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8 July 2016
Virginia Man Sentenced to 12 Years in Prison for Sex Trafficking 15-Year-Old GirlRead the Press Release
A Virginia man was sentenced today to 144 months in prison to be followed by a 20-year term of supervised release for sex trafficking of a minor.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Colonel Edwin C. Roessler Jr. Chief of the Fairfax County, Virginia, Police Department made the announcement.
Derek Leon Mantilla, 21, formerly of Fairfax, Virginia, pleaded guilty on April 19, 2016, and was sentenced today by U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia. Mantilla will be required to register as a sex offender.
In connection with his plea, Mantilla admitted that from at least November 2014 through February 2015, he, together with Ismael Antonio Mendez and Caitlyn Ann Smith, recruited a 15-year-old girl to engage in commercial sex acts to pay off a debt that Mendez owed to Mantilla. The defendants taught the girl how to prostitute, took photos of her to use in advertisements and created and posted internet advertisements for commercial sex. The co-conspirators knew that the girl was a minor and instructed her to lie about her age to customers. Over a three-month period, the co-conspirators traveled with the girl throughout Virginia, in New York and every state in between for the purposes of advertising and engaging the girl in prostitution. During that period, the defendants prostituted the girl every day, with an average of 10 to 12 customers a night until she earned enough to repay Mendez’s debt, at which point the co-conspirators directed her to leave.
Mendez and Smith have pleaded guilty. On March 18, 2016, Mendez was sentenced to 10 years in prison. Smith is scheduled to be sentenced on Dec. 16, 2016.
The FBI’s Washington Field Office and the Fairfax County Police Department investigated the case. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Dougherty Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Virginia Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
Haris Qamar, 25, of Burke, Virginia, was arrested this morning on charges of attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. His initial court appearance is at 2 p.m. in U.S. District Court in Alexandria, Virginia.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement after the charges were unsealed.
According to the affidavit in support of the criminal complaint, on May 26, Qamar and an FBI confidential witness (CW) discussed a video that ISIL was supposedly making to encourage lone wolf attacks in the Washington, D.C., area. Unbeknownst to Qamar, there was no actual video being created. Qamar and the CW discussed the need for photos of possible targets in and around Washington, D.C., for use in the purported ISIL video.
According to the complaint, Qamar offered the CW ideas of where to take photographs for use in the video, including the Pentagon and numerous landmarks in Arlington, Virginia, and Washington, D.C., which could be targeted for terrorist attacks. On June 3, a conversation was audio and video recorded when CW picked up Qamar in a vehicle and they drove to area landmarks on the list Qamar had developed. Qamar allegedly said, “bye bye DC, stupid ass kufar, kill’em all.” Qamar and CW met again on June 10 and drove to a location in Arlington to take additional photos for the purported ISIL video.
According to the complaint, the investigation revealed that Qamar operated over 60 variations of the Twitter handle “newerajihadi,” which Qamar used to express his support for ISIL and to share videos and photos of extreme violence, including beheadings and mass shootings.According to the allegations, during numerous conversations with the CW, Qamar expressed his interest and excitement in the extreme violence that ISIL is known for and said that he loved the bodies, blood and beheadings. On several occasions, Qamar allegedly said that he could slaughter someone and described how he would do it.
On Sept. 11, 2015, terrorists connected with ISIL posted a “kill list” to the internet containing the names and addresses of U.S. military members. A few days later, Qamar allegedly told the CW that the residences of several service members who appeared on the “kill list” were near Qamar’s own home, and that Qamar had observed undercover police cars near those residences. According to the affidavit, on Sept. 16, 2015, Qamar tweeted his prayer that Allah “give strength to the mujahideen to slaughter every single US military officer.”
Additionally, the affidavit alleges that on Sept. 25, 2015, Qamar told the CW that he tried to join ISIL in 2014, but that his parents prevented him from going overseas by controlling his passport. Qamar allegedly said that his parents threatened to notify law enforcement authorities and said that he fought with his father and called his father a traitor to Islam. According to the allegations, on Nov. 18, 2015, Qamar told the CW that he would leave the United States and join ISIL if his father gave him back his passport.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, Qamar faces a maximum penalty of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney Gordon D. Kromberg of the Eastern District of Virginia and Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section.
Virginia Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – Haris Qamar, 25, of Burke, was arrested this morning on charges of attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Qamar is scheduled to have his initial appearance today in front of Magistrate Judge John F. Anderson at 2 p.m. at the federal courthouse in Alexandria.
According to the affidavit in support of the criminal complaint, on May 26, Qamar and FBI confidential witness (CW) discussed ISIL’s need of photos of possible targets in and around Washington, D.C., for use in a video that ISIL was purportedly making to encourage lone wolf attacks in the Washington, D.C., area. Qamar allegedly offered CW ideas of where to take these photographs, including the Pentagon and numerous landmarks in Arlington and Washington, D.C., which could be targeted for terrorist attacks. On June 3, a conversation was audio and video recorded when CW picked up Qamar in a vehicle and they drove to area landmarks on the list Qamar had developed. Qamar allegedly said “bye bye DC, stupid ass kufar, kill’em all”. Qamar and CW met again on June 10 and drove to a location in Arlington to take additional photos for the ISIL video.
The FBI first learned of Qamar as he operated over 60 variations of the Twitter handle “newerajihadi”, which Qamar used to express his support of ISIL and share videos and photos of extreme violence, including beheadings and mass shootings. For example, after terrorists murdered employees of the Charlie Hebdo magazine in Paris in January 2015, Qamar tweeted his prayer for another similar attack with even more casualties.
According to the allegations, during numerous conversations with CW, Qamar expressed his interest and excitement in the extreme violence ISIL is known for. Qamar said he loved the bodies, blood and beheadings, and he recalled watching a video of a Kurdish individual being slaughtered, and liked the cracking sound made when the individual’s spinal cord was torn. On several occasions Qamar allegedly said he could slaughter someone and described how he would do it. Qamar also stated that he admired lone wolf attackers because they love Islam so much that they are willing to die as martyrs for Islam and in the same conversation, Qamar and CW allegedly discussed suicide bombings. CW said that he did not believe in suicide bombings, but Qamar allegedly responded “I believe in it 100 percent.”
On Sept. 11, 2015, terrorists connected with ISIL posted a “kill list” to the internet containing the names and addresses of U.S. military members. A few days later, Qamar allegedly told CW that the residences of several service members who appeared on the “kill list” were near Qamar’s own home, and that Qamar had observed undercover police cars near those residences. According to the affidavit, on Sept. 16, 2015, Qamar tweeted his prayer that Allah “give strength to the mujahideen to slaughter every single US military officer.”
Additionally, the affidavit alleges that on Sept. 25, 2015, Qamar told CW that he tried to join the ISIL in 2014, but that his parents prevented him from going by controlling his passport. Qamar allegedly said that his parents threatened to notify law enforcement authorities and said that he fought with his father and called his father a traitor to Islam. According to the allegations, on Nov. 18, 2015, CW asked Qamar if his father gave him back his passport would he go and join ISIL, and in response, Qamar said if that happened, “I’m done, I leave.”
Qamar faces a maximum penalty of 20 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Division, made the announcement after the charges were unsealed. Assistant U.S. Attorney Gordon D. Kromberg is prosecuting the case with assistance from the National Security Division’s Counterterrorism Section. The FBI’s Joint Terrorism Task Force is investigating the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-mj-300.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
U.S. Attorney Lewis: Statement Regarding Recent Shootings, ViolenceRead the Press Release
Five police officers (Brent Thompson, Michael Krol, Patrick Zamarriga and two others), killed in Dallas. Alton Sterling, killed in Baton Rouge, Louisiana. Philando Castile, killed in St. Anthony, Minnesota. We are losing too many lives, too many people. We hurt. And we ask, “Have we lost our way?”
The five police officers—and others--were protecting a public protest that arose because other lives were lost. Somehow, this makes it feel even worse. If we hurt from the loss of life, and we express our grief in public protest—peaceful, lawful public protest--and officers come out to protect that peaceful protest, how can we then have an attack on those officers? How can we have and express our pain, if we cannot find a safe place, for ourselves, our expression and our peace officers?
I have some doubt and despair, but I will not give in. We have too much to do, and cannot give in to doubt or despair.
First, we must mourn these lives, and all the lives that have been lost. Then, we must reflect—and act wisely.
Reflection begins with investigations. These investigations must be prompt, honest and open, and they will be. After investigation, then we can make judgments, wise judgments.
Our officers have to be safe, if we are to be safe. If we ask our officers to go toward trouble, at our request and on our behalf, then we must assure their safety. When officers approach us on the street, we must assure their safety. When officers come to protect us, we must assure their safety. We must teach and reteach the ways to do this, beginning with respect.
And officers are relearning respect for our people. There is more training, with more emphasis on “community policing,” working more closely with the community that is served.
I could write in detail about the use of force and community policing and how people should approach the police, but the present question is more basic: “Can we find a way forward?” The answer is yes, we have to find our way. We do want a safe place, for ourselves, for our officers, for our children, for our future, and we are willing to work together—peacefully—to go forward.
Two men plead guilty in federal court in CharlestonRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto announced today that two men pleaded guilty to charges in federal court in Charleston before United States District Judge Irene C. Berger. Austin Flint, 24, of Mount Hope, pleaded guilty to making a false statement in acquisition of a firearm, admitting that on September 28, 2015, he falsified a form at Shooter’s Roost in Beckley, indicating that he was the actual purchaser of three firearms when in fact he was purchasing them at the direction of another person. Flint faces up to five years in prison when he is sentenced on October 20, 2016. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
In a separate case, Elliott Tubbs Jr., 30, pleaded guilty to possession of a weapon by an inmate of a federal prison. Tubbs, an inmate at the Federal Correctional Institution at Beckley, admitted that on February 20, 2016, a staff member at the prison searched him and found a sharpened wooden object in his sock. The object, a handcrafted weapon, is commonly called a shank. Tubbs also will be sentenced on October 20, 2016, and faces up to five years in prison. The Tubbs case was investigated by the Federal Bureau of Prisons.
Assistant United States Attorney John File is handling both prosecutions.
Two Former Executives of Louis Berger International Sentenced in Foreign Bribery SchemeRead the Press Release
TRENTON, N.J. – Two former executives of Louis Berger International (LBI), a New Jersey-based construction management company, have been sentenced in connection with a long-running bribery scheme to secure government construction management contracts by bribing officials in India, Indonesia, Vietnam and Kuwait.
U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division made the announcement today.
Richard Hirsch, 62, of Makaati, Philippines, was sentenced by U.S. District Judge Mary L. Cooper to two years of probation and fined $10,000. Hirsch previously served as the senior vice president responsible for the company’s operations in Indonesia, Thailand, the Philippines and Vietnam. James McClung, 60, of Dubai, United Arab Emirates, was sentenced by Judge Cooper on July 7, 2016, to one year plus one day in jail. McClung previously served as the senior vice president responsible for the company’s operations in India and Vietnam. On July 17, 2015, McClung and Hirsch each pleaded guilty before Judge Cooper in Trenton federal court to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one substantive count of violating the FCPA.
According to documents filed in this case and statements made in court:
From 1998 through 2010, LBI and its employees, including Hirsch and McClung, orchestrated $3.9 million in bribe payments to foreign officials in various countries in order to secure government contracts. To conceal the payments, the conspirators made payments under the guise of “commitment fees,” “counterpart per diems” and other payments to third-party vendors. In reality, the payments were intended to fund bribes to foreign officials who had awarded contracts to LBI or who supervised LBI’s work on contracts, the defendants admitted.
McClung cooperated with the government’s investigation by identifying other executives at LBI who had knowledge of bribery. Some of the information provided by McClung was also helpful to the government’s successful prosecution of LBI’s former CEO, Derrish Wolff, who pleaded guilty to accounting fraud in December 2014.
On July 17, 2015, LBI entered into a deferred prosecution agreement and admitted its own criminal conduct, including its participation in a conspiracy to violate the anti-bribery provisions of the FCPA. Pursuant to the DPA, LBI agreed to pay a $17.1 million criminal penalty, to implement rigorous internal controls, to continue to cooperate fully with the department and to retain a compliance monitor for at least three years.
This case was investigated by the FBI’s Newark Division under the direction of Special Agent in Charge Gallagher. The government is represented by Assistant U.S. Attorney Thomas J. Eicher, chief of the Criminal Division for the U.S. Attorney’s Office, District of New Jersey, and Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section. The Criminal Division’s Office of International Affairs also provided assistance.
Defense counsel:
Hirsch: William G. Sullivan Esq., Chicago, Illinois
McClung: Kelly B. Kramer Esq., Washington, D.C.
Two Charleston brothers sentenced for heroin distributionRead the Press Release
CHARLESTON, W.Va. – Dennis and Joshua Walls, 25 and 22, of Charleston, were sentenced today to federal prison for heroin distribution, announced Acting United States Attorney Carol Casto. The two are brothers. Dennis Walls was sentenced to a year and a day in prison, and Joshua Walls was sentenced to six months.
Both Dennis Walls, who pleaded guilty in March, and Joshua Walls, who pleaded guilty April, previously admitted to their joint efforts in distributing heroin from a residence they shared on Fairview Drive in Charleston. The investigation of the brothers by the Charleston Police Department’s Special Enforcement Unit began after Joshua Walls sold heroin to a confidential informant working with that agency. The brothers were responsible for distributing between 10 and 20 grams of heroin locally.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of heroin and opiate painkillers in communities across the Southern District.
