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Wednesday 13 April 2016
Waverly, Tennessee Woman Pleads Guilty to Bank EmbezzlementRead the Press Release
Sheila Burns, 47, of Waverly, Tennessee, pleaded guilty today in U.S. District Court, to one count of embezzling funds from FirstBank, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. During a plea hearing before U.S. District Court Judge Aleta A. Trauger, Burns acknowledged engaging in a five-year scheme to embezzle money by creating and modifying fraudulent loans.
Burns admitted that, between 2010 and 2015, while employed as a loan assistant at FirstBank in Waverly, Tenn., she fraudulently obtained bank funds by falsifying loan documents and by originating and modifying loans, using the names of various FirstBank customers and forging their signatures on the loan documents. In an effort to further conceal the embezzlement scheme, Burns falsified entries on FirstBank’s cashier’s check log, and originated new fraudulent loans in order to make payments due on other loans she had fraudulently obtained. Burns obtained more than $130,000 from this loan scheme and she used these funds to pay personal expenses, including to pay bills and to pay down credit card debt.
Burns faces up to 30 years in prison and a fine of up to $1,000,000 and will be ordered to pay restitution to FirstBank and to forfeit the proceeds of her offense. She will be sentenced by Judge Trauger on July 13, 2016. Burns’ sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
United States Forfeits Tyrannosaurus Skull Looted from Mongolian DesertRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today the successful forfeiture of a Tyrannosaurus bataar skull (the “Bataar Skull”) unlawfully taken from the Gobi Desert in Mongolia. The Bataar Skull, a fossil from the Cretaceous period, which ended approximately 65 million years ago, had been auctioned in Manhattan in 2007 after being unlawfully brought into the United States. The current owner of the Bataar Skull, having been informed of its origins and the circumstances of its importation into the United States, consented to its forfeiture. The forfeiture order was signed this morning by the U.S. District Judge J. Paul Oetken.
The Bataar Skull is the latest addition to a lengthy list of looted dinosaur fossils the Office, together with its law enforcement partners at Homeland Security Investigations, has successfully forfeited. Since 2012, the United States Attorney’s Office for the Southern District of New York has secured the return and repatriation to Mongolia of several dinosaur fossils that include three full Tyrannosaurus bataar skeletons; a full Saurolophus angustirostris skeleton and another partial Saurolophus; six Oviraptor skeletons; four Gallimimus skeletons; a partial Ankylosaurus skeleton; a Protoceratops skeleton; a composite nest containing miscellaneous dinosaur eggs; and numerous small, unidentified prehistoric lizards and turtles.
Manhattan U.S. Attorney Preet Bharara said: “Our Office will continue to work to restore culturally and scientifically important artifacts to their rightful owner. Together with our law enforcement partners at the Department of Homeland Security, we are proud to repatriate another priceless dinosaur fossil to the Government of Mongolia.”
According to the civil complaint in this matter and other documents filed in this action:
The Tyrannosaurus bataar is indigenous to, and has only been unearthed in, a specific portion of the Gobi Desert called the Nemegt Basin, in what is now Mongolia. Mongolian law has long declared dinosaur fossils found within Mongolia to be government property. Their export from Mongolia without permission of the Government of Mongolia is a violation of Mongolian law.
On or about March 25, 2007, a California-based auction house offered the Bataar skull for sale at auction in Manhattan. The Bataar Skull had been shipped into the United States in June 2006 with United States Customs documents that described it only as “fossil stone pieces.” At auction, the Bataar Skull was described as native to the “Eurasian continent.” The Bataar Skull sold for approximately $230,000 at auction to an anonymous California-based buyer (the “Buyer”).
In 2015, HSI performed a physical examination of the skull and confirmed that it rightfully belongs to the Government of Mongolia and had been illegally imported into the United States. After being informed of the origins of the Bataar Skull, the Buyer agreed to turn it over to HSI and consented to its forfeiture.
