Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
20 September 2016
Westchester Neurologist Sentenced to Prison for Tax FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DAVID S. YOUNGER, a neurologist with a private medical practice in Manhattan, was sentenced yesterday in Manhattan federal court to four months in prison for tax fraud in connection with his falsely classifying and deducting, in 2007 and 2008, over $580,000 in personal expenses – including golf and country club dues, property taxes for his home, and the purchase of a Mickey Mantle baseball card – as business expenses attributable to his medical professional corporation. YOUNGER pled guilty on May 19, 2016, before United States District Judge Jed S. Rakoff, who also imposed sentence.
According to the Information and statements made in open court:
YOUNGER, a resident of Westchester County, is a board-certified neurologist engaged in private medical practice in Manhattan through the David S. Younger M.D., P.C. professional corporation (the “Younger P.C.”). In 2007 and 2008, Younger filed both personal tax returns on behalf of himself and his wife, and corporate tax returns on behalf of the Younger P.C. In 2007, YOUNGER used approximately $250,000 of corporate funds to pay personal expenses, and in 2008, YOUNGER used approximately $335,000 of corporate funds to pay personal expenses. YOUGNER caused all of these expenses falsely to be recorded as business expenses such as medical supplies, office expenses, and professional fees in the books and records of the Younger P.C. YOUNGER caused these expenses falsely to be deducted from income on tax returns of the Younger P.C., and YOUNGER also fraudulently omitted these personal expenses as income on his personal tax returns.
Among the personal expenses that YOUNGER falsely categorized as business expenses and deducted on his corporate tax returns in 2007 and 2008 are the following: approximately $100,000 in fees to a private golf and country club, approximately $53,000 in property taxes for YOUGNER’s residence, a $4,300 placement fee for a nanny/housekeeper, approximately $17,000 for the construction of an electric gate at YOUNGER’s residence, $345 for a Mickey Mantle baseball card, approximately $26,000 for the restoration of a piano that was picked up from and delivered to YOUNGER’s residence, approximately $37,000 for a vendor to perform construction work at YOUNGER’s residence, approximately $18,000 for furniture delivered to YOUNGER’s residence, and at least approximately $20,000 of airfare for members of YOUNGER’s family.
* * *
In addition to his prison sentence, YOUNGER, 62, of Scarsdale, New York, was ordered to pay a fine of $25,000 and restitution to the IRS to be determined.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Richard Cooper is in charge of the prosecution.
West Monroe woman pleads guilty to embezzling money from bankruptcy clientsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a West Monroe woman pleaded guilty Monday to stealing bankruptcy clients’ Chapter 13 payments.
Jessica M. Millwood, 39, of West Monroe, La., pleaded guilty before U.S. Magistrate Judge Karen L. Hayes to one count of embezzlement against a bankruptcy estate. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to testimony presented during the guilty plea, Millwood worked for a Monroe bankruptcy attorney, Glay H. Collier II, who himself was previously convicted of bankruptcy fraud against his clients. Millwood dealt directly with the clients and took money from debtor-clients. A client filed for Chapter 13 bankruptcy in March of 2014 and began paying $1,105 per month to settle debts. Millwood began embezzling the money from the client for her own use in May of 2014 rather than remitting the plan payments to the Chapter 13 trustee. In August of 2014, the client’s case was dismissed for failure to pay. Milwood embezzled funds from approximately 10 debtor-clients during her employment with Glay Collier.
Millwood faces a maximum penalty of up to five years in prison, three years of supervised release, restitution and a $250,000 fine. Sentencing is scheduled for January 26, 2017.
The FBI and the U.S. Trustee’s Office – Region 5 conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.
Wabasha Antiques Dealer Sentenced to Pay $100,000 Fine for Smuggling Elephant IvoryRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of JAY ANTHONY ANDERSON, 66, for smuggling elephant ivory from the United States in violation of the Lacey Act. ANDERSON, who pleaded guilty on June 6, 2016 to one count of smuggling and one count of violating the Lacey Act, was sentenced on September 20, 2016 before U.S. District Judge Susan R. Nelson in U.S. District Court in St. Paul, Minn.
ANDERSON was the owner and operator of an antique business, located in Wabasha, Minn., as well as a website used to sell items through various online auctions. According to the defendant’s guilty plea and documents filed in court, from January 2011 through May 2013, ANDERSON sold more than $200,000 worth of elephant ivory, domestically and abroad. The defendant used online advertising to target buyers located in Asia and used third-party shippers so that he would not have to personally ship the ivory internationally.
According to the defendant’s guilty plea and documents filed in court, on June 10, 2011, ANDERSON, knowingly attempted to export a carving made from elephant ivory to a buyer located in Foshan City, China for approximately $1,356.00. ANDERSON attempted to export the elephant ivory through the United States Postal Service declaring the object as “RESIN CARVINGS” valued at $30.00, when in fact the defendant knew the object was made from elephant ivory and held a much higher monetary value. On June 23, 2011, U.S. Fish and Wildlife Service officials inspected and intercepted the package at an International Mail Facility in Chicago, Ill.
According to the defendant’s guilty plea and documents filed in court, from January 29, 2012 through December 31, 2012, ANDERSON knowingly violated the laws and regulations of the United States by buying and selling an object made from elephant ivory with a market value of more than $350.00. Specifically, on January 29, 2012, ANDERSON purchased an object made from elephant ivory from an auction house in Montreal, Canada for approximately $300.00. ANDERSON subsequently sold the elephant ivory object for approximately $700.00, describing it as an “18th/19th CENTURY IVORY & EBONY EUROPEAN CRUCIFIX.” At the time the elephant ivory object was purchased and imported, ANDERSON failed to submit a declaration to USFWS, as required by law.
"Dealers in the United States often begin illegally buying and selling rare wildlife after being lured by the prospects of huge profits. They choose to disregard how their greed fuels the black market and how the market affects living populations," said U.S. Fish and Wildlife Service Resident Agent in Charge Pat Lund, supervisor for Minnesota, Iowa, and Wisconsin. "We also find that many people think they won’t get caught or if they do, the consequences will be minimal. This sentence should serve as a reminder that this is not always the case," continued Lund.
Under the Lacey Act, it is unlawful to import, export, transport, sell or purchase wildlife, fish or plants that were taken, possessed, transported or sold in violation of a state, federal or foreign law. When it was passed in 1900, the Lacey Act became the first federal law protecting wildlife.
This case is the result of an investigation by the U.S. Fish and Wildlife Service.
This case was prosecuted by Assistant U.S. Attorney Andrew S. Dunne.
Defendant Information:
JAY ANTHONY ANDERSON, 66
Wabasha, Minn.
Convicted:
- Smuggling, 1 count
- Violation of the Lacey Act, 1 count
Sentenced:
- $100,000 fine payable to the Lacey Act Reward Fund
- Two years’ probation
- Forfeiture of elephant ivory totaling $85,000
- 200 hours community service
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Vinton Man Indicted on Federal Fraud ChargesRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the indictment of a Vinton man on a pair of fraud charge related to this alleged theft of funds from the Social Security Administration.
Robert Wozniak, 48, of Vinton, Va., was indicted under seal last week by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke. That indictment was unsealed this morning when the defendant made his initial court appearance in federal court.
The grand jury has charged Wozniak with one count of theft of government property and one count of social security fraud. The indicted claims that from July 2015 through April 2016 the defendant stole Social Security Administration funds, namely retirement benefit payments, intended for Wozniak’s deceased grandmother, for which he was not entitled. The indictment specifically claims that Wozniak intentionally concealed his grandmother’s death in order to continue to receive and spend the retirement benefit payments made by the Social Security Admiration to his grandmother.
The investigation of the case was conducted by the Department of Health and Human Services, the Social Security Administration and the Bedford County Sheriff’s Office. Assistant United States Attorney Charlene R. Day will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
U.S. Attorney’s Office shares with students the dangers of heroin and opioidsRead the Press Release
SHREVEPORT, La. — United States Attorney Stephanie A. Finley announced that her office is observing National Heroin and Opioid Awareness Week by bringing the discussion to Shreveport and surrounding high schools.
Today’s program at Northwood High School in Shreveport kicks off similar events that begin this week and will continue throughout the year. Students at schools in the Western District of Louisiana will view the FBI and DEA documentary “Chasing the Dragon: The Life of an Opiate Addict.” There will be a discussion of the film followed by presentations from an Assistant U.S. Attorney, U.S. Attorney’s Office staff, members of law enforcement, counselors and others. A discussion guide will also be made available to classroom teachers for use after the events.
“I want to thank the Caddo Parish School Board, Superintendent Theodis Lamar Goree and Northwood High School Principal Darlene Simons for hosting the first of these presentations,” Finley stated. “Our goal is to have many more of these programs at local schools and expand them to university and technical college campuses. Addiction to these substances affects all of us on some level, young and old. We want to do everything we can to make sure that the young people of this District are aware of the dangers and pitfalls so that they can have great futures.”
The White House, Department of Justice and U.S. Attorney’s Offices have joined with law enforcement, schools and other public and private agencies to observe National Heroin and Opioid Awareness Week. It provides the chance to educate the public about the dangers of heroin and opioid abuse, as well as how they can help stop the epidemic that is killing so many of children, friends and neighbors. Many people are not aware how pervasive opioids have become and do not know how rapidly the opioid threat is evolving.
The prescription opioid and heroin epidemic has taken a toll on many Americans and their families, while straining resources of law enforcement and treatment programs. More Americans now die every year from drug overdoses than they do in motor vehicle crashes—and most of those involve prescription opioids or heroin. More than 27,000 lives were lost in 2014 to heroin and opioids, and reports from the field indicate that this number has increased in 2015 and this year. The largest share of this toll comes from the abuse of prescription opioids, but the number of deaths from heroin has increased dramatically over the last several years. Particularly disturbing is the recent rise of deaths caused by fentanyl, a synthetic opioid that is estimated to be 80 times the potency of morphine.
More information is available at www.fbi.gov/ChasingTheDragon.
U.S. Attorney’s Office for the Middle District of Florida Supports National Heroin and Opioid Awareness WeekRead the Press Release
Tampa, FL - Attorney General Loretta Lynch has designated the week of September 19, 2016, as National Heroin and Opioid Awareness Week. Accordingly, a large number of U.S. Attorney’s offices, including the Middle District of Florida (MDFL), are joining with law enforcement to engage local community stakeholders, and collaborate with public health professionals to help combat this growing epidemic.
This week, the USAO/MDFL will participate in panel discussions on opioid addiction problems in Florida and the law enforcement and prosecutorial efforts to combat the crisis. Each forum will include a viewing of Chasing the Dragon: The Life of an Opiate Addict, a collaboratively produced documentary by the FBI and DEA to help educate students and young adults about the dangers of opioid addiction. The 45-minute film, whose title refers to the never-ending pursuit of the original or ultimate high, features stark first-person accounts, as told by individuals who have abused opioids or whose children have abused the drugs, with tragic consequences.
The video, Chasing the Dragon: The Life of an Opiate Addict, can be found on either the FBI or DEA websites using the following links:
https://www.fbi.gov/news/stories/raising-awareness-of-opioid-addiction or
https://www.dea.gov/media/chasing-dragon.shtml.
The rise of heroin use and the abuse of prescription opioids in the United States is currently a huge challenge to public health and safety. It threatens our communities, families, and children. The Department of Justice has compiled additional resources to assist in combatting the heroin, fentanyl, and prescription drug problems in the United States. They can be found at: https://www.justice.gov/opioidawareness.
U.S. Attorney Charges Property Manager for Stealing from Condominium AssociationsRead the Press Release
BIRMINGHAM – Federal prosecutors on Monday charged a Birmingham woman with stealing more than $350,000 from homeowner associations, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
In a one-count information filed in U.S. District Court, the U.S. Attorney’s Office charged JILL ROUSE BOOTHBY, 42, with one count of wire fraud. The U.S. Attorney’s Office also filed a plea agreement with Boothby. According to the agreement, Boothby will plead guilty to the charge and pay restitution in the amount of $375,750.
According to the information, Boothby was employed as a property manager at Boothby Realty from 2008 through January 2015. Boothby Realty is a real estate and property management company located in Birmingham. Boothby also owned and operated an interior design business called Jill Boothby Designs. The design company is a separate and independent company from Boothby Realty and is run solely by Boothby.
As a property manager at Boothby Realty, Boothby was personally responsible for the management of 11 condominium associations within the Birmingham metropolitan area. Boothby attended homeowner association meetings, assisted with the use and accounting of the homeowner association funds, coordinated maintenance services at the properties, helped bid contracts for maintenance and improvements to the properties, and assisted the associations with budgeting. As expenses were incurred by the various associations, Boothby would advise Boothby Realty’s accounting personnel of the invoices and expenses to be paid from the homeowner associations’ funds.