Two Arrested and Charged with A Series of NW Indiana Bank RobberiesRead the Press Release
HAMMOND- United States Attorney David A. Capp announced that a federal grand jury in Hammond returned an indictment charging two individuals with a series of bank robberies in Northwest Indiana.
The indictment charges Artez Brewer, 29, of Gary, Indiana with three counts of bank robbery and charges Robin Pawlak, 30, of Gary, Indiana with two counts of bank robbery.
The indictment alleges that on April 28, 2016, Brewer and Pawlak robbed Centier Bank in Griffith, Indiana; on May 6, 2016, Brewer robbed Main Source Bank in Crown Point, Indiana; and on May 27, 2016, Brewer and Pawlak robbed Horizon Bank located in Whiting, Indiana.
The defendants were arrested following the robbery of Banner Bank in Los Angeles, California on June 10, 2016. Brewer and Pawlak are scheduled for trial in the Central District of California on August 9, 2016. Upon conclusion of the trial both defendants will be transferred to the Northern District of Indiana to face charges here.
The case is being investigated by the Federal Bureau of Investigation with the assistance of the Crown Point, Griffith and Whiting, Indiana Police Departments. The case is being prosecuted by Assistant United States Attorney Jennifer Chang.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Towson Man Sentenced to over 6 Years in Federal Prison for Two Separate Bank Fraud and Identity Theft SchemesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Jerry Anderson, age 31, of Towson, Maryland, today to 76 months in prison, followed by six years of supervised release for two separate bank fraud and aggravated identity theft schemes in which Anderson and others used counterfeit credit cards to make fraudulent purchases. Anderson executed the second scheme while he was awaiting sentencing on the previous fraud conviction. Judge Russell also ordered Anderson to pay restitution of $419,807.14, in the first scheme and restitution of $1,289.23 in the second scheme.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreements, on April 7, 2015, Anderson pleaded guilty to conspiring with co-defendants, Zachary O’Brien, Steven Harris, Marquis Johnson, and Steven Tejeda, as well as others, to use stolen credit card and other personal information of customers of victim financial institutions to purchase items, including Apple iPhones, at retail locations in Maryland and elsewhere. The total actual loss resulting from the conspiracy, which operated from at least February to October 2014, was $419,807.14, and the potential loss was over $1.8 million. The conspiracy involved over 250 victims.
After his guilty plea, Anderson was released under the supervision of U.S. Pretrial Services. One of the conditions of his release was that he not commit any new crimes. Anderson admitted that on June 25, 2015, he purchased four $100 American Express gift cards at a store in Cockeysville, Maryland, using a Visa credit card. Store surveillance depicts Anderson making these purchases. The Visa credit card used in the transaction belongs to “G.B.” After being contacted by law enforcement, the victim advised that that a fraud alert had been placed on the account and that the charges on June 25, 2015 were fraudulent. The victim further advised that he did not give permission to any individual to possess or use his credit card.
On July 3, 2015, Anderson was seen by Apple Loss Prevention at an Apple Store in Bethesda, Maryland, purchasing two iPhones totaling $1,375.88 using a combination of gift cards. Specifically, Anderson used the American Express gift cards he fraudulently purchased on June 25, 2015, along with other gift cards, to purchase the phones. The total actual loss as a result of Anderson’s conduct was $1,389.23. On July 8, 2015, Anderson was ordered to be detained pending sentencing.
Co-defendants Steven Tejeda, age 22, of Richmond, Virginia, Zachary O’Brien, age 32, and Steven Harris, age 25, both of Bronx, New York, previously pleaded guilty and were each sentenced to four years in prison. Marquis Johnson, age 22, of Severna Park, Maryland, and Ronnie Mejia, age 26, of Bronx, New York, also pleaded guilty to their roles in the scheme and are scheduled to be sentenced on August 8, 2016 and August 19, 2016, respectively.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary A. Myers, who are prosecuting the case.
Subway Franchisee and Shell Gas Station Owner Sentenced for Multi-Million Dollar Conspiracy to Defraud the IRSRead the Press Release
ALEXANDRIA, Va. – Obayedul Hoque, 49, of Alexandria, was sentenced today to 30 months in prison for aiding and assisting in the filing of false tax returns. Hoque was also sentenced to two years of supervised release and oreder to pay $2,022,106 in restitution to the Internal Revenue Service (IRS).
According to court documents, Obayedul Hoque owned and operated Skyhill Shell, a gas station in Alexandria, and multiple Subway restaurant franchises in Washington, D.C., and Arlington, and Alexandria. Hoque admitted that between 2008 and 2014, he and his co-conspirators, who were managers of some of the Subway franchises and the gas station, conspired to defraud the United States for the purpose of obstructing the IRS in the ascertainment and collection of individual and corporate income taxes. Hoque and his co-conspirators did not deposit all of the gross receipts of the gas station or the Subway franchises into the corporate or partnership bank accounts. Instead, Hoque and the managers retained a portion of the gross receipts for their personal benefit and failed to report those funds to the IRS. For the Subway franchises that had no co-conspirator managers, Hoque retained all of the unreported gross receipts for himself.
For the period of 2008 through 2013, point of sales records for the Subway franchises reflected total sales of $20,805,667. However, Hoque and his co-conspirators provided false monthly sales figures to the accounting firm to prepare the Subway entities’ tax returns. As a result, Hoque and his co-conspirators caused false corporate and partnership tax returns to be filed for the Subway franchises which reported sales of only $14,377,696. Hoque and his co-conspirators also caused false corporate tax returns to be filed on behalf of Skyhill Shell. For some years, some of the entities did not file tax returns with the IRS. Additionally, Hoque filed false individual income tax returns with the IRS. Hoque admitted that his conduct caused a tax loss to the IRS of between $1.5 million and $3.5 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Uzo Asonye, Assistant Chief Caryn Finley and Trial Attorney Kimberly Shartar of the Tax Division prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-9.
Subway Franchisee and Gas Station Owner Sentenced to Prison in Multi-Million Dollar Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
Defendant Failed to Report More Than $6 Million in Gross Receipts
A Subway franchisee and resident of Alexandria, Virginia, was sentenced to more than two years in prison today for conspiracy to defraud the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia.
Obayedul Hoque, was sentenced to 30 months in prison followed by two years of supervised release by U.S. District Judge Liam O’Grady. Judge O’Grady ordered Hoque to pay a $20,000 fine and $2,022,106 in restitution to the Internal Revenue Service (IRS) for tax liabilities for the years 2008 through 2013.
According to court documents, Hoque owned and operated Skyhill Shell, a gas station in Alexandria and multiple Subway restaurant franchises in Washington, D.C., Arlington, Virginia, and Alexandria. Hoque admitted that between 2008 and 2014, he and his co-conspirators, who were managers of some of the Subway franchises and the gas station, conspired to defraud the United States for the purpose of obstructing the IRS in the ascertainment and collection of individual and corporate income taxes. Hoque and his co-conspirators did not deposit all of the gross receipts of the gas station or the Subway franchises into the corporate or partnership bank accounts. Instead, Hoque and the managers retained a portion of the gross receipts for their personal benefit and failed to report those funds to the IRS. For the Subway franchises that had no co-conspirator managers, Hoque retained all of the unreported gross receipts for himself.
For the period of 2008 through 2013, point of sales records for the Subway franchises reflected total sales of $20,805,667. However, Hoque and his co-conspirators provided false monthly sales figures to the accounting firm to prepare the Subway entities’ tax returns. As a result, Hoque and his co-conspirators caused false corporate and partnership tax returns to be filed for the Subway franchises which reported sales of only $14,377,696. Hoque and his co-conspirators also caused false corporate tax returns to be filed on behalf of Skyhill Shell. For some years, some of the entities did not file tax returns with the IRS. Additionally, Hoque filed false individual income tax returns with the IRS. Hoque admitted that his conduct caused a tax loss to the IRS of between $1.5 million and $3.5 million.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Uzo Asonye and Assistant Chief Caryn Finley and Trial Attorney Kimberly Shartar of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Springville Man Sentenced for Firearm PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Daniel J. Bakowski, 35, of Springville, NY, who was convicted of possession of a firearm in interstate commerce after a felony conviction, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on January 10, 2014, police officers executed a search warrant at the defendant’s then-residence, 1418 Eagle Street in Freedom, NY, Officers discovered a Smith and Wesson, 12- gauge shotgun and a digital scale with cocaine residue on it in Bakowski’s bedroom. Officers also found evidence of a marijuana grow operation in the basement, which the defendant admitted to operating.
The sentencing is the culmination of an investigation on the part of the New York State Police, under the direction of Major Steven A. Nigrelli, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
President and CEO of Long Beach Substance Abuse Treatment Provider and Three Others Indicted for $50 Million Student Substance Abuse Counseling FraudRead the Press Release
LOS ANGELES – Four people have been charged in a superseding indictment unsealed today for allegedly participating in a scheme that submitted more than $50 million in fraudulent claims to California’s Drug Medi-Cal program for alcohol and drug treatment services for high school and middle school students that, in many instances, were not provided at all or were provided to students who did not actually have substance abuse problems.
Two of the defendants who worked at the Long Beach-based Atlantic Health Services (formerly known as Atlantic Recovery Services, or ARS), including President and Chief Executive Officer, Richard Mark Ciampa, were arrested this morning by federal authorities.
The superseding indictment, which charges the defendants with health care fraud and aggravated identity theft and charges Ciampa with money laundering, alleges that ARS was paid more than $46 million after it submitted false and fraudulent claims for group and individual substance abuse counseling services.
“These defendants stole tens of millions of dollars earmarked for helping children with substance abuse problems,” said United States Attorney Eileen M. Decker. “This fraud not only harmed taxpayers, but also placed some of the most vulnerable in our society at greater risk.”
The defendants named in the indictment are:
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Richard Mark Ciampa, 62, of Long Beach, the President and CEO of ARS who ultimately was responsible for the claims billed to Medi-Cal and received the bulk of ARS’ earnings;
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Gregory Hearns, 60, of Long Beach, the Billing Supervisor for ARS who compiled the monthly billing and arranged for its submission to Medi-Cal;
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LaLonnie Egans, 58, of Bellflower, who managed counselors at three schools;
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Tina Lynn St. Julian, 52, of Compton, who worked as a counselor at two schools.
Egans and St. Julian were named as defendants in the original indictment and are expected to be arraigned on the superseding indictment in the coming weeks. Ciampa and Hearns were arraigned on the superseding indictment this afternoon in United States District Court.
“Medical professionals who seek to enrich themselves through Medi-Cal fraud undermine this taxpayer-funded program and drive up health care costs for everyone,” said Acting Special Agent in Charge Anthony J. Orlando for IRS Criminal Investigation. “Today’s arrests should send a clear message to all health care providers that health care fraud is a federal crime that carries serious consequences and will not be tolerated.”
ARS received contracts to provide substance abuse treatment services through the Drug Medi-Cal program to students in schools in Los Angeles County. The schools included various sites operated by Soledad Enrichment Action, and public schools in Montebello, Bell Gardens, Lakewood, and the Antelope Valley.
The superseding indictment alleges that, during a 10-year period through April 2013, when ARS was shut down following a suspension of payments, ARS submitted bogus claims for payment to the Drug Medi-Cal program. Ciampa and Hearns are alleged to have caused the submission of these false claims and created an environment for rampant fraud by constantly warning ARS managers and counselors that they would lose their jobs if they did not increase the billing. Ciampa also directed managers and counselors to bill for two crisis intervention sessions per student per month, even though crisis interventions were to be billed only if the student had relapsed or faced an imminent threat of relapse, neither of which could be planned in advance. The claims are also alleged to have been false and fraudulent for a number of other reasons, including:
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ARS billed for services provided to students who did not have substance abuse disorders and therefore did not qualify to receive Drug Medi-Cal services;
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ARS billed for counseling sessions that were not conducted at all;
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ARS billed for counseling services that were not conducted in accordance with Drug Medi-Cal regulations regarding length, number of students, content, and setting;
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ARS personnel falsified documents, including treatment plans, group counseling sign-in sheets, progress notes, and update logs (which listed the dates and times of counseling sessions); and
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ARS personnel forged student signatures on documents.
Ciampa also is alleged to have conducted or caused others to conduct six monetary transactions involving monies ARS received as reimbursement from Medi-Cal for ARS’ fraudulent claims. These transactions include intra-bank transfers and wire transfers among ARS bank accounts that Ciampa controlled; a transfer to Ciampa’s personal account; a transfer to another individual associated with ARS; and purchase of a cashier’s check for Ciampa’s down payment on two Long Beach properties. The superseding indictment also includes forfeiture allegations pertaining to these Long Beach properties and other property connected to health care fraud funds and money laundering.
“It is outrageous for health care executives and counselors to risk stigmatizing students as substance abusers, as alleged in this case, just to enrich themselves at taxpayer expense,” said Special Agent in Charge Christian Schrank for the Office of the Inspector General of the U.S. Department of Health and Human Services. "Our agency will work closely with our State and other Federal law enforcement partners to guard these precious Medi-Cal dollars against fraud."