Mr. Bharara praised the investigative work of HSI, and thanked the Government of Mongolia for its assistance.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Martin S. Bell is in charge of the case.
U.S. Citizen Residing in Mexico Pleads Guilty to Federal Heroin Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Vicenta Ramona Garcia, 29, a U.S. citizen, who resides in San Luis Rio Colorado, Sonora, Mexico pleaded guilty this morning in federal court in Albuquerque, N.M., to heroin trafficking charges under a plea agreement with the U.S. Attorney’s office.
Garcia and her codefendant Guadalupe Ofelia Lopez-Vasquez, 59, a Mexican national, who also resides in San Luis Rio Colorado, Sonora, Mexico, were arrested in Dec. 2015, after DEA agents seized approximately 15 pounds of heroin from them during consensual searches at the Greyhound Bus Station in Albuquerque. According to the criminal complaint, both women had heat-sealed bundles of heroin strapped to their backs and waists.
Garcia and Lopez-Vasquez were indicted on Dec. 17, 2015, and charged with conspiracy to distribute heroin and possession of heroin with intent to distribute on Dec. 9, 2015, in Bernalillo County, N.M.
During today’s proceedings, Garcia pled guilty to a felony information charging her with conspiracy and possession of heroin with intent to distribute. Garcia admitted that on Dec. 9, 2015, she and Lopez-Vasquez transported heroin from Phoenix, Ariz., to New Mexico on the Greyhound Bus by concealing heat-sealed bundles of heroin underneath their clothing. Garcia further admitted that the two women intended to give the drugs to another person when they reached their final destination of Columbus, Ohio.
Lopez-Vasquez pled guilty to similar charges on April 1, 2016.
At sentencing, Garcia and Lopez-Vasquez each face a maximum penalty of 20 years in federal prison. Both women remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting 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, 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.
U.S. Attorneys Launch Nationwide Effort to Confront Discriminatory Backlash in Wake of Terrorist AttacksRead the Press Release
Detroit - U.S. Attorneys are joining forces with local law enforcement and community leaders for a series of events around the country to address backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, California. The 14 events in 11 districts will build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country. From April 13 through 20, U.S. Attorneys in California, Colorado, Connecticut, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, Ohio and Utah will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes. Barbara L. McQuade, United States Attorney for the Eastern District of Michigan, along with FBI Special Agent in Charge David P. Gelios, Washtenaw County Sheriff Jerry Clayton and other law enforcement officials, will participate in a listening session with students from the University of Michigan and President Mark Schlissel regarding bias-related crime issues with a press briefing to follow. The event will take place today at 4pm at the University of Michigan Law School, Jeffries Lounge, South Hall 701 S. State Street, First Floor, Ann Arbor, MI 48109. A press briefing will follow at 5:15pm... "Federal law enforcement will take action against violence or threats of violence directed at anyone based on religion, ethnicity or national origin," McQuade said. "Even derogatory speech about Muslim Americans that is protected by the First Amendment can have adverse consequences by providing terrorist recruiters with propaganda to promote the false narrative that America is at war with Islam." During the last several months, individuals who are, or who are perceived to be, Muslim, Arab, Sikh and South Asian have been targeted for harassment and violence around the country. A Connecticut man pleaded guilty to firing a high-powered rifle at a mosque; a Florida man pleaded guilty to threatening to firebomb two mosques and shoot their congregants; a former Missouri man pleaded guilty to violating the civil rights of others by leading a conspiracy to deface a local Islamic center with graffiti and burn two copies of the Qur’an; and a New York man was sentenced to 13 months in prison for emailing death threats to the executive director of an Islamic advocacy group. Places of worship also face discrimination through unlawful barriers to construction in many communities around the country. In the last year, the Justice Department filed suit against Des Plaines, Illinois, over the city’s denial of rezoning to allow a Muslim congregation to use a vacant office building as a mosque. The complaint alleged that the city treated the mosque less favorably than it has treated