The government’s plea agreement with Boothby states that, beginning in late 2012 and continuing to about January 2015, Boothby created false and fraudulent invoices for goods and services in the name of her company, Jill Boothby Designs, and submitted the various invoices to the 11 condominium associations that she managed. The Jill Boothby Designs invoices contained descriptions of items billed to the various associations, however, neither Boothby nor her design company actually purchased the items. Boothby submitted the fraudulent invoices to her employer, Boothby Realty, with a copy to the homeowner associations for payment out of the homeowner associations’ funds. The realty company paid the fraudulent invoices to Boothby out of the associations’ funds. To further conceal the fraud, Boothby altered the monthly financial statements that were submitted to Boothby Realty to be mailed or emailed to the associations.
The maximum punishment for wire fraud is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
Two Tennessee Women Plead Guilty to Tax Return Preparation FraudRead the Press Release
A Nashville, Tennessee, resident and a LaVergne, Tennessee, resident pleaded guilty in separate cases this week to assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney David Rivera for the Middle District of Tennessee.
According to documents filed with the court, Tracey Brown, 48, of Nashville, operated a tax return preparation business, Total Tax Services, from her residence. Brown admitted that from at least January 2006 through December 2010, she routinely filed false tax returns on behalf of her clients in order to increase their refunds, without her clients’ knowledge or permission. She further admitted that on these false returns she claimed a variety of false items, such as false medical expenses, charitable contributions and business losses, with an intended tax loss of approximately $443,605.
According to court documents, Michelle Theus, 42, of LaVergne, was a tax return preparer operating under the name Cole Tax Services in LaVergne. Theus admitted that from 2009 through 2012 she filed false tax returns on behalf of her clients for the 2008 through 2011 tax years. Unbeknownst to her clients, Theus routinely reported false items on the tax returns she prepared, such as false dependents and false education and childcare credits, in order to increase her clients’ refunds. Theus further admitted that often she would prepare and provide the client with an accurate return and then prepare and file a false tax return in the client’s name that claimed an inflated refund. In most cases, Theus directed the Internal Revenue Service (IRS) to split the fraudulently-inflated refunds into separate bank accounts, having the portion expected by the client deposited into the clients’ bank accounts and having the inflated portion of the refund deposited into one of her or her family members’ accounts. Theus took steps to conceal her wrongdoing from the IRS and her clients by not signing the tax returns she prepared, which gave the IRS the impression that the clients prepared the tax returns themselves and by listing her and her family members’ addresses on the tax returns to divert correspondence from the IRS away from the clients. Theus admitted that she prepared approximately 206 tax returns for her clients and that the intended tax loss for these returns is approximately $450,959.
In addition to preparing false tax returns for her clients, Theus admitted that she prepared and filed false 2009 and 2010 income tax returns for herself that substantially underreported the income she earned from her tax preparation business. Theus failed to report more than $95,000 in income for 2009 and 2010, which resulted in additional tax loss of $37,275.
Brown is scheduled to be sentenced on Dec. 21 and Theus is scheduled to be sentenced on Jan. 11, 2017. They each face a statutory maximum sentence of three years in prison, as well as a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rivera commended special agents of IRS-Criminal Investigation, who conducted the investigations and Assistant U.S. Attorneys Tom Jaworski and S. Carran Daughtrey and Trial Attorneys Alexander Effendi and Nathan Brooks of the Tax Division, who are prosecuting these cases.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Two Tennessee Women Plead Guilty to Tax Return Preparation FraudRead the Press Release
A Nashville, Tennessee resident and a LaVergne, Tennessee resident pleaded guilty in separate cases this week to assisting in the preparation of false tax returns, announced U.S. Attorney David Rivera for the Middle District of Tennessee and Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to documents filed with the court, Tracey Brown, 48, of Nashville, operated a tax return preparation business, Total Tax Services, from her residence. Brown admitted that from at least January 2006 through December 2010, she routinely filed false tax returns on behalf of her clients in order to increase their refunds, without her clients’ knowledge or permission. She further admitted that on these false returns she claimed a variety of false items, such as false medical expenses, charitable contributions and business losses, with an intended tax loss of approximately $443,605.
According to court documents, Michelle Theus, 42, of LaVergne, was a tax return preparer operating under the name Cole Tax Services in LaVergne. Theus admitted that from 2009 through 2012 she filed false tax returns on behalf of her clients for the 2008 through 2011 tax years. Unbeknownst to her clients, Theus routinely reported false items on the tax returns she prepared, such as false dependents and false education and childcare credits, in order to increase her clients’ refunds. Theus further admitted that often she would prepare and provide the client with an accurate return and then prepare and file a false tax return in the client’s name that claimed an inflated refund. In most cases, Theus directed the Internal Revenue Service (IRS) to split the fraudulently-inflated refunds into separate bank accounts, having the portion expected by the client deposited into the clients’ bank accounts and having the inflated portion of the refund deposited into one of her or her family members’ accounts. Theus took steps to conceal her wrongdoing from the IRS and her clients by not signing the tax returns she prepared, which gave the IRS the impression that the clients prepared the tax returns themselves and by listing her and her family members’ addresses on the tax returns to divert correspondence from the IRS away from the clients. Theus admitted that she prepared approximately 206 tax returns for her clients and that the intended tax loss for these returns is approximately $450,959.
In addition to preparing false tax returns for her clients, Theus admitted that she prepared and filed false 2009 and 2010 income tax returns for herself that substantially underreported the income she earned from her tax preparation business. Theus failed to report more than $95,000 in income for 2009 and 2010, which resulted in additional tax loss of $37,275.
Brown is scheduled to be sentenced on December 21, 2016 and Theus is scheduled to be sentenced on January 11, 2017. They each face a statutory maximum sentence of three years in prison, as well as a term of supervised release and monetary penalties.
U.S. Attorney Rivera and Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigations and Assistant U.S. Attorneys Tom Jaworski and S. Carran Daughtrey and Trial Attorneys Alexander Effendi and Nathan Brooks of the Tax Division, who are prosecuting these cases.
Two Co-Conspirators Sentenced for Roles in Tax Fraud SchemeRead the Press Release
Memphis, TN – Two Memphians have been sentenced for their roles in a tax fraud scheme that defrauded the government of more than $100,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee; Tracey D. Montaño, Special Agent in Charge of IRS-Criminal Investigation; and Tom Noyes, Inspector in Charge of the U.S. Postal Inspection Service – Charlotte Division announced the sentences today.
According to information presented in court, Kevin Travell Gray, 45, and Mary Payne Curtis, 54; both of Memphis, Tennessee; prepared fraudulent income tax returns between 2011 and 2015.
During the tax scheme, Curtis operated "Right Now Taxes," a tax preparation company in Memphis. Curtis conspired with Gray to use the company to prepare fraudulent income tax returns. The tax returns included false home-based business expenses, education credits and other material misrepresentations on clients’ tax returns. The fraudulent information was used to boost tax refund amounts.
As a result of the fraudulent returns prepared, the IRS approved numerous fraudulent refunds. The investigation revealed that more than $100,000 of false claims were filed during the scheme.
In May 2016, Gray and Curtis both pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to one count of willfully assisting in the preparation of fraudulent income tax returns.
In August 2016, Judge Fowlkes sentenced Curtis to nine months of home detention and ordered her to pay $105,555 in restitution.
On Tuesday, September 20th, U.S. District Court Judge Sheryl H. Lipman sentenced Gray to 33 months in federal prison and ordered him to pay $151,552 in restitution.
This case was investigated by IRS-Criminal Investigation and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Stephen Hall prosecuted this case on the government’s behalf.
Tufts Medical Center & Local Pharmacy Chain Settle Alleged Violations of Controlled Substances Act During National Prescription Opioid Awareness WeekRead the Press Release
BOSTON – In concurrence with National Prescription Opioid and Heroin Epidemic Awareness Week, the U.S. Attorney’s Office has reached separate civil settlements with Tufts Medical Center and Eaton Apothecary to resolve allegations of violations of the Controlled Substances Act.
Today, the U.S. Attorney’s Office reached a $100,000 civil settlement with Tufts Medical Center in connection with the hospital’s negligent recordkeeping of its controlled substances.
“We are committed to using all the tools at our disposal to combat the opioid crisis in Massachusetts,” said United States Attorney Carmen M. Ortiz. “Tufts Medical Center’s willingness to work with the DEA to strengthen controlled substances recordkeeping and security has brought this investigation to a successful conclusion.”
“DEA registrants are responsible for handling controlled substances and ensuring that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substances Act. When these responsibilities are not adhered to, it allows for the diversion of prescription pain medication, which contributes to the widespread abuse of opiates, is the gateway to heroin addiction, and is devastating our communities,” said Special Agent in Charge Michael J. Ferguson. “In response to the ongoing opioid epidemic, DEA’s obligation is to improve public safety and public health, and we are committed to working with our law enforcement and regulatory partners to ensure that these rules and regulations are followed.”
According to the settlement agreement, the hospital failed to maintain accurate inventories of controlled substances and associated records, to keep tight control of prescription pads, and to make required reports to the DEA about thefts or significant losses of controlled substances associated with three former nurses. Tufts Medical Center agreed to pay $100,000 to settle these claims and to permit the DEA to perform administrative inspections of the hospital for the next three years without a warrant.
Upon learning of the violations of the Controlled Substances Act at the hospital, Tufts Medical Center cooperated fully with the federal investigation. It also initiated the implementation of new recordkeeping procedures and security measures, including the installation of cameras and lockboxes, to ensure compliance with regulations and to avoid diversion of controlled substances from medical offices.
On September 2, 2016, the U.S. Attorney’s Office reached a $100,000 civil settlement with Eaton Apothecary in connection with its improper distribution of addictive narcotics.
“Controlled substances that are handled by pharmacies are subject to strict requirements because of their potential for harm and abuse, which fuels the opioid epidemic,” stated U.S. Attorney Ortiz. “For the sake of patient safety, and to ensure that medications are not stolen or sold on the street, we will continue to monitor pharmacies to ensure that they comply with all legal requirements related to the handling, dispensing, and recordkeeping of controlled substances.”
“Pharmacies put patients at risk when they dispense Schedule II narcotics, which have a high potential for abuse and are extremely addictive, without a valid prescription from a physician,” said DEA SAC Ferguson. “This settlement demonstrates DEA’s pledge to work with our law enforcement and regulatory partners in Massachusetts to ensure that these rules and regulations are followed.”
Eaton Apothecary operates 13 retail pharmacies in eastern Massachusetts. According to the settlement, from January 2012 to January 2016, Eaton Apothecary in Canton dispensed Schedule II medications without a signed prescription on more than 2,000 occasions to Boston-area nursing homes, assisted living facilities, and adult day care centers. On each occasion, the pharmacy received a faxed request from a facility operated by Upham’s Elder Service Plan/PACE, and delivered the drugs to the facility. Then the pharmacy prepared and printed a computer-generated prescription for each order and delivered the printed prescriptions in bulk to Upham’s Medical Director, who signed them after the drugs had already been dispensed. In addition, on two occasions, the pharmacy accepted partly opened blister packs containing unused controlled substances, in violation of DEA regulations. DEA regulations allow unused controlled substances to be returned to a pharmacy only in tamper-proof envelopes that the pharmacy accepts by mail and destroys without opening, or through a locked collection receptacle located in the pharmacy.
These matters were brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. The addictive quality of opioids has contributed to a recent surge in the theft, sale, distribution and misuse of prescription pain medication. As a result, federal, state and local law enforcement and public health authorities are collaborating to support safe prescribing and dispensing of opioid medications.
For more information on National Prescription Opioid and Heroin Epidemic Awareness Week, visit the Department of Justice’s website.
U.S. Attorney Ortiz and DEA SAC Ferguson made the announcements today. The Tufts Medical Center case was handled by Assistant U.S. Attorneys Kriss Basil and Jessica Driscoll, and the Eaton Apothecary case was handled by Assistant U.S. Attorney Christine Wichers, of Ortiz’s Civil Division.
###
Three Cape Cod Men Plead Guilty to Heroin Trafficking and Firearms ChargesRead the Press Release
BOSTON – Three Cape Cod men have pleaded guilty in U.S. District Court in Boston in connection with trafficking heroin and conspiring to possess a firearm in furtherance of heroin trafficking.
Sean Pratt, 28, of Marstons Mills, pleaded guilty on Friday, Sept. 16, 2016 to conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and possession of heroin with the intent to distribute. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for Dec. 16, 2016. Benjamin Roderick, 20, of Hyannis, pleaded guilty yesterday to conspiracy to possess a firearm in furtherance of drug trafficking. Judge Saris scheduled sentencing for Jan. 10, 2017.
