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Wednesday 27 April 2016
U.S. Attorney for the Northern District of Texas Launches Prescription Drug Abuse Prevention Public Service AnnouncementRead the Press Release
DALLAS — John Parker, the United States Attorney for the Northern District of Texas, announced the release today of a public service announcement (PSA) that addresses the dangers of prescription drug abuse and recommends ways parents can keep their children safe.
The announcement is made in advance of this year’s National Prescription Drug Take-Back Day this Saturday, April 30, 2016. Take-Back Day provides a safe, convenient and responsible means of disposing of unused prescription drugs, while educating the public about the dangers of misusing medications.
According to the Centers for Disease Control, 46 people die each day from an overdose of prescription painkillers in the United States. The rate of prescription painkiller overdoses has more than quadrupled since 1999 and is now the leading cause of injury death, causing more deaths than motor vehicle traffic accidents annually.
Teens and young adults, who mistakenly believe prescription drugs are safer than illicit drugs, are abusing pills at an alarming rate. One in four teens has misused or abused a prescription drug at least once in their lifetime, a 33 percent increase since 2008.
The increase in the use of prescription drugs has also led to an explosion of heroin abuse. The recent national heroin abuse rate is 19 times higher among those who reported prior use of prescription pain relievers than among those who did not report such use. And four out of every five people who try heroin for the first time admit to having abused prescription pain relievers first.
Prescription drug abuse prevention has long been a priority of the Administration. For more information regarding the Administration’s efforts see this White House Fact Sheet.
The PSA provides tips on how parents can dispose of prescription drugs safely, since the home medicine cabinet is the number-one source of prescription pills for teens and young adults. On Take-Back Day, collection sites will be open from 10:00 a.m. to 2:00 p.m. Click here to locate a collection site near you.
The PSA may be found here. Media requesting a high resolution version may contact the U.S. Attorney’s Office of Public Affairs at [email protected] or 214-659-8600.
# # #U.S. Attorney Jill Westmoreland Rose Meets with Leadership of Reentry Councils to Discuss the Efforts of Western District's Reentry Programs for Former OffendersRead the Press Release
CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose met today with the leadership of Reentry Councils for Mecklenburg and Buncombe counties and a Project Reentry representative for Iredell county, to discuss the efforts of reentry programs in place aimed at reducing recidivism and helping former offenders transition successfully into mainstream society following incarceration. The Department of Justice has designated the week of April 24-30, 2016, as National Reentry Week, to bring attention to some of the unique challenges faced by formerly incarcerated individuals and to highlight the department’s efforts to support and strengthen reentry programs and to help former inmates stay out of the criminal justice system.
“The challenges faced by former offenders released from prison are multiple and can oftentimes contribute to a cycle of incarceration,” said U.S. Attorney Rose following today’s meeting. “Lack of employment and housing opportunities, educational needs, substance abuse and lack of vocational training are some of the barriers that can make a difference in whether a person successfully reenters society after serving his or her prison term. We are partnering with community organizations across the district to remove some of these obstacles and to provide former offenders with the tools and resources they need to be productive, law-abiding citizens post release.”
Reentry Councils for Mecklenburg and Buncombe Counties and Project Reentry for Iredell County are organizations that provide services to previously incarcerated individuals in their respective communities. At today’s meeting, each representative provided an overview of the services their programs offer to former inmates or those nearing the end of their prison term, including vocational training, finding and maintaining employment, access to education, housing needs, life skills training, parenting coaching, anger management, and substance abuse counseling. During today’s meeting, current challenges and ways of improving existing programs were discussed, as well as future initiatives and goals to enhance reintegration outcomes.
As part of National Reentry Week, U.S. Attorney General Loretta E. Lynch released this week the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the Federal Bureau of Prisons (BOP). These efforts will help those who have paid their debt to society prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our communities.
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons. Another 11.4 million individuals cycle through local jails. And nearly one in three Americans of working age have had some sort of encounter with the criminal justice system — mostly for relatively minor, non-violent offenses, and sometimes from decades in the past. The long-term impact of a criminal record prevents many people from obtaining employment, housing, higher education, and credit — and these barriers affect returning individuals even if they have turned their lives around and are unlikely to reoffend.
The principles outlined in the “Roadmap to Reentry” are aligned with the work of the Federal Interagency Reentry Council which has been working since its creation five years ago to reduce recidivism and improve employment, education, housing, health and child welfare outcomes.
Two Orlando Men Involved in Carjacking of Federal Officer Sentenced to Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced two Orlando men for carjacking and using a firearm while committing that offense. Gregory McDonald (18) was sentenced to 20 years in federal prison and Dante Askins (18) was sentenced to 14 years in federal prison. Both men pleaded guilty in February 2016.
According to court documents, on August 12, 2015, McDonald and Askins committed an armed carjacking of a U.S. Customs and Border Protection officer at a hotel in Orlando. The victim, who was on vacation with his family, had gone down to his SUV in the hotel parking lot to preload his GPS for a trip to Destin the next morning. Askins approached the victim and stuck a long-barreled .22 caliber revolver in his face. He, along with McDonald and two minors, then forced the victim into the backseat of his vehicle at gunpoint. McDonald pistol whipped the victim three times in the back of the head. The carjackers held the victim for approximately two hours. When OnStar location services contacted the vehicle, the carjackers fled and the victim escaped.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Tiffany L. Cummins.
Two Northeast Alabama Men Indicted in Joppa Post Office BurglaryRead the Press Release
BIRMINGHAM – A federal grand jury today indicted two northeast Alabama men for burglarizing a U.S. Post Office in Joppa, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspection Service, Postal Inspector in Charge Adrian Gonzalez.
Separate four-count indictments filed in U.S. District Court charge CLAY AUSTIN PARKER, 34, of Arab, and BRETT MICHAEL BAKER, 30, of Albertville, with one count each of post office burglary, theft of a post office key, theft of postal property and theft of postal money orders stemming from the burglary of the Joppa Post Office on Dec. 28. PARKER and BAKER join ANDREW CLAYTON ROGERS and TESSA JEAN MCCAY, who were indicted in March for the 2015 burglary.
The maximum penalty for theft of a post office key is 10 years in prison and a $250,000 fine. The maximum penalty for post office burglary and theft of postal money orders is five years in prison and a $250,000 fine. The maximum penalty for theft of postal property is three years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Two Malaysian Men Sentenced to Federal Prison for Smuggling Endangered Wildlife into U.S.Read the Press Release
PORTLAND, Ore. - Two Malaysian nationals pled guilty to conspiring to smuggle wildlife today after they used mail parcels to smuggle five orangutan skulls and nine other protected species of wildlife, including bear claws and macaque skulls, into the District of Oregon.
Eoin Ling Churn Yeng, 35, and Galvin Yeo Siang Ann, 33, both Malaysian citizens, admitted before U.S. District Judge Robert E. Jones to conspiring to smuggle wildlife into the District of Oregon from 2008 through 2015. Following their guilty pleas the Court immediately sentenced them to six months in prison and fines totaling $25,000.00. Each defendant was also ordered to perform 240 hours of community service and will be required to serve one year of supervised release after his prison term.
The investigation into Ling and Yeo began in 2013, when a routine search of an international package revealed a helmeted hornbill mandible that was being shipped to a residence in Forest Grove, Oregon. Helmeted hornbills are listed as endangered under the Endangered Species Act (ESA) and protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Agents with the U.S. Fish and Wildlife Service (Service) initiated an undercover operation named “Operation Pongo,” for the orangutan genus Pongo. The investigation revealed that Ling and Yeo were co-owners of an online business that has smuggled approximately $95,000 worth of endangered wildlife into the U.S. since 2004.
Undercover Service agents communicated with Ling and Yeo and purchased three orangutan skulls, four helmeted hornbill skulls, one CITES-protected rhino hornbill head, one ESA-protected babirusa (wild pig) skull, one CITES-protected langur skull, and one ESA-protected dugong (marine mammal) rib over the course of the operation. In December 2015, Ling and Yeo traveled to Portland to meet an associate, but agents with Service and the National Oceanic and Atmospheric Administration arrested them soon after their arrival.
“I commend all the agencies that played a role in this successful investigation and prosecution,” said U.S. Fish and Wildlife Service Deputy Chief Edward Grace. “Orangutans are one of the rarest great ape species on Earth, and the desire to possess a skull from one as tourist art or trophy in someone's collection will not be tolerated. The Service will continue to fully investigate and bring to justice those individuals who continue to perpetrate criminal acts involving orangutans and other protected wildlife species.”
Operation Pongo was conducted by the U.S. Fish and Wildlife Service, which received assistance from the Office of International Affairs, Environmental Crimes Section of the Environment and Natural Resources Division, U.S. State Department, FBI Legal Attaché in Kuala Lumpur, National Oceanic and Atmospheric Administration, Bureau of Land Management, and the Multnomah County Sheriff’s Office. The case was prosecuted by Assistant U. S. Attorney Ryan W. Bounds.
Two Kansas Men Charged with Attacking Somali Men Because of Their Race and National OriginRead the Press Release
WICHITA, KAN. – Omar Cantero Martinez, 31, and Armando Sotelo, 24, both of Dodge City, Kan., were charged with federal hate crimes for attacking three Somali men because of their race and national origin. Acting U.S. Attorney Tom Beall of the District of Kansas and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, made the announcement.
The indictment, which was unsealed today, charges Martinez and Sotelo with three counts of causing bodily injury to a victim because of actual and perceived race and national origin. The charges are filed under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, which criminalizes willfully causing bodily injury to any person because of that person’s actual or perceived race, color, religion or national origin, gender, sexual orientation, gender identity or disability.
The indictment alleges that on June 19, 2015, Martinez and Sotelo caused bodily injury to three Somali men who were lawfully present in the United States and residing in Dodge City. The attackers are alleged to have used a broken glass bottle in the assault against two of the Somali men.
Each charge carries a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Indictments are merely allegations of criminal conduct, and all defendants are presumed innocent until and unless proven guilty.
The case is being investigated by the FBI and the Dodge City Police. The case is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Mona Furst of the District of Kansas.