Previously, at least 17 other defendants have pleaded guilty to health care fraud charges or signed plea agreements stemming from the ARS scheme. Those are the former ARS Program Manager, Lori Renee Miller, 54, of Lakewood; former ARS managers Angela Frances Micklo, 57, of Palmdale; Maribel Navarro, 49, of Pico Rivera; Carrenda Jeffery, 65, of the Mid-City District of Los Angeles; Cathy Fernandez, 54, of Downey; Erin Hoover, 38, of Long Beach; Elizabeth Black, 51, of Long Beach; Helsa Casillas, 45, of El Sereno; and Sandra Lopez, 42, of Huntington Park; and former ARS counselors Shyrie Womack, 33, of Bellflower; Tamara Diaz, 46, of East Los Angeles; Margarita Lopez, 41, of Paramount; Irma Talavera, 27, of Paramount; Laura Vasquez, 53, of Pico Rivera; Cindy Leticia Ortiz, 30, of Norwalk; and Arthur Dominguez, 64, of Glendale.
Another defendant – Dr. Leland Whitson, 76, of Redondo Beach, the former Medical/Clinical Director of ARS – previously pleaded guilty to making a false statement affecting a health care program.
The defendants who have already pleaded guilty are scheduled to be sentenced by United States District Judge Philip S. Gutierrez.
If convicted, Ciampa faces a statutory maximum sentence of 194 years in federal prison; Hearns faces a statutory maximum sentence of 134 years in federal prison; Egans faces a statutory maximum sentence of 32 years in federal prison; and St. Julian faces a statutory maximum sentence of 42 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The cases against these defendants are the result of an investigation by the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS-Criminal Investigation.
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Pennsylvania man charged with heroin, firearm chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging Jewel D. Woods, 19, of McKees Rocks, Pennsylvania with a heroin and a firearm charge, United States Attorney William J. Ihlenfeld, II, announced.
In January 2016, Woods allegedly possessed heroin with the intent to distribute the drug in Harrison County, WV. He also allegedly possessed a Glock pistol in furtherance of the drug trafficking crime. Woods is charged with one count of “Possession with Intent to Deliver Heroin,” and one count of “Possession of Firearm in Furtherance of Drug Trafficking Crime.”
He faces up to twenty years in prison and a fine up to $1,000,000 for the possession with intent to deliver heroin charge and five years to life in prison and a fine up to $250,000 for the firearm charge.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is handling the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force and the Clarksburg Police Department are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Oxnard Tax Return Preparer Convicted in $53 Million Tax Fraud SchemeRead the Press Release
LOS ANGELES – An Oxnard-based tax return preparer was convicted yesterday afternoon of conspiracy to file false tax refund claims and for having signed tax returns claiming more than $53 million in fraudulent tax refunds. Before the IRS was able to identify and stop the scheme, it had already paid out more than $23 million of refunds to the defendant and his co-conspirators.
Rodrigo Pablo “Paul” Lozano, also known as “El Profe,” 61, was convicted Thursday after a two-week jury trial.
According to the evidence presented in the trial, Lozano’s scheme was based on his applying for Individual Tax Identification Numbers (“ITINs”), which are issued in lieu of a social security number to undocumented workers in the United States to allow them to file tax returns. The evidence demonstrated that co-conspirators provided Lozano with fake identification documents, such as Matricula cards supposedly issued by the Mexican government and birth certificates, which Lozano used to obtain ITINs in the names shown on the fake identification documents. Lozano would then use the ITINs to file three years’ of income tax returns based on wage and withholding information contained in fake W-2s, and listed 3 or 4 fictitious dependents in whose names Lozano also applied for ITINs. All of the scheme’s tax returns requested refunds, with most in the $3,000 to $4,000 range, which they requested by claiming the Additional Child Tax Credit (“ACTC”). The number of dependents and wage amounts on the tax returns were falsified to maximize the amount of the ACTC.
“As a tax preparer by trade, this defendant had a greater duty to ensure that the tax returns he filed were accurate,” said United States Attorney Eileen M. Decker. “Instead, by filing for fraudulent returns, Mr. Lozano cheated the IRS and indirectly stole from every law-abiding taxpayer.”
Lozano submitted more than 12,000 false tax returns in an 18-month period in 2011 and 2012. During that time, his employees told him at least five times that the identity and W-2 documents looked suspicious, and the IRS sent hundreds of warning notices to Lozano stating that the tax returns and W-2s were invalid. Despite the repeated warnings, Lozano continued to direct his employees to file the fraudulent tax returns.
Lozano would divide up the tax refunds with his co-conspirators, including having employees count out tens of thousands of dollars in cash in a bathroom located next to his office space. Lozano operated his tax-return business, which he called Ayuda (“help” in Spanish), by renting space from businesses that catered to Hispanic clients, such as a meat market on Hueneme Road in Oxnard. He went by the name “El Profe,” as he was a teacher before he began preparing tax returns.
“Yesterday’s guilty verdict is an important victory for America’s return preparers who play by the rules and have no tolerance for those who make up their own rules,” stated Acting Special Agent in Charge Anthony J. Orlando for IRS Criminal Investigation. “This conviction is a powerful reminder that there is no such thing as free money and there are no rewards or incentives for creativity when it comes to filing fraudulent tax returns.”
The investigation of Lozano was conducted by IRS Criminal Investigation in Camarillo.
Owner of MRI Machine Used at Opelika “Pill Mill” Pleads Guilty to Money Laundering ChargesRead the Press Release
Montgomery, Ala. – Ruben Hernandez, 39, of southern Florida, pleaded guilty on Thursday, July 7, 2016 in federal court to charges stemming from his role in the operation of a “pill mill” that existed in Opelika, Alabama between 2012 and 2013, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. A “pill mill” is a medical clinic created to sell prescription drugs unlawfully, illegally, and for no medical reason.
According to court documents, Hernandez was involved with the EMED Medical Management Corporation pill mill. Hernandez participated in the operation of the pill mill by leasing a mobile magnetic resonance imaging (MRI) machine to the pill mill’s owner—Erik Raul Torres. With Hernandez’s machine, Torres and others generated MRIs that were then used to support the prescribing of pain medication that was not actually necessary. In return for allowing Torres to use his machine, Hernandez received a portion of the pill mill’s ill-gotten gain. Due to those payments, Hernandez was charged with conspiring to launder money.
Previously, Torres pled guilty to drug distribution and money laundering charges. In addition to Torres and Hernandez, several others have pleaded guilty and been sentenced for their involvement in the Opelika pill mill.
A sentencing date for Hernandez has not been set. At sentencing, Hernandez faces up to 20 years’ imprisonment and a fine of $500,000, or twice the value of the property involved in the transactions, whichever is greater.
The Drug Enforcement Administration and Internal Revenue Service’s Criminal Investigations Division investigated the case, with assistance from the Federal Bureau of Investigation, Opelika Police Department, Auburn Police Department, and the Alabama Board of Medical Examiners. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Ottumwa Man Sentenced to Twenty-Four Months in Prison and Ordered to Pay $395,968.20 in Restitution for Cattle Fraud SchemeRead the Press Release
DES MOINES, IA – On July 7, 2016, Jeffrey Lewis DeWitt, 28, of Ottumwa, Iowa, was sentenced by United States Senior District Court Judge Robert W. Pratt to 24 months in federal prison for wire fraud and conversion of mortgaged property, announced United States Attorney Kevin E. VanderSchel. DeWitt was ordered to serve three years of supervised release following his prison term, pay $200 to the Crime Victims’ Fund, and pay a total of $395,968.20 to eleven of his victims.
DeWitt pled guilty to the crimes on December 3, 2015. According to the plea agreement, DeWitt lied to induce a victim to obtain a bank loan, which DeWitt claimed would be used to purchase cattle that would be resold at a higher price, for a guaranteed profit. DeWitt sent the victim an email with details of the cattle he was purportedly purchasing, including the purchase price of the cattle, the resale price, the parties who would repurchase the cattle, and stated the cattle were guaranteed to be resold for a profit within three weeks. Unbeknownst to the victim, the details in the email were fictitious. DeWitt knew the victim needed the fabricated information to justify the loan to the bank, and the bank did lend the victim funds in reliance of DeWitt’s fabricated email. DeWitt used the funds to purchase cattle for himself, but only gave his victim a check that was returned for insufficient funds.
DeWitt also admitted in the plea agreement to selling livestock and hay he had mortgaged to the Farm Service Agency ("FSA") of the United States Department of Agriculture without authorization. He deposited the funds into accounts held by his parents to avoid detection by FSA. He admitted to selling over $200,000 of collateral without authorization.
The plea agreement also detailed a series of additional fraudulent transactions with as many as eleven individual victims. DeWitt admitted to using the proceeds of the unauthorized sales of collateral and the proceeds from the bank loan scheme to fund fraudulent cattle deals. He told other farmers he would purchase cattle, seed, and hay on their behalf, but did not do so, and at times produced false invoices and checks to support his claims.
This matter was investigated by the United States Department of Agriculture and the Federal Bureau of Investigation, with assistance from the Davis and Wapello County Sheriffs’ Offices. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Middle District of Louisiana Human-Trafficking Task Force Investigation Results in Indictment for Child Sex TraffickingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced that an indictment was returned yesterday by a federal grand jury charging Udraka Roberts-Bey, age 25, of New Orleans, Louisiana, and Jennifer Gabrielle Anselmo, age 22, of Slaughter, Louisiana, of conspiracy to engage in sex trafficking of a minor.
According to the indictment, Roberts-Bey and Anselmo conspired to, among other things, recruit and induce a 15-year-old female to engage in prostitution and benefit financially from their pay-for-sex enterprise at locations in Baton Rouge and New Orleans. The indictment alleges that both Roberts-Bey and Anselmo promoted their prostitution business by using the website “backpage.com” to post classified advertisements in the Baton Rouge Female Escorts section for commercial sex acts.
A joint law-enforcement operation involving Middle District of Louisiana Human-Trafficking Task Force representatives, and spearheaded by the East Baton Rouge Sheriff’s Office, identified the prostitution business run by Robert-Bey and Anselmo, and resulted in their arrest along with the rescue of the 15-year-old victim from a Baton Rouge hotel that was one of several locations where she was trafficked.
U.S. Attorney Green stated: “Once again a joint-law enforcement task force comprised of federal, state, and local law enforcement successfully identified a horrific crime that allowed for the rescue of a minor victimized by adult sex traffickers. Roberts-Bey and Anselmo operated the prostitution business out of greed and with no regard to the fact that they were stealing a child’s innocence. My office will continue to work in concert with our fellow law enforcement agencies to combat human-trafficking in any form, to include commercial-sex and labor trafficking. I appreciate the high-level of dedication and work by agents and prosecutors in this ongoing fight against sex traffickers and ensuring that perpetrators receive the justice they deserve.”
FBI Special Agent-in-Charge Jeff Sallet stated: “Human trafficking is a serious crime that requires law enforcement collaboration and expertise to successfully combat. This indictment is the result of a joint investigation involving federal, state and local law enforcement working together to confront human trafficking and the threat it poses to our children as well as other vulnerable individuals.”
East Baton Rouge Parish Sid Gautreaux stated: “The Sheriff's Office is committed to dedicating our resources to this joint effort to combat human trafficking in our community. This case is a result of the unprecedented level of collaboration and cooperation among agencies. Human trafficking is a heinous crime that we simply will not tolerate in this parish or elsewhere.”
This case is being investigated by the Middle District of Louisiana Human-Trafficking Task Force, to include the FBI New Orleans Division, East Baton Rouge Sheriff’s Office, and Louisiana State Police, with assistance from the East Baton Rouge District Attorney’s Office and U.S. Department of Homeland Security – Homeland Security Investigations. The matter is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
NOTE: An indictment is an accusation by a grand jury and a defendant is presumed innocent unless and until adjudicated guilty at trial or through a guilty plea.
Miami, Florida Man Pleads Guilty to Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Roberto Lueje-Rodriguez, 29, of Miami, Florida, pleaded guilty today in U.S. District Court to access device fraud and aggravated identity theft.
Court records show that between January 7 and January 13, 2016, Lueje-Rodriguez and another man used debit and credit card account numbers belonging to bank customers in Maine to make unauthorized purchases totaling more than $50,000. They used the cards in Penobscot, Knox, Hancock, Piscataquis, Franklin, Somerset, Kennebec, and Androscoggin counties.
Each of the debit card account numbers used by the defendant were unique and assigned to one person or, in one instance, to a Maine company. He used plastic cards made to look as though they were authentic debit or credit cards. Each of the cards was encoded with true account numbers on the magnetic strip. The name embossed on each of the cards used by the defendant was “David Cuan”, which was not the name of any of the true account holders.
The defendant faces up to 10 years in prison and a $250,000 fine for the access device fraud and a mandatory minimum period of imprisonment of 2 years for the aggravated identity theft crime. He will also be ordered to pay restitution. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine State Police, Immigration and Customs Enforcement-Homeland Security Investigations, the Bangor Police Department, the Brewer Police Department, the Dexter Police Department, the Dover-Foxcroft Police Department, the Ellsworth Police Department, the Hampden Police Department, the Lincoln Police Department, the Millinocket Police Department, the Newport Police Department, the Pittsfield Police Department, the Rockland Police Department, the Saco Police Department, and the Waterville Police Department.