In October 2015, law enforcement initiated an effort to address the rising opiate epidemic in Massachusetts and on Cape Cod in particular. As alleged in a criminal complaint, Denzel Chisholm, Christopher Wilkins and other co-conspirators are responsible for a significant quantity of the heroin that has been distributed on Cape Cod. Pratt purchased large quantities of heroin from Chisholm and sold it to other distributors. During a search of Pratt’s home, law enforcement officers recovered heroin and a firearm. Roderick regularly purchased heroin from Wilkins for distribution and personal use. On March 7, 2016, Roderick attempted to trade Wilkins a firearm for 10 grams of heroin, however, Roderick was arrested prior to exchanging the gun with Wilkins.
Richard Serriello, 30, of West Dennis, pleaded guilty on Friday, Sept. 16, 2016 to possession of heroin with the intent to distribute. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for Dec. 20, 2016.
On May 21, 2015, law enforcement officers recovered approximately 400 grams of heroin from Serriello that he had stowed in his motorcycle. Earlier that day, investigators observed Serreillo engage in a drug transaction. When police attempted to stop Serriello, he took off on his motorcycle, swerved into oncoming traffic and evaded law enforcement. Later that day, Serriello’s motorcycle was found in parked in Dennis and the concealed heroin was discovered.
Chisholm and Wilkins have pleaded not guilty to the charges against them.
The charge of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin provides for a mandatory minimum sentence of five years and no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release, and a fine of $5 million. The charge of conspiracy to possess a firearm in furtherance of drug trafficking provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of heroin with the intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. 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; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Cape and Islands District Attorney Michael O’Keefe; and Barnstable Police Chief Paul MacDonald, made the announcement today. These cases are being prosecuted by Assistant U.S. Attorney Eric S. Rosen of Ortiz’s Narcotics and Money Laundering Unit.
###
Three Bakersfield Residents Charged in a Scheme to Defraud Bakersfield Pipe & Supply Inc.Read the Press Release
FRESNO, Calif. — Bakersfield residents Lynnsi Marguerite Dunbar, 29; and Daniel Harte, 50, were arrested today after a federal grand jury returned a multicount indictment, charging them with conspiracy to commit wire fraud and other charges related to a scheme to defraud Bakersfield Pipe and Supply Inc., (BPS), Acting United States Attorney Phillip A. Talbert announced. Lynnsi Dunbar’s husband Kye Aaron Dunbar, 30; is also charged in the scheme, and is already in custody on an unrelated charge.
According to court documents, between March 17, 2014, and October 22, 2014, the three defendants conspired together to defraud BPS, which is headquartered in Bakersfield, by creating false invoices for payment. Lynnsi Dunbar was an employee of BPS who, with the help of Kye Dunbar and Harte, created a fictitious trucking company in the name of Harte Trucking. Harte Trucking existed in name only and was created by the defendants for the sole purpose of submitting fraudulent invoices to BPS for payment for services never performed. As a result of this conspiracy, the defendants were able to defraud BPS out of $287,000.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Suspended DeKalb Doctor Pleads Guilty to Illegally Dispensing Prescription Drugs and Income Tax FraudRead the Press Release
ROCKFORD - A suspended DeKalb, Ill. doctor pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to illegally dispensing controlled substances and federal income tax fraud, and his wife pleaded guilty to income tax fraud.
According to the plea agreements, RICHARD H. NG, 64, owned and operated the Sauk Medical Clinic’s DeKalb and Sterling, Illinois locations. LEE LEE FOONG, 57, also known as “Audrey,” was married to Ng and was the office manager for the Sauk Medical Clinic. Every patient at Sauk Medical Clinic received a prescription for a scheduled controlled substance. Ng accepted only cash, credit cards, or checks for Sauk Medical Clinic patient visits and required 100% payment for the visit prior to the patient receiving a prescription. Ng admitted in his plea agreement that he dispensed controlled substances, such as Hydrocodone, Oxycodone, and Morphine Sulphate, outside the course of professional practice and without a legitimate medical purpose. Ng also admitted that he was aware of obvious “red flags” that his patients were abusing or misusing the controlled substances.
Ng admitted that between December 10, 2010 and February 7, 2011, he dispensed outside the course of professional practice and without a legitimate medical purpose three prescriptions for Hydrocodone to an undercover federal agent. Ng also dispensed outside the course of professional practice and without a legitimate medical purpose six prescriptions for controlled substances to two additional undercover federal agents. Ng did so after performing a minimal examination and learning from both undercover agents that they were sharing their pills with others.
According to the plea agreements, Ng and Foong filed a false federal individual tax return for 2011, which failed to report a total of $284,890 in cash received from Sauk Medical Clinic and rental receipts. Ng and Foong admitted that the unreported income would have resulted in additional federal income tax due of $92,646.10.
Ng faces a maximum sentence of 13 years’ imprisonment, a term of supervised release up to life following imprisonment, and a fine of up to $1.1 million. Sentencing for Ng is set for December 19, 2016, at 9:30 a.m. before U.S. District Judge Frederick J. Kapala.
Foong faces a maximum sentence of 3 years’ imprisonment, a term of supervised release up to one year, and a fine of up to $100,000. Sentencing for Foong is set for December 20, 2016, at 2:30 p.m. before U.S. District Judge Frederick J. Kapala.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and James D. Robnett, Special Agent-in-Charge of the Chicago Field Office of the Internal Revenue Service - Criminal Investigation Division. The Sterling, Ill. Police Department assisted in the investigation.
The government is being represented by Assistant U.S. Attorney Scott R. Paccagnini.
Stockton Man Arrested, Charged with Unemployment FraudRead the Press Release
SACRAMENTO, Calif. — Herbert Alexander, 69, was arrested today at his Stockton residence after a federal grand jury returned a four-count indictment, charging him with unemployment fraud, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Alexander operated a “fictitious employer” scheme by creating a fictitious employer with the California Employment Development Department (EDD) that did not conduct any business. Alexander then caused the submission of information to the EDD falsely indicating that various persons were employed by the fictitious employer. Alexander subsequently filed unemployment claims in the names of the fake employees.
This case is the product of an investigation by the United States Department of Labor, Office of Inspector General, the U.S. Postal Inspection Service, and the California Employment Development Department, Investigations Division. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
This is the second indictment returned as a result of the investigation. On December 30, 2015, Deborah Hollimon of Stockton and West Memphis, Arkansas, was charged with unemployment fraud and identity theft. Hollimon is currently a fugitive. Anyone with information on her whereabouts should call (415) 625-2685.
If convicted, Alexander faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
St. Croix Man Pleads Guilty to Possession of Cocaine with Intent to DistributeRead the Press Release
St. Croix, USVI – Daniel Santiago-Colon, 46, of St. Croix, Virgin Islands, pleaded guilty on September 19, 2016, in federal court on St. Croix to possession of cocaine with intent to distribute, United States Attorney Ronald W. Sharpe announced.
On November 13, 2015, Santiago-Colon and other co-defendants, who were on a boat, retrieved a load of cocaine mid-sea from another boat. They transported the drugs to St. Croix and offloaded them at a beach called Knight’s Bay. Law enforcement tracked the boat to St. Croix and apprehended three co-defendants on the beach in close proximity to suitcases, containing 87 kilograms of cocaine. Two of the three co-defendants, Gamalier Rohlsen-Arizmendi and Alejandro Marva-Romero have entered guilty pleas. The third co-defendant is awaiting a trial scheduled for October 31, 2016.
Santiago-Colon faces up to life imprisonment for the offense and a fine of up to $10,000,000. A sentencing date has been set for January 18, 2017.
The case was investigated by the U.S. Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
St. Croix Correction Officer Pleads Guilty to Providing Contraband in Prison and Conflict of Interest ChargesRead the Press Release
St. Croix, USVI – Abdul Robinson, 39, of St. Croix, Virgin Islands, pleaded guilty today in federal court on St. Croix to providing contraband in prison and conflict of interest charges, United States Attorney Ronald W. Sharpe announced.
On April 5, 2013, Robinson, then a correction officer at the Golden Grove Adult Correctional Facility, received a cellular telephone along with $100 from an undercover agent and agreed to deliver the telephone to an inmate housed at the facility. He delivered the telephone to the inmate who, unbeknownst to Robinson, was working as a government informant. It was contrary to Robinson’s duty to allow an inmate to possess contraband such as a cellular telephone or to deliver contraband to inmates.
Robinson faces up to one year of imprisonment and a fine of up to $100,000 for the offense of providing contraband in prison. He also faces a mandatory minimum period of imprisonment of one year up to a maximum of five years plus a fine of up to $5,000 for the conflict of interest offense. A sentencing date has been set for January 19, 2017.
The case was investigated by the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
St. Croix Correction Officer Pleads Guilty to Attempted Possession of a Controlled SubstanceRead the Press Release
St. Croix, USVI – Kalomi Kambui, 40, of St. Croix, Virgin Islands, pleaded guilty today in federal court on St. Croix to attempted possession of a controlled substance, United States Attorney Ronald W. Sharpe announced.
On June 12, 2013, Kambui, then a correction officer at the Golden Grove Adult Correctional Facility, received what she believed to be ecstasy pills from an undercover agent, along with payment, for the purpose of delivering it to an inmate housed at the facility. Ecstasy is a street name for the controlled substance methamphetamine. The substance was not ecstasy, however, and Kambui did not make the delivery but was arrested.
Kambui faces up to five years’ imprisonment for the offense and a fine of up to $250,000. A sentencing date has been set for January 19, 2017.
The case was investigated by the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
Six KC Residents Indicted for Marriage Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that five Kansas City, Mo., women and one man have been indicted by a federal grand jury for their roles in a marriage fraud conspiracy.
Delmar Dixon, 48, Traci R. Porter, 44, her daughter, Tierra Ofield, 23, Stephanie Harris, 21, Shakeisha Harrison, 36, and Kakeland Barnes, 36, all of Kansas City, were charged in a 14-count indictment returned under seal by a federal grand jury on Aug. 31, 2016. That indictment was unsealed and made public today upon the arrests and initial court appearances of all six defendants.
The federal indictment alleges that Dixon, Porter, Ofield, Harris, Harrison and Barnes participated in a conspiracy beginning in 2007 in which they were paid to marry African nationals so that their spouses could obtain lawful permanent resident status in the United States.
According to the indictment, Dixon arranged marriages between African nationals (from Kenya and Tanzania) and U.S. citizens. Dixon allegedly introduced the African nationals to U.S. citizens who were willing to enter into fraudulent marriages with them, including but not limited to Dixon’s co-defendants.
Dixon allegedly charged the African nationals $1,000 upfront for such introductions. The African nationals were allegedly required to pay the U.S. citizen spouses, including Porter, Harrison, Ofield, Harris, and Barnes, $500 at the time of the wedding, $500 after the completion of the wedding and $250 each month after the wedding until the immigration process was complete.
After the African nationals and U.S. citizen spouses were married, according to the indictment, they filed immigration documents in order to obtain lawful permanent resident status for the African nationals. Conspirators allegedly represented their marriages as valid and legitimate through false statements on immigration forms, including by claiming the couples resided together, and making false and misleading statements about their marriages to federal officials. Dixon coached the African nationals and his co-conspirators on how to make their marriages appear legitimate, the indictment says, advising the couples to get to know each other and make it appear as if they were residing together.
According to the indictment, on Nov. 24, 2015, Harris married a confidential informant working with Homeland Security Investigations (HIS) in Kansas City. (Because the marriage was staged by HSI, it is not legally valid.) From the fall of 2015 until the present, Harris accepted monthly payments from the confidential informant and pressured him for other financial benefits.
On Jan. 23, 2016, Dixon allegedly accepted a payment from an undercover agent working with HSI in Kansas City. The payment was for the introduction of the agent to a potential spouse he could marry for the sole purpose of obtaining immigration benefits for the undercover agent. Dixon introduced the undercover agent to Barnes, who allegedly indicated to the agent that she was willing to enter into the marriage for the sole purpose of obtaining immigration benefits for the undercover agent and that she understood it was just a business transaction. On Feb. 19, 2016, Barnes and Dixon allegedly accepted payments from the undercover agent for their ongoing cooperation in the marriage arrangements. Barnes allegedly accepted another payment from the undercover agent on July 19, 2016.
In another instance cited in the indictment, Porter married a Kenyan national twice. The two had to end their first marriage because a federal investigation revealed the Kenyan national was still legally married in Kenya. Porter and the Kenyan national remarried after his divorce from his prior wife was granted.
In addition to the conspiracy, Dixon, Porter, Harrison and Harris are each charged with one count of marriage fraud.
Dixon, Porter and Harrison are each charged with one count of making a false statement relating to naturalization, one count of unlawfully procuring citizenship or naturalization and one count of false swearing in an immigration matter.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and U.S. Citizenship and Immigration Services, Fraud Detection and National Security.
