-case third-party contracts.
Letter to Assemblyman Wilk
College Agrees to Pay $295,442 to Resolve Allegations of Improper Claims for Educational Benefit PaymentsRead the Press Release
HONOLULU -- Remington Colleges, Inc., an Arkansas non-profit corporation doing business as Remington College – Honolulu Campus ("Remington College"), will pay $295,442.00 to settle certain civil claims under the federal False Claims Act in an agreement signed on July 25, 2016.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that the United States had alleged that Remington College submitted false statements and false claims to obtain educational benefit payments from the United States Department of Veterans Affairs ("VA"). Between January 2010 and May 2011, Remington College submitted six false statements and claims in which it certified to the VA that five VA beneficiaries were enrolled as students in Massage Therapy, a VA-approved program, when in fact, the five VA beneficiaries were enrolled in Cosmetology, an unapproved program. While Remington College agreed to the settlement, it did not admit that the allegations were correct.
U.S. Attorney Nakakuni noted that under the federal False Claims Act, the United States can seek up to triple damages, plus penalties, for false and fraudulent claims for payment that are submitted to the federal government. She stated: "We will work tirelessly with our law enforcement partners in the VA’s Office of Inspector General ("VA-OIG") and the Federal Bureau of Investigation ("FBI") to combat fraud and protect the taxpayers’ money."
This civil investigation was conducted by the VA-OIG and the FBI. The case was handled by Assistant U.S. Attorney Rachel Moriyama.