Member of Sumter Cocaine Trafficking Conspiracy Receiver over 96 Years in Prison in Federal CourtRead the Press Release
Contact Person: JD Rowell (803) 929-3000
Acting United States Attorney Beth Drake advised today that 6 members of a large scale cocaine and crack cocaine trafficking conspiracy received significant sentences yesterday in Federal Court. On July 7, 2016, Chief United States District Judge Terry L. Wooten held hearings throughout the day to impose sentences for the conspirators who had previously entered guilty pleas admitting to conspiring to distribute cocaine and crack cocaine. The following defendants received the following sentences:
- Patar ONeal Montgomery (Age 38 of Dazell, South Carolina): 156 months with 5 years of supervised release to follow;
- Donald Antwon Dingle (Age 24 of Sumter, South Carolina): 115 months with 4 years of supervised release to follow;
- Andre Lewayne Brooks (Age 29 of Horatio, South Carolina) 78 months with 6 years of supervised release to follow;
- Corey Emanuel White (Age 29 of Sumter, South Carolina) 262 months with 8 years of supervised release to follow;
- Michael Antonio Floyd (Age 42 of Bishopville, South Carolina) 276 months with 8 years of supervised release to follow; and
- Jimmy Tony McDowell (Age 40 of Sumter, South Carolina) 276 months with 8 years of supervised release to follow.
Evidence presented at the change of plea and sentencing hearings established that the above defendants were held accountable for the distribution of over 65 kilograms of powder cocaine and over 650 grams of crack cocaine during the course of the conspiracy which lasted from around April of 2012 until July of 2015. Each of the above defendants who received sentences of 21 years or higher were classified as “career offenders,” meaning that each had previously been convicted of 2 or more felony drug convictions in state and/or federal Court.
Evidence at the hearings established that this investigation began over a year ago when FBI, DEA and City of Sumter Task Force Officers identified the above named defendants who were supplying large numbers of violent street level cocaine and crack cocaine dealers in Sumter. Agents and Task Force Officers previously conducted arrest operations on June 16, 2015, and October 20, 2015. As of the date of yesterday’s sentencings, this investigation has resulted in the seizure of over 9 kilograms of powder cocaine, the seizure of almost $900,000.00, the seizure of 8 firearms that were used in furtherance of drug trafficking, and convictions/guilty pleas of 8 other defendants who will be sentenced at a later time by Chief Judge Wooten. Agents have learned that the conspiracy as a whole was directly responsible for the distribution of well over 150 kilograms (wholesale value of $6,000,000.00) of cocaine in Sumter and Richland Counties during the time frame of the conspiracy.
This case is yet another example of the fine work being done by Federal, State and local law enforcement agencies working together through the Columbia Violent Gang Task Force (CVGTF) in South Carolina.
The CVGTF is consists of the following agencies:
- Federal Bureau of Investigation, SAC David A. Thomas
- Sumter Police Department, Chief Russell Roark
- South Carolina Law Enforcement Division, Chief Mark Keel
- Columbia Police Department, Chief Skip Holbrook
- Richland County Sheriff’s Department, Sheriff Leon Lott
- South Carolina Army National Guard Counterdrug Unit, LTC Walter Ginn
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Member of Cherry Hill Gang ‘UDH’ Sentenced 24 Years in Federal Prison for Racketeering Conspiracy, Including MurderRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Gregory Sykes-Bey, age 22, of Baltimore, today to 24 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Gregory Sykes-Bey participated in the activities of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
Gregory Sykes-Bey knew that members of UDH sold crack cocaine, heroin and other narcotics. During his involvement in the conspiracy, Sykes-Bey knew that UDH was responsible for the distribution of at least one kilogram of heroin, five kilograms of cocaine, 280 grams for crack cocaine and marijuana. In addition to his participation in the gang’s narcotics trafficking activities, Gregory Sykes-Bey admitted shooting two people on June 1, 2008 and shooting a rival gang member on May 11, 2012. Witnesses also identified Gregory Sykes-Bey as shooting and killing a rival gang member on August 28, 2011.
A total of 35 Cherry Hill gang members have pleaded guilty and 23 of those defendants, including Sykes-Bey have been sentenced to up to 35 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Maryland Man Sentenced to 39 Years in Prison for Stabbing Three People at Home in the Middle of the NightRead the Press Release
WASHINGTON – Ernest Johnson, 21, formerly of Baltimore, Md., was sentenced today to a 39-year prison term for stabbing his ex-girlfriend and two others in her apartment in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Johnson pled guilty in October 2015, in the Superior Court of the District of Columbia, to three counts of assault with intent to kill while armed. The plea, which was contingent upon the Court’s approval, called for a sentence in the range of 35 to 40 years in prison. The Honorable Milton C. Lee accepted the plea today and sentenced Johnson accordingly. Following completion of his prison term, Johnson will be placed on five years of supervised release.
According to the government’s evidence, Johnson was previously in a romantic relationship with one of the victims, a 24-year-old woman. On the date of the attack, Aug. 15, 2015, they were no longer in a romantic relationship. At that time, Johnson’s ex-girlfriend was in a romantic relationship with another man. The ex-girlfriend was living with her 75-year-old grandmother in an apartment in Northeast Washington.
On Aug. 15, 2015, at approximately 4:30 a.m., Johnson entered the ex-girlfriend’s apartment through the balcony door. First, he went into the grandmother’s bedroom and began to strangle her, causing her to lose consciousness. He also stabbed her numerous times in the back, head, and neck. Johnson then entered the second bedroom, where his ex-girlfriend and her new boyfriend were asleep. He locked the door behind him. Johnson then stabbed his ex-girlfriend approximately 28 times in back, arm, neck, chest, hand, and other parts of her body. He also stabbed the new boyfriend several times in the head, and the knife went through his skull.
Two witnesses were asleep in the living room of the apartment. One heard the screaming and broke into the locked bedroom, picked up a vacuum cleaner, and hit Johnson with it to stop the attacks against his ex-girlfriend and the boyfriend. The second witness also came into the room to assist. Johnson then left the apartment, fleeing the scene.
Two knives were recovered inside the apartment.
All three victims were transported to the hospital by ambulance. The grandmother remained at the hospital for approximately nine days. Doctors believed that she may have had a laceration to the inside of her throat, and so she was not permitted to eat food or liquid through her mouth for approximately one week. The man was at the hospital for two days and was released. Several days thereafter, however, he began to have seizures and was readmitted for approximately four days. Since this incident, he has had memory issues and headaches. Finally, Johnson’s ex-girlfriend was admitted to the hospital for almost two months. She has severe spinal cord damage from the stabbing that initially left her paralyzed. Through extensive physical therapy, she has regained some motor skills, but remains significantly impaired and frequently confined to a wheelchair.
Johnson was apprehended in Baltimore shortly after the attack. He has been in custody ever since. In a custodial interview after his arrest, he admitted to the stabbings.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department and U.S. Marshals Service. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joyce Arthur, former Paralegal Specialist Erica Vample, and Victim/Witness Advocate Meshall Thomas. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
Kansas Drug Trafficker Sentenced to 24+ YearsRead the Press Release
KANSAS CITY, KAN. – A Kansas man has been sentenced to more than 24 years in federal prison for drug trafficking, Acting U.S. Attorney Tom Beall said.
Jose Rios-Morales, 42, Kansas City, Kan., was sentenced Wednesday to 292 months in federal prison. He was convicted in a jury trial in October 2015 on one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine.
During trial, prosecutors presented evidence that Rios-Morales was a member of a drug trafficking organization headed by his partner and co-defendant, Felipe Sifuentes-Cabrera. Rios-Morales assisted Sifuentes in many ways including introducing Sifuentes to the methamphetamine supplier, driving to California to pick up loads of methamphetamine, packing methamphetamine for shipping, managing the collection of drug proceeds, and wiring money to the organization’s methamphetamine supplier. Rios-Morales and Sifuentes’ drug trafficking organization was determined to be responsible for distributing over 4.5 kilograms of “ice” methamphetamine from Feb. 1, 2014, to Nov. 4, 2014.
Rios-Morales was arrested on Nov. 4, 2014, after he met with Sifuentes at an Olathe, Kan., residence to assist in unloading a car in which 13 pounds of 99-100 percent pure methamphetamine had been concealed. Rios-Morales and Sifuentes arranged for the car to be sent from California to Kansas via a car hauler. The vehicle was intercepted by the Canadian County, Okla., Sheriff’s department and delivered to Kansas
Sifuentes pleaded guilty to conspiracy and is awaiting sentencing.
Beall commended the Canadian County, Okla., Sheriff’s Department, the Drug Enforcement Administration, the Olathe, Kan., Police Department, the Federal Bureau of Investigation, Assistant U.S. Attorney Sheri Catania, and Special Assistant U.S. Attorney James Ward for their work on the case.
Houston Men Sentenced for Katy Bank RobberyRead the Press Release
HOUSTON - Three Houston men have been handed significant sentences following their convictions related to the armed bank robbery of a Katy area Chase Bank in 2014, announced U.S. Attorney Kenneth Magidson. Keith Stephens, 28, Keon Jackson, 28, and Duquam Mathis, 22, all of Houston, pleaded guilty Oct. 19, 2015, to bank robbery and discharge of a firearm in commission of a crime of violence.
Today, U.S. District Judge David Hittner considered their roles in the offense, the fact a gun was discharged, the way the victims were treated and amount of money taken. He then ordered Stephens to serve 210 months in prison for the bank robbery conviction and a consecutive 120 months for the firearms charge for a total of 330 months. Jackson and Mathis will serve respective terms of 97 and 70 months for bank robbery, each to be followed by a consecutive 10 years for total sentences of 217 and 190 months, respectively.
On Wednesday, July 16, 2014, Mathis and Jackson entered the JP Morgan Chase Bank located at 6810 South Fry Road in Katy with their faces covered and carrying firearms. Stephens was outside acting as a lookout. Inside, Mathis and Jackson jumped over the teller counter, threatened an employee at gun point and forced her to open the bank’s vault. They took the money, fired a shot and exited the bank. That shot ricocheted and almost hit a child. Mathis and Jackson were taken into custody and admitted to participating in the robbery.
Stephens was arrested at his home on July 31, 2014, after investigators identified him in connection with another bank robbery that occurred June 27, 2014. At the time of his arrest, officers secured a handgun they found in the kitchen as they made their way to the bedroom where Stephens had been hiding. The handgun was a .40 caliber Smith & Wesson with Winchester ammunition, later determined to be the same firearm discharged on July 16, 2014.
Stephens was identified as the one who planned and organized the Chase Bank robbery. He has also pleaded guilty to bank robbery and brandishing of a firearm in commission of a crime of violence in relation to the second robbery. He will be sentenced in that case on July 19, 2016, before U.S. District Judge Melinda Harmon.
The FBI and Fort Bend County Sherriff’s Office conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorneys Celia Moyer and Richard D. Hanes prosecuted the case.
Gilmer County man charged with illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging Jeremy Allen Wolfe, 30, of Glenville, West Virginia with illegal possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
In November 2014, Wolfe was allegedly found in possession of multiple firearms, including three rifles and two shotguns, in Calhoun County, WV. Wolfe, having been convicted of a crime punishable by imprisonment for a term exceeding one year, that is, Delivery of a Controlled Substance, in Gilmer County, WV is prohibited from possessing firearms.
Wolfe was charged with one count of “Felon in Possession of Firearm.” He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Wolfe is presently in the custody of the West Virginia Division of Corrections serving a sentence arising from a criminal conviction in the Circuit Court of Braxton County. The U.S. Attorney’s Office will request that Wolfe temporarily be placed into the custody of the United States Marshal pending the final disposition of the federal case.
Assistant U.S. Attorney Andrew R. Cogar is handling the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Gary Pair Indicted for Theft of over $3 Million in Tax RefundsRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that a federal grand jury in Hammond returned a five-count indictment on May 19, 2016 charging a man and woman from Gary, Indiana with stealing over $3 million in tax refunds from the Internal Revenue Service (IRS).
The indictment charges Donald L. Armour, 65, and Veronica Young, 46, both of Gary, Indiana, with one count of Conspiracy to Commit Mail Fraud. Young is additionally charged with one count of False Claims, and Armour is additionally charged with three counts of False Claims.
The indictment alleges that from about July 2011 to about February 2013, Armour and Young devised a scheme to defraud which involved filing false and fraudulent tax returns in order to obtain fraudulent refunds from the IRS. Specifically, the indictment alleges that Armour and Young created several trusts, named themselves as the trustees, and filed fraudulent tax returns for those trusts. The trust tax returns contained fraudulent representations designed to result in a high refund. Armour received three refund checks, totaling more than $2.7 million, for three separate trusts for which he filed fraudulent tax returns. Young received one refund check for over $300,000 for a trust for which she filed a fraudulent tax return.
The IRS was able to recover approximately $2.2 million of the money issued to Armour and Young in fraudulent refunds.
Armour and Young were taken into custody and had their initial appearance today before Magistrate Judge Andrew Rodovich.
The case is being investigated by the Internal Revenue Service-Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Maria N. Lerner.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Former UAB Hospital Food Services Employee Charged with Stealing $1 million in Cash Kept for Cashier ChangeRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a former employee in the Hospital Food and Nutrition Services Department at the University of Alabama at Birmingham with stealing more than $1 million over about six years from a cash room she oversaw, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
The U.S. Attorney’s Office charged KYEJUANA AVERY, 34, of Birmingham, with one count of theft concerning programs receiving federal funds. Prosecutors filed the charge, along with a plea agreement with Avery, in U.S. District Court. According to that agreement, Avery will plead guilty to the charge and pay restitution to UAB in an amount to be determined at sentencing.