Shreveport man pleads guilty to methamphetamine, firearm chargesRead the Press Release
SHREVEPORT, La. – U.S. Attorney Stephanie A. Finley announced today that a Shreveport man pleaded guilty to possessing methamphetamine and a handgun.
Paul Matthew Garza, 35, of Shreveport, pleaded guilty before U.S. Magistrate Mark L. Hornsby to one count of possession with intent to distribute methamphetamine and one count of possession of a firearm in furtherance of drug trafficking. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Garza’s vehicle was pulled over during a traffic stop on May 25, 2016 near the Louisiana/Texas border in Caddo Parish. Upon searching his vehicle, law enforcement found 408 grams of methamphetamine and 142.73 grams of Xanax bars. Upon searching his home, additional methamphetamine and Xanax were found. A Ruger LCP .380 semi-automatic handgun, digital scales and $17,400 were also found.
Garza faces 10 years to life in prison for the drug count and five years in prison for the firearm count. He also faces at least five years of supervised release and a $10 million fine. A sentencing date of January 12, 2017 was set.
The DEA and the Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Tennille M. Gilreath is prosecuting the case.
Sally Kirby Imprisoned for Hunger Free Vermont EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Sally Kirby, 61, of Essex Junction, was sentenced today in United States District Court in Burlington to 15 months of imprisonment following her guilty plea to a federal forgery charge. U.S. District Judge William K. Sessions III also ordered that Kirby serve three years of supervised release following completion of her prison term and pay restitution of more than $178,000. The court directed Kirby to surrender to the Bureau of Prisons on October 25 to begin serving her sentence.
Last April, the United States Attorney's Office filed a one-count information charging Kirby with forging checks of her employer, Hunger Free Vermont. Kirby pled guilty to that charge in May. According to the information, Hunger Free Vermont is a non-profit educational and advocacy organization which provides nutrition education and access to nutrition programs to Vermont's children, families and communities. In 2004, Sally Kirby was hired as the Director of Finance for HFV. Her duties included handling payroll, accounts payable, financial statements and grant allocations.
According to the information, between June 2009 and September 2015, Kirby embezzled about $165,000 from the organization. She did that primarily by issuing HFV checks to herself without authorization, then forging the signature of HFV's executive director on the checks. She deposited many of the checks into a personal credit union account she maintained. Kirby attempted to conceal her embezzlement by altering some entries in HFV's accounting system to make it appear as though checks she issued to herself had been made payable to vendors. The embezzlement was discovered last October and Kirby was promptly fired.
This case was investigated by the Federal Bureau of Investigation.
Kirby is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Ruffing Montessori School to change policies for students with disabilities under settlement with Justice DepartmentRead the Press Release
The Department of Justice announced today that Ruffing Montessori School, in Rocky River, has entered into an agreement to make significant changes in its policies for students with disabilities, U.S Attorney Carole Rendon said.
The school has also agreed to pay $45,000 in compensation to three families whose children were disenrolled from Ruffing, and a civil penalty of $3,000.
The agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, resolves allegations by the United States that Ruffing failed to comply with the Americans with Disabilities Act when it disenrolled a child with autism, and two other students. The United States alleged that Ruffing did not attempt to make reasonable modifications to its program for these children before deciding that they could not continue as students at the school.
Under the agreement, Ruffing’s staff will be trained on how to educate children with disabilities within the Montessori philosophy. The school will also revise its non-discrimination policies to cover children with disabilities, and for a three-year period will report to the Department of Justice on how it handles applications from students with disabilities. The school will also report on how it responds to requests for modifications from children with disabilities, and on any students with disabilities who leave the school.
“This settlement protects the rights of students with disabilities to access the educational opportunities offered by private schools, including Montessori schools,” Rendon said. “This settlement is an important reminder that the ADA’s obligations extend to private schools and their treatment of students with disabilities. Under the ADA, private schools must ensure that they are not screening out students on the basis of disability or making decisions based on stereotypes about students with disabilities.”
Roseville Woman Sentenced to 14.5 Years in Prison for Mortgage Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Rachel Siders, 41, of Roseville, to 14 and a half years in prison for her involvement in mortgage fraud schemes that cost financial institutions over $17 million, Acting U.S. Attorney Phillip A. Talbert announced.
Federal juries returned verdicts in two trials, in March 2015 and December 2015 finding her guilty of multiple counts of bank fraud, wire fraud, mail fraud, making a false loan application, and committing aggravated identity theft.
According to evidence presented at the first trial, in 2008 Siders and co-defendant Theo Adams, 50, of Roseville, applied for a home equity line of credit using his relative’s name on an underwater Roseville property owned by Adams. They submitted false tax returns in the relative’s name with significantly inflated income along with mortgage application documents with forged signatures. Siders, a notary public, falsely notarized the loan application documents, which were sent to Washington Mutual Bank. The bank relied upon the false documents to provide a $250,000 line of credit. Siders received $170,000 of the proceeds. After making minimal payments, the defendants defaulted on the loan.
According to evidence presented at the second trial, from mid-2006 through early 2008, Siders and Vera Kuzmenko, 46, of Loomis, and other defendants engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento area. They secured more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. The loan applications contained materially false information as to the straw buyers’ income, employment, assets, and intent to occupy the residences. Records introduced at trial showed that Vera Kuzmenko received millions of dollars, and that Rachel Siders received hundreds of thousands of dollars.
Vera Kuzmenko, was a licensed real estate agent for part of the scheme, and Rachel Siders ran the Rocklin office of the escrow company used on the majority of the transactions. She helped funnel millions of dollars to her co-defendants, which was not disclosed to the lenders.
“The sentence today reflects the seriousness of Siders’ crimes, which included participation in two separate mortgage fraud schemes. Over the course of two years, Siders oversaw and participated in numerous fraudulent loans and diverted money into shell accounts for her own benefit. She abused her position as an escrow officer and as a notary public to make this criminal enterprise succeed,” said Acting U.S. Attorney Talbert. “The sentence imposed is a significant reminder that those who engage in such conduct will be held accountable.”
“Today’s sentence sends a clear message; anyone profits from fraudulent mortgage transactions—whether by creating the scheme or facilitating it—will not escape justice,” said Supervisory Special Agent Dan Bryant at the FBI Sacramento field office. “The FBI aggressively pursues those involved in such large-scale, complex financial fraud matters to seek justice for the victims and protect the regional economy.”
“Rachel Siders was driven by greed in her participation in this mortgage fraud which targeted the Sacramento area,” said Michael T. Batdorf, Special Agent in Charge, IRS‑Criminal Investigation. “Today’s sentencing is a reminder how serious our courts consider this criminal activity and our commitment in providing financial expertise to our federal partners in these types of crimes.”
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Lee S. Bickley, Michael D. Anderson, and Matthew D. Segal prosecuted the case.
On March 15, 2016, Judge Mendez sentenced Vera Kuzmenko to 14 years in prison. She was found guilty of multiple counts of mail and wire fraud, money laundering and witness tampering. On April 19, 2016, Theo Adams, 50, of Roseville, was sentenced to two years in prison. Previously, Judge Mendez sentenced co-defendants Peter Kuzmenko, 38, of West Sacramento, to 19 years in prison; Aaron New, 42, of Sacramento, to 11 years and three months in prison; Nadia Kuzmenko, 37, formerly of Loomis, to eight years in prison; and Edward Shevtsov, 52, of North Highlands, to eight years in prison. They were found guilty on February 13, 2015, after a 21-day trial, of multiple counts of mail and wire fraud associated with the mortgage fraud scheme. In addition, Peter Kuzmenko, Edward Shevtsov, and Aaron New were found guilty of money laundering associated with the scheme, and Nadia Kuzmenko was found guilty of witness tampering.
Raytown Man Indicted for Using Plastic Replica Gun to Rob Credit UnionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Raytown, Mo., man who used a plastic replica handgun was indicted by a federal grand jury today for robbing Community America Credit Union.
Stephen McCrary, 55, of Raytown, was charged with stealing $3,815 from Community America Credit Union in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against McCrary on Sept. 8, 2016, which charged him with the same offense.
According to an affidavit filed in support of the original criminal complaint, McCrary entered the Community America Credit Union located in Research Medical Center, 2316 E. Meyer Blvd., Kansas City, at approximately 3:10 p.m. on Sept. 7, 2015. McCrary asked a teller for change for a $100 bill and placed a white plastic bag on the counter. McCrary allegedly pulled a black handgun part way out of the bag and told the teller he wanted “all the money in the drawer.” (The handgun was later determined to be a plastic replica.) The teller gave him the money from her top drawer, the affidavit says, and he also demanded some $100 bills and a bag of Susan B. Anthony commemorative gold coins (approximately $68 worth) that were in a ziplock bag in the teller drawer.
Following the robbery, a description of the suspect was broadcast to hospital security officers. A security officer saw McCrary jog across Meyer Boulevard, the affidavit says, then start walking south on Park Avenue. Another security officer approached McCrary and detained him until Kansas City police officers arrived and arrested him.
At the time of his arrest, the affidavit says, McCrary was carrying two plastic bags. Inside the bags, officers found a black plastic replica handgun, articles of clothing that matched the description of the thief (including latex gloves and a bandana), and $3,815 (including Susan B. Anthony coins).
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Matt Moeder. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Pittsburgh Man Sentenced to 5 Years in Prison for Drug TraffickingRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 60 months in prison, to be followed by a term of four years’ supervised release, on his conviction of conspiracy to distribute and possess with intent to distribute powder cocaine and crack cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Gaston Pleas Bradshaw, 29, of Pittsburgh PA.
According to information presented to the court, from October 2013, and continuing to in and around April 2014, in the Western District of Pennsylvania and elsewhere, Bradshaw conspired with others to distribute and possess with the intent to distribute 500 grams or more of powder cocaine, and 280 grams or more of crack cocaine.
Assistant United States Attorney Troy Rivetti and Tonya Sulia Goodman prosecuted this case on behalf of the government.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Stanton.
Ortiz Announces Appointment of First Assistant U.S. AttorneyRead the Press Release
BOSTON – U.S. Attorney Carmen M. Ortiz announced that William Weinreb has been appointed to serve as First Assistant United States Attorney for the District of Massachusetts. Weinreb previously served as Counsel to the U.S. Attorney for two years, and was Deputy Chief of the National Security Unit and Coordinator of the Anti-Terrorism Advisory Council.
“Bill has served as a trusted advisor to me, sharing his expertise and legal acumen cultivated by years as a litigator, on numerous sensitive legal and law enforcement matters handled by the Office,” said U.S. Attorney Ortiz. “Bill’s longstanding commitment to public service, combined with his experience, will serve the District of Massachusetts well, and I look forward to working closely with him in his new role.”
Mr. Weinreb has been the lead prosecutor in a number of high-profile and challenging cases, most notably, the 2015 conviction of Boston Marathon bomber Dzhokhar Tsarnaev. He received the Attorney General’s Distinguished Service Award for his prosecution of Aftab Ali, a Boston resident who helped fund the attempted car bombing of Times Square. He also successfully prosecuted Massachusetts’s first case of foreign economic espionage; its first case involving use of a laser to interfere with the operation of an aircraft; and its first case involving the threatened use of a biological weapon (ricin).
In addition to prosecuting cases, Mr. Weinreb has been a leader in the Office’s outreach efforts to vulnerable communities. He also helped launch the office’s new Civil Rights Unit and has been a strong advocate for the protection of civil rights and civil liberties in the Commonwealth.
Ms. Weinreb joined the U.S. Attorney’s Office in 2000 after serving for five years as an Assistant U.S. Attorney in the District of Columbia. Over the course of his career, he has prosecuted numerous violent crime and white collar cases, including rape, attempted murder, child sexual abuse, narcotics trafficking, money laundering, public corruption, insurance fraud and health care fraud. In additional to his trial work, Mr. Weinreb has argued over 20 cases before the First Circuit, D.C. Circuit and D.C. Court of Appeals.
Before becoming an Assistant U.S. Attorney, Mr. Weinreb was a litigation associate at Shea & Gardner in Washington, D.C. from 1990 to 1995. Prior to that, he was a law clerk for then-Chief Judge Stephen Breyer of the U.S. Court of Appeals for the First Circuit.
Mr. Weinreb graduated cum laude from Harvard Law School in 1989, and received his Bachelor of Arts in English Literature from Wesleyan University in 1984.
North Texas Business Owners Guilty in Money Laundering SchemeRead the Press Release
SHERMAN, Texas – A jury has found four North Texas men guilty of federal money laundering violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Miguel Rivas Estrada, 29, of Michoacán, Mexico; Felipa Torres, 49, of Dallas; Justa Centeno, 52, of Dallas; and Jose Angel Olvera, 40, of Dallas, were found guilty by a jury of conspiracy to commit money laundering. The verdict was reached on Sep. 19, 2016 following a week-long trial before U.S. District Judge Amos Mazzant.