Two Kansas Men Charged for Attacking Somali Men Because of their Race and National OriginRead the Press Release
Omar Cantero Martinez, 31, and Armando Sotelo, 24, both of Dodge City, Kansas, were charged with federal hate crimes for attacking three Somali men because of their race and national origin. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney Tom Beall of the District of Kansas made the announcement.
The indictment, which was unsealed today, charges Martinez and Sotelo with three counts of causing bodily injury to a victim because of actual and perceived race and national origin. The charges are filed under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, which criminalizes willfully causing bodily injury to any person because of that person’s actual or perceived race, color, religion or national origin, gender, sexual orientation, gender identity or disability.
The indictment alleges that on June 19, 2015, Martinez and Sotelo caused bodily injury to three Somali men who were lawfully present in the United States and residing in Dodge City. The attackers are alleged to have used a broken glass bottle in the assault against two of the Somali men.
Each charge carries a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Indictments are merely allegations of criminal conduct, and all defendants are presumed innocent until and unless proven guilty.
The case is being investigated by the FBI and the Dodge City Police. The case is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Mona Furst of the District of Kansas.
Martinez and Sotelo Indictment
Twice-Removed Mexican Sentenced to Time Served for Returning to United StatesRead the Press Release
PITTSBURGH - A native of Mexico pleaded guilty in federal court to a charge of reentry of removed alien and was sentenced to time served, United States Attorney David J. Hickton announced today.
Jose Alfredo Mora-Aguilar, 34, of Coraopolis, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Mora-Aguilar was found in the United States despite having been removed on two prior occasions.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation that led to the prosecution of Jose Alfredo Mora-Aguilar.
Taos County Businessman Arraigned on Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Robert Baños, 45, of Red River, N.M., was arraigned today on a five-count indictment alleging federal tax charges, announced U.S. Attorney Damon P. Martinez and Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Baños is the owner of the Old Tymer’s Café and Bighorn Sports and Rental, both of which are located in Red River in Taos County, N.M. The indictment, which was filed on April 12, 2016, charges Baños with five counts of filing false tax returns. Baños made his initial appearance this morning in federal court in Albuquerque, N.M. During the proceedings, Baños entered a not guilty plea and was released on conditions of release pending trial.
The indictment charges Baños with violating the federal tax laws during five tax years, 2009 through 2013, by filing tax returns that failed to report his true income. The indictment alleges that during each of those tax years, Baños falsely reported that he had a negative income in the individual income tax returns he filed with the IRS.
If convicted, Baños faces a statutory maximum penalty of three years in federal prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Reeve L. Swainston.
Statement by the United States Attorney’s Office Following the Sentencing of Former U.S. Speaker of the House John Dennis HastertRead the Press Release
U.S. District Judge Thomas M. Durkin for the Northern District of Illinois today sentenced John Dennis Hastert, 74, of Plano, Illinois, to 15 months in federal prison. Hastert pleaded guilty last year to one count of illegally structuring cash withdrawals in order to evade financial reporting requirements.
After the sentencing hearing, the U.S. Attorney’s Office for the Northern District of Illinois issued the following statement:
“With this case, the Office sought to hold Mr. Hastert accountable for the crimes he committed that could still be prosecuted: illegally structuring cash withdrawals and lying to the government about his motive for engaging in that activity. All of us have been inspired by the strength and bravery of the victims and witnesses who came forward in the most challenging of circumstances. As in all cases, the Office is dedicated to doing everything we can to help victims and their families seek justice. It is our hope that the sentence imposed today will promote respect for the law.”
The sentencing was announced by U.S. Attorney Zachary T. Fardon for the Northern District of Illinois; Special Agent in Charge Michael J. Anderson of the Chicago Office of the Federal Bureau of Investigation; and Special Agent in Charge James D. Robnett of the Chicago Office of the Internal Revenue Service-Criminal Investigation Division.
The government is represented by Assistant U.S. Attorneys Steven A. Block and Diane MacArthur.
Statement by the United States Attorney’s Office Following the Sentencing of Former U.S. Speaker of the House John Dennis HastertRead the Press Release
CHICAGO — U.S. District Judge Thomas M. Durkin today sentenced JOHN DENNIS HASTERT, 74, of Plano, to 15 months in federal prison. Hastert pleaded guilty last year to one count of illegally structuring cash withdrawals in order to evade financial reporting requirements.
After the sentencing hearing, the United States Attorney’s Office for the Northern District of Illinois issued the following statement:
“With this case, the Office sought to hold Mr. Hastert accountable for the crimes he committed that could still be prosecuted: illegally structuring cash withdrawals and lying to the government about his motive for engaging in that activity. All of us have been inspired by the strength and bravery of the victims and witnesses who came forward in the most challenging of circumstances. As in all cases, the Office is dedicated to doing everything we can to help victims and their families seek justice. It is our hope that the sentence imposed today will promote respect for the law.”
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
The government is represented by Assistant U.S. Attorneys Steven A. Block and Diane MacArthur.
Springfield Man Pleads Guilty to Gun PossessionRead the Press Release
BOSTON – A Springfield man previously convicted of rape pleaded guilty in U.S. District Court in Springfield yesterday in connection with unlawfully selling a firearm.
Hector Nieves, 35, pleaded guilty to one count of possession of a firearm by a convicted felon. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 12, 2016.
On Sept. 2, 2015, Nieves negotiated the sale of a .22 caliber pistol and ammunition to a cooperating witness. He received the cash from the cooperating witness, and arranged for his co-conspirator, Mark Alexander, to deliver the firearm and ammunition. Following previous convictions of rape and failure to register as a sex offender, Nieves was prohibited from possessing a firearm and ammunition.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement. The case was also investigated by the Western Massachusetts Gang Task Force. The case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Office.
Social media and online safety forum set for next week in Ohio CountyRead the Press Release
WHEELING, WEST VIRGINIA – A community forum highlighting the latest advances in social media and technology will take place next week in Wheeling in order to help parents keep their children safe online.
The United States Attorney’s Office and the West Virginia State Police will partner with Ohio County Schools to host the event on Wednesday, May 4 at 6:00 p.m. at Woodsdale Elementary School. It will feature a presentation outlining current trends in social media and Internet usage by kids of all ages. Strategies will be offered to help ensure that young people remain safe and that teenagers use technology responsibly. Following the presentation, representatives from the U.S. Attorney’s Office and the State Police will take questions and address concerns raised by the audience.
“In recent years, advances in technology have occurred so rapidly that many parents have a hard time keeping up with their kids,” noted U.S. Attorney Ihlenfeld. “Technology can enhance the ability to learn and communicate, but at the same time it can put our children in harm’s way. We invite the community to join us to discuss the challenges that we all face in keeping our kids safe in the digital age.”The event is open to the public and those attending will be permitted to park on the playground at the school. Anyone with questions about the event should contact the U.S. Attorney’s Office at 304-234-0100.
Shenandoah Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Shenandoah resident connected to a large-scale heroin trafficking ring that operated in Schuylkill County during 2012 through September 2015, pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton.
According to United States Attorney Peter Smith, Thomas Nestor pleaded guilty to conspiracy to distribute more than 100 grams of heroin. Nestor admitted to distributing heroin and traveling with co-conspirators to obtain heroin for distribution. He was involved in distributing and possessing with intent to distribute between 400 and 700 grams, which is equivalent to between 13,000 and 23,000 retail bags of heroin,
Nestor was indicted by a federal grand jury in Scranton in September 2015, as a result of an investigation by the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, and Shenandoah Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for July 28, 2016. Nestor faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 40 years in prison.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Schuylkill Federal Correctional Institution Inmate Charged for Possession of A Homemade WeaponRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a felony Criminal Indictment was returned by a federal grand jury in Scranton on April 26, 2016, charging federal prison inmate Davon Perry, age 36.
According to United States Attorney Peter Smith, Perry was charged with allegedly possessing a homemade sharpened weapon in June of 2015.
If convicted, Perry could be imprisoned for a maximum sentence of up to 5 years and a fine in the amount of $250,000.
The investigation was conducted by the FBI. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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School Police Officer Indicted by Federal Grand Jury on Attempted Sex Trafficking Charges for Allegedly Using Internet to Entice MinorRead the Press Release
LOS ANGELES – A police officer employed by the Los Angeles Unified School District was taken into federal custody this morning after being named in an indictment that charges him with the attempted sex trafficking of a child.
Mauricio Edgardo Estrada, 28, who has been placed on administrative leave by LAUSD, surrendered himself to federal authorities after he was indicted yesterday by a federal grand jury.
The two-count indictment charges Estrada with attempted sex trafficking of a child and use of the Internet to induce a minor to engage in criminal sexual activity.
The case against Estrada is the result of an undercover operation by the Los Angeles Regional Human Trafficking Task Force, which includes representatives of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), the Los Angeles County Sheriff’s Department and the Department of State’s Diplomatic Security Service. The Task Force was conducting an anti-sex trafficking operation in Artesia and posted an advertisement on the Craigslist website that was designed to attract individuals interested in engaging in commercial sex acts with minors.
“Protecting children from sexual exploitation means focusing our resources on all aspects of the industry that preys upon young people,” said United States Attorney Eileen M. Decker. “Prosecutors in my office who deal with sex crimes against children have a long history of targeting those who produce, distribute and possess child pornography. We also aggressively prosecuted pimps who prostitute minors and use physical violence to establish and maintain control over their victims. Now we are turning our attention to customers who seek out young prostitutes, because their demand fuels an industry that causes so much harm to so many young people.”
On April 20, Estrada responded to the advertisement via e-mail and subsequently engaged in a series of text messages with an undercover agent he thought was a 15-year-old girl, according to the indictment. Estrada agreed to pay $150 to engage in sex with the “girl.” In preparation for the encounter, Estrada purchased condoms. When he arrived at a gas station in Artesia for the encounter with the girl, Estrada had approximately $150 in his possession. He was taken into custody by the Los Angeles County Sheriff’s Department and subsequently released from county jail after posting bond.
“It’s deeply troubling when those sworn to protect our kids, are accused of an act that violates every tenet of the oath they pledged to uphold,” said Joseph Macias, special agent in charge for HSI Los Angeles. “The reality is that the defendants in child exploitation cases come from all walks of life and access to children is all too often the common denominator. The predators who’re brazenly stalking our children online need to know that HSI, together with its law enforcement partners, is working tirelessly to track you down and hold you accountable for your crimes.”