nonreligious assemblies, discriminated against the mosque based on religion and imposed a substantial burden on the mosque members’ religious exercise without justification. The Justice Department also closed its investigation into Norwalk, Connecticut, after the city made changes to treat religious assemblies equally with nonreligious assemblies in five of its zoning districts. The department had opened an investigation of Norwalk’s zoning practices in 2012 in response to the city’s denial of a special use permit to the Al Madany Islamic Center to build a mosque on land it had bought in a residential zoning district. Backlash against Muslim, Arab, Sikh and South Asian Americans can have a particularly harmful impact on education, employment and housing. In March, the Civil Rights Division announced that the Educational Opportunities Section launched a new enforcement initiative with the U.S. Attorneys’ Offices to strengthen our efforts to combat religious discrimination in schools and other educational settings. The new intiative, together with Justice Department’s recent work in Bakersfield, California; Lewisville, Texas; Pine Bush, New York; Dearborn Heights, Michigan; DeKalb County, Georgia; and many more cities and counties through the nation, will help ensure that schools remain free from discrimination, harassment and violence for all students. This effort is a reflection of the Department of Justice’s long-standing commitment to working to protect Muslim, Sikh, Arab and South Asian Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Since September 11th, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S Attorneys’ offices have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date. # # #U.S. Attorneys Launch Nationwide Effort to Confront Discriminatory BacklashRead the Press Release
U.S. Attorneys are joining forces with local law enforcement and community leaders for a series of events around the country to address backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, California. The 14 events in 11 districts will build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
From April 12 through May 6, U.S. Attorneys in California, Colorado, Connecticut, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, Ohio and Utah will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes.
“The Department of Justice is determined to uphold the fundamental principle that all Americans should be free from violence and protected from hatred no matter who they are, what they look like, or where they're from,” said Attorney General Loretta E. Lynch. “These events underscore our ongoing commitment to safeguard the civil rights of every American – including Muslim, Arab, Sikh and South Asian Americans, who are so often the targets of threats on the basis of their appearance or religion. There is no place for intolerance in our country. In the weeks and months ahead, the Department of Justice will continue to work with local law enforcement partners and community leaders to defend the safety and the dignity of all our people.”
During the last several months, individuals who are, or who are perceived to be, Muslim, Arab, Sikh and South Asian have been targeted for harassment and violence around the country.
A Connecticut man pleaded guilty to firing a high-powered rifle at a mosque; a Florida man pleaded guilty to threatening to firebomb two mosques and shoot their congregants; a former Missouri man pleaded guilty to violating the civil rights of others by leading a conspiracy to deface a local Islamic center with graffiti and burn two copies of the Qur’an; and a New York man was sentenced to 13 months in prison for emailing death threats to the executive director of an Islamic advocacy group.
Places of worship also face discrimination through unlawful barriers to construction in many communities around the country. In the last year, the Justice Department filed suit against Des Plaines, Illinois, over the city’s denial of rezoning to allow a Muslim congregation to use a vacant office building as a mosque. The complaint alleged that the city treated the mosque less favorably than it has treated nonreligious assemblies, discriminated against the mosque based on religion and imposed a substantial burden on the mosque members’ religious exercise without justification. The Justice Department also closed its investigation into Norwalk, Connecticut, after the city made changes to treat religious assemblies equally with nonreligious assemblies in five of its zoning districts. The department had opened an investigation of Norwalk’s zoning practices in 2012 in response to the city’s denial of a special use permit to the Al Madany Islamic Center to build a mosque on land it had bought in a residential zoning district.