According to information presented in court, Felipa Torres owned and operated Cumbia Recordz, Justa Centeno owned and operated Variedades Esperanza and Jose Olvera owned and operated Super Mercado 5 Estrellas. All three of these businesses operated as money services business (MSBs) located in the Northwest Highway area and were authorized agents of several International Money Remitter Companies, such as Barri Financial Group, Continental Exchange Solutions, GroupEx Financial Corporation, InterCambio Express Corporation, Intermex Wire Transfers, LLC, Sigue Corporation, Unidos Financial Corporation, and Viamericas Corporation. The three MSBs utilized these remitter services to facilitate the transmission of proceeds obtained from the distribution of methamphetamines via wire transfers to Michoacán, Mexico.
Between June of 2013 and October of 2015, these MSBs laundered over $16 million in illicit proceeds from the North Texas area to Michoacán, Mexico. These MSBs charged a wire transaction fee to help launder the illicit proceeds. It was part of the laundering scheme that the MSBs structured the wires in amounts less than $1,000 coupled with the usage of fictitious sender information in order to avoid bank secrecy act reporting requirements and to conceal the true origin and ownership of the illicit proceeds.
The head of the multi kilo methamphetamine transnational distribution ring was Miguel Angel Rivas Estrada who was also found guilty of conspiracy to distribute methamphetamine.
Under federal statutes, the defendants each face up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by Homeland Security Investigations, Internal Revenue Service - Criminal Investigations, Lancaster Police Department, Dallas Police Department, Dallas County Sherriff’s Office, Fate Department of Public Safety, Irving Police Department, Rockwall County Sherriff’s Office, Balch Springs Police Department, Rowlett Police Department, Enforcement and Removal Operations, and the Texas Attorney General’s Office. This case was prosecuted by Assistant U.S. Attorneys Heather Rattan and Leslie Brooks.
Methamphetamine Dealer Sentenced to PrisonRead the Press Release
EUGENE, Ore. – On Tuesday, September 20, 2016, Robert Dewane Lacey, 47, was sentenced to 49 months in prison by U.S. District Judge Michael J. McShane for possession with intent to distribute methamphetamine. Following his release from prison, Lacey will be on supervised release for three years.
On March 5, 2015, a Springfield Police Officer stopped a vehicle being driven by Lacey. The defendant initially lied about his identity before disclosing his true name and admitting that he was wanted. The vehicle was searched and several ounces of methamphetamine were located, along with more than $20,000 cash. Lacey has prior convictions including transporting or selling a controlled substance, felon in possession of a firearm, and second-degree burglary. Lacey’s 49-month federal sentence is in addition to a 14-month sentence he served on an unrelated state case.
Investigation of the case was a collaborative effort between the Springfield Police Department and the DEA. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Meridian Woman Pleads Guilty to Computer FraudRead the Press Release
Jackson, Miss – Teresa Wash, 51, of Meridian, pled guilty today before U.S. District Judge Carlton W. Reeves, to one count of accessing a computer to defraud and obtain value, announced U. S. Attorney Gregory K. Davis.
Wash, as Controller for Progressive Pipeline, Inc., used her work computer to embezzle approximately $797,287.85. She appropriated to her own use funds belonging to Progressive Pipeline, specifically requesting fraudulent wire transfers from Progressive Pipeline’s bank accounts to her own account.
Wash will be sentenced on December 8, 2016 at 10:00 a.m. by U.S. District Judge Carlton W. Reeves and faces a maximum penalty of five years in prison and a $250,000 fine.
The case is being prosecuted by Assistant United States Attorney Chris Wansley. It was investigated by the FBI Jackson Cyber Crime Task Force, which is comprised of investigators from the Mississippi Attorney General’s Office, the Madison Police Department and FBI Agents from the Jackson Field Office.
Man Sentenced to 10 Years for Conspiracy to Prostitute Young GirlsRead the Press Release
Assistant U.S. Attorney Susan L. Park (619) 546-6760
NEWS RELEASE SUMMARY – September 20, 2016
SAN DIEGO – Eric Watkins, aka “Crank Moe” and “Cali Made Crankk,” was sentenced Monday to 120 months in prison for conspiracy to commit sex trafficking of children in San Diego and Oceanside.
Between September 11, 2014 and September 13, 2014, Watkins (age 21) and his co-defendant Ricardo Bojorquez (age 24) conspired to commit sex trafficking of two 15-year old females. Watkins and Bojorquez approached young girls and women on the trolley and used Facebook and other social media sites to recruit young girls and women for the purpose of prostitution.
In carrying out the conspiracy, Watkins and Bojorquez detained a minor female (age 15) at Bojorquez’s apartment in San Diego, California, for the purpose of prostitution. They forced her to call her father to tell him she would not be coming home and then took away her cell phone. She was threatened and told that she was not free to leave and would make money for them as a prostitute. Also present was a second minor female (age 15) who had a long history of prostituting herself for Watkins’ benefit. Watkins had his pimp moniker tattooed on the second minor female’s neck. Watkins, who has served as the pimp for several young girls and women, also assisted Bojorquez in posting online escort advertisements containing images of the two minor females.
On September 13, 2016, Watkins and Bojorquez took both minors from San Diego to Oceanside, California, for the purpose of making money through commercial sex acts committed by the two minors. After being told again that she had to prostitute herself, the first minor female, who was present against her will, was able to flee to a bar in Oceanside and called her father to pick her up.
Ricardo Bojorquez was sentenced to 78 months in prison on April 25, 2016. Following their release from prison, both Watkins and Bojorquez will be placed on eight years of supervised release and lifetime registration as sex offenders.
This case was the result of the collaborative work by the Federal Bureau of Investigation’s Child Exploitation Task Force and the San Diego Police Department.
DEFENDANTS Case Number 14CR3661
Eric Watkins Age: 21 Hometown: Chula Vista, Calif.
Ricardo Bojorquez Age: 24 Hometown: San Diego, Calif.
SUMMARY OF CHARGE OF CONVICTION
Conspiracy to Commit Sex Trafficking of Children, in violation of Title 18, U.S.C., Section 1594(c)
AGENCY
San Diego Police Department
Federal Bureau of Investigations
Victims of human trafficking can be anyone, including men, women, children, adults, foreign nationals, or U.S. citizens. Victims are protected under the law. Please get help for yourself or a suspected victim from the National Human Trafficking Resource Center toll free, 24/7 Hotline: 888-373-7888 or TEXT BeFree or 233733. Individuals can also call the San Diego Human Trafficking Task Force tip-line at 858-495-3611 with any non-emergency information. For emergencies please call 911 or the local law enforcement agency in your area. To learn more, check: www.FightHumanTraffickingSD.org
Long Island Educator and Coach Is Sentenced to Five Years in Prison for Receiving Child PornographyRead the Press Release
CENTRAL ISLIP, NY – Earlier today, Kevin Barry O’Connell, a Long Island educator and coach, was sentenced at the federal courthouse in Central Islip, New York, to five years in prison following his July 2015 guilty plea to receiving child pornography at his residence in Patchogue, New York. The sentencing proceeding was held before United States District Judge Leonard D. Wexler. O’Connell was also sentenced to five years’ supervised release to follow his prison sentence, during which time he must register as a sex offender and he will not be allowed unsupervised contact with minors.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York.
“Keeping our children safe is a priority for law enforcement and this Office,” stated United States Attorney Capers. “This crime was particularly egregious in that O’Connell, as an educator, a former high school principal and a coach was entrusted with ensuring the safety and wellbeing of children while he at the same time was victimizing children by receiving images of children being sexually abused.” Mr. Capers thanked the U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), for its assistance in the investigation.
According to court filings and facts presented at the guilty plea and sentencing proceedings, O’Connell downloaded video files of the rape and abuse of children as young as eight years’ old which he kept on thumb drives in his Patchogue home. During a court-ordered search of his residence on October 15, 2012, O’Connell initially lied to HSI agents and denied that he possessed child pornography until agents found three thumb drives in the pocket of a jacket at the house. O’Connell then admitted that he had hidden the drives in the jacket.
Following his arrest, O’Connell was suspended from his employment as an Assistant Superintendent for Secondary Education in the Roosevelt Union Free School District. O’Connell had previously served as the Principal of Bellport Senior High School in the South Country Central School District and an Assistant Principal at Walter G. O’Connell Copiague High School. O’Connell was the Varsity Baseball Coach from 1990 to 2001 at William Floyd High School.
The government’s case is being prosecuted by the Office’s Long Island Criminal Section. Assistant United States Attorney Allen Bode is in charge of the prosecution.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The Defendant:
KEVIN BARRY O’CONNELL
Age: 55
Patchogue, New York
E.D.N.Y. Docket No. 12-CR-715 (LDW)
Leader of Fraud Scheme Involving Family Members is SentencedRead the Press Release
DALLAS — Rolando Minano, 48, was sentenced yesterday by U.S. District Judge Jane J. Boyle to 78 months in federal prison and ordered to pay $665,962 in restitution, following his guilty plea in May 2016 to one count of conspiracy to commit mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Rolando Minano’s ex-wife, Martha Irene Collantes, 53, and his stepson, Carlos Arturo Pastor Collantes, 32, were sentenced in May 2016 to 12 months and just over 10 months, respectively. Each pleaded guilty to one count of conspiracy to commit theft of public funds. Minano’s father, Francisco Minano Vargas, 73, and his mother, Santos Magdalena Toribio De Minano, 66, each pleaded guilty to misprision of a felony. Francisco Minano Vargas was sentenced to serve a two-year term of probation. Sentencing is set for November 17, 2016, for Santos Magdalena Toribio De Minano.
The investigation began when members of the U.S. Postal Inspection Service notified Internal Revenue Service Criminal Investigation that the owner of a private mailbox at a commercial mail receiving business in Garland, Texas, had received five Department of Treasury envelopes addressed in other people’s names. The investigation revealed that all the envelopes contained refund checks.
Further investigation, according to documents filed in his case, showed that Rolando Francisco Minano ran a fraud scheme to obtain Department of the Treasury refund checks by making materially false and fictitious representations to the government. The defendants obtained multiple Individual Taxpayer Identification Numbers (ITIN) in their names and others by submitting false Peruvian passports. Rolando Francisco Minano notarized all of the ITIN applications, certifying the Peruvian passports were authentic. Tax returns were then filed with the false ITINs and refunds were directed to be mailed to multiple addresses under the defendants’ control. Once received, the checks were endorsed by defendants and deposited into bank accounts they controlled and opened in their true names.
For example, during the course of the conspiracy, the defendants deposited the following approximate amounts in fraudulently obtained U.S. Treasury checks, in the names of people other than themselves, into JP Morgan Chase bank accounts: Rolando Francisco Minano, $19,932; Martha Irene Collantes, $148,091; Francisco Minano Vargas, $64,352; Santos Magdalena Toribio de Minano, $213,038; and Carlos Arturo Pastor Collantes, $59,104.
The U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Aaron Wiley was in charge of the prosecution.
# # #
Law Enforcement Gather to Receive an Update on Eastern Iowa Heroin InitiativeRead the Press Release
CEDAR RAPIDS, IA—A year ago federal, state and local law enforcement met at the Cedar Rapids Police Department to discuss the opioid and heroin epidemic crossing the country, which was making its way into Eastern Iowa. Yesterday, the group reassembled to receive updates and to discuss the way ahead, including enforcement actions, prevention, and treatment. It is estimated that there are over 100 overdoses deaths each day in the United States, with more than three out of five overdose deaths involving opioids.
Also yesterday, Attorney General Loretta Lynch, Secretary of Agriculture Tom Vilsack, and Director of National Drug Control Policy Michael Botticelli, joined parents who lost children to overdose to discuss Prescription Opioid and Heroin Epidemic Awareness Week. Parents from across the country met at the White House with Secretary Vilsack and Director Botticelli to share their experiences and efforts to address the opioid epidemic.
President Obama proclaimed September 18-24, 2016, as Prescription Opioid and Heroin Epidemic Awareness Week. During this week, Attorney General Lynch and other Justice Department officials—as well as U.S. Attorney’s Offices and Bureau of Prison facilities across the country—will participate in over 250 different events highlighting the importance of prevention, enforcement, and treatment. The Department of Agriculture will host state forums on the epidemic in Connecticut and Colorado. Secretary of Veterans Affairs Robert McDonald will lead a forum in Washington, DC, on treatment and support for veterans with opioid use disorder. (The Proclamation is attached.)