Estrada is expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Both of the charges in the indictment carry a mandatory minimum sentence of 10 years in federal prison and statutory maximum sentence of life.
Last week, a San Pedro man was indicted on charges of attempted sex trafficking of a child and use of the Internet to induce a minor to engage in criminal sexual activity. Joshua Paul Crouch allegedly sought to have sex with a 13-year-old girl after responding to an advertisement on backpage.com (see: http://go.usa.gov/cuZnP). Crouch is scheduled to be arraigned on the indictment this afternoon in United States District Court.
President Barack Obama has declared April 2016 as National Child Abuse Prevention Month, during which “we recommit to giving every child a chance to succeed and to ensuring that every child grows up in a safe, stable, and nurturing environment that is free from abuse and neglect.”
Last month, Attorney General Loretta E. Lynch released the 2016 National Strategy for Child Exploitation Prevention and Interdiction (http://go.usa.gov/cuWMR). The strategy provides a comprehensive threat assessment of the nature and scope of the current dangers facing our nation’s children, including child pornography offenses, sextortion and live-streaming of child sexual abuse, child sex trafficking, child sex tourism and sex offense registry violations.
Santa Clara Insurance Broker Charged with Wire Fraud and Mail Fraud in Alleged Theft from Widow’S Insurance PolicyRead the Press Release
SAN JOSE – Gary Thornhill was charged with wire fraud and mail fraud in connection with an alleged attempt to steal more than a million dollars from a client’s trust account, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Acting Special Agent in Charge Bertram Fairries.
In an indictment unsealed today, Thornhill, 63, of Santa Clara, is accused of using his position in a boutique insurance brokerage to withdraw funds from a widow’s client trust account. According to the indictment, Thornhill was a fiduciary who had responsibility for management and oversight of an account containing the proceeds of an insurance policy he created for a married couple years earlier. Beginning in January 2011, several years after the husband passed away, Thornhill allegedly transmitted written requests for funds to be drawn against the cash value of the widow’s insurance policy and then deposited the proceeds into an account he exclusively controlled as trustee for the policy. Throughout calendar year 2011, Thornhill allegedly withdrew almost $1.5 million from the account and put the funds into the account which he controlled and used for his own personal benefit. Thornhill is charged with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of mail fraud, in violation of 18 U.S.C. § 1341.
Thornhill was arrested today and made his initial appearances in federal court in San Jose before the Honorable Paul S. Grewal, U.S. Magistrate Judge. Thornhill was released on a $500,000 bond with conditions. His next scheduled appearance is set for Monday, May 2, at 1:30 p.m. before Magistrate Judge Cousins for review of the bond conditions.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces for each count a maximum sentence of 20 years’ imprisonment, a fine of $250,000 or twice the gross gain or twice the gross loss, plus restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Timothy J. Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation the by the Federal Bureau of Investigation.
Saline County Man Sentenced for Methamphetamine OffenseRead the Press Release
David E. Garris II, 36, of Eldorado, Illinois, was sentenced today in United States District Court in Benton to a term of 132 months in prison for possessing with intent to distribute 39 grams of methamphetamine, announced James L. Porter, Acting United States Attorney for the Southern District of Illinois.
Garris was found to be in possession of the methamphetamine and $4180.00 in cash during a routine traffic stop conducted by the Illinois State Police on March 21, 2015, in Saline County. At the time of the traffic stop Garris was on parole from the Illinois Department of Corrections after being sentenced to 5 years in state prison in 2013 for possessing methamphetamine manufacturing materials in Saline County.
In addition to the 132 month federal sentence, Garris was ordered to pay $300 in fines and special assessments to the United States and was placed on a 3 year term of supervised release to follow his incarceration.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Illinois State Police and was prosecuted by Assistant United States Attorney James M. Cutchin.
Robert Durst Sentenced to over Seven Years in PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERT DURST, age 73, was sentenced today after previously pleading guilty to being a felon in possession of a firearm.
U.S. District Judge Kurt D. Engelhardt sentenced DURST to 85 months in prison, to be followed by three years of supervised release. Additionally, DURST was ordered to pay a $5,000 fine and a $100 special assessment.
A judge in Los Angeles, California, signed an arrest warrant for DURST on March 11, 2015, for the 2000 murder of Susan Berman. Agents of the Federal Bureau of Investigation (“FBI”), New Orleans Field Office, located DURST in a local hotel on March 14, 2015, where he had checked in under the alias “Everette Ward.” A lawful search of DURST’s hotel room found him to be in possession of a loaded Smith and Wesson .38 caliber revolver, a realistic mask, and over $40,000 in cash. DURST had previously been convicted of multiple felonies and was indicted in the Eastern District of Louisiana on April 10, 2015, for being a felon in possession of a firearm.
U.S. Attorney Polite would like to thank the hard work of the Orleans Parish District Attorney’s Office, the FBI, the Los Angeles Police Department, and the Los Angeles County District Attorney’s Office in this matter. Assistant United States Attorneys Michael McMahon and Myles Ranier were in charge of the prosecution.
Ripon Man Arraigned for Bankruptcy Fraud IndictmentRead the Press Release
SACRAMENTO, Calif. — Kulvir Singh Cheema, 55, of Ripon, was arraigned today before U.S. Magistrate Judge Edmond F. Brennan on bankruptcy fraud charges, United States Attorney Benjamin B. Wagner announced.
On March 31, 2016, a federal grand jury returned an indictment against Cheema, charging him with false bankruptcy declaration, concealment of bankruptcy assets, and fraudulent transfer. At the arraignment, Cheema entered a plea of not guilty. A status conference is scheduled for May 20, 2016 before U.S. District Judge Garland E. Burrell Jr.
According to court documents, when Cheema filed for bankruptcy in April 2011, he provided false information about his employment and wages that he received, his current income, his residence, and whether he had lost a piece of property in the past. He is also alleged to have concealed income that he received, as well as assets such as trucks and bank accounts that he controlled and that were held in other names. In January 2010, in contemplation of filing for bankruptcy, Cheema knowingly and fraudulently transferred ownership of his residence in Ripon from himself to another person.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys John K. Vincent and Brian A. Fogerty are prosecuting the case.
If convicted, Cheema faces a maximum statutory penalty of five years in prison for each of the three bankruptcy counts and up to a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pulaski County, Arkansas, Sheriff's Office Sergeant Arrested for Mail FraudRead the Press Release
LITTLE ROCK— Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, today announced the arrest of Kelvin Hendrix, 47, a Sergeant with the Pulaski County Sheriff’s Office for mail fraud. Federal agents with the Federal Bureau of Investigation (FBI) arrested Hendrix, a 25-year veteran with the Sheriff’s Office, when he reported for work. Upon arrest, agents executed a federal search warrant on Hendrix’s residence in Bauxite, Arkansas. Agents also arrested Jennifer Gann of Sherwood, 35, an employee of Cruse Uniforms and Equipment, for her involvement in the mail fraud scheme.
The arrest stemmed from a federal complaint signed by Judge Jerome T. Kearney.
"Today Sergeant Kelvin Hendrix of the Pulaski County Sheriff’s Office was arrested on a federal criminal complaint for mail fraud," Thyer said. "As alleged in the complaint, Sergeant Hendrix was using his position with the Sheriff’s Office to purchase firearms, which were ultimately paid for by Pulaski County," "As soon as Sergeant Hendrix’s scheme was discovered, Sheriff Doc Holladay immediately notified the FBI and turned much of the investigation over to them.
"While it is disheartening to learn that a 25-year veteran of the Sheriff’s Office would violate the public’s trust in such a manner, it is reassuring to know that Sheriff Holladay and the other good men and women of the Pulaski County Sheriff’s Office will treat one of their own in the same manner they would treat any other person alleged to be involved in criminal activity," concluded Thyer.
"The initial allegation was brought to my attention." Holladay said. "The information was given to the Federal Bureau of Investigation due to the nature of the investigation."
The FBI discovered that, as part of their mail fraud scheme, Hendrix and Gann stole funds allocated by the Pulaski County Sheriff’s Office for the purchase of employee uniforms and used those stolen funds to purchase firearms from Cruse. Between July 2015 and April 2016, Hendrix and Gann used this scheme to purchase at least 25 firearms.
The charge of mail fraud carries a statutory penalty of not more than 20 years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release. The criminal complaint contains only allegations. A federal Grand Jury will decide whether to indict on these charges. Hendrix and Gann are presumed innocent until proven guilty.
This case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Benecia B. Moore.
Prior Felon from Roswell Pleads Guilty to Violating Federal Narcotics and Firearms LawsRead the Press Release
ALBUQUERQUE – Javier Madrid, 28, of Roswell, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to violating the federal narcotics trafficking and firearms laws under a plea agreement with the U.S. Attorney’s Office.
Madrid was arrested in Nov. 2015, on a criminal complaint charging him with possession of methamphetamine, heroin and cocaine with intent to distribute and being a felon in possession of ammunition. According to the complaint, on July 31, 2015, law enforcement agents executed a federal search warrant on Madrid’s residence and vehicle in Roswell where they discovered 17 grams of methamphetamine, 25 grams of heroin, 42 grams of cocaine, $3,960 in cash, and multiple rounds of ammunition.
Madrid was subsequently indicted on Feb. 17, 2016, and charged with possession of methamphetamine, heroin and cocaine with intent to distribute and being a felon in possession of ammunition. According to the indictment, Madrid committed these crimes on July 31, 2015, in Chaves County, N.M. At the time, Madrid was prohibited from possessing firearms or ammunition because he previously had been convicted of a narcotics trafficking crime.
During today’s proceedings, Madrid pled guilty to the indictment. In entering the guilty plea, Madrid admitted that on July 31, 2015, law enforcement agents executed a search warrant at his home and seized methamphetamine, heroin and cocaine, which he intended to distribute to others. Madrid also admitted that the agents seized multiple rounds of ammunition during the search, which he was prohibited from possessing because of his prior felony convictions.