Backlash against Muslim, Arab, Sikh and South Asian Americans can have a particularly harmful impact on education, employment and housing. In March, the Civil Rights Division announced that the Educational Opportunities Section launched a new enforcement initiative with the U.S. Attorneys’ Offices to strengthen our efforts to combat religious discrimination in schools and other educational settings. The new initiative, together with Justice Department’s recent work in Bakersfield, California; Lewisville, Texas; Pine Bush, New York; Dearborn Heights, Michigan; DeKalb County, Georgia; and many more cities and counties through the nation, will help ensure that schools remain free from discrimination, harassment and violence for all students.
This effort is a reflection of the Department of Justice’s long-standing commitment to working to protect Muslim, Sikh, Arab and South Asian Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Since September 11th, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S Attorneys’ offices have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
Muslim Backlash Event List
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 on 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 released today 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 Laura Duffy and Local Law Enforcement Leaders Join Nationwide Effort to Confront Backlash Against Muslims in Wake of Terrorist AttacksRead the Press Release
Media Relations Director Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – April 13, 2016
SAN DIEGO – Four men in a pickup truck pulled alongside a pedestrian on Winter Gardens Boulevard in Lakeside and shouted at him. They called him “ISIS supporter” and “terrorist supporter” and told him to “Go back to Iraq!” Then at least one of the men in the truck opened the passenger door and went after their target, who was thrown to the ground, beaten and kicked.
Somehow he managed to stumble to get help, but by then he had suffered major damage. Emergency room doctors at Grossmont Hospital found that the bones holding his right eye in place were shattered, the muscle under the right eye had sunk, and there were bone fragments lodged in his optical nerve, impairing his vision.
This happened in December, about two weeks after the terrorist attack in San Bernardino. While the San Diego County Sheriff’s Department attempted to follow up with the victim and tried to locate witnesses, unfortunately the attackers could not be identified.
During the last several months, Muslims – or those perceived to be Muslim – have been targeted around the country in the aftermath of the tragic terrorist attacks in Brussels, Paris and San Bernardino.
As a result, United States Attorneys from California, Colorado, Connecticut, Idaho, Ohio, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey and Utah will work with community leaders and law enforcement from April 13 to 20 at special events to address discrimination, violence, and harassment targeting people because of what they look like, which country they come from, or where they worship. The aim is to protect civil rights and prevent hate crimes.
The 13 events in 11 districts will build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
“All too often in the aftermath of acts of terrorism, Muslim Americans – and those perceived to be Muslim – have suffered a backlash of unthinkable violence and discrimination,” said U.S. Attorney Laura Duffy, co-chair of the Attorney General’s Advisory Committee Civil Rights Subcommittee. “These acts of retaliation violate the letter and the spirit of our Constitution, our laws, and the ideals upon which our nation was founded. The Department of Justice is committed to working with communities of all faiths to protect and ensure the civil rights of all faiths.”
In San Diego, U.S. Attorney Laura Duffy will be joined by District Attorney Bonnie Dumanis, Sheriff Bill Gore, San Diego Police Chief Shelley Zimmerman, Coronado Police Chief Jon Froomin and Chula Vista Police Chief David Bejarano for an event today at 4:30 p.m. at San Diego State University’s Center for Intercultural Relations, located in the Conrad Prebys Aztec Student Union at 6075 Aztec Circle Drive on the SDSU campus. A female Muslim student was assaulted on campus in November, when an unknown male, believed to be an SDSU student, pushed her and pulled her by her hijab while making hate comments and threats based on her religious appearance.
Today’s event coincides with “Islam Awareness Week,” April 13 to 19, sponsored by SDSU’s Muslim Student Association. Please see attached flyer for more information.
“San Diego has not been spared by this disturbing trend,” U.S. Attorney Duffy noted. “It is particularly troubling that these incidents are often directed at Muslim women because their use of a headscarf or hijab targets them for hateful insults and physical abuse. In fact, many Muslim women feel so unsafe that workshops have sprung up throughout the country to train them in self-defense techniques. I am gratified that my law enforcement colleagues, both here in San Diego and around the nation, are taking a stand against the wave of ignorant hatred that has caused so many law abiding members of our Muslim community to fear for their safety.”