Avery worked as a financial account representative at UAB in the Hospital Food and Nutrition Services Department between 2007 and 2013. That department sells food and beverages at locations throughout University Hospital. The department has a bank account, the Change Fund Account, to enable cashiers to exchange high denomination dollar bills for small bills and coins so they could provide change to customers, according to Avery’s plea agreement.
The plea agreement outlines Avery’s charged theft between 2008 and 2013 as follows:
Avery was responsible for the “Cash Room” where the safe containing money for change was kept. As a financial account representative, Avery was responsible for making change for cashiers; requesting change from the bank in the form of “change orders,” or withdrawals; repaying those change orders with “change payments,” or deposits; and keeping a balance of change available in the Cash Room for cashiers.
In December 2013, the Food and Nutrition Services Department counted cash on hand in the Cash Room and found about $14,000 missing. A subsequent UAB audit of the department found $1.1 million in withdrawals between 2008 and December 2013 that were never repaid through deposits.
Avery admitted to the FBI that she began periodically taking cash from the safe in 2008, usually about $800 to $900 at a time, and continued doing so for six years.
The maximum penalty for theft concerning programs receiving federal funds is 10 years in prison and a $250,000 fine.
The FBI, with assistance from the UAB Police Department, investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
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Former U.S. Coast Guard Officer Sentenced for Child PornographyRead the Press Release
ALEXANDRIA, Va. – Christopher Craft, 41, of Woodbridge, a former warrant officer in the U.S. Coast Guard, was sentenced today to 60 months in prison for receipt of child pornography. Craft was also sentenced to 10 years of supervised release and ordered to register as a sex offender upon release from prison.
According to the statement of facts filed with the plea agreement, from July 25, 2014, through Oct. 8, 2014, Craft used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including videos of children as young as 5 years-old being sexually abused. In total, Craft’s child pornography collection included 480 images and 111 videos of children being sexually exploited, including images and videos depicting sadistic or masochistic conduct.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Scott Claffee prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-47.
Former Minnesota National Guardsman Sentenced to 210 Months in Prison for Production of Child PornographyRead the Press Release
A former Minnesota National Guardsman was sentenced today to 210 months in prison for inducing a 14-year-old girl to create and send to him sexually explicit photos over the Internet while he was deployed to Afghanistan, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota.
Andrew Schiller, 28, of Lakeville, Minnesota, was sentenced by U.S. District Judge Susan Richard Nelson of the District of Minnesota, who ordered that he also serve a lifetime term of supervised release and pay restitution to the victim. Schiller pleaded guilty to one count of production of child pornography on Sept. 10, 2015.
According to his guilty plea, between Sept. 23, 2013, and Jan. 12, 2014, while deployed to Afghanistan, Schiller contacted a 14-year-old female from Minnesota online and requested that she create and forward to him via the internet sexually explicit photos of herself. The victim did, in fact, send several images in response to Schiller’s requests, including at least one sexually explicit image. Schiller further admitted that he communicated online with numerous other minors and that he attempted to convince the minors to send to him sexually explicit videos or images of themselves.
The Army Criminal Investigative Division and FBI investigated the case. Trial Attorney Jeffrey H. Zeeman, formerly of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
Former Effigy Mounds National Monument Superintendent Sentenced to Serve Federal Jail TimeRead the Press Release
CEDAR RAPIDS, IA - Kevin W. Techau, United States Attorney for the Northern District of Iowa, announced that the former Superintendent at the Effigy Mounds National Monument who stole human remains and hid them in his garage for twenty years was sentenced today in federal court to serve federal jail time.
Thomas A. Munson, age 76, from Prairie du Chien, Wisconsin, received the sentence after a January 4, 2016, guilty plea. Munson was an employee of the National Park Service from July of 1964 to May 1994. He served as Superintendent of the Effigy Mounds National Monument from February 1971, until his retirement in 1994. At all times during his employment, Munson was entrusted with preserving and protecting the sacred site. He failed this trust.
Evidence presented at the plea and sentencing hearings revealed that sometime in July of 1990, Munson decided to illegitimately take possession of items in the museum collections in an effort to avert the mandates of the then pending Native American Graves Protection and Repatriation Act, which he thought was “bad law”. The law allowed—in Munson’s opinion—modern day Native American Tribes to inaccurately and unscientifically affiliate themselves with prehistoric human remains and funerary objects. To thwart the law and to save him personally the effort of complying with it, Munson decided to remove skeletal prehistoric human remains from the museum collection in an attempt to maintain possession of any associated funerary objects that might otherwise follow the human remains back to a tribe.
Sometime in July of 1990, Munson directed a seasonal National Park Service employee to remove the skeletal prehistoric human remains of 41 Native Americans (i.e., approximately 2,135 whole and fragmentary human remains) from the museum collection. The majority of these skeletal remains was originally removed from archeological sites within Effigy Mounds National Monument and organized by catalog and accession numbers within the collection drawers of the museum curatorial storage facility.
On or about July 16, 1990, Munson and the seasonal employee each carried a box of human remains from the museum’s curatorial facility to his car. Munson then drove the items to his Prairie du Chien, Wisconsin home where he concealed them for more than twenty years. During the time period of the crime, Munson repeatedly misled the National Park Service employees about what became of the missing human remains.
As part of his plea agreement, defendant wrote a public acknowledgment expressing his guilt and apologized for his actions. A copy of that document is attached. munson_16_07-06_apology_signed.pdf
Munson was sentenced in Cedar Rapids by United States District Court Chief Magistrate Judge Jon S. Scoles. Munson was sentenced to 10 consecutive weekends in jail, 12 months’ supervised probation, home detention for 12 months’ with appropriate monitoring to ensure compliance, $3000 fine and a $25 special assessment. He was also ordered to perform 100 hours of community service and pay restitution in the sum of $108,905.
United States Attorney Kevin W. Techau said following sentencing, “It is a very sad day when a public official betrays the public’s trust. This was a serious crime and the betrayal was compounded by a violation of the most sacred trust placed in Mr. Munson as the Superintendent of Effigy Mounds National Monument.”
Current Effigy Mounds Superintendent James Nepstad stated, “Mr. Munson’s crime violated the trust of the American Indians in particular, the public, and the National Park Service, and the agency he served.” Nepstad continued noting, “Munson’s illegal actions prevented us from repatriating these human remains for over twenty years. Despite his obstruction of our investigation, we found and recovered these human remains and are committed to working with our tribal partners to repatriate them as quickly and respectfully as possible. Additionally, we are continuing to establish safeguards at Effigy Mounds to protect sacred remains in accord with the Native American Graves Protection and Repatriation Act. We thank the Department of Justice for investigating this case with us, and bringing resolution to it.”
The Effigy Mounds National Monument located in Allamakee County, Iowa and operated by the National Park Service was established by a Presidential Proclamation by Harry S. Truman on October 25, 1949 under the Antiquities Act of 1906. The monument was established primarily to protect over 200 known prehistoric earthen burial mounds, some in the shape of animals, constructed between 700 and 2,500 years ago. The monument land is held in fee simple by the National Park Service, United States Department of the Interior. The monument is an area of concurrent federal jurisdiction.
The following Tribes affiliate themselves with Effigy Mounds National Monument:
Crow Creek Sioux Tribe
Flandeau Santee Sioux
Ho-Chunk Nation
Iowa Tribe of Kansas & Nebraska
Iowa Tribe of Oklahoma
Lower Sioux Indian Community
Omaha Nation
Otoe-Missouria Tribe
Ponca Tribe of Nebraska
Prairie Island Indian Community
Sac and Fox Nation of Missouri in Kansas and Nebraska
Sac and Fox Nation of Oklahoma
Sac and Fox Tribe of the Mississippi in Iowa
Santee Sioux Nation
Shakopee Mdewakanton Sioux Community of Minnesota
Sisseton Wahpeton Oyate Tribe
Standing Rock Sioux Tribe
Upper Sioux Indian Community
Winnebago Tribe of Nebraska and
Yankton Sioux Tribe
The case was investigated by the National Park Service and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR15-1030.
Follow us on Twitter @USAO_NDIA.
Former Corrections Deputy Charged in Bank HeistRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Elizabeth Brooks Perkins (46, Brooksville) with bank robbery and a related firearms offense. If convicted on all counts, she faces a maximum penalty of life in federal prison. Perkins was arrested on July 7, 2016.
According to the complaint, at 4:30 p.m. on February 10, 2016, Perkins visited the Sunshine Bank in Plant City and met with the Branch Manager to discuss a purported land purchase. When the bank closed, she brandished a semi-automatic pistol and held two employees at gunpoint. After stealing $110,000, Perkins duct-taped the employees and fled.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Plant City Police Department, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Former Commissioner of Mount Vernon Water Department Sentenced to 15 Months in Prison for BriberyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANTHONY BOVE, the former Commissioner of the Board of Water Supply of the City of Mount Vernon (the “Water Department”), was sentenced today to 15 months in prison for soliciting a $10,000 bribe from an employee of the Water Department, and lying to federal law enforcement officers when BOVE was interviewed during the investigation. BOVE pled guilty in White Plains federal court on March 22, 2016, before U.S. District Judge Vincent L. Briccetti, who imposed today’s sentence.
U.S. Attorney Preet Bharara said: “While entrusted to provide clean and safe water for the people of Mount Vernon, Anthony Bove looked out only for himself, demanding a bribe from one of his own employees for a promotion to which the employee was already entitled. For this shameful corruption, Bove has been sentenced to 15 months in prison.”
According to the Information, statements made in open court, and other documents in the public record:
BOVE was the Commissioner of the Water Department. The City of Mount Vernon (the “City”) annually receives in excess of $10,000 in federal funds from the United States government. The Water Department is responsible for serving City residents by, among other things, monitoring and treating the City’s water supply, repairing water main leaks, and reading water meters and generating water bills. In accordance with the City Charter, the Commissioner of the Water Department is appointed by the City’s Mayor, serves at the Mayor’s pleasure, and reports directly to the Mayor as the head of one of the City’s departments.
In the spring of 2015, while serving as the Water Commissioner, BOVE solicited a $10,000 bribe from a Water Department employee (“the Employee”) in exchange for approving the Employee’s promotion within the Water Department. The Employee, who was serving in a provisional capacity as the bookkeeper of the Water Department, had passed a civil service bookkeeping examination in order to become eligible for a permanent bookkeeping position at the Water Department. After receiving the test results, the Employee completed the necessary form to apply for the permanent bookkeeping position, and submitted it to BOVE for his approval and signature, which was required for the promotion to occur.
BOVE did not approve the application; instead, on April 14, 2015, BOVE told the Employee to meet him at Memorial Field in Mount Vernon. At Memorial Field, BOVE conveyed to the Employee that he would not approve the Employee’s promotion unless the Employee gave BOVE $10,000, and that the Employee could give BOVE half ($5,000) up front and pay the balance later. BOVE said that he would accept the remaining payments on installment: “So give me like, fucking like 20 dollars every fucking paycheck or whatever, you know.”
Following the April 14 meeting, BOVE called the Employee on multiple occasions to ask whether and when the Employee would pay him. The Employee did not make any payments to BOVE and the Employee’s application form seeking the permanent bookkeeping position remained unapproved for months. Ultimately, in the fall of 2015, after Mount Vernon’s incumbent mayor was defeated in the primary for the mayoral election and prior to the change in administrations (which resulted in BOVE being replaced as Water Commissioner), BOVE signed the form approving the Employee’s promotion, without having obtained any payment from the Employee.
On December 7, 2015, a Special Agent from the U.S. Department of Housing and Urban Development, Office of Inspector General (“HUD OIG”), and a Criminal Investigator from the U.S. Attorney’s Office for the Southern District of New York interviewed BOVE in connection with a federal investigation into whether BOVE had attempted to extort the Employee. During the interview, BOVE lied to the investigating agents, stating, in sum and substance, that he had never asked for money to approve a job promotion for anyone in his department.
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In sentencing BOVE, Judge Briccetti described BOVE’s conduct as “a disgrace.”
In addition to the prison sentence, Judge Briccetti ordered BOVE to pay a $10,000 fine and a $200 special assessment fee. BOVE also was sentenced to two years of supervised release.
Mr. Bharara praised HUD OIG and the Criminal Investigators of the U.S. Attorney’s Office for their outstanding work during this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney George Turner is in charge of the prosecution.
Former Bank Officer Pleads Guilty to EmbezzlementRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Michael L. Johnson (56, Odessa) today pleaded guilty to misappropriation of bank funds and embezzlement. He faces a maximum penalty of 30 years in federal prison.
According to the plea agreement and court proceedings, Johnson was employed as a Senior Vice President/Special Assets Officer at American Momentum Bank. In his capacity as a Special Assets Officer, Johnson was responsible for marketing and selling bank-owned properties to investors in order to remove these troubled assets from the bank’s balance sheet. Johnson signed the closing documents, including the HUD-1 Settlement Statement, on behalf of American Momentum Bank.
Beginning around June 2012, and continuing through November 2014, Johnson devised a scheme to misapply and embezzle funds provided by American Momentum Bank. After the sale of bank-owned properties had been approved by the bank, Johnson set up closings with real estate settlement agents. He then contacted the agents and ordered additions and/or changes to the disbursement side of the HUD-1. After closing, funds provided by American Momentum Bank were directed to bank accounts controlled by Johnson’s family members.
This case was investigated by the Unites States Secret Service, the Tampa Police Department and the Federal Housing Finance Agency – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Florida Man Sentenced to 5 Years in Federal Prison for Structuring Drug MoneyRead the Press Release
FRESNO, Calif. — Peter Santo Capodieci, 25, of Crystal River, Florida, was sentenced today by United States District Judge Lawrence J. O’Neill to five years in prison for conspiring to structure cash transactions, Acting United States Attorney Phillip Talbert announced.