During yesterday’s gathering of law enforcement at CRPD, United States Attorney Kevin W. Techau provided a summary of the key points discussed at the National Heroin Conference, which was held in Minneapolis, MN earlier in the month. At that conference, the emerging problem of fentanyl, a powerful synthetic opioid that is blamed for a surge of deaths in some parts of the country—including the recent overdose death of Prince—was highlighted at the conference. Speakers at the conference indicated that a multipronged approach was necessary to keep more people from becoming addicted. Techau noted, “We are in the midst of an opioid crisis in our country. Iowa is not immune from problems created by heroin and opioid abuse. A multidisciplinary approach that includes federal, state, and local community agencies is needed to maximize the prevention, law enforcement, and treatment dimensions to meet this challenge.”
CRPD Officer and Coordinator of the Eastern Iowa Heroin Initiative, Al Fear, discussed his efforts to engage and encourage communities to become active partners in fighting back this threat. Citizen involvement at Town Halls held across Eastern Iowa have heard from medical and social service professionals, as well as law enforcement and prosecutors. The FBI and DEA documentary, Chasing the Dragon: The Life of an Opiate Addict, has been shown. A “Call to Action” has been introduced during each community meeting. The pill take back initiative was also updated, which offers Iowans year around opportunities to discard unused, expired and unwanted medications at locations around the state. To find those locations, access the website above and select the same link. Other program initiatives and law changes were discussed. To learn more about these initiatives, visit: www.facebook.com/EasternIowaHeroinInitiative.
Director Dale Woolery with the Governor’s Office of Drug Control Policy also provided updates on the Iowa Office of Drug Control Policy’s initiatives and programs.
The meeting closed with a discussion of the way ahead. Training initiatives with local law enforcement to better understand the administration of Narcan were highlighted. Future town halls and public gatherings will continue to be used to engage and encourage area communities to join the fight against this threat.
Follow us on Twitter @USAO_NDIA.
KC Man Indicted for Illegal Firearm, Crack CocaineRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who had a 3-year-old child in the back seat of his car as he pointed a handgun at an undercover officer during a drug buy was indicted by a federal grand jury today for illegally possessing the firearm and distributing crack cocaine.
Chavierre R. Walker, 25, of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Walker on Aug. 30, 2016, and includes additional charges. Walker remains in federal custody without bond.
The federal indictment charges Walker with being a felon in possession of a firearm, distributing crack cocaine and possessing a firearm in relation to a drug-trafficking crime.
According to an affidavit filed in support of the original criminal complaint, an undercover detective with the Kansas City, Mo., Police Department and a confidential informant met Walker at a location on Westport Road to make a drug purchase. When Walker arrived at the location, driving a green 1997 Honda Civic, the confidential informant walked over to his vehicle and allegedly paid him $40 for .3 grams of crack cocaine. The undercover detective then went to Walker’s vehicle and allegedly paid him $60 for .6 grams of crack cocaine.
During the purchase, the affidavit says, Walker held a silver Kahr CT9 9mm semi-automatic handgun in his right hand in his lap, pointed in the direction of the undercover detective. A three-year-old child was in the back seat and a female was in the front passenger seat of Walker’s vehicle. The undercover detective believed the placement and position of the firearm, in addition to Walker holding the firearm, was done for the purposes of intimidation or as a means of discouraging the potential of being robbed during the deal.
After the transaction, Walker drove to another location, where he allegedly made another drug transaction, then to a convenience store in the 3700 block of Main Street in Kansas City, Mo. Walker went into the store, and when he came out he was arrested. Officers searched his vehicle and found the loaded handgun, a clear plastic baggie containing approximately 2.2 grams of crack cocaine and ammunition.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Walker has prior felony convictions for robbery, armed criminal action and unlawful use of a weapon.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department.
Justice Department and Los Angeles County Superior Court Reach Agreement to Ensure Access to Justice for Limited English Proficient IndividualsRead the Press Release
LOS ANGELES – The Justice Department today announced an agreement with the Superior Court of California, County of Los Angeles (LASC) to ensure that limited English proficient (LEP) court users will have access to timely and accurate language assistance services.
The agreement resolves a Justice Department investigation of a complaint filed by the Legal Aid Foundation of Los Angeles that alleged the LASC failed to provide LEP individuals with meaningful access to its court services, including civil proceedings and court operations. The complaint alleged a violation of Title VI of the Civil Rights Act of 1964 and its implementing regulations, which prohibit discrimination on the basis of national origin.
“The Los Angeles County Superior Court has accepted the challenge of serving the needs of limited English proficient individuals in one of the most populous and linguistically diverse areas of the country,” said United States Attorney Eileen M. Decker. “Protecting the civil rights of all people within the Central District of California is one of my top priorities as United States Attorney, and today’s agreement serves that goal by giving greater access to the judicial system to individuals so that they may protect their own rights.”
During the investigation, the LASC steadily expanded its provision of interpreter services, which now includes all criminal and the vast majority of civil proceedings, as well as oral and written language assistance in court services. The LASC has agreed to expand free interpreter services to unlimited civil matters – the last remaining case type in which language services are currently not guaranteed – by December 1, 2017. Among other commitments, the court will translate additional documents, provide broader notice about the availability of free interpreter services for court proceedings and make it easier to request an interpreter. The LASC will also continue to seek input from community partners serving LEP populations. Under the terms of the agreement, LASC will provide periodic updates to the Justice Department until the end of 2017.
“We applaud the Los Angeles County Superior Court for committing to protect the rights of all people, whatever their national origin or level of English proficiency, to participate meaningfully, fully and fairly in state court proceedings,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Providing effective language services is essential to vindicating the civil rights of court users and safeguarding the integrity of our justice system.”
While the department’s investigation focused on the LASC, the structure of the California judicial system required the department to review policies circulated and enforced at the state level through the California Judicial Council and its staff. In a 2013 letter sent to the LASC, the Chief Justice of the California Supreme Court and the California Administrative Office of the Courts, the Justice Department identified Title VI compliance concerns, made recommendations to improve compliance and offered to work collaboratively to ensure compliance. LASC representatives helped the California Judicial Council to develop and implement the Strategic Plan for Language Access in the California Courts to ensure meaningful access to court proceedings and other court operations throughout the state’s unified court system. The Justice Department is working separately with the Judicial Council to resolve the portion of the investigation focused on statewide compliance.
This matter was jointly investigated by Assistant United States Attorney Richard Park of the Civil Division in the Central District of California and Attorney Anna Medina of the Civil Rights Division’s Federal Coordination and Compliance Section (FCS).
For more information about FCS’s State Courts Language Access Initiative, a multi-pronged initiative focused on enforcement, technical assistance, outreach, resource development and policy efforts to ensure meaningful access to state courts receiving federal financial assistance, visit www.lep.gov or view a recently released Justice Department publication, “Language Access in State Courts.” To learn more about languages spoken in California or other parts of the United States, click on the language map app available here https://www.lep.gov/maps/.
Justice Department and Los Angeles County Superior Court Reach Agreement to Ensure Access to Justice for Limited English Proficient IndividualsRead the Press Release
The Justice Department announced today it has reached an agreement with the Superior Court of California, County of Los Angeles (LASC) to ensure that limited English proficient (LEP) court users will have access to timely and accurate language assistance services.
The agreement resolves a Justice Department investigation of a complaint filed by the Legal Aid Foundation of Los Angeles. The complaint alleged that LASC failed to provide LEP individuals with meaningful access to its court services, including civil proceedings and court operations, in violation of Title VI of the Civil Rights Act of 1964 and its implementing regulations, which prohibit discrimination on the basis of national origin.
“We applaud the Los Angeles County Superior Court for committing to protect the rights of all people, whatever their national origin or level of English proficiency, to participate meaningfully, fully and fairly in state court proceedings,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Providing effective language services is essential to vindicating the civil rights of court users and safeguarding the integrity of our justice system.”
“The Los Angeles County Superior Court has accepted the challenge of serving the needs of limited English proficient individuals in one of the most populous and linguistically diverse areas of the country,” said U.S. Attorney Eileen Decker of the Central District of California. “Protecting the civil rights of all people within the Central District of California is one of my top priorities as United States Attorney, and today’s agreement serves that goal by giving greater access to the judicial system to individuals so that they may protect their own rights.”
During the investigation, LASC steadily expanded its provision of interpreter services, which now includes all criminal and the vast majority of civil proceedings, as well as oral and written language assistance in court services. LASC has agreed to expand free interpreter services to unlimited civil matters – the last remaining case type in which language services are currently not guaranteed – by Dec. 1, 2017. Among other commitments, the court will translate additional documents, provide broader notice about the availability of free interpreter services for court proceedings and make it easier to request an interpreter. LASC will also continue to seek input from community partners serving LEP populations. Under the terms of the agreement, LASC will provide periodic updates to the Justice Department until the end of 2017.
While the department’s investigation focused on LASC, the structure of the California judicial system required the department to review policies circulated and enforced at the state level through the California Judicial Council and its staff. In a 2013 letter sent to LASC and the chief justice of the California Supreme Court, as well as to the administrative arm of the courts, the department identified Title VI compliance concerns, made recommendations to improve compliance and offered to work collaboratively to ensure compliance. LASC representatives helped the California Judicial Council to develop and implement the Strategic Plan for Language Access in the California Courts to ensure meaningful access to court proceedings and other court operations throughout the state’s unified court system. The department is working separately with the judicial council to resolve the portion of the investigation focused on statewide compliance.
This matter was jointly investigated by Attorney Anna Medina of the Civil Rights Division’s Federal Coordination and Compliance Section (FCS) and Assistant U.S. Attorney Richard Park of the Central District of California.
For more information about FCS’s State Courts Language Access Initiative, a multi-pronged initiative focused on enforcement, technical assistance, outreach, resource development and policy efforts to ensure meaningful access to state courts receiving federal financial assistance, visit www.lep.gov or view a recently released Justice Department publication, “Language Access in State Courts.” To learn more about languages spoken in California or other parts of the United States, click on the language map app available here https://www.lep.gov/maps/.
LASC Letter and Agreement
Justice Department Announces over $4 Million in Grants to Rehabilitate and Reduce Recidivism among Military VeteransRead the Press Release
The Department of Justice today announced awards totaling over $4 million to 13 state and local jurisdictions to help them use evidence-based principles and practices to rehabilitate and ultimately reduce recidivism among military veterans.
The awards, funded under the Bureau of Justice Assistance’s 2016 Adult Drug Court Discretionary Grant Program, provide government court systems with financial and technical assistance to develop and implement Veterans Treatment Courts that tailor substance abuse treatment, mandatory drug testing, sanctions and incentives, and other transitional services for military veterans who are substance abusers. One in six veterans who served in either Operation Enduring Freedom or Operation Iraqi Freedom suffer from substance abuse, according to the nonprofit Justice for Vets.
“Our military veterans often risk life and limb for their country,” said Principal Deputy Associate Attorney General Bill Baer. “We owe our very best to help those who struggle with substance abuse get back on their feet, stay sober and successfully and productively integrate into civilian life.”
Veterans Treatment Courts enable participants’ likelihood of successful rehabilitation through early, continuous and intense judicially-supervised treatment. Veterans Treatment Courts also serve as a “one-stop-shop” to link veterans with services, benefits and program providers, including the Department of Veterans Affairs, Veterans Service Organizations and volunteer veteran mentors.
Today’s awardees include: Kansas 10th Judicial District Court ($314,494); the 14th Judicial District Attorney’s Office in Louisiana ($350,000); Roseau County ($305,501) and Anoka County ($300,000), both in Minnesota; Miami-Dade County, Florida ($350,000); City of Norfolk, Virginia, Community Service Board ($300,000); the Judiciary Courts of the State of Montana ($300,000); Missouri 22nd Judicial Circuit, St. Louis City Drug Court ($300,000); the Riverside, California, County Probation Department ($300,000) and the Superior Court of California, County of Solano ($296,875); Denton County, Texas ($299,732); La Crosse, Wisconsin, Area Veterans Court ($300,000); and the Administrative Office of Pennsylvania Courts ($300,000).
An additional $144,499 was provided to the National Institute of Corrections to supplement a project to develop, pilot and evaluate a risk assessment tool for justice-involved veterans.
Jamaican National Sentenced to Prison for his Participation in a Jamaica Based Lottery Fraud SchemeRead the Press Release
A Jamaican national was sentenced to 33 months in prison, to be followed by three years of supervised release for his participation in a Jamaica based lottery fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Joseph Conroy Smith, 28, a Jamaican National formerly of Lauderhill, previously pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. Smith was also ordered to pay approximately $100,000 in restitution and ordered to surrender to U.S. Immigration and Customs Enforcement upon completion of his term of incarceration.