This case was investigated by the Roswell office of the FBI, the New Mexico State Police and the Roswell Police Department. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, the Albuquerque City Council, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Prescription Drug Take-Back Day to Take Place on Saturday, April 30, 2016Read the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced that the United States Attorney’s Office is proud to once again partner with local law enforcement, Roanoke Area Youth Substance Abuse Coalition (RAYSAC), the Drug Enforcement Administration and the Western Virginia Water Authority to collect expired, unused and unwanted prescription drugs for safe destruction on Saturday, April 30, from 10 a.m. to 2 p.m. at ten area locations. The public is invited to bring unused or unwanted medications to this free and anonymous event that is part of the nationwide prescription drug “Take-Back” program that seeks to prevent prescription pill abuse, theft and environmental concerns.
“Working with our law enforcement and community partners to properly collect and dispose of prescription drugs is tremendously important to all of us,” United States Attorney Fishwick said today. “I look forward to seeing our friends and neighbors this Saturday at the Berglund Center parking lot to help in this important cause.”
This is the valley’s 11th such take-back event. To date, over 17,000 pounds of prescription medications have been turned in by area citizens for proper disposal making the Roanoke-area one of the largest collection locations in the state. This Saturday there will be ten collection locations in the valley: Roanoke Civic (Berglund) Center parking lot, the Super Shoes parking lot on West Main in Salem, Kroger parking lots in Daleville, Vinton (Hardy Road), Tanglewood Mall, Bonsack, Colonial/Brambleton and Westlake as well as the Roanoke County Fire and Rescue Station #1 on Hershberger Road and the Market Street Pharmacy in Craig County. (www.dea.gov for other sites in the region)
This initiative addresses vital public safety and public health issues. Medications that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. and in the valley are increasing at alarming rates, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that ninety-percent of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In fact, the majority of commonly abused drugs by teenagers are prescription medications.
In addition, flushing medications down the drain can result in trace amounts of pharmaceuticals showing up in our nation’s waterways. This initiative offers a safe and convenient disposal option for the valley residents.
This initiative is sponsored by RAYSAC, the Western Virginia Water Authority, Prevention Council of Roanoke County, U.S. Drug Enforcement Administration, Roanoke County Police Department, Roanoke Police Department, Botetourt County Sheriff’s Department, Salem Police Department, Roanoke County Sheriff’s Department, Vinton Police Department, Roanoke Valley Academy of Medicine, the U.S. Attorney’s Office Western District of Virginia, the Virginia State Police and the VA National Guard.
By working together to provide a free, secure place to dispose of unwanted medications, the law enforcement agencies, RAYSAC and the Western Virginia Water Authority are helping prevent drug abuse, protecting our valley’s waterways and making our communities safer.
Portland Man Pleads Guilty to Additional Bank Robbery ChargesRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jimmy Odong, 26, of Portland, pleaded guilty in U.S. District Court to committing four bank robberies in Portland. The charges arise from the robberies of University Credit Union on May 14, 2015; TruChoice Federal Credit Union on May 26, 2015; and CPort Credit Union and Bank of America, both on June 19, 2015.
In the robberies, Odong was captured on bank security cameras wearing a hat or wig that partially disguised his appearance, he demanded cash from tellers, and he brandished what appeared to be a gray or black semiautomatic handgun.
On January 20, 2016, Odong pled guilty to the robbery of Key Bank in Freeport, Maine, on July 17, 2015, and awaits sentencing.
The defendant faces up to 20 years in jail and a $250,000 fine for each robbery. According to a plea agreement, Odong has agreed to be sentenced for all of the robberies to a total term of imprisonment of between 12 years and three months and 14 years. He will be sentenced after completion of a presentence investigation report prepared by the U.S. Probation Office.
The investigation was conducted by Federal Bureau of Investigation (“FBI”); the Freeport, Portland and Brunswick Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “these bank robberies were quickly solved because local, state, and federal law enforcement agencies worked closely together.”
Press AdvisoryRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian and the United States District Court for the Northern District of New York will host, Intensive Reentry Court: Recognizing Our Partners, Celebrating Our Successes, tomorrow (Thursday April 28, 2016) at 11:00 am in the Ceremonial Courtroom of the Federal Courthouse in Syracuse.
The event is part of the United States Department of Justice Reentry Week (April 24-30, 2016). Successful graduates of the Intensive Reentry Court, all former federal prisoners, will be acknowledged as will community stakeholders who have helped them in their transition from prison to become contributing members of society. A short video, "Intensive Reentry Court: Where a Second Chance Begins," will be shared.
United States Attorney Richard S. Hartunian will be available for interviews following the conclusion of the event.
No further information will be provided prior to the event.
Thursday, April 28, 2016
11:00 AM to 12:30 PM
Federal Courthouse
100 S. Clinton Street
Syracuse, New York
Ceremonial Courtroom, 3rd FloorOrange County Pilot Charged with Flying Private Jet with Passengers Onboard without Having Proper License Issued by FAARead the Press Release
LOS ANGELES – An Irvine man was arrested this morning on federal charges of illegally flying a twin-engine Falcon 10 turbojet airplane with passengers onboard without having a valid pilot’s license.
Arnold Gerald Leto III, 36, was charged in a criminal complaint filed yesterday in United States District court with operating an aircraft in air transportation without a valid airman’s certificate.
The affidavit in support of the criminal complaint alleges that Leto’s pilot’s license was revoked earlier this year, he operated the Falcon without having the required co-pilot, and he was never certified to fly this type of aircraft.
Leto is scheduled to be arraigned on the felony offense this afternoon in United States District Court.
Leto is charged will illegally flying the Falcon 10 from Van Nuys Airport to Las Vegas, Nevada, on April 8. Leto allegedly operated the aircraft with approximately eight passengers on board.
“Federal regulations governing the operation of aircraft and other common carriers are designed to protect the traveling public,” said United States Attorney Eileen M. Decker. “The investigation into Mr. Leto shows that he flagrantly violated these rules – and continued to do so after the FAA took action to take him out of the air. A swift and thorough investigation by the Department of Transportation has now improved the safety of all air travelers.”
According to the complaint, the aircraft that Leo piloted alone is a complex aircraft that requires two pilots to operate. Furthermore, Leto’s defendant’s pilot certificate – which he failed to surrender after it was revoked by the Federal Aviation Administration in January – did not have a turbojet-type rating that would authorize him to fly that airplane.
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.
The charge alleged in the complaint carries a statutory maximum penalty of three years federal prison.
This case was investigated by the Department of Transportation – Office of Inspector General, with assistance by the Federal Aviation Administration.
“This case that alleges operating an aircraft without a valid airman’s certificate is a clear signal that those who would seek to circumvent or disregard transportation-related laws and regulations will face serious repercussions,” said William Swallow, regional Special Agent-In-Charge, U.S. Department of Transportation, Office of Inspector General. “Our agents will continue to work with federal, state, and local authorities to ensure safety for the traveling public.”
Notice of Press ConferenceRead the Press Release
Contact Person: Lt. Curtis Wilson Office (803) 576-1429, Cell (803) 309-1624
COLUMBIA, SOUTH CAROLINA – Assistant Special Agent in Charge Robert Murphy, United States Drug Enforcement Administration, and Sheriff Leon Lott, Richland County Sheriff’s Office, will hold a press conference at 11:00 a.m., Thursday, April 28, 2016 at the Richland County Sheriff’s Office to discuss the 2016 Drug Takeback.
WHEN: Thursday, April 28, 2016 TIME: 11:00 am WHERE: Richland County Sheriff's Office
5623 Two Notch Road, Columbia, SC NOTE: All media should be in place 20 minutes prior to start.####
New York man pleads guilty to Federal heroin crimeRead the Press Release
BECKLEY, W.Va. – A New York man pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Nicholas Thomas Novak, 32, of Brentwood, New York, entered his guilty plea to possession with intent to distribute heroin.
Novak admitted that on September 22, 2015, he possessed about 150 stamps or packets of heroin at a residence in Frankford in Greenbrier County. Novak further admitted that he brought the heroin to Greenbrier County for distribution.
Novak faces up to 20 years in federal prison when he is sentenced on August 17, 2016.
The investigation was conducted by the Greenbrier Valley Drug and Violent Crime Task Force. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case was prosecuted under the Greenbrier Valley Heroin and Pill Initiative, 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 prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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New York Man Sentenced to 21 Years for Heroin and Crack Cocaine TraffickingRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: The United States Attorney’s Office announced that James Winbrone, 32, of Brooklyn, New York, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 21 years in prison and six years of supervised release for possessing with intent to distribute heroin and distributing cocaine base, also known as crack cocaine. He was convicted on September 30, 2015, following a two-day bench trial.
Court records reveal that on April 10, 2014 and October 28, 2014, the defendant was involved in the distribution of heroin and crack cocaine in Lewiston. On January 14, 2015, a search warrant executed at a Lewiston apartment used by the defendant resulted in the seizure of cocaine and heroin. The defendant’s sentence was enhanced because of his leadership position and his involvement in an act of violence related to his drug trafficking, namely, the assault of a customer who owed him a drug debt.
The investigation was conducted by the Maine Drug Enforcement Agency, the Maine State Police, and the Southern Maine Gang Task Force, which is comprised of agents and officers from the Federal Bureau of Investigation; the Portland and Biddeford Police Departments; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration & Customs Enforcement’s Homeland Security Investigations; and the U.S. Drug Enforcement Administration. Assistance was also provided by the Lewiston and Auburn Police Departments and the Androscoggin County Sheriff’s Office.
New Orleans Man Charged with Possession of Stolen MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN WAYNE THOMAS, age 36, of New Orleans, was charged today in a one-count Bill of Information for possession of stolen mail.
According to the Bill of Information, on or about May 23, 2015, THOMAS was found in possession of mail matter than had been stolen, taken, embezzled and abstracted from a mail receptacle.
If convicted, THOMAS faces a maximum term of imprisonment of five years, a fine of up to $250,000, three years of supervised release following imprisonment, and a $100 special assessment.
U. S. Attorney Polite reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service and Louisiana State Police in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
New Hampshire Woman Pleads Guilty to Social Security, Food Stamp, and Wire FraudRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Bonita Kitson, 44, of Boscawen, pleaded guilty in United States District Court for the District of New Hampshire to Social Security Fraud, Making False Statements, and Wire Fraud.