“The San Diego District Attorney's Office continues to aggressively prosecute all hate crimes occurring within our county,” said District Attorney Bonnie Dumanis. “We condemn all hate crimes, including the apparent recent spike in hate crimes targeting those victims perceived to be Muslim. We will continue to work closely with both the Muslim community and our law enforcement partners to apprehend and hold accountable any who criminally violate the civil liberties of our citizens.”
“This country was founded on priceless freedoms,” said Sheriff Bill Gore. “The Bill of Rights set forth these freedoms that we enjoy - freedom of religion, freedom of speech, freedom of assembly, and freedom of the press are a few. As public safety officers, it is our duty to ensure everyone enjoys the same rights – regardless of their faith, gender, or nationality. There are no exceptions to the first ten amendments to the U. S. Constitution.”
“Public safety is a shared responsibility between our police department and our community,” said San Diego Police Chief Shelley Zimmerman. “Our community policing philosophy emphasizes working in partnership with all of our communities who we so proudly serve. The information shared will only help to enhance our efforts to keep San Diego one of the safest big cities in the United States.”
Similar acts of hate have occurred around the country.
A Connecticut man pleaded guilty to firing a high-powered rifle at a mosque; a Florida man pleaded guilty to threatening to firebomb two mosques and shoot their congregants; a former Missouri man pleaded guilty to violating the civil rights of others by leading a conspiracy to deface a local Islamic center with graffiti and burn two copies of the Qur’an; and a New York man was sentenced to 13 months in prison for emailing death threats to the executive director of an Islamic advocacy group.
Places of worship also face discrimination through unlawful barriers to construction in many communities around the country. In the last year, the Justice Department filed suit against Des Plaines, Illinois, over the city’s denial of rezoning to allow a Muslim congregation to use a vacant office building as a mosque. The complaint alleged that the city treated the mosque less favorably than it has treated nonreligious assemblies, discriminated against the mosque based on religion and imposed a substantial burden on the mosque members’ religious exercise without justification. The Justice Department also closed its investigation into Norwalk, Connecticut, after the city made changes to treat religious assemblies equally with nonreligious assemblies in five of its zoning districts. The department had opened an investigation of Norwalk’s zoning practices in 2012 in response to the city’s denial of a special use permit to the Al Madany Islamic Center to build a mosque on land it had bought in a residential zoning district.
Backlash against Muslim, Arab, Sikh and South Asian Americans can have a particularly harmful impact on education, employment and housing. In March, the Civil Rights Division announced that the Educational Opportunities Section launched a new enforcement initiative with the U.S. Attorneys’ Offices to strengthen our efforts to combat religious discrimination in schools and other educational settings. The new intiative, together with Justice Department’s recent work in Bakersfield, California; Lewisville, Texas; Pine Bush, New York; Dearborn Heights, Michigan; DeKalb County, Georgia; and many more cities and counties through the nation, will help ensure that schools remain free from discrimination, harassment and violence for all students.
This effort is a reflection of the Department of Justice’s long-standing commitment to working to protect Muslim, Sikh, Arab and South Asian Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Since September 11th, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalism and arson targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S Attorneys’ offices have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
Two Executives at Investment Advisory and Management Firm Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Angel M. Melendez, the Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations, New York Field Office, announced today that FRED ELM, a/k/a “Frederic Elmaleh,” the founder and manager of Elm Tree Investment Advisors LLC, was arrested this morning in Florida on securities fraud and wire fraud charges stemming from his and Chief Operating Officer AHMAD NAQVI’s scheme to defraud investors in multiple funds created and controlled by ELM and NAQVI. Among other illicit activity, ELM and NAQVI fraudulently induced more than 50 investors to invest over $17 million based on the false representation that ELM and NAQVI would invest that money, through the funds, in the shares of privately held technology companies, like Twitter, Inc., Alibaba Group Holding Limited, and Uber Technologies, Inc. ELM was presented this morning in federal court in Fort Lauderdale, Florida, before United States Magistrate Judge Alicia O. Valle. NAQVI remains at large.