According to documents and information presented in court, beginning in or about March 2010, Smith’s co-conspirators contacted elderly victims in the United States and falsely informed them that they had won a lottery. These co-conspirators told victims they had to pay several thousand dollars in taxes and fees in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Smith.
Smith used the aliases of “Brandon Ross,” “Janice Davis,” “Richard Hunt,” and “Calvin Edwards,” to receive money from victims via United States Postal Service Express mail in Broward County, Florida. Smith also recruited others to receive victims’ money via money transfer services and United States Postal Service Express mail. On occasion, Smith also recruited others to send the victims’ money via electronic money transfer services.
Mr. Ferrer commended the investigative efforts of USPIS. Mr. Ferrer also thanked Homeland Security Investigations, the U.S. Marshals Service, Broward County Sheriff’s Office Narcotics Interdiction Task Force and the Miami-Dade Police Department Economic Crimes Unit, for their assistance with this matter. The case was prosecuted by Assistant United States Attorney Bertha R. Mitrani.
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.
Investigators, Prosecutors Combat Financial FraudRead the Press Release
SALEM, Ore. – For the 16th consecutive year, a unique financial crimes conference is being held in Oregon. The Financial Crimes & Digital Evidence Conference brings together fraud fighters from across the country to educate and build networks in an effort to effectively combat financial fraud.
On September 20, 2016, attendees will gather for a three-day conference at the Salem Convention Center to sharpen their financial fraud investigation and prosecution skills. Speakers will address emerging trends in financial and digital crime, including digital forensics, business email compromise scams, cyber credit card fraud, and tax refund schemes. Attendees will learn from case studies in the financial exploitation of elders, real estate fraud, and insurance scams. State and federal agencies will highlight the investigation resources their agencies offer in an effort to encourage partnership and improve outcomes.
Financial fraud results in billions of dollars of losses annually in the United States. Fraud investigators and prosecutors in Oregon are determined to reduce harm to consumers and to hold more offenders accountable.
The 2016 Financial Crimes & Digital Evidence Conference is sponsored by the U.S. Attorney’s Office and the Oregon Department of Justice. Event programming was developed by the Financial Crimes and Digital Evidence Planning Committee, comprised of federal, state, and local law enforcement, prosecution, and fraud investigation leaders and private sector partners.
The conference is open to all city, county, state, and federal law enforcement officers and prosecutors and other fraud investigation, auditing, and security personnel from both the public and private sectors who assist in the investigation of financial crime. For more information, please contact Donna Maddux at [email protected] or visit www.financialcrimesconference.com.
Inmate at FCI-Berlin Pleads Guilty to Weapon PossessionRead the Press Release
CONCORD – United States Attorney Emily Gray Rice announced that Charles Moore, 32, an inmate at the Federal Correctional Institution in Berlin, New Hampshire, pleaded guilty today to possessing contraband in the prison. Moore possessed a homemade weapon made up of a pair of scissors, a pen and shoelaces. The weapon was discovered by prison officials when Moore failed to clear a metal detector screening.
According to documents that were filed in United States District Court, Moore failed to clear a metal detector located within the prison a total of six times. After the sixth failure, Moore was subjected to a visual search. During that search, prison officials discovered the weapon.
A sentencing hearing has been scheduled for January 13, 2017 at 10:00 a.m. Moore faces a maximum sentence of five years. He is subject to the advisory sentencing guidelines which will likely generate a sentencing range that is less than five years.
Moore is currently serving a 200-month sentence for armed bank robbery.
The case was investigated by the Federal Bureau of Prisons and was prosecuted by AUSA Don Feith.
###
IRS Revenue Officer Pleads Guilty to Mail and Wire Fraud, Filing and Preparing False Tax Returns, and PerjuryRead the Press Release
This afternoon, at the federal courthouse in Brooklyn, James C. Brewer, a Revenue Officer of the Internal Revenue Service (IRS) who had been assigned to the Edison, New Jersey, IRS office before his arrest, pled guilty to 12 counts of filing or preparing false tax returns, 12 counts of wire fraud, and one count of mail fraud, all in connection with a multi-year scheme to falsify his tax returns and the tax returns of others and to enrich himself with inflated refunds. Brewer also pled guilty to committing perjury in United States Tax Court in 2012.
At sentencing, Brewer faces a maximum term of 20 years’ imprisonment on each wire fraud and mail fraud count, a maximum of three years’ imprisonment on each tax fraud count, and a maximum of five years’ imprisonment on the perjury count. As part of his plea agreement, Brewer agreed to make restitution to the IRS of over $70,000, plus interest and penalties, and he is subject to fines as well.
The plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Newark Field Office, and Rodney A. Davis, Special Agent-in-Charge, Treasury Inspector General for Tax Administration (TIGTA), Washington Field Division. In announcing the guilty plea, Mr. Capers expressed his grateful appreciation to the United States Attorney’s Office for the District of New Jersey, the United States Attorney’s Office for the District of Nevada, IRS-CI, Las Vegas Field Office, and the Treasury Inspector General for TIGTA, Denver Field Division, for their assistance in this case.
According to court filings and statements made during the guilty plea, as part of a scheme to fraudulently reduce his taxable income and increase his tax refunds, Brewer failed to report any income he received for an unauthorized tax preparation business, underreported the gross receipts earned from an Internet retail business, and claimed false dependents on federal tax returns he prepared and filed on his behalf for three tax years. Brewer also engaged in a multi-year scheme in which he prepared and filed false tax returns for others. Brewer listed false dependents and false deductions on these returns, among other materially false information, in order to cause his clients to receive refunds to which they were otherwise not entitled or fraudulently inflate their refunds. In doing so, Brewer listed the names and social security numbers of various individuals on those tax returns as dependents without those individuals’ authorization. Brewer also diverted a portion of those clients’ refunds to himself, in some cases without the clients’ authorization or knowledge. Finally, in an effort to fraudulently obtain for himself a tax credit for first time homebuyers, Brewer lied under oath about his residency when he testified in a matter in the United States Tax Court in New York, New York.
The guilty plea was entered before the Hon. Pamela K. Chen at the United States District Court for the Eastern District of New York.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Tali Farhadian and Moira Kim Penza are in charge of the prosecution.
The Defendant:
JAMES C. BREWER
Age: 39
Staten Island, New YorkE.D.N.Y. Docket No. 15 CR 209 (PKC)
Huntersville, N.C. Man Sentenced to 30 Months for Securities Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Yesterday, Senior U.S. District Judge Graham Mullen sentenced a Huntersville man to 30 months in prison for his role in a securities fraud scheme involving fraudulent bonds, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Charles Edwin Abrams, a.k.a Charles Edwin Klutz and Charles Edwin Donovan, 53, was also ordered to serve two years under court supervision after he is released from prison, to pay $828,284 in restitution to victims, and to undergo mental health treatment.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
According to information contained in filed documents and yesterday’s sentencing hearing, Abrams and his co-conspirator, Mark Burgin, engaged in a securities fraud scheme by promoting a fraudulent investment known as the Mexican “Pink Lady” Bonds (bonds). Court records indicate that Abrams induced his victims to invest in the fraudulent bond scheme by making numerous false and fraudulent claims about the value of the bonds and the anticipated return on the victims’ investment. For example, according to court records, Abrams told potential investors that the bonds were issued in 1899 by the “United States of Mexico,” that the bonds had a value of 5% interest compounded daily, and that victim investors would receive billions of dollars upon the sale of the bonds. Court records also show that, in furtherance of the conspiracy and to bolster the fraudulent scheme’s credibility, on at least two occasions Abrams introduced Burgin to potential victim investors as a former Special Agent with the FBI. Abrams also represented himself to be a former U.S. Navy SEAL, when in fact he never served in the military.
According to court records, Abrams induced a total of seven known investors to invest $828,284 in the fraudulent bond scheme. Instead of purchasing the bonds with the investors’ funds as promised, the co-conspirators used the money for their personal benefit, including the purchase of luxury vehicles, jewelry, and to pay off investors from previous fraudulent schemes.
During the sentencing hearing, one of Abrams’ victims addressed the Court and spoke of the devastating financial impact she has suffered as result of the scheme, including not being able to retire and that she “no longer trusts anyone.”
Abrams pleaded guilty in May 2016 to one count of wire fraud conspiracy and one count of securities fraud conspiracy. He will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was led by the FBI. Assistant United States Attorney Kenneth M. Smith, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Harrisburg Businessman Sentenced to 18 Months for Tax FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Paul Biko, age 66, was sentenced yesterday to 18 months in federal prison for tax fraud by Chief United States District Court Judge Christopher C. Conner in Harrisburg.
According to United States Attorney Peter Smith, in 2008, Biko was the owner of three Harrisburg businesses: Clearview of Harrisburg, Clearview Landscaping and Clearview Builders. As owner, Biko controlled the financial affairs of the three companies including all business bank accounts. For the fourth quarter of 2008, Biko’s companies withheld employment taxes from employees but failed to pay to the IRS the federal income taxes and Federal Insurance Contributions Act (FICA) taxes due to the United States. The Court ordered Biko to pay restitution in the amount of $437,336.
The investigation was conducted by the Internal Revenue Service Criminal Investigations. Prosecution was handled by Assistant United States Attorney Joseph J. Terz.
# # #
Hardin County Businessman Indicted for Allegedly Defrauding Banks of More Than $9 MillionRead the Press Release
Jackson, TN – A Hardin County businessman has been indicted for participating in a conspiracy that defrauded three banks of more than $9 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, Charles Ray Smith, of Hardin County, Tennessee, owned and operated Tennessee Material Corporation (TMC), an establishment that sold construction aggregates, primarily limestone, crushed stone, sand and gravel. Smith also owned and operated other businesses, including American Construction; American Cash and Loan; American Coal and Iron; and Louisiana Materials.
Between March 2009 and March 2012, Smith maintained a business checking account at Central Bank for TMC. He had additional bank accounts for TMC at various financial institutions, including First Metro Bank and Wayne County Bank.
Smith conspired with former Central Bank Chief Executive Officer (CEO) Christopher Brent Jerrolds, 54, of Savanah, Tennessee, to execute a scheme that defrauded Central Bank, Wayne County Bank, and First Metro Bank of more than $9 million. Jerrolds pleaded guilty to bank fraud in May 2016 for his role in the conspiracy.
Smith reportedly deposited insufficiently funded checks ("bad checks") into TMC’s account at Central Bank between March 2009 and October 2010. These bad checks were deposited into TMC’s account to cover overdraft balances. When a previously deposited bad check in TMC’s account was returned for insufficient funds, another bad check drawn on one of TMC’s other bank accounts was deposited to replace the previously deposited bad check(s). The deposited amounts and the frequency of deposits increased each month, and at times, multiple checks were deposited on a single occasion.
By October 18, 2010, Smith was responsible for depositing 161 bad checks into TMC’s account with a total transaction amount of approximately $116,169,218. Jerrolds allowed Smith to deposit the bad checks into TMC’s account at Central Bank. The deposit of the bad checks created false balances in TMC’s account. The fraudulent account balances enabled TMC to unlawfully take approximately $3.9 million belonging to Central Bank.
Furthermore, according to the indictment, between March 2010 and March 2012, Smith allegedly received from Jerrolds various Central Bank "letters of credit." The co-conspirators concealed the issuance of the letters of credit from Central Bank; did not enter the letters of credit into the books and records of Central Bank; and did not obtain approval from the Bank’s Board of Directors to issue the letters of credit.
One of the letters was worth $2 million, which Smith used as collateral to obtain a $2 million loan from Wayne County Bank. In obtaining the loan, Smith concealed from the bank his true financial condition and did not disclose that Central Bank’s board of directors did not authorize the letter of credit. Smith used a portion of the proceeds to the $2 million loan to cover some of the bad checks deposited into TMC’s account at Central Bank.
From March 2011 to March 2012, Smith presented additional letters of credit from Central Bank to Wayne County Bank, to replace the prior letters of credit that were expiring.
Between August 2009 to February 2012, Smith used his businesses to obtain multiple loans from First Metro Bank amounting to $1,783,660.44. Smith collateralized the loans with fraudulent letters of credit from Central Bank.
Wayne County Bank and First Metro Bank both made demands on the letters of credit after Smith defaulted on the loans.
On Monday, September 19, 2016, Smith was charged in a nine-count indictment, which includes one count of conspiracy to commit bank fraud and eight counts of bank fraud.
If convicted, Smith faces a sentence of up to five years in federal prison for conspiracy to commit bank fraud and up to 20 years on each count of bank fraud. Smith also faces a fine of up to $250,000 for each count in the indictment.
This case is being investigated by the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation.
First Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Matt Wilson are prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Grandview Man Indicted for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Grandview, Mo., man who was arrested during a prostitution sting and hid his pistol in the police patrol car was indicted by a federal grand jury today for illegally possessing a firearm.