Kitson received Social Security disability benefits, Food Stamps, and Aid to the Permanently and Totally Disabled for over two years prior to her marriage in October 2010. Her husband also received Social Security disability benefits and Food Stamps before they married. Applicants for each of these benefits programs must have limited income and resources in order to qualify for assistance. The income of all members of a household is considered when determining an individual’s eligibility for Food Stamps and Aid to the Permanently Disabled.
Although they each continued to receive disability benefits and Food Stamps after they wed, neither Kitson nor her husband reported their marriage or their shared residence to Social Security or to the New Hampshire Department of Health and Human Services. To the contrary, Kitson advised both agencies that she and her husband were merely friends. The marriage was not disclosed until October 2014, when Kitson advised Social Security that her husband passed away one month earlier as part of her application for a lump-sum death benefit. As a result of this concealment, Kitson and her husband fraudulently received an additional $27,654 in disability benefits and Food Stamps, and Kitson received $1,134 in Aid to the Permanently and Totally Disabled to which she was not entitled.
Kitson is scheduled to be sentenced on July 29, 2016. The statutory maximum sentence for the charges is 20 years’ imprisonment. The court will impose a sentence after it has had an opportunity to review a presentence report prepared by the United States Probation and Pretrial Services Office and consider the advisory sentencing guidelines. Kitson was released on conditions pending sentencing.
The case was investigated by the Social Security Administration’s Office of the Inspector General in conjunction with the New Hampshire Department of Health and Human Services’ Special Investigations Unit, and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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New Hampshire Woman Pleads Guilty to Social Security, Food Stamp, and Medicare FraudRead the Press Release
CONCORD, N.H. – Kim Wheeler, 46, of Allenstown, pleaded guilty in United States District Court for the District of New Hampshire to two counts of Social Security Fraud and two counts of Theft of Public Money, announced United States Attorney Emily Gray Rice.
In February 2005, Wheeler began receiving Social Security disability benefits as the representative payee for her minor child. She also received Food Stamps and Qualified Medicare Beneficiary benefits beginning in May 2010. In assessing a minor child’s eligibility for Social Security disability benefits, the income of the natural or adoptive parent with whom the child lives is considered. Similarly, the income of all members of a household is considered when determining eligibility for Food Stamps and Qualified Medicare Beneficiary benefits.
Wheeler failed to disclose that her husband and children’s father, who was employed full-time, lived with her and their children. His income would have rendered their minor child ineligible to receive any Supplemental Security Income benefits, and it would have rendered Wheeler ineligible for Food Stamps and Qualified Medicare Beneficiary benefits. Wheeler concealed her husband’s true residence from the Social Security Administration and from the New Hampshire Department of Health and Human Services, but rather, falsely reported that he did not live with her and their children. When her husband later moved out of the home and began paying child support and alimony to Wheeler, Wheeler failed to disclose this income to Social Security and to the New Hampshire Department of Health and Human Services. As a result of her concealment, Wheeler received $49,636.44 in disability benefits as her child’s representative payee, $12,372 in Food Stamps, and $5,041 in Qualified Medicare Beneficiary benefits that she would not have received if her husband’s residence and her subsequent receipt of support payments had been properly disclosed.
Wheeler is scheduled to be sentenced on August 1, 2016. The statutory maximum sentence for the charges is 10 years’ imprisonment. The court will sentence Wheeler after it has had an opportunity to review a presentence report prepared by the United States Probation and Pretrial Services Office and considers the advisory sentencing guidelines. She was released on conditions pending sentencing.
The case was investigated by the Social Security Administration’s Office of the Inspector General in conjunction with the New Hampshire Department of Health and Human Services’ Special Investigations Unit, and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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Massachusetts Man Pleads Guilty to Gun ChargesRead the Press Release
CONCORD, N.H. – John Wachaga, 22, of Lowell, Massachusetts, has entered a guilty plea in the United States District Court for the District of New Hampshire to one count of aiding and abetting the making of a material false statement in connection with the acquisition of a firearm, and one count of possessing a firearm as a convicted felon, announced United States Attorney Emily Gray Rice.
On May 4, 2014, officers from the Lowell, Massachusetts Police Department stopped a vehicle being driven by Wachaga. During the stop, officers seized a handgun from underneath Wachaga’s seat. Upon further investigation, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) learned that Wachaga had used another individual to purchase the firearm for him in New Hampshire, because a prior felony conviction precluded him from doing so on his own.
The statutory maximum penalty for the charges to which Wachaga pleaded guilty is ten years’ imprisonment and a fine of up to $250,000. Wachaga is scheduled for sentencing in August 2016. The court will sentence Wachaga after it has had the opportunity to review a presentence investigation report prepared by the United States Probation and Pretrial Services Office and considers the federal advisory sentencing guideline for the charges.
This prosecution arose from an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms (Boston and New Hampshire), in conjunction with the Lowell, Massachusetts Police Department. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
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Marrero Woman Pleads Guilty to Cocaine ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SABRINA BOURGEOIS of Marrero, age 34, pled guilty today to conspiracy to distribute and possess with intent to distribute 500 grams or more of powder cocaine.
According to court documents, BOURGEOIS was arrested on February 8, 2015, after traveling from Houston to New Orleans, carrying four kilograms of powder cocaine in the back-seat of her truck. As part of her plea agreement, BOURGEOIS admitted that she had made frequent trips between Houston and New Orleans, carrying money and multiple kilograms of cocaine hydrochloride, in furtherance of her drug conspiracy with her codefendant, SHANNON DUPLESSIS.
BOURGEOIS faces a mandatory minimum sentence of five years in prison, a maximum possible sentence of forty years in prison and/or a $5,000,000 fine, and at least four years of supervised release. U.S. District Judge Sarah S. Vance set sentencing for August 10, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Plaquemines Parish Sheriff’s Office, and the Houston Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is responsible for the prosecution.
Manager of Clothing Factory Found Guilty of Offering Bribe to Federal Labor Investigator in Exchange for Closing Wage InvestigationRead the Press Release
LOS ANGELES – The general manager of a La Puente garment factory has been found guilty of federal charges of offering to pay bribes to an investigator with the United States Department of Labor in exchange for the investigator closing an investigation into wage violations.
Howard Quoc Trinh, 42, of Arcadia, the manager of Seven-Bros. Enterprises, was convicted late Tuesday by a federal jury. The jury returned guilty verdicts on two counts of bribery after prosecutors presented evidence that Trinh offered to pay $10,000 in bribe, and actually paid $3,000 to a Department of Labor Wage and Hour investigator. As part of the bribery scheme, Trinh promised to pay the balance when the investigation was closed.
“Companies and their managers victimizing their own employees through wage violations cannot perpetuate their conduct through bribes,” said United States Attorney Eileen M. Decker. “This jury verdict strikes a blow against both corruption and the exploitation of workers.”
The Labor Department investigator was investigating Seven-Bros. for violating the Fair Labor Standards Act (FLSA), which sets standards for minimum wage and overtime pay. The Wage and Hour investigator led a team that conducted an unannounced visit to Seven-Bros on March 10, 2015. The investigation into wage violations covered a period from May 2012 through March 10, 2015, and found that Seven-Bros owed approximately $100,000 to compensate employees for FLSA violations over that period. As part of the investigation, the Labor Department issued a “hot goods” Notice to Restrain the Shipment of Goods, which prevented the company from shipping certain inventory until the back wages were paid to employees.
The investigator returned to Seven-Bros on March 18, at which time Trinh said he did not owe his employees any back wages and that he wanted to “take care” of the investigator. In response to Trinh’s statements, the Labor Department’s Office of Investigator General (OIG) initiated an investigation and outfitted the investigator with recording equipment. On the evening of March 18, during a recorded meeting, Trinh offered the investigator $10,000 to close out the investigation without finding any violations and to lift the Hot Goods objection.
The next day, during another recorded meeting, Trinh gave the investigator an initial payment of $3,000 in an unmarked manila envelope. On March 20, Trinh was arrested.
Trinh was convicted late yesterday after the jury deliberated for less than one hour. As a result of today’s convictions, Trinh faces a statutory maximum sentence of 30 years in federal prison. United States District Judge Christina A. Snyder, who presided over the trial, has yet to schedule a sentencing date.
The investigation in this case was conducted by the United States Department of Labor, Office of Investigator General, Office of Labor Racketeering and Fraud Investigations.
“Today’s jury verdict sends a strong message that those who attempt to bribe public officials will be held responsible for their serious crimes,” stated Abel Salinas, Special Agent in Charge of the Los Angeles Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. “The Office of Inspector General will continue to vigorously pursue those who endeavor to obstruct the Labor Department’s enforcement of worker protection laws by illegal means.”
Ruben Rosales, the Regional Administrator for the Labor Department’s Wage and Hour Division in San Francisco, said: “We will not tolerate this type of behavior from anyone. We are very pleased that the collaboration between the Office of the Inspector General and the Division has resulted in a criminal conviction. Any employer who attempts to bribe any of our labor investigators will face consequences.”
Louisiana Man Charged in $2 Million Nationwide Advertising Scheme to Defraud RealtorsRead the Press Release
PITTSBURGH - A Louisiana resident has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, United States Attorney David J. Hickton announced today.
The 11-count indictment named Rex Alan Harris, aka Michael Harris, Rex Rogan, Rex Alan, dba “Agents By City,” 40, of Covington, La., as a defendant. The indictment was returned on April 19, and unsealed yesterday following Harris’ arrest in Louisiana. His arraignment is scheduled for May 23, 2016, in U.S. District Court in Western Pennsylvania.
According to the indictment, since 2008, Harris defrauded hundreds of realtors nationwide whom he promised television and internet advertising to generate home sales. Realtors were induced to pay thousands of dollars for advertising on major television networks based upon the realtors’ zip codes. However, the advertising never occurred, and Harris and others spent the money for their personal benefit including purchases of tens of thousands of dollars in merchandise through PayPal, Footlocker and Nike.com, and New Orleans Saints season tickets, totaling in excess of $2 million.
Realtors who paid money to any of the following entities - “Our Family First Realty,” “Better Realty Deals,” “Amazing Realty Deals,” “The Top Agent/Monolith Media Group,” “American Real Estate Idols” or “Agents by City” - may be victims and are encouraged to call the Federal Bureau of Investigation (FBI) hotline at 1-800-CALL-FBI or 1-800-2255-324.