U.S. Attorney Preet Bharara said: “Fred Elm and Ahmad Naqvi claimed that through their business relationships with elite venture capital firms they could generate profits from well-timed investments in privately-held technology companies. But as alleged, Elm and Naqvi never returned a penny of profit, spending much of the $17 million of investor money to fund their own high life and pay back other defrauded investors. As alleged, while promising investors high performing returns, Elm instead took the money and put high-performance sports cars – a Bentley, Maserati and Range Rover – in his own garage. Thanks to the dedicated Homeland Security Investigations agents with the El Dorado Task Force and our partners at the SEC, Elm and Naqvi are now done defrauding investors.”
Special Agent in Charge Angel M. Melendez said: “These individuals allegedly defrauded investors out of more than $17 million dollars by falsely representing the ability to invest in privately held technology companies, when in reality they used the money to buy homes, luxury cars, and expensive jewelry. HSI and its El Dorado Task Force partners are committed to fighting financial frauds and to hold accountable the people that commit them.”
According to the four-count Complaint[1] unsealed today in Manhattan federal court:
From at least June 2013 through December 2014, ELM and NAQVI engaged in a scheme to defraud investors in funds that ELM and NAQVI created and controlled at Elm Tree Investment Advisors LLC (“ETIA”), where ELM was the founder and manager, and NAQVI was the chief operating officer. ELM and NAQVI raised more than $17 million from over 50 investors in four limited partnerships for which ETIA acted as the fund manager: Elm Tree Investment Fund, LP; Elm Tree Emerging Growth Fund, LP; Elm Tree ‘e’Conomy Fund, LP; and Elm Tree Motion Opportunity, LP (collectively the “Elm Tree Funds”).
ELM and NAQVI falsely represented that the Elm Tree Funds used investor capital to purchase shares in privately held technology companies before their initial public offerings (“IPOs”). These companies included Twitter, Inc., Alibaba Group Holding Limited, Uber Technologies, Inc., Square, Inc., Pinterest, Inc., and GoDaddy Group, Inc. Moreover, ELM and NAQVI falsely represented that they had access to these pre-IPO shares because of their business relationships with leading venture capital firms, such as Kleiner Perkins Caufield & Byers, Benchmark Capital, and Silver Lake Management, L.L.C. In truth and in fact, ELM and NAQVI did not invest in the pre-IPO shares of these companies and did not have relationships with these venture capital firms.
ELM and NAQVI comingled the approximately $17 million that was invested in the Elm Tree Funds in a single investment account, and then invested only a portion of the money, approximately $7.1 million. At no point did any of the Elm Tree Funds return a profit. Instead, for example, between January 2014 and November 2014, the Elm Tree Funds lost approximately $3.9 million in trading.
Moreover, of the investor funds that ELM and NAQVI did not lose in securities trading, ELM routinely converted investor funds to his own use in the form of cash withdrawals and to pay personal expenses, including to purchase a $1.75 million home, high-end furnishings, and other personal items, such as jewelry, daily living expenses, and luxury automobiles, including a Bentley, a Maserati, and a Range Rover.
The conversion of investors’ funds was contrary to the representations that ELM and NAQVI made to investors concerning their and ETIA’s fees. ELM and NAQVI falsely represented that they and ETIA would take a two percent annual management fee plus 20 percent of any profits that the Elm Tree Funds earned. In truth and in fact, ELM converted investor money that far exceeded the two percent management fee. Moreover, because the Elm Tree Funds never returned a profit, ELM, NAQVI, and ETIA were not entitled to a percentage of any profits.
ELM and NAQVI also used approximately $5.2 million of new investor funds to make payments to earlier investors in a Ponzi-like fashion.