Jeffrey T. Arzola, 32, of Grandview, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Arzola on Sept. 6, 2016, which charged him with the same offense. Arzola remains in federal custody without bond.
The federal indictment alleges that Arzola was in possession of a Kel-Tec 9mm pistol on Sept. 1, 2016.
According to an affidavit filed in support of the original criminal complaint, Grandview police officers arrested Arzola and several other individuals during a prostitution sting operation on Sept. 1, 2016. Arzola was taken into custody for possession of methamphetamine and drug paraphernalia and because he had several warrants for his arrest. Arzola had been charged with possession of a controlled substance; when he failed to appear for a court appearance in Cass County, a warrant was issued for his arrest on June 14, 2016.
Arzola and another person were transported to the Grandview Police Department. The next morning, when an officer finished his shift at approximately 6:30 a.m., he conducted a safety check of the rear seat of the patrol car and saw the handle of the Kel-Tec 9mm pistol pushed underneath a small space in the floor board.
Interior video from the patrol car recorded the conversation between Arzola and the other person and their actions. According to the affidavit, Arzola and the other person discussed what to do with the firearm. Arzola slid the firearm over to the other person, the affidavit says, who dropped it on the floor board of the patrol car.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Arzola has prior felony convictions for murder, armed criminal action and criminal possession of a firearm by a felon.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Grandview, Mo., Police Department.
Former Wilkes-Barre Towing Contractor Sentenced to Two and A Half Years Imprisonment for Mail Fraud, Unlawful Possession of A Firearm and Filing A False Income Tax ReturnRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Leo Glodzik, age 45, of Wilkes-Barre, was sentenced today to 30 months in federal prison by U.S. District Court Judge A. Richard Caputo, on charges of mail fraud, being a felon in possession of a firearm, and subscribing to a false federal income tax return. Glodzik was also ordered to pay approximately $299,000 in back federal taxes and penalties and directed to report to the Bureau of Prisons to begin serving his sentence on October 24, 2016.
According to United States Attorney Peter Smith, the charges, filed in March 2016, in part arose as a result of the towing contract Glodzik’s firm, LAG Transport, Inc. (LAG), had with the City of Wilkes-Barre for the exclusive rights to tow all vehicles as requested by the City, and/or the Wilkes-Barre Police Department, the city’s agents. The contract began in January 2005 and was ended in June 2013, after the disclosure of complaints from residents related to LAG’s towing practices, all of which led to the federal investigation.
U.S. Attorney Smith stated that, “Glodzik’s corrupt dealings with the City of Wilkes-Barre, the credit union and elements of the City’s Police Department constituted a sad and sleazy chapter in the city’s history. The honest and hard-working residents, police officers and business people of the community deserve better and the City’s government must ensure that it does not happen again.”
The investigation established that LAG towed vehicles supposedly as the result of accidents, police incidents or vehicle abandonment and took the vehicles to locations owned and controlled by Glodzik.
Glodzik devised a scheme to defraud lawful owners of the vehicles by charging them excessive towing and storage fees for LAG’s services or intentionally hindering the owners’ access to their vehicles creating additional fees. As a result, in some cases, owners signed over the title to vehicles to LAG or Glodzik to discharge the fees.
Glodzik then gained ownership of the vehicles by misusing the abandonment procedures of the Pennsylvania Department of Motor Vehicle (PennDot) to transfer ownership from registered owners to LAG. Forms were submitted to PennDot, using the U.S. Postal Service.
The forms submitted to PennDot stated that vehicles had a value of less than $500, when, in fact, the values were greater. This resulted in Glodzik being able to avoid the requirement that called for legal advertisement of abandoned vehicles and payments to the Commonwealth of Pennsylvania of money received for vehicles sold at auctions for amounts that were above and beyond Glodzik’s own business costs.
As a result of the scheme, Glodzik enriched himself by unlawfully taking ownership of vehicles to which he was not entitled and using intentional misrepresentations to reduce his own expenses and costs.
The fraud scheme is set out in a mail fraud charge in the Criminal Information relating to a vehicle for which a notice of declaration of abandonment was mailed to PennDot in April 2011.
Additionally, Glodzik was charged in the Criminal Information with Federal Income Tax Fraud, specifically, the filing of a federal tax return for 2008, in which he claimed zero taxable income, when, in fact, his actual taxable income for that year was $408,618. Glodzik pleaded guilty on
The Criminal Information also charged Glodzik with being a convicted felon in possession of a firearm. The charge was part of an earlier Indictment of Glodzik by a federal grand jury in Scranton in April 2015. The discovery of the firearms was pursuant to searches of Glodzik’s business and residence. Glodzik pleaded guilty earlier this year pursuant to a plea agreement with the government.
Investigations were conducted by the Federal Bureau of Investigation, the Internal Revenue Service Investigations, and the Pennsylvania State Police as part of continuing inquiries into local government practices and contracting in Luzerne County. Prosecution is assigned to Assistant United States Attorneys Michelle Olshefski and John Gurganus.
Glodzik was previously convicted on state charges in a Pennsylvania State Police investigation. Glodzik was charged in an April 2015 federal indictment with bank fraud in connection with the Wilkes-Barre City Employees Federal Credit Union. A former Wilkes-Barre City police officer and a former credit union employee were charged and pleaded guilty in that investigation. The government agreed to dismiss the bank fraud charge against Glodzik as part of the plea agreement in this case.
Overall, the investigation led to the conviction of four individuals, new management of the credit union and increased oversight of its operations.
# # #
Former United States Immigration and Customs Enforcement Deportation Officer Pled Guilty to Bulk Cash SmugglingRead the Press Release
On September 15, 2016, a former United States Immigration and Customs Enforcement Deportation Officer pled guilty to bulk cash smuggling.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, David P. D’Amato, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Office of Professional Responsibility (ICE-OPR), Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (DHS-OIG), Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection, Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
Luis De Jesus Alonzo, Jr., 44, of Miami, Florida, pled guilty before Chief U.S. District Judge K. Michael Moore, in Miami, Florida to charges of bulk cash smuggling, in violation of Title 31, United States Code, Section 5332(a). Alonzo faces a statutory maximum sentence of five years’ imprisonment. Alonzo was employed by Immigration and Customs Enforcement as a Deportation Officer until he resigned effective Friday, September 9, 2016, prior to entering his plea of guilty.
According to court records, including a stipulated factual basis in support of Alonzo’s guilty plea, on May 30, 2016, Alonzo travelled from the United States to the Dominican Republic to assist and accompany his co-defendants Mildrey De La Caradid Gonzalez and Milka Yarlin Alfaro when they travelled back to the United States.
On June 4, 2016, Alonzo, Gonzalez, and Alfaro (collectively, the “Defendants”), arrived at Miami International Airport in Miami, Florida from the Dominican Republic. The Defendants presented at least seven pieces of luggage for entry into the United States. Alonzo filled out the required United States Customs and Border Protection Form 6059B (the “Declaration Form”) as the “responsible family member” on behalf of the Defendants. Alonzo declared that he and his co-defendants were not carrying in excess of ten thousand dollars in United States currency. Alonzo presented the Declaration Form to Passport Control officers.
However, at the time Alonzo presented the Declaration Form he knew that the Defendants had in excess of ten thousand dollars hidden within their luggage. Alonzo misrepresented that the Defendants were not carrying in excess of ten thousand dollars in United States currency in order to evade a currency reporting requirement under Title 31, United States Code, Section 5316. During a subsequent search of the Defendants’ luggage, approximately $2,463,759.00 in United States currency was discovered concealed within the luggage in diapers, baby wipes, makeup pouches, and purses, among other things.
Mr. Ferrer commended the investigative efforts of ICE-HSI, ICE-OPR, DHS-OIG, USSS, CBP and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Roxse Homes Worker Sentenced for Taking BribesRead the Press Release
BOSTON – The former assistant property manager of Roxse Homes, a subsidized housing development in Boston, was sentenced today in U.S. District Court in Boston for his role in a scheme to rent apartments at the housing development to individuals who were not qualified in exchange for cash bribes.
Mathis Lemons, 42, of Brockton, was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison, one year of supervised release and ordered to pay forfeiture of $18,300. In May 2016, Lemons pleaded guilty to one count of conspiracy and seven counts each of corrupt receipt of payments by a federally funded organization. His co-defendant, Ismael Morales, pleaded guilty to the same charges and was sentenced in August 2016 to two years in prison.
Lemons was the assistant property manager and Morales worked as a maintenance technician for Roxse Homes, a subsidized housing development on Tremont Street in Roxbury. At Roxse Homes, eligible low-income families and individuals can obtain rental housing for a subsidized rate with Section 8 housing benefits from the U.S. Department of Housing and Urban Development. In 2014, there was a shortage of federally subsidized Section 8 housing in Massachusetts, and Roxse Homes maintained a long waitlist of applicants desiring apartments in the complex. The Roxse Homes waitlist had been closed to external applicants since 2009.
From September 2014 to February 2015, Lemons and Morales conspired to rent apartments to individuals who were not eligible for subsidized Roxse Homes apartments because they were not on the waitlist. Morales solicited and accepted money from individuals, and provided those individuals with blank rental applications. Morales also instructed some of the individuals not to date their applications, or to date their applications in 2006 or 2009, when in fact the applications were completed in 2014. Lemons then added the unqualified individuals to the Roxse Homes computerized waitlist, and falsely inputted their application dates as 2006 or 2009.
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, New York Regional Office; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Glenn A. Cunha, Inspector General of Massachusetts; and Boston Police Commissioner William B. Evans, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Kristina E. Barclay and Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Former Letter Carrier Sentenced to One Year in Prison for Scheme to Steal and Cash Hundreds of Postal Money OrdersRead the Press Release
NEWARK, N.J. – A Little Egg Harbor, New Jersey, man was sentenced today to 12 months in prison for his role in a scheme to steal and convert hundreds of blank U.S. Postal Service money orders, resulting in nearly $200,000 in losses, U.S. Attorney Paul J. Fishman announced.
Jonel Normil, 26, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to embezzle, convert to his use and the use of others U.S. Postal Service money orders. Judge Arleo imposed the sentence today in Newark federal court.
According to the documents filed in this case, other cases, and statements made in court:
Normil was employed as a letter carrier with the U.S. Postal Service in Cape May Court House, New Jersey. He also picked up and dropped off mail at the U.S. Post Office in Stone Harbor, New Jersey.
Normil admitted that he used his position as a letter carrier to steal hundreds of U.S. Postal Service money orders from the Stone Harbor and Cape May Court House post offices. Normil gave the stolen money orders to other conspirators, who made them look legitimate and imprinted them with dollar values of $900 or $1,000 before depositing them into bank accounts or cashing them at post offices in New Jersey, New York, and Georgia.
In addition to the prison term, Judge Arleo sentenced Normil to three years of supervised release.
U.S. Attorney Fishman credited special agents of the U.S. Postal Service, Office of the Inspector General, under the direction of Executive Special Agent in Charge Monica Weyler of the Eastern Area Field Office, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: H. Robert Boney Esq., Mays Landing, New Jersey
Former Legislative Clerk Sentenced for White Powder Hoax on Floor of Iowa LegislatureRead the Press Release
DES MOINES, IA – On September 19, 2016, Michael Dekota McRae, 28, was sentenced by Chief United States District Court Judge John A. Jarvey to eighteen (18) months imprisonment for conveying false information concerning a biological weapon, announced United States Attorney Kevin E. VanderSchel. McRae was also ordered to pay restitution in the amount of $2,747.50 and a $100.00 special assessment to the Crime Victims’ Fund.
McRae, a former legislative clerk to Iowa State Representative Ako Abdul-Samad, admitted to writing a threatening letter addressed to Representative Abdul-Samad. The letter contained racial slurs and threats to kill both McRae and Representative Abdul-Samad. McRae subsequently inserted the letter, along with a white powdery substance, into an envelope which he placed into a legislative mail receptacle.
On April 3, 2012, McRae opened the threatening letter on the chamber floor during an active session of the Iowa Legislature. When McRae opened the letter the white powder, which McRae included to simulate a biological agent or toxin, was released and came into contact with McRae and Representative Abdul-Samad. McRae admitted to perpetrating the hoax to create fear in others.
When McRae committed the crime, legislation proposing to expand existing Iowa law allowing individuals to defend themselves in their home, business or place of employment, commonly referred to as "stand your ground," was pending before the Iowa Legislature. In the days leading up to the hoax, McRae and others participated in a rally on the steps of the Capitol to protest the proposed legislation, and that rally was mentioned in the threatening letter written by McRae.
This matter was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Iowa State Patrol, the Des Moines Police Department, Des Moines Fire Department Hazardous Materials Team, and the Iowa National Guard 71st Civil Support Team. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.