The law provides for a total sentence of 20 years in prison and a fine of $250,000 at each count or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service and the FBI conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Louisiana Man Charged in $2 Million Nationwide Advertising Scheme to Defraud RealtorsRead the Press Release
A Louisiana resident has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, U.S. Attorney David J. Hickton for the Western District of Pennsylvania announced today.
The 11-count indictment named Rex Alan Harris aka Michael Harris, Rex Rogan, Rex Alan, dba “Agents By City,” 40, of Covington, Louisiana. The indictment was returned on April 19, and unsealed yesterday following Harris’ arrest in Louisiana. His arraignment is scheduled for May 23, in U.S. District Court in Western Pennsylvania.
According to the indictment, since 2008, Harris defrauded hundreds of realtors nationwide whom he promised television and internet advertising to generate home sales. Realtors were induced to pay thousands of dollars for advertising on major television networks based upon the realtors’ zip codes. However, the advertising never occurred and Harris and others spent the money for their personal benefit including purchases of tens of thousands of dollars in merchandise through PayPal, Footlocker and Nike.com and New Orleans Saints season tickets, totaling in excess of $2 million.
Realtors who paid money to any of the following entities - “Our Family First Realty,” “Better Realty Deals,” “Amazing Realty Deals,” “The Top Agent/Monolith Media Group,” “American Real Estate Idols” or “Agents by City” - may be victims and are encouraged to call the Federal Bureau of Investigation’s (FBI) hotline at 1-800-CALL-FBI or 1-800-2255-324.
The law provides for a total sentence of 20 years in prison and a fine of $250,000 at each count or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant U.S. Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The U.S. Postal Inspection Service and the FBI conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lame Deer Man Convicted of Assault and StrangulationRead the Press Release
BILLINGS – Leon Seminole, 58, of Lame Deer, was convicted of assault and strangulation for punching and attempting to strangle a female victim. Seminole was convicted yesterday by a Billings jury following a two-day trial. U.S. District Court Judge Susan Watters presided over the trial. Sentencing has been set for August 31, 2016.
In documents filed with the Court, The United States Attorney’s Office outlined the proof presented at trial. On August 17, 2014, Seminole punched, kicked, and attempted to strangle the victim. The victim was able to escape from Seminole. After the assault, one of the victim’s family members attempted to confront Seminole, but Seminole had a gun in his hand and the family member retreated.
Witnesses testified that the victim’s face was red and swollen and she looked like she had been beaten up. Medical evidence presented at trial documented that the victim had suffered multiple contusions to her head and face. Both eyes were swollen and one was swollen shut. The victim had a broken tooth, which she said had been broken as she struggled with Seminole. Photos taken by the BIA officer present when the victim was seen at Indian Health Services showed substantial swelling and various other injuries.
This case was investigated by the Bureau of Indian Affairs and prosecuted by the United States Attorney’s Office.
Justice Department Seeks to Shut Down Alabama Tax Return PreparerRead the Press Release
Preparer Allegedly Fabricates Businesses Losses, Claims Fraudulent Credits In Order to Understate Her Customers’ Tax or Overstate their Refunds
A number of tax return preparation businesses in the Birmingham, Alabama area unlawfully understate their customers’ income tax liabilities and overstate refunds by making deliberate misstatements on the returns, according to a new civil lawsuit filed by the Justice Department today. The suit, filed in federal court in Birmingham, asks the court to permanently bar Jessica Leverett aka Jessica Harris, from preparing tax returns for others. The suit also asks the court to order Leverett to turn over a list of all of the tax returns she has prepared.
According to the complaint, Leverett owns and operates a number of different tax preparation businesses in the area, including Tax Money Now, L.L.C., Dynamic Tax Services, Dynamic Tax Solutions and Express Money Tax. The government’s complaint alleges that Leverett and her associates prepared returns that fabricate self-employment businesses and business losses to offset their customers’ taxable income from other sources and to increase their customers’ Earned Income Tax Credit. When a customer does have a small business, the complaint alleges, Leverett and her associates mischaracterize the business income as household employee wages in order to avoid paying the required self-employment tax. The complaint also alleges that Leverett’s businesses claim education credits that the customers are not entitled to receive.
According to the complaint, the Internal Revenue Service (IRS) has examined 264 returns prepared by Leverett’s businesses and found that 206 understate the tax owed by Leverett’s customers by thousands of dollars on average. The complaint alleges that Leverett’s activities may have caused the United States to lose over $2.5 million in understated taxes and/or fraudulent refunds.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Seeks to Shut Down Alabama Tax Return PreparerRead the Press Release
A number of tax return preparation businesses in the Birmingham, Alabama area unlawfully understate their customers’ income tax liabilities and overstate refunds by making deliberate misstatements on the returns, according to a new civil lawsuit filed by the Justice Department today. The suit, filed in federal court in Birmingham, asks the court to permanently bar Jessica Leverett aka Jessica Harris, from preparing tax returns for others. The suit also asks the court to order Leverett to turn over a list of all of the tax returns she has prepared.
According to the complaint, Leverett owns and operates a number of different tax preparation businesses in the area, including Tax Money Now, L.L.C., Dynamic Tax Services, Dynamic Tax Solutions and Express Money Tax. The government’s complaint alleges that Leverett and her associates prepared returns that fabricate self-employment businesses and business losses to offset their customers’ taxable income from other sources and to increase their customers’ Earned Income Tax Credit. When a customer does have a small business, the complaint alleges, Leverett and her associates mischaracterize the business income as household employee wages in order to avoid paying the required self-employment tax. The complaint also alleges that Leverett’s businesses claim education credits that the customers are not entitled to receive.
According to the complaint, the Internal Revenue Service (IRS) has examined 264 returns prepared by Leverett’s businesses and found that 206 understate the tax owed by Leverett’s customers by thousands of dollars on average. The complaint alleges that Leverett’s activities may have caused the United States to lose over $2.5 million in understated taxes and/or fraudulent refunds.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Reminds Employers of Their Employment Tax ResponsibilitiesRead the Press Release
Civil and Criminal Enforcement Actions Are Taken Against Employers and Individuals Who Violate Employment Tax Laws
With the first quarterly employment tax returns of 2016 due April 30, the Justice Department reminds employers that they have a legal responsibility to collect and pay over to the Internal Revenue Service (IRS) taxes withheld from their employees’ wages. For employers and other responsible persons who fail to withhold, report, and pay employment taxes to the IRS, the Department is committed to enforcing federal employment tax laws through both civil litigation and criminal prosecutions.
Employers Must Comply with Employment Tax Laws
Employers in the United States are required to collect, account for, and pay over to the IRS tax withheld from employee wages, including federal income tax and taxes under the Federal Insurance Contributions Act (FICA), including old-age, survivors, and disability insurance taxes, also known as social security taxes, and the hospital insurance tax, also known as Medicare taxes. Employers also have an independent responsibility to pay their matching portion of social security and Medicare taxes.
Tax withheld from employee wages accounts for approximately 70 percent of annual revenue collected by the IRS. When last measured, underreported and unpaid employment taxes represented approximately $72 billion of the overall tax gap in the United States. As of September 2015, more than $59 billion of tax reported on employment tax returns remained unpaid.
“Employers who comply with our nation’s tax laws are entitled to a level playing field,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Those individuals and entities that fail to withhold employment tax, or withhold and fail to pay employment taxes over to the IRS, not only steal from their employees and the U.S. Treasury, but gain an unfair competitive advantage over businesses down the street and across the country. The Department and its colleagues in the IRS have increased their efforts in this area, and are holding delinquent employers accountable.”
“Fairness in the employment tax arena is an important part of the nation’s tax system,” said IRS Commissioner John Koskinen. “The IRS is committed to working with the Justice Department to protect this important area, and there’s a long list of efforts we’ve taken in both civil and criminal investigation areas when employers try to evade their legal responsibilities and, in the process, gain an advantage over their competitors who are honoring their legal responsibilities. In addition, the IRS is taking new steps to identify and contact employers falling behind on their payments before they file their tax returns, offering to assist them earlier in the process to head off steeper interest and penalty charges. This effort not only provides an important service, it could help prevent the need for future enforcement activity.”
Willful Failure to Comply with Federal Employment Tax Laws is a Crime
An individual’s failure to comply with employment-tax obligations is not simply a civil matter. Employers who view amounts withheld from employee wages as a personal slush fund, treat withheld employment taxes as a loan from the government that can be repaid if and when they see fit, or whose business model is based on a continued failure to pay employment tax, are engaging in criminal conduct and face prosecution, imprisonment, monetary fines and restitution. According to statistics provided by IRS Criminal Investigation, in the 2015 fiscal year, individuals convicted of employment tax crimes were sentenced to an average of 24 months in prison. Recent prosecutions include:
- Employers using employment taxes for personal expenses
In March 2016, Larry C. Thornton, the owner, president, and chief executive of a Tennessee-based check-processing company and a credit-card processing company, pleaded guilty to failing to pay more than $6.8 million in employment taxes. Thornton admitted that he was responsible for collecting, accounting for and paying over to the IRS the employment taxes withheld from the wages of his companies’ employees, but from the second quarter of 2007 until at least the second quarter of 2011, Thornton caused the companies to stop paying over the taxes required to be withheld from the companies’ employees’ paychecks and caused the companies to stop timely filing Employer’s Quarterly Federal Tax Returns (Forms 941) with the IRS. During the years that Thornton failed to comply with his employment tax obligations, he spent over $6.2 million on personal expenses, including house and condominium payments; vehicle, yacht, and motorcycle loan payments; personal travel; and start-up funding for his wife’s beauty boutique. As part of his guilty plea, Thornton admitted that his fraudulent conduct caused a tax loss of more than $8.9 million, and agreed to pay restitution of more than $10 million.