According to court documents and testimony, Capodieci and co-conspirators operated a drug trafficking organization that shipped millions of dollars in marijuana from California to Florida and other states. To move the proceeds of that marijuana distribution back to California, Capodieci and co-conspirators opened and maintained bank accounts at several national banks. More than $7.5 million in cash proceeds from the drug distribution was deposited into and withdrawn from those accounts. Most of those cash transactions were carried out in amounts of $10,000 or less to prevent the banks from filing Currency Transaction Reports on the transactions. Capodieci’s bank accounts were used to deposit and withdraw more than $2.5 million in cash, all of which consisted of proceeds from marijuana trafficking.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling, and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Co-defendant Chad Riffle was sentenced to five years imprisonment; co-defendant Jeremy Murphy was sentenced to fifteen months imprisonment; co-defendants Miguel Gonzalez, Bree Benson, and Brandon Thomas have pleaded guilty to conspiring to structure financial transactions and are awaiting sentencing. Co-defendant Ashley Starling Thomas was convicted on multiple counts of money laundering and structuring following a three-day trial and is scheduled to be sentenced August 29, 2016.
District Man Sentenced to 38 Years in Prison for Armed Rapes of Two StrangersRead the Press Release
WASHINGTON – Paul Williams, 32, of Washington, D.C., was sentenced today to 38 years in prison for raping and assaulting two women in separate attacks in Northeast Washington within a three-week period in November 2014, U.S. Attorney Channing D. Phillips announced.
Both women were strangers that Williams and his accomplice, Rai-Jon Gerald, kidnapped off public sidewalks and forced into deserted areas, where Williams and Gerald sexually assaulted them. One attack took place on Thanksgiving Day.
Williams pled guilty in March 2016, in the Superior Court of the District of Columbia, to two counts of first-degree sexual abuse, one count of assault with a dangerous weapon, and one count of armed robbery. The plea, which was contingent upon the Court’s approval, called for a prison sentence between 35 and 38 years. It also required the defendant to register as a sex offender for life upon his release. The Honorable Michael Ryan accepted the plea at a hearing today and sentenced Williams accordingly. The judge called the defendant’s actions “shocking.” Following his prison term, Williams will be placed on 15 years of supervised release.
According to the government’s evidence, in the early morning hours of Nov. 7, 2014, Williams and Gerald planned to rob a convenience store at 49th Street and Nannie Helen Burroughs Avenue NE. When a suspicious employee thwarted their plans, Williams and Gerald, armed with a BB gun that looked like a real handgun, walked eastbound down Nannie Helen Burroughs Avenue. They soon spotted a woman walking alone, whom they approached. Gerald displayed the gun to the woman, while Williams grabbed her by the hair and forced her to the ground. Williams then put the woman in a headlock and dragged her into a deserted alley near an abandoned wooded lot. There, in the dark and amidst such debris as discarded mattresses and tires, Williams and Gerald orally and vaginally raped the woman. They also robbed her of cash and phones, and Williams threatened to kill her if she reported the assault.
Three weeks later, on Nov. 27, 2014 – which was Thanksgiving Day - Williams and Gerald again met up in the early morning hours to rob the convenience store at 49th Street and Nannie Helen Burroughs Avenue NE. Once again, their plans were thwarted, causing them to head down Nannie Helen Burroughs Avenue in search of other victims. They encountered a woman, who, like their first victim, was a complete stranger to them. Armed with a BB gun and Taser, Williams and Gerald assaulted the woman, robbing her of her purse and forcing her off the sidewalk toward tall bushes at nearby Kelly Miller Middle School. While Gerald led the way, Williams dragged the woman, repeatedly striking her in the head and face with his gun. Once behind the bushes, Williams forcibly removed the woman’s clothing and orally sexually assaulted her. Williams also attempted forced vaginal sex. Throughout, the woman fought back. In response, Williams continued to pistol whip her, as well as strike her in the face with his fists. Williams and Gerald Tasered the woman multiple times. With Williams’s assistance, Gerald also sexually assaulted the woman orally, and attempted to do so vaginally.
A neighbor heard the woman’s screams and the sounds of her being Tasered. He called the police, who quickly arrived on scene. Gerald escaped, but Williams was arrested nearby hiding in a yard. Williams has been in custody since his arrest.
Gerald, 21, also of Washington, D.C., was identified and arrested two months later, and he earlier pled guilty to first-degree sexual abuse, attempted first-degree sexual Abuse, and two counts of robbery. He is awaiting sentencing.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Division, the patrol officers who responded, and the crime scene officers who processed both crime scenes. He thanked the District of Columbia Forensic Nurse Examiners who examined the victims shortly after the assaults, the FBI’s Footwear Examiners, the forensic biologists and DNA analysts at Bode Cellmark Forensics and the D.C. Department of Forensic Sciences, and Teel Technologies, which performed forensic analysis of the defendant’s phone.
U.S. Attorney Phillips also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughn; Paralegal Specialists Jessica Moffatt and Joyce Arthur; Legal Assistant Brendan Coyne; Criminal Investigation Unit Investigator John Marsh; Information Technology Specialists Leif Hickling, Aneela Bhatia, Paul Howell, and Joshua Ellen; Investigative Analyst William Hamann; Witness Security Specialist Michael Hailey; current and former interns Allison Denton, Stephanie Dinan, Emma McArthur, and Marissa Moshell; former Paralegal Specialist Chantal Corrigan; Special Assistant U.S. Attorney Brian Morgan, and Assistant U.S Attorney Jodi Lazarus, who assisted with the initial investigation of the case. Finally, U.S. Attorney Phillips thanked Assistant U.S. Attorneys John L. Hill and Kara Traster, who investigated, indicted, and prosecuted the case.
Disbarred Orange County Attorney Indicted for Mail Fraud, Structuring Cash Transactions, Obstructing the IRS, Tax Evasion, Obstruction of Justice, and PerjuryRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Shantelle P. Kitchen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing in White Plains federal court of a six-count Indictment of former Orange County Attorney JOSEPH G. SCALI for mail fraud, structuring cash transactions, obstructing the IRS, tax evasion, obstruction of justice, and perjury. SCALI was arrested this morning and is expected to be arraigned in federal court in White Plains this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Joseph Scali abused his position of trust as a lawyer and officer of the court, by stealing funds entrusted to him, obstructing the work of the IRS, and evading his tax obligations. We thank the IRS and Postal Inspection Service for their work in this investigation.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “In the interest of ensuring that everyone pays their fair share of taxes, IRS-Criminal Investigation investigates individuals who allegedly unlawfully exploit the tax system for their own advantage. We especially take allegations of obstructing IRS officers from performing their lawful duties very seriously. Law abiding taxpayers will expect no less.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Joseph Scali allegedly violated his ethical responsibilities and lied to the government to avoid taxes and disbarment. In all of his alleged lies, he underestimated the resolve of law enforcement to protect consumers from scammers whose only intention is to defraud for their personal gain.”
According to the Indictment[1] and other court filings related to this matter:
From January of 2011 through August 28, 2012, SCALI, who represented the seller of two tracts of land in Pennsylvania, schemed to defraud the prospective purchaser of that real estate of the $850,000 the latter had given to him to hold in escrow by misappropriating those funds from his attorney trust/escrow account. Additionally, the Indictment charges SCALI with structuring approximately $32,000 of cash deposits to that account.
The Indictment also charges that SCALI corruptly endeavored to obstruct the IRS by (a) providing materially false, incomplete, and misleading information to a Revenue Officer of the Internal Revenue Service, namely, false, misleading, and incomplete information as to the years for which he had filed tax returns in the past, the reasons why SCALI had not filed tax returns for certain years, and the amount of income received by SCALI during tax year 2012; (b) commingling client funds and personal funds in his Attorney Trust Account; (c) paying for personal items directly out of his Attorney Trust Account; (d) structuring cash deposits to his Attorney Trust Account; (e) failing to file U.S. Individual Income Tax Returns, Forms 1040, notwithstanding that he was required by law to file a return for each year (2006 through 2012); (f) failing to file U.S. Corporate Income Tax Returns, Forms 1120, for his law firm, Joseph G. Scali, P.C., notwithstanding that the law firm was required by law to file a return for each year (2006 through 2012); and (g) failing to maintain required records concerning his Attorney Trust Account. Additionally, the Indictment charges SCALI with income tax evasion for the 2012 year.
Finally, the Indictment charges that SCALI committed obstruction of justice and perjury when, in seeking to set aside his disbarment by the United States District Court for the Southern District of New York, he lied to that court about why, in 2013, he had been suspended from practicing law in New York by the Second Department of the Appellate Division of the New York State Supreme Court (“the Appellate Division”). SCALI was disbarred by the Appellate Division on July 6, 2016.
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SCALI, 67, of West Hartford, Connecticut, is charged with one count of mail fraud, which carries a maximum sentence of 20 years in prison; on count of structuring cash transactions, which carries a maximum sentence of five years in prison; one count of obstructing the IRS, which carries a maximum sentence of three years in prison; one count of tax evasion, which carries a maximum sentence of five years in prison; one count of obstruction of justice, which carries a maximum sentence of 10 years in prison; and one count of perjury, which carries a maximum sentence of five years in prison.
Mr. Bharara praised the work of the IRS and the Postal Inspection Service in this investigation.
This case is being handled out of the White Plains Division. Assistant United States Attorney Elliott B. Jacobson is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Defense Contractor Employee from Culver City Arrested for Selling Satellite Secrets to Undercover Agent Posing as a Foreign SpyRead the Press Release
LOS ANGELES – A Culver City, California, man was arrested yesterday on federal charges of economic espionage and violations of the Arms Export Control Act for his attempts to sell sensitive satellite information to a person he believed to be a foreign intelligence agent.
U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office and Special Agent John Rayho of the U.S. Air Force Office of Special Investigations (AFOSI) Detachment Commander at Los Angeles Air Force Base made the announcement.
Gregory Allen Justice, 49, who worked for a cleared defense contractor as an engineer on military and commercial satellites during his alleged crimes, was arrested by FBI special agents and made his initial appearance yesterday afternoon in U.S. District Court for the Central District of California where the judge ordered him detained pending trial.
“Our nation’s security depends on the honesty and integrity of those entrusted with our technological secrets,” said U.S. Attorney Decker. “In this case, the defendant sought to undermine our national security by attempting to sell proprietary and controlled information about satellites to a foreign government’s intelligence service. Fortunately, law enforcement agents were able to timely and effectively intervene to protect this critical technology.”
“Mr. Justice allegedly placed his own interests of greed over our national security by providing information on sensitive U.S. technologies to a person whom he believed was a foreign agent,” said Assistant Attorney General Carlin. “In the wrong hands, this information could be used to harm the United States and its allies. The National Security Division will continue to relentlessly identify, pursue and prosecute offenders that threaten our national security. I would like to thank the FBI and the Air Force Office of Special Investigations for their efforts in protecting our nation’s most sensitive information.”
“The enforcement of U.S. laws that prohibit the acquisition of specified economic information and defense-related items is vital to national security and can prove to be a challenging mission when set against the backdrop of legitimate international trade, vast amounts of which occur every day in the United States,” said Assistant Director in Charge Fike. “The cooperative effort among the FBI and Air Force OSI was critical in bringing this case forward for prosecution by the U.S. Department of Justice.”
“This investigation exemplifies the crucial law enforcement alliance the Air Force Office of Special Investigations enjoys with our DOJ counterparts,” said Special Agent Rayho. “We remain diligent in our mission to protect the vital technologies our national defense forces rely on.”
According to the affidavit in support of the criminal complaint, Justice stole proprietary trade secret materials from his employer and provided them to a person whom he believed to be a representative of a foreign intelligence service, but who was in fact an FBI undercover agent. In addition to their proprietary nature, the documents contained technical data covered by the U.S. Munitions List and therefore controlled for export from the United States under the International Traffic in Arms Regulations, according to the allegations. In exchange for providing these materials, Justice allegedly sought and received cash payments.
A criminal complaint contains allegations that a defendant has committed a crime. The defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Justice faces a statutory maximum penalty of 15 years in federal prison for the economic espionage charge and a statutory maximum penalty of 20 years in federal prison for violating the Arms Export Control Act.
The FBI and AFOSI investigated the case. Attorneys from the U.S. Attorney’s Office of the Central District of California and the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Defense Contractor Employee Arrested for Selling Satellite Secrets to Undercover Agent Posing as Foreign SpyRead the Press Release
A Culver City, California, man was arrested yesterday on federal charges of economic espionage and violations of the Arms Export Control Act for his attempts to sell sensitive satellite information to a person he believed to be a foreign intelligence agent.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office and Special Agent John Rayho of the U.S. Air Force Office of Special Investigations (AFOSI) Detachment Commander at Los Angeles Air Force Base made the announcement.
Gregory Allen Justice, 49, who worked for a cleared defense contractor as an engineer on military and commercial satellites during his alleged crimes, was arrested yesterday by FBI special agents and made his initial appearance yesterday afternoon in U.S. District Court for the Central District of California. The judge ordered him detained pending trial.