To prevent or forestall redemptions, and continue to raise money to fund their scheme, ELM and NAQVI also generated fictitious account statements and also made oral and written misrepresentations that their trading strategies were generating consistently positive returns.
For example, beginning in mid-2013, ELM and NAQVI began to solicit Victim-1 to invest with ETIA in the Elm Tree Funds. On June 11, 2013, NAQVI sent Victim-1 a series of e-mails regarding the Elm Tree Emerging Growth Fund, in which he falsely represented, among other things, that the fund would invest in pre-IPO Twitter shares, and that ELM, NAQVI, and ETIA had “key contacts” with venture capital firms like Kleiner Perkins Caufield & Byers and Benchmark Capital. ELM and NAQVI subsequently had in-person meetings and telephone calls with Victim-1 about this investment. On October 9, 2013, Victim-1 invested approximately $52,500 in the Elm Tree Emerging Growth Fund. Following Twitter’s IPO on November 6, 2013, Twitter’s stock price rose, and NAQVI subsequently told Victim-1 that ELM, NAQVI, and ETIA had used an options strategy to lock in Victim-1’s profits in Twitter. Because the fund had not invested in pre-IPO Twitter shares, there were no profits to lock in. Thereafter, ELM and NAQVI sent fraudulent account statements to Victim-1, including one sent on March 7, 2014. The statement falsely indicated that Victim-1’s investment in the fund was valued at $274,550 (up from $52,500), and that the Elm Tree Emerging Growth Fund was valued at $68,115,855.
ELM and NAQVI made similar misrepresentations with respect to Victim-1’s subsequent investments in the Elm Tree ‘e’Conomy Fund and the Elm Tree Motion Opportunity, falsely indicating that those funds invested in Alibaba Group Holding Limited, Uber Technologies, Inc., Square, Inc., Pinterest, Inc., and GoDaddy Group, Inc., and that Victim-1’s investments were growing. ELM and NAQVI also falsely represented that the value of the Elm Tree ‘e’Conomy Fund as of December 12, 2014, was $125,484,750 and that the value of the Elm Tree Motion Opportunity as of December 18, 2014, was $77,286,220 – falsely claiming that the total value of the Elm Tree Funds was more than $270 million.
* * *
ELM, 46, was arrested this morning at his home in Hollywood, Florida. NAQVI, 47, remains at large. ELM and NAQVI are each charged with one count of securities fraud, one count of wire fraud conspiracy, and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. Each is also charged with one count of securities fraud conspiracy, which carries a maximum sentence of five years in prison. The charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offenses. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the work of HSI New York’s El Dorado Task Force, and thanked the U.S. Securities and Exchange Commission for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Joshua A. Naftalis is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Twin Cities Man Charged with Selling Heroin That Resulted in Death and Conspiring to Sell HeroinRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging JAIME EDWARD MCCLELLAN, a/k/a “Goldie Armani Callaway,” a/k/a, “Jaime Edward McClennan,” a/k/a, “Armando Blanco,” a/k/a, “Red,” 31, for conspiring to distribute heroin and selling heroin that resulted in the death of at least one person. MCCLELLAN is charged with conspiracy to distribute heroin, distribution of heroin resulting in death, distribution of heroin, possession with intent to distribute heroin, using and carrying a firearm during and in relation to a drug trafficking crime, and felon in possession of a firearm.
“Heroin continues to threaten people’s lives,” said U.S. Attorney Luger. “This indictment marks the first time my office has charged a defendant with distributing heroin resulting in death. As our state continues to grapple with the dangers of heroin and other harmful drugs, law enforcement will remain vigilant in tracking down and prosecuting dealers.”
According to the indictment and documents filed in state court, on October 23, 2015, MCCLELLAN sold heroin to a victim in Medina, Minn. The defendant warned the victim to be careful while using the heroin that night because it was “good stuff.” The defendant was arrested on December 16, 2015, at which time he had in his possession at least 15 grams of heroin and approximately $400,000 in cash.