In June 2015, Wilbur Anthony Huff, a Kentucky man who controlled a professional employer organization (PEO) located in Tampa, Florida, was sentenced to 12 years in prison for both committing various tax crimes that caused more than $50 million in losses to the IRS and engaging in a massive fraud scheme. The PEO was paid to manage the payroll and tax and workers’ compensation insurance obligations of its client companies. However, instead of paying the $53 million in taxes that the PEO’s clients paid to the PEO and owed the IRS, Huff stole the money, diverting millions of dollars to fund his investments in unrelated business ventures and paid his family members’ personal expenses, including mortgages on Huff’s homes, rent payments for his children’s apartments, staff and equipment for Huff’s farm, and designer clothing, jewelry, and luxury cars. The court also ordered Huff to pay more than $108 million in restitution.
- Employers using employment taxes to pay other creditors
In July 2015, Maria Elizabeth Townsend, the president and majority shareholder of a Washington-based electrical contractor was sentenced to 40 months in prison and ordered to pay $3.3 million in restitution to the IRS for failing to pay over employment taxes to the IRS. For 16 quarters between 2005 and 2009, Townsend withheld over $3 million in employment taxes but failed to pay those taxes to the IRS. Instead, between April 2007 and September 2009, Townsend authorized the disbursement of over $31 million in company funds to pay the company’s vendors and employees, a large dividend to one of her partners, $300,000 toward payment of her joint personal income tax obligations, more than $260,000 to family members, and personal expenses including constructing a pool at her residence, and buying a boat and personal vehicles.
- Employers paying employees in cash to avoid employment tax
In April 2016, Kyle Archie, the owner of several Reno, Nevada landscaping and rock hauling businesses pleaded guilty to one count of failure to pay over employment taxes. Archie admitted that, although he collected these taxes from his employees’ wages and held them in trust, he failed to pay over the employment taxes to the IRS. In documents filed with the court, the government alleged that Archie paid employees’ overtime wages in cash to avoid employment tax obligations. While failing to pay employment tax due, Archie used available funds to build a house, purchase motor vehicles and personal watercraft, and travel. Linda Archie, Kyle’s mother and the bookkeeper for the businesses, pleaded guilty to one count of willful failure to file a tax return, admitting that between 2003 and 2009, she failed to file Employer’s Quarterly Federal Tax Returns (Forms 941) on behalf of these businesses to account for the taxes that were withheld from the employees’ wages. The Archies stipulated that the tax loss caused by their crimes exceeded $545,000. They are scheduled to be sentenced on August 15.
In July 2015, Eric Anderson, the owner of three New York construction companies, was sentenced to serve 18 months in prison and was ordered to pay more than $1 million in restitution. Anderson used a commercial check cashing service to cash more than $10.5 million in checks paid to his construction companies and used a portion of the cash to pay his employees “under the table,” while failing to collect and pay over employment taxes to the IRS.
- Employers filing false employment tax returns
In October 2015, James Pielsticker, former chief executive officer and president of Arrow Trucking Company, was sentenced to serve 7 ½ years in prison and ordered to pay $21 million in restitution for conspiring to defraud the United States and to commit bank fraud, and for attempting to evade his individual income taxes. Pielsticker, his chief financial officer, James Moore, and others withheld employment tax from Arrow’s employees’ wages but did not report or pay over the tax to the IRS, despite knowing they were required to do so. The conspirators paid Pielsticker’s personal expenses and submitted fraudulent invoices to induce a bank to pay unwarranted funds. After cooperating with the government and testifying against Pielsticker, Moore was sentenced to 35 months in prison.
In July 2015, Happy Asker, the president, founder, and public face of the Happy’s Pizza franchise, a chain based in Farmington Hills, Michigan, was sentenced to 50 months in prison and ordered to pay $2.5 million in restitution to the IRS. Evidence at trial established that from 2004 through 2011, Asker, along with others, executed a systematic and pervasive scheme to defraud the IRS. Gross sales and payroll amounts were substantially underreported on numerous corporate income tax returns and payroll tax returns filed for nearly all 60 Happy’s Pizza franchise locations. From 2008 to 2010, Asker and his co-conspirators diverted for personal use more than $6.1 million in cash gross receipts from approximately 35 different Happy’s Pizza stores in the Detroit area, Illinois and Ohio. In total, Asker and certain employees and franchise owners failed to report to the IRS approximately $3.84 million of gross income and approximately $2.39 million in payroll taxes from the various Happy’s Pizza franchises.
Delinquent Employers also face Civil Litigation and Injunctions
Employers that ignore their employment tax obligations will face civil enforcement efforts, including federal lawsuits to enjoin noncompliance, ensure future compliance, and collect amounts due.
In the last year, federal courts have entered permanent injunctions against delinquent employers across the country, requiring the timely deposit of payroll taxes and filing of employment tax returns, notice to the IRS that the requisite deposits have been made and notice to the IRS if the employer, or someone working at the employer’s behest, begins operating a new business. The injunctions also preclude defendants from assigning property or making payments to other creditors until the employment tax obligations accruing after the date of the injunction are paid. Injunctions have been entered against a Los Angeles County pizza parlor and its owner, a Washington-based dentist, the owner of a Delaware donut shop, a South Carolina trucking company, and a Baltimore-area marble and granite importer, just to name a few. Since Jan. 1, the Department has filed 16 complaints and obtained 10 permanent injunctions against delinquent employers, and additional actions are forthcoming.
When individuals and entities subject to these injunctions knowingly violate the terms of the injunction, the Tax Division stands ready to seek orders of civil or criminal contempt, including incarceration, to bring the defendants into compliance.
Liability Extends to Responsible Individuals
Any individual who is responsible for ensuring that employment taxes are collected, accounted for, and paid over to the IRS, and willfully fails to do so may be subject to a civil penalty equal to the amount of the unpaid withholdings. This civil penalty, referred to as the trust fund recovery penalty, may be imposed even if the individual uses the employment tax to pay other creditors or keep the business afloat. Individuals subject to these penalties include, but are not limited to, bookkeepers, managers, treasurers, and corporate officers. The Department assists the IRS to defend challenges to trust fund recovery penalty assessments, and to ensure that such assessments are collected.
In August 2015, a federal court in Michigan held that Eric Kus and Roger Byrne, the chairman and the president of an automobile interior trim manufacturer, were liable for unpaid employment taxes even though they did not know that the taxes were unpaid. The court found that they “recklessly disregarded known risks” that the employment taxes would not be paid because they relied on the company’s controller, who they knew had previously failed to pay employment taxes when they were due.
In July 2015, the Court of Federal Claims ruled that Douglas Waterhouse, a vice president and partial owner of a California glass design and installation company, was individually liable for unpaid employment tax based on his authority, and therefore responsibility, over the company’s finances, even though he was not involved in day-to-day operations. The court found that Waterhouse acted willfully because, despite knowledge of the outstanding employment tax liabilities, he chose to continue operating the business and sought payments for vendors and employees instead of the IRS.
“The American taxpayer should not be forced to subsidize businesses that refuse to comply with the tax laws,” said Acting Assistant Attorney General Ciraolo. “The Justice Department and the IRS will continue to identify, investigate, and hold accountable those individuals and businesses that willfully evade their employment tax obligations.”
For more information about civil and criminal employment tax enforcement efforts, visit the Tax Division’s website.
Jury Delivers Guilty Verdicts in Fraud Scheme to Secure Bailout FundsRead the Press Release
PHILADELPHIA – A federal jury today returned verdicts of guilty against Brian Hartline, 51, of Collegeville, PA, and Barry Bekkedam, 48, of Hobe Sound, FL, in a fraud conspiracy involving NOVA Bank. Hartline had served as President and Chief Executive Officer of the bank and Bekkedam had served as Board Chairman. Their scheme involved the Troubled Asset Relief Program (TARP) and was devised to defraud the government of more than $13 million. Both defendants were found guilty of conspiracy to defraud the United States, TARP fraud, and two counts of false statements to the federal government. U.S. District Court Judge C. Darnell Jones scheduled a sentencing date for July 21, 2016.
Bekkedam and Hartline, with others, formed NOVA Bank in 2002. Bekkedam also owned and operated a financial advisory company, Ballamor Capital Management, and advised Ballamor clients to invest in NOVA. But in 2008, NOVA faced risk of failure because of bad loans and investments. In October 2008, NOVA Financial Holdings, Inc., of Berwyn, Penn., the parent company of NOVA Bank, applied for approximately $13.5 million through the U.S. Department of the Treasury Troubled Asset Relief Program. In June 2009, NOVA Bank was approved to receive the TARP funds on the condition that the bank raised $15 million in additional, private capital.
Bekkedam and Hartline devised a scheme to make NOVA bank appear more financially sound than it was – that new money was being inevested in the bank. As part of the scheme, the defendants arranged for NOVA Bank to loan money to G.L., a Florida businessman, for G.L. to transfer to NOVA’s parent company so it would appear as though the bank had new capital from an outside investor. In fact, the “new money” investment was the bank’s own money.
On June 30, 2009, NOVA wired $5 million to G.L.’s bank account in Florida and, approximately two hours later, G.L. wired $5 million to an account used for investments in NOVA Financial Holdings, Inc. In October and December 2009, Bekkedam and Hartline convinced two others to make similar “investments” using loans from NOVA, in efforts to make NOVA appear more financially sound than it actually was. The defendants also told and directed employees to tell the U.S. Department of Treasury that NOVA had raised new capital when it had not. The defendants concealed the true purpose of the loan to G.L. and falsely stated the purposes of the other two loans.
The bank ultimately did not receive TARP funds and in October 2012, the bank failed and was closed by state and federal banking regulators.
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service Criminal Investigations, the Federal Deposit Insurance Corporation Office of Inspector General, the Office of Inspector General of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. It is being prosecuted by Assistant United States Attorneys David Ignall and Jennifer Barry.
Jury Convicts Belleville Man of Producing Child PornographyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced that late Tuesday morning, a federal jury in East St. Louis found Joseph E. Suggs, 41, of Belleville, Illinois, guilty of two counts of production of child pornography and one count of attempted production of child pornography.
Evidence at trial showed that on June 6, 2014, Suggs approached two juveniles, aged 13 and 16, in Bellevue Park and offered them money in exchange for nude photographs. Defendant was arrested by the Belleville Police Department. During a forensic examination of the camera he possessed at the time of his arrest, photos of the 16 year old juvenile’s genitalia were found. Sentencing has been scheduled for September 8, 2016 in front of the Chief Judge Michael J. Reagan. Suggs faces a minimum sentence of fifteen years in federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The investigation into this crime was conducted by the Belleville Police Department and the United States Secret Service Criminal Investigative Division. The case was prosecuted by Assistant United States Attorneys Laura Reppert and Angi Scott.