“Mr. Justice allegedly placed his own interests of greed over our national security by providing information on sensitive U.S. technologies to a person whom he believed was a foreign agent,” said Assistant Attorney General Carlin. “In the wrong hands, this information could be used to harm the United States and its allies. The National Security Division will continue to relentlessly identify, pursue and prosecute offenders that threaten our national security. I would like to thank the FBI and the Air Force Office of Special Investigations for their efforts in protecting our nation’s most sensitive information.”
“Our nation’s security depends on the honesty and integrity of those entrusted with our technological secrets,” said U.S. Attorney Decker. “In this case, the defendant sought to undermine our national security by attempting to sell proprietary and controlled information about satellites to a foreign government’s intelligence service. Fortunately, law enforcement agents were able to timely and effectively intervene to protect this critical technology.”
“The enforcement of U.S. laws that prohibit the acquisition of specified economic information and defense-related items is vital to national security and can prove to be a challenging mission when set against the backdrop of legitimate international trade, vast amounts of which occur every day in the United States,” said Assistant Director in Charge Fike. “The cooperative effort among the FBI and Air Force OSI was critical in bringing this case forward for prosecution by the U.S. Department of Justice.”
“This investigation exemplifies the crucial law enforcement alliance the Air Force Office of Special Investigations enjoys with our DOJ counterparts,” said Special Agent Rayho. “We remain diligent in our mission to protect the vital technologies our national defense forces rely on.”
According to the affidavit in support of the criminal complaint, Justice stole proprietary trade secret materials from his employer and provided them to a person whom he believed to be a representative of a foreign intelligence service, but who was in fact an FBI undercover agent. In addition to their proprietary nature, the documents contained technical data covered by the U.S. Munitions List and therefore controlled for export from the United States under the International Traffic in Arms Regulations, according to the allegations. In exchange for providing these materials, Justice allegedly sought and received cash payments.
A criminal complaint contains allegations that a defendant has committed a crime. The defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Justice faces a statutory maximum penalty of 15 years in federal prison for the economic espionage charge and a statutory maximum penalty of 20 years in federal prison for violating the Arms Export Control Act.
The FBI and AFOSI investigated the case. Attorneys from the U.S. Attorney’s Office of the Central District of California and the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Connecticut Resident Indicted in Rhode Island on Fraud ChargesRead the Press Release
PROVIDENCE, R.I. – Robert Oathout, 35, of Hartford, Conn., has been arraigned in federal court in Rhode Island on charges that he allegedly defrauded family members and family friends of at least $398,000. According to court documents, it is alleged that Oathout told the victims that he needed to borrow money from them to pay medical expenses in advance of his receipt of a one million dollar settlement payment. He claimed he was due the settlement as the result of a botched medical procedure performed on him at a Hartford medical facility. Oathout told the victims that the medical facility would repay them upon payment of the settlement.
According to court documents filed in this case, no such medical procedure occurred and no such settlement payment was due Oathout. It is alleged that a portion of the fraudulently obtained money was used by Oathout to pay gambling debts.
United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the FBI Boston Field Division, today announced the return on June 30, 2016, of a federal indictment which charges Oathout with eight counts of wire fraud. The indictment was unsealed on Thursday following Oathout’s arrest in Hartford by FBI agents and his arraignment in U.S. District Court in Providence. A not guilty plea was entered.
According to the indictment and information provided to the court, it is alleged that as part of the scheme, between September 27, 2013, and December 22, 2015, Oathout fraudulently induced his victims, all between the ages of 67 an 87 years, to transfer funds to him electronically. Electronic transfers of varying amounts were made to Oathout before, while and after he was a federal inmate at the Donald W. Wyatt Detention Center in Central Falls, R.I. Some of the funds were transferred into his and other inmates’ prison accounts while he was detained on federal drug charges in an unrelated case brought against him by the United States Attorney’s Office for the District of Connecticut.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
At the conclusion of a detention hearing today, Magistrate Judge Lincoln D. Almond ordered that Oathout, who has been in custody since his arrest on Thursday, be released on the terms of his current federal probation which was imposed at sentencing on his previous drug conviction.
Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; a fine of up to $250,000; and up to 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert. The matter was investigated by the FBI.
United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the FBI Boston Field Division, acknowledge and thank investigators at the Donald W. Wyatt Detention Center for their assistance in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Congresswoman Corrine Brown and Chief of Staff Charged with Fraud Scheme Involving Bogus Non-Profit Scholarship EntityRead the Press Release
Congresswoman Corrine Brown and her chief of staff were indicted today for their roles in a conspiracy and fraud scheme involving a fraudulent education charity.
Brown, 69, of Jacksonville, Florida, and her chief of staff, Elias “Ronnie” Simmons, 50, of Laurel, Maryland, were charged today in a 24-count indictment with participating in a conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, concealing material facts on required financial disclosure forms, theft of government property, obstruction of the due administration of the internal revenue laws and filing false tax returns.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Michelle S. Klimt of the FBI’s Jacksonville Division and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
“Congresswoman Brown and her chief of staff are alleged to have used the Congresswoman’s official position to solicit over $800,000 in donations to a supposed charitable organization, only to use that organization as a personal slush fund,” said Assistant Attorney General Caldwell. “Corruption erodes the public’s trust in our entire system of representative government. One of the department’s most important responsibilities is to root out corruption at all levels of government and to bring wrongdoers to justice.”
“Our office is committed to ferreting out and prosecuting all forms of corruption and fraud, regardless of who the offender is,” said U.S. Attorney Bentley. “In our nation, no one is above the law.”
“Corrupt public officials undermine the integrity of our government and violate the public’s trust,” said Special Agent in Charge Klimt. “That is why public corruption is the FBI’s top criminal priority. It is incredibly disappointing that an elected official, who took an oath year after year to serve others, would exploit the needs of children and abuse the charitable hearts of constituents to advance her own personal and political agendas and deliver them with virtually nothing.”
“The defendants are alleged to have committed a multitude of criminal violations, including fraudulently receiving and using hundreds of thousands of dollars in contributions meant for a nonprofit organization for their own personal and professional benefit,” said Special Agent in Charge Lappin. “The American public expects and deserves equitable enforcement of our tax laws.”
The indictment alleges that between late 2012 and early 2016, Brown and Simmons participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which the defendants and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other things. According to the indictment, Brown and Simmons allegedly solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives, many of whom the defendants led to believe that One Door was a properly-registered 501(c)(3) non-profit organization, when, in fact, it was not.
Contrary to the defendants’ representations, the indictment alleges that Brown, Simmons and Carla Wiley, the president of One Door, among others, used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts. In one instance, Simmons is alleged to have deposited $2,100 in One Door funds into Brown’s personal bank account the same day that Brown wrote a check for a similar amount to pay taxes she owed. Likewise, the indictment alleges that Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use. According to the indictment, more than $200,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area.
Despite raising over $800,000 in donations, the indictment alleges that One Door was associated with only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.
Simmons is also charged with theft of government property based on the misuse of his position as Brown’s chief of staff to obtain congressional employment for a close relative. Between 2001 and early 2016, Simmons’ relative allegedly received approximately $735,000 in government salary payments despite performing no known work for the U.S. House of Representatives. The indictment alleges that between 2009 and late 2015, Simmons diverted over $80,000 of his relative’s government salary for his personal benefit, including through transfers to his personal bank accounts, payments on his personal credit cards and loan payments on his boat.
Simmons and Brown are also charged with failing to disclose, among other things, the reportable income they received from One Door and the salary payments that Simmons diverted from his relative’s government employment on required financial disclosure forms submitted to the U.S. House of Representatives and made available to the general public.
Brown is also charged with engaging in tax obstruction between 2008 and 2014 and, in certain years, filing false returns based on her repeated failure to report income from substantial cash deposits to her personal bank accounts and her repeated deduction of inflated and fabricated charitable donations. According to the indictment, in various years, Brown claimed deductions on her tax returns based on false donations she claimed she made to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.
Wiley, the president of One Door, pleaded guilty for her involvement in the scheme on March 3, 2016.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI and IRS-CI are investigating the case. Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida are prosecuting the case.
Congresswoman Corrine Brown and Chief of Staff Charged with Fraud Scheme Involving Bogus Non-Profit Scholarship EntityRead the Press Release
Jacksonville, FL – Congresswoman Corrine Brown and her chief of staff were indicted today for their roles in a conspiracy and fraud scheme involving a fraudulent education charity.
Brown, 69, of Jacksonville, Florida, and her chief of staff, Elias “Ronnie” Simmons, 50, of Laurel, Maryland, were charged today in a 24-count indictment with participating in a conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, concealing material facts on required financial disclosure forms, theft of government property, obstruction of the due administration of the internal revenue laws, and filing false tax returns.
U.S. Attorney A. Lee Bentley III, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Michelle Klimt of the FBI’s Jacksonville Division, and Special Agent in Charge Kim Lappin of the Internal Revenue Service-Criminal Investigation (IRS-CI) Tampa Field Office made the announcement.
“Our Office is committed to ferreting out and prosecuting all forms of corruption and fraud, regardless of who the offender is,” said U.S. Attorney Bentley. “In our nation, no one is above the law.”
"Congresswoman Brown and her chief of staff are alleged to have used the Congresswoman's official position to solicit over $800,000 in donations to a supposed charitable organization, only to use that organization as a personal slush fund," said Assistant Attorney General Caldwell. "Corruption erodes the public's trust in our entire system of representative government. One of the department's most important responsibilites is to root out corruption at all levels of government and to bring wrongdoers to justice."
“Corrupt public officials undermine the integrity of our government and violate the public’s trust,” said Michelle S. Klimt, Special Agent in Charge of the FBI Jacksonville Division. “That is why public corruption is the FBI’s top criminal priority. It is incredibly disappointing that an elected official, who took an oath year after year to serve others, would exploit the needs of children and abuse the charitable hearts of constituents to advance her own personal and political agendas and deliver them with virtually nothing.”
"The defendants are alleged to have committed a multitude of criminal violations, including fraudulently receiving and using hundreds of thousands of dollars in contributions meant for a nonprofit organization for their own personal and professional benefit,” said Richard Weber, Chief, IRS Criminal Investigation. “The American public expects and deserves equitable enforcement of our tax laws.”
The indictment alleges that between late 2012 and early 2016, Brown and Simmons participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which the defendants and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other things. According to the indictment, Brown and Simmons allegedly solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives, many of whom the defendants led to believe that One Door was a properly-registered 501(c)(3) non-profit organization, when, in fact, it was not.
Contrary to the defendants’ representations, the indictment alleges that Brown, Simmons and Carla Wiley, the president of One Door, among others, used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts. In one instance, Simmons is alleged to have deposited $2,100 in One Door funds into Brown’s personal bank account the same day that Brown wrote a check for a similar amount to pay taxes she owed. Likewise, the indictment alleges that Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use. According to the indictment, more than $200,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area.
Despite raising over $800,000 in donations, the indictment alleges that One Door was associated with only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.
Simmons is also charged with theft of government property based on the misuse of his position as Brown’s chief of staff to obtain congressional employment for a close relative. Between 2001 and early 2016, Simmons’ relative allegedly received approximately $735,000 in government salary payments despite performing no known work for the U.S. House of Representatives. The indictment alleges that between 2009 and late 2015, Simmons diverted over $80,000 of his relative’s government salary for his personal benefit, including through transfers to his personal bank accounts, payments on his personal credit cards and loan payments on his boat.
Simmons and Brown are also charged with failing to disclose, among other things, the reportable income they received from One Door and the salary payments that Simmons diverted from his relative’s government employment on required financial disclosure forms submitted to the U.S. House of Representatives and made available to the general public.
Brown is also charged with engaging in tax obstruction between 2008 and 2014 and, in certain years, filing false returns based on her repeated failure to report income from substantial cash deposits to her personal bank accounts and her repeated deduction of inflated and fabricated charitable donations. According to the indictment, in various years, Brown claimed deductions on her tax returns based on false donations she claimed she made to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.
Wiley, the president of One Door, pleaded guilty for her involvement in the scheme on March 3, 2016.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI and IRS-CI are investigating the case. Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida are prosecuting the case.
UPDATE: Brown and Simmons will make their initial appearances in Jacksonville today before United States Magistrate Judge James R. Klindt at 1:00 p.m. (Courtroom 5-D).
Citizen of China Sentenced to 15 Months in Prison for Trafficking in Counterfeit Computer ChipsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that Daofu Zhang, 40, of Shenzen, China, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 15 months of imprisonment for conspiring to sell counterfeits of sophisticated integrated circuits to a purchaser in the United States.
According to court documents and statements made in court, Zhang and his two co-conspirators each operated businesses in China that bought and sold electronic components, including integrated circuits (“ICs”). In the summer of 2015, Zhang’s co-conspirator, Xianfeng Zuo asked the other co-conspirator, Jiang Yan, to locate and purchase several advanced ICs made by Xilinx Corp., which had military applications, including radiation tolerance for uses in space. Yan then asked a U.S. individual to locate the Xilinx ICs and sell them to Yan. The U.S. individual explained that the ICs cannot be shipped outside the U.S. without an export license, but Yan still wished to make the purchase. When the U.S. individual expressed concern that the desired ICs would have to be stolen from military inventory, Yan proposed to supply the U.S. source with “fake” ICs that “look the same,” to replace the ones to be stolen from the military.