According to the indictment, between January 2014 and December 2015, MCCLELLAN conspired with others in Minnesota to distribute more than two pounds of heroin. In December 2015, MCCLELLAN sold heroin on at least four separate occasions to undercover law enforcement agents. When arrested on December 16, 2015, the defendant was in possession of 10mm semi-automatic pistol, which he was prohibited from owning because he had previously been convicted of a felony.
This case is the result of an investigation conducted by the Anoka-Hennepin Narcotics and Violent Crime Task Force, West Metro Drug Task Force, Anoka County Sheriff’s Office, Hennepin County Sheriff’s Office, Sherburne County Sheriff’s Office, Blaine Police Department, Coon Rapids Police Department, Elk River Police Department, Maple Grove Police Department, Medina Police Department, Mounds View Police Department, and U.S. Drug Enforcement Administration.
Assistant U.S. Attorney David Steinkamp is prosecuting the case.
Defendant Information:JAIME EDWARD MCCLELLAN, a/k/a, “Goldie Armani Callaway,” a/k/a, “Jaime Edward McClennan,” a/k/a, “Armando Blanco,” a/k/a, “Red,” 31
Brooklyn Park, Minn.
Charges:
- Distribution of heroin resulting in death, 1 count
- Conspiring to distribute heroin, 1 count
- Distribution of heroin, 4 counts
- Possession with intent to distribute heroin, 1 count
- Possession of a firearm during and in relation to a drug trafficking crime, 1 count
- Felon in possession of a firearm, 1 count
Tulsa Dentist Pleads Guilty to Money Laundering ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that WAYNE SCOTT HARRINGTON, age 67, of Tulsa, Oklahoma, pled guilty to an Information filed in the United States District Court for the Northern District of Oklahoma, charging him with MONEY LAUNDERING, in violation of Title 18, United States Code, Section 1957, punishable by up to 10 years imprisonment, a fine not to exceed $250,000.00 or twice the amount of the criminally derived property, 3 years of supervised release and a $100 special assessment.
The Information alleged that on or about June 5, 2012 HARRINGTON, a former dentist, laundered monies obtained from fraudulent billing to Medicaid during his practice of dentistry.
The scope of the federal investigation was limited to violations of federal law in relation to health care fraud. The fraudulent billing to Medicaid that provided the basis of the money laundering charge was based upon HARRINGTON billing for anesthesia services that were not administered by him.
Under Oklahoma Dental Board regulations, in order to administer general anesthesia or deep sedation, a dentist had to meet specific educational or certification requirements. Harrington met the requirements and was approved by the Oklahoma Dental Board to administer general anesthesia and deep sedation. Under Board regulations, a dental assistant cannot, under any circumstances, administer injectable local anesthesia or general anesthesia.
In order to bill Medicaid for anesthesia services, the administration of the anesthesia must be provided by a qualified medical professional. The Medicaid fraudulent billing alleged in the plea agreement occurred from April 3, 2012 through March 19, 2013. HARRINGTON billed Medicaid as though he administered the anesthesia when he did not.
The charge is a result of an investigation by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigative Services, Department of Defense – Office of Inspector General, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration and the Oklahoma Attorney General Medicaid Fraud Control Unit.
The Honorable Gregory K Frizzell, Chief Judge in the United States District Court for the Northern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
Assistant United States Attorney Melody Nelson and Assistant United States Attorney Edward Snow represented the United States.
Three Former Correctional Officers in Georgia Indicted for Roles in Beating InmateRead the Press Release
Former Augusta State Medical Prison correctional officers John Williams, Antonio Binns and Justin Washington were charged in the Southern District of Georgia with a civil rights violation for their alleged role in the beating of an inmate, known as C.V., on Feb. 13, 2014. Binns and Washington were also charged with one count of obstruction of justice.
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney Edward J. Tarver of