Johnstown Man Admits Distributing CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distribution of cocaine, United States Attorney David J. Hickton announced today.
Dorian D. Stephens, 29, of Johnstown, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Nov. 18, 2014, Stephens distributed less than 500 grams of cocaine.
Judge Gibson scheduled sentencing for Aug. 25, 2016, at 10 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Stephens.
Jacksonville Sex Offender Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced William Roland Baker (65, Jacksonville) to 10 years in federal prison for possessing child pornography. Baker was also sentenced to a term of 10 years of supervised release and ordered to pay $3,000 in restitution to two victims of his offenses. A federal jury found Baker guilty in November 2015. Baker is a registered child sex offender who was previously convicted of lewd and lascivious conduct with a child on November 22, 1995.
According to evidence presented during trial, in early 2013, an agent with the Florida Department of Law Enforcement was able to download several images and a video of child pornography over the Internet from a computer using an Internet Protocol address that was traced back to Baker’s Jacksonville residence. On May 29, 2013, a federal search warrant was executed at this residence, and law enforcement seized two laptop computers from Baker’s bedroom. A forensic examiner was able to recover images of child pornography from Baker’s computers, even though Baker had used an eraser program on the evening before the search. During an interview, Baker claimed that he did not download child pornography. However, a forensic analysis of his laptop computer showed that he had used particular terms to search for child pornography in a file sharing program. Baker’s computers contained at least 338 images depicting the sexual abuse of young children.
This case was investigated by the Florida Department of Law Enforcement and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
JFK Airport Cargo Handlers Arrested in Scheme to Steal Foreign Currency from Mail Carried on International FlightsRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging five former employees of Aircraft Service International Group (ASIG) at Terminal One of John F. Kennedy International Airport (JFK Airport), with conspiracy to steal United States Mail. Rickash Gobin, Fitzroy Ragbeer, Franklin Beresford, Pedro Lopez, Jr., and Nick Sadler, also known as “Nickeya Sadler” and “Nicky Sadler,” were arrested earlier today and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Vera M. Scanlon at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Phillip R. Bartlett, Postal Inspector in Charge of the United States Postal Inspection Service’s New York Field Office.
As detailed in the criminal complaint, in a conspiracy spanning over four years, former ASIG cargo handlers Ragbeer, Beresford, Lopez, Jr., and Sadler agreed to steal mail from international flights arriving at and departing from Terminal One of JFK Airport, including Japan Airlines, Austrian Airlines, and LOT Polish Airlines flights. The cargo handlers targeted mail they believed to contain foreign currency, including Japanese Yen and Euros, and then exchanged the foreign currency at currency exchange businesses at JFK Airport, and at other financial institutions.
Gobin, a former manager for ASIG, allegedly not only failed to stop the theft of mail, but actively promoted it by assigning cargo handlers to flights where they could steal mail and demanding kickbacks of stolen currency in exchange.
“As charged, these cargo handlers abused their access to sensitive areas of JFK Airport to steal foreign currency from the mail and were aided by a manager who actively promoted their criminal conduct,” stated United States Attorney Capers. “Today’s arrests will serve as a warning that federal law enforcement authorities are committed to protecting the integrity of the mail and will hold accountable those that steal mail or attempt to profit from the theft of mail.”
“These defendants and their supervisor were entrusted with the security of the mail. They abused that trust when they stole foreign currency from the mail, violating the sanctity of the seal. Postal Inspectors and their law enforcement partners vigorously investigate and bring to justice those who steal US Mail,” stated Postal Inspector in Charge Bartlett.
Previously, on August 18, 2015, postal inspectors arrested six other defendants, including three former ASIG cargo handlers at Terminal One of JFK Airport, on charges that they conspired to steal from the mail and launder foreign currency. The case against those six defendants, captioned United States v. Janvier, et al., Docket No. 15-CR-461 (ARR), is pending before United States District Judge Allyne R. Ross.
The charges in the complaints are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Ian C. Richardson.
The Defendants:
RICKASH GOBIN
Age: 41
Queens, New YorkFITZROY RAGBEER
Age: 58
Inwood, New YorkFRANKLIN BERESFORD
Age: 26
Brooklyn, New YorkPEDRO LOPEZ, JR.
Age: 34
Brooklyn, New YorkNICK SADLER, also known as “Nickeya Sadler” and “Nicky Sadler”
Age: 35
Rockaway Park, New YorkE.D.N.Y. Docket No. 16-M-392
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARCELO ORDONEZ-RIVAS, age 34, a citizen of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Ivan L.R. Lemelle sentenced ORDONEZ-RIVAS to time served, one year of supervised release, and a $100 special assessment. ORDONEZ-RIVAS will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, ORDONEZ-RIVAS was found in the United States on December 25, 2014, after having been previously deported on May 9, 2009.
U.S. Attorney Polite praised the work of the United States Customs and Border Protection in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Hitachi Chemical Co. Ltd. to Plead Guilty for Fixing Price of Electrolytic CapacitorsRead the Press Release
Second Company to Plead Guilty in Ongoing Investigation
Hitachi Chemical Co. Ltd. will plead guilty for conspiring with competitors between 2002 and 2010 to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.
“Hitachi Chemical subsidiaries and co-conspirators fixed the prices of capacitors, a fundamental component of widely used electronic products,” said Deputy Assistant Attorney General Brent Snyder. “This is the second guilty plea in this investigation, and we will continue to pursue companies and individuals that conspire to undermine competition for technology components of all shapes and sizes.”
“We will not tolerate the behavior of companies or individuals who attempt to profit unfairly from business practices that ultimately hurt our economy and the consumer,” said Acting Special Agent in Charge Bertram Fairries of the FBI’s San Francisco Division. “We will pursue and bring to justice those who commit these types of crimes.”
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.
The one-count felony charge was filed today in the U.S. District Court of the Northern District of California in San Francisco. In addition to pleading guilty to that charge and paying a criminal fine, Tokyo-based Hitachi Chemical has agreed to cooperate in the department’s ongoing investigation. The plea agreement is subject to court approval.
On Jan. 21, 2016, NEC TOKIN Corp. pleaded guilty to participating in the same worldwide conspiracy from 2002 to 2013 and was sentenced to pay a fine of $13.8 million. On March 12, 2015, a grand jury indicted Takuro Isawa, a former Global Sales General Manager for one of the capacitor manufacturers, for his participation in the conspiracy.
The charge today results from a federal antitrust investigation being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry. Anyone with information related to the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Hartford Man Guilty of Witness Tampering Offenses Related to 2010 Murder, Planning of Second MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal jury in Hartford today found DOMINIQUE MACK, also known as “Lil Sweets,” 26, of Hartford, guilty of conspiring to commit witness tampering by murdering one individual and planning to murder a second individual. The trial before U.S. District Judge Michael P. Shea began on April 11.
“Together with our law state and local enforcement partners, we are committed to using the full weight of federal law to prosecute those individuals most responsible for violence in our inner cities,” stated U.S. Attorney Daly. “In an attempt to prevent his own apprehension, this defendant shot and killed Ian Francis. He then plotted to kill a second individual who he feared might be a witness against him. This was a particularly difficult prosecution that was superbly investigated. I commend the excellent work of our trial team, the FBI, the Northern Connecticut Violent Crimes Task Force, and the Hartford Police Department’s Major Crimes Division.”
According to the evidence at trial, on December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford. Francis succumbed to his injuries on January 15, 2011. At the time, MACK, who had been charged as part of a multi-defendant federal drug conspiracy, was hiding out in an attempt to evade arrest. On June 15, 2011, law enforcement arrested MACK at an apartment on Vine Street in Hartford. A search of the apartment revealed a Ruger 9 millimeter semi-automatic pistol, which was subsequently determined to be the firearm that was used to murder Francis.
The investigation revealed that MACK conspired with Keronn Miller and others to murder Francis to prevent Francis from providing information to law enforcement about MACK’s whereabouts. Miller had lured Francis to the location on Sigourney Street knowing that the plan was to murder Francis when he arrived there.
On December 4, 2014, Miller, also known as “Fresh,” 25, of Hartford, pleaded guilty to aiding and abetting in the murder of Francis. He awaits sentencing.
Shortly after Miller’s guilty plea, the government received information about a plot to kill a witness for MACK’s upcoming trial. Tyquan Lucien, also known as “TQ” and “Frogger,” who had been arrested as part of this investigation and was incarcerated with MACK at a detention facility in Rhode Island, had told another inmate about a plan by Lucien and MACK to kill an individual who had been identified as a government witness in the case against Miller. On February 13, 2015, an undercover officer who was posing as someone who might be able to commit the murder met with Lucien in the visiting area of the detention facility. During the meeting, Lucien ordered the killing of the potential government witness and others, making throat-slashing motions to make his intent clear. Three days later, Lucien met with MACK and relayed to him the facts of the visit.
The jury found MACK guilty of two counts of conspiracy to commit witness tampering by committing first degree murder, an offense that carries a mandatory lifetime term of imprisonment. The jury also found MACK guilty of two counts of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years.
The jury found MACK not guilty of two counts of tampering with a witness.
Judge Shea scheduled sentencing for July 25, 2016.
On August 24, 2015, Lucien pleaded guilty to conspiracy to commit witness tampering by first degree murder. He awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division. The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Jennifer Laraia.
Harrisburg Couple Charged in Straw Purchase of FirearmRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal Grand Jury in Scranton has indicted Michael Miller and Janis Tolan with conspiracy to make a false statement in connection with the purchase of a firearm at a gun show in December 2015.
According to United States Attorney Peter Smith, the defendants purchased an AK 47 semi-automatic rifle from a licensed dealer at an event at the Farmshow Complex in Harrisburg. Miller allegedly chose the weapon and Tolan submitted the identification for the vendor and filled out the government form representing her as the purchaser, allegedly acting as a straw purchaser for Miller in violation of federal law.
This matter was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Prosecution is assigned to Assistant U.S. Attorneys Christy Fawcett and Chelsea Schinnour.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is ten years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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