In November 2015, Zhang shipped from China to the U.S. individual, two packages containing a total of eight counterfeit ICs, each bearing a counterfeit Xilinx brand label. After further discussions between Yan and the U.S. individual, Yan, Zhang, and Zuo flew together from China to the U.S. in early December 2015 to complete the Xilinx ICs purchase. On December 10, 2015, the three conspirators drove to a location near Route 95 in Milford, Connecticut, where they planned to meet the U.S. individual, make payment, and take custody of the Xilinx ICs. Federal agents arrested all three at the meeting location.
Zhang has been detained since his arrest. On April 15, 2016, he pleaded guilty to one count of conspiracy to traffic in counterfeit goods.
As part of his sentence, Zhang was ordered to forfeit $63,000.
On March 7, 2016, Yan, 33, pleaded guilty to one count of conspiracy to traffic in counterfeit goods, and one count of attempt to export integrated circuits without the required export license. On March 16, 2016, Zuo, 38, pleaded guilty to one count of conspiracy to traffic in counterfeit goods. They await sentencing.
This matter was investigated by the Defense Criminal Investigative Service, the Department of Homeland Security, the Department of Commerce, the Federal Bureau of Investigation, and the Air Force Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel and U.S. Department of Justice Counterintelligence and Export Control Section Trial Attorney Casey Arrowood.
Chicago-Based Return Preparer Who Targeted City Employees in Fraudulent Tax Return Schemes Permanently Shut down by Federal CourtRead the Press Release
WASHINGTON — According to a civil complaint the United States filed in 2014, a Chicago-based tax return preparer prepared returns that falsely claimed that recipients of discrimination awards related to a class-action lawsuit could claim large deductions on their federal tax returns and that falsely inflated the amount of wages that city of Chicago employees claimed were withheld from their paychecks. Now a federal court has completely barred this tax return preparer from preparing tax returns for others.
VICTOR M. CROWN promoted two false and fraudulent schemes through which he claimed that his customers could obtain significant federal income tax refunds, the complaint alleged. In the first scheme, as set out in the complaint, Crown falsely inflated the amount of income tax that was withheld from his customers’ paychecks because the city of Chicago purportedly calculated an incorrect withholding amount. Taxpayers may not claim a withholding credit larger than the amount that was actually withheld from their wages. The second scheme is founded on the 1969 class-action lawsuit Shakman v. Democratic Organization of Cook County, et al., No. 69-cv-2145 (N.D. Ill.), according to the United States’ complaint. Shakman was a discrimination case against the city of Chicago that alleged that the city improperly used political patronage when hiring and promoting public officials. As part of an agreed Shakman settlement order, the city set up a $12 million fund to compensate claimants for violations of the federal district court’s orders. Claims were submitted to the court-appointed monitor, who was responsible for evaluating the claims and, if justified, assigning a monetary award amount. According to the United States’ complaint against Crown, Crown asserted that his customers who were Shakman award recipients were entitled to claim net operating loss deductions for the difference between their claim and the amount they actually received in their award. The federal tax law does not permit a deduction in the amount of a denied discrimination claim.
In explaining its reasons for enjoining Crown, the court noted that the scope of Crown’s misconduct involved “at least 2,900 fraudulent tax returns,” as well as his “failure to accept responsibility and cease his operations.” The court’s injunction order forbids Crown from preparing tax returns for others and from making false statements about securing any tax benefit by virtue of receiving or not receiving an award in the Shakman litigation. It also requires Crown to give the United States a list of all his tax-preparation customers since 2010.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Chicago-Based Return Preparer Who Targeted City Employees in Fraudulent Tax Return Schemes Permanently Shut Down by Federal CourtRead the Press Release
According to a civil complaint the United States filed in 2014, a Chicago-based tax return preparer prepared returns that falsely claimed that recipients of discrimination awards related to a class-action lawsuit could claim large deductions on their federal tax returns and that falsely inflated the amount of wages that city of Chicago employees claimed were withheld from their paychecks. Now a federal court has completely barred this tax return preparer from preparing tax returns for others.
Victor M. Crown promoted two false and fraudulent schemes through which he claimed that his customers could obtain significant federal income tax refunds, the complaint alleged. In the first scheme, as set out in the complaint, Crown falsely inflated the amount of income tax that was withheld from his customers’ paychecks because the city of Chicago purportedly calculated an incorrect withholding amount. Taxpayers may not claim a withholding credit larger than the amount that was actually withheld from their wages. The second scheme is founded on the 1969 class-action lawsuit Shakman v. Democratic Organization of Cook County, et al., No. 69-cv-2145 (N.D. Ill.), according to the United States’ complaint. Shakman was a discrimination case against the city of Chicago that alleged that the city improperly used political patronage when hiring and promoting public officials. As part of an agreed Shakman settlement order, the city set up a $12 million fund to compensate claimants for violations of the federal district court’s orders. Claims were submitted to the court-appointed monitor, who was responsible for evaluating the claims and, if justified, assigning a monetary award amount. According to the United States’ complaint against Crown, Crown asserted that his customers who were Shakman award recipients were entitled to claim net operating loss deductions for the difference between their claim and the amount they actually received in their award. The federal tax law does not permit a deduction in the amount of a denied discrimination claim.
In explaining its reasons for enjoining Crown, the court noted that the scope of Crown’s misconduct involved “at least 2,900 fraudulent tax returns,” as well as his “failure to accept responsibility and cease his operations.” The court’s injunction order forbids Crown from preparing tax returns for others and from making false statements about securing any tax benefit by virtue of receiving or not receiving an award in the Shakman litigation. It also requires Crown to give the United States a list of all his tax-preparation customers since 2010.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Charlotte Man Sentenced to More Than Eight Years in Prison on Possession of Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. B Brandon Daniel Enright, 29, of Charlotte, was sentenced today to 97 months in prison for possession of child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. presided over today’s hearing, and ordered Enright also to serve ten years of supervised release and to register as a sex offender.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Rose in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, on or about October 20, 2013, Enright shared child pornography online with an undercover agent using a peer-2-peer network. During a subsequent search of Enright’s residence in Charlotte, law enforcement seized a computer and two external hard drives. Forensic analyses of those devices revealed that Enright possessed 251 videos of child pornography, depicting prepubescent minors engaging in sexual acts.
Enright pleaded guilty in September 2015 to one count of possession of child pornography. He is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose thanked the FBI and CMPD for their investigation of this case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children.By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims.For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Celebrity Manager Charged with Wire Fraud, Money Laundering Related to OXYwater CaseRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Kevin R. Foster, 40, of Montclair, N.J. with wire fraud, money laundering and conspiracy to commit money laundering in an indictment returned in Columbus.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the indictment returned today.
This case stems from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who raised approximately $9 million from investors under false pretenses to start and market the sports beverage “OXYwater.” The two were convicted by a jury of multiple wire fraud, money laundering, and tax fraud charges in March 2015.
This indictment alleges that Foster, the principal of his management/accounting firm, Foster & Firm, Inc., and who served as business manager for Shaffer Smith (“Ne-Yo”), induced Smith to invest $2 million into OXYwater under false representations. Foster served as an officer or controller of Imperial Integrative Health Research & Development, LLC in Westerville, Ohio with Jackson and Harrison. Foster did not disclose to Smith that he served as a controller for the company or that he would earn commission based on investments.
Unbeknownst to Smith, Foster allegedly invested an additional $1.5 million of Smith’s money into the product without his consent and fraudulently took out $1.4 million in lines of credit under Smith’s name by forging his signature. It is alleged that Foster received approximately $800,000 in finder’s fees based on Smith’s investments into OXYwater.
Foster was charged with three counts of wire fraud, one count of conspiracy to commit money laundering and three counts of money laundering. Wire fraud is punishable by up to 20 years in prison. Money laundering and conspiracy to commit money laundering are each crimes punishable by up to 10 years in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Bandon High School Education Assistant Indicted for Producing and Distributing Child PornographyRead the Press Release
MEDFORD, Ore. – Sean Jeffrey Haga, 31 of Bandon, Oregon, was indicted by a federal grand jury and charged with two counts of sexual exploitation of children, one count of transportation of child pornography, and a forfeiture allegation. If convicted of sexual exploitation of children, the maximum penalty is 30 years in prison and a 15-year mandatory minimum. Transportation of child pornography carries a maximum sentence of 20 years in prison and a five-year mandatory minimum sentence.
Haga is employed as an Educational Assistant at Bandon High School. He also works as Bandon High School’s track coach and Bandon Junior High School’s Basketball coach. The defendant is scheduled to be in Federal Court for an initial appearance on the charges on Monday, July 11, 2016.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and Assistant U.S. Attorney Judith Harper is handling the prosecution of this case.
Army Sergeant Pleads Guilty to Conspiracy in Afghanistan Bribery SchemeRead the Press Release
Fairbanks, Alaska – A Fort Wainwright Army sergeant pleaded guilty today to conspiracy to receive bribes and defraud the United States in connection with a scheme to steal fuel at a forward operating base (FOB) in Afghanistan.
U.S. Attorney Karen L. Loeffler of the District of Alaska, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage, Alaska, Division and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
Sheldon J. Morgan, 36, pleaded guilty in Fairbanks, Alaska, before U.S. District Judge Ralph R. Beistline to a one-count information charging him with conspiracy to receive bribes and defraud the United States. Sentencing is scheduled for Oct. 21, 2016.
According to admissions made as part of this plea agreement, from May 2010 until May 2011, Morgan, then a specialist in the U.S. Army, was deployed at FOB Fenty, near Jalalabad, Afghanistan. FOB Fenty served as a hub for distribution of fuel to nearby military bases. Morgan’s duties included assisting in overseeing the distribution of fuel to the bases.
Morgan also admitted that on two separate occasions in December 2010, he arranged for a translator employed by an Afghan trucking company to steal 5,000 gallons of fuel. The translator promised Morgan $5,000 per truckload and wired the money to an account outside of the United States that Morgan had his wife open in her name. Morgan admitted that he and his wife used the money for their personal benefit. The conspiracy caused approximately $37,300 in loss to the U.S. government.
This is the eighth guilty plea for similar fuel theft/bribery schemes at FOB Fenty for U.S. military members and their associates who were assigned to the base between June 2009 and April 2012.
The FBI and SIGAR investigated the case. Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Cooper of the District of Alaska are prosecuting the case.
Army Sergeant Pleads Guilty to Conspiracy in Afghanistan Bribery SchemeRead the Press Release
A Fort Wainwright Army sergeant pleaded guilty today to conspiracy to receive bribes and defraud the United States in connection with a scheme to steal fuel at a forward operating base (FOB) in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Karen L. Loeffler of the District of Alaska, Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage, Alaska, Division and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
Sheldon J. Morgan, 36, pleaded guilty in Fairbanks, Alaska, before U.S. District Judge Ralph R. Beistline of the District of Alaska to a one-count information charging him with conspiracy to receive bribes and defraud the United States. Sentencing is scheduled for Oct. 21, 2016.
According to admissions made as part of this plea agreement, from May 2010 until May 2011, Morgan, then a specialist in the U.S. Army, was deployed at FOB Fenty, near Jalalabad, Afghanistan. FOB Fenty served as a hub for distribution of fuel to nearby military bases. Morgan’s duties included assisting in overseeing the distribution of fuel to the bases, he admitted.
Morgan also admitted that on two separate occasions in December 2010, he arranged for a translator employed by an Afghan trucking company to steal 5,000 gallons of fuel. The translator promised Morgan $5,000 per truckload and wired the money to an account outside of the United States that Morgan had his wife open in her name, according to the plea agreement. Morgan admitted that he and his wife used the money for their personal benefit. The conspiracy caused approximately $37,300 in loss to the U.S. government.
This is the eighth guilty plea for similar fuel theft/bribery schemes at FOB Fenty for U.S. military members and their associates who were assigned to the base between June 2009 and April 2012.
The FBI and SIGAR investigated the case. Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Cooper of the District of Alaska are prosecuting the case.
Arkansas man sentenced to 60 months in prison for conspiracy to cash counterfeit checks in four statesRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that an Arkansas man was sentenced Tuesday to 60 months in prison for conspiring with several women to conduct a counterfeit check cashing scheme.
Dion Paul Barnes, 38, of Little Rock, Ark., was sentenced by U.S. District Judge Robert G. James on one count of conspiracy to make, utter or possess counterfeit securities. He was also sentenced to three years of supervised release and ordered to pay $24,153.46 restitution. According to the February 23, 2016 guilty plea, from January 2015 to June 2015, Barnes conspired with multiple individuals including April M. Augustine, 35, of Monroe, and Barbara J. Island, 32, of Bastrop, La., to make and cash counterfeit checks. A Louisiana state trooper conducted a traffic stop near Sterlington, La., on June 10, 2016 on a Chevrolet Camaro the defendants were traveling in. A search was conducted, and 48 counterfeit checks, a large stack of blank check stock paper, two laptop computers, three computer tablets, six cell phones and one print-scan-copy machine were found. Troopers also found a DVD containing template software that could be used to produce fake identification cards. The car they were riding in was also reported stolen. Upon further investigation, Dion Barnes was found to be the leader of a scheme to cash counterfeit checks in Arkansas, Mississippi, Missouri and Louisiana. Barnes is solely responsible for the creation of $39,712.22 worth of counterfeit checks. Barnes, Augustine and Island are responsible for cashing a total of $2,274.73 worth of counterfeit checks.
Island was sentenced on April 18, 2016, to 10 months in prison and three years of supervised release, and Augustine was sentenced on June 20, 2016, to five years of probation for the conspiracy count. They were also ordered to pay $2,274.73 in restitution along with Barnes.
The U.S. Secret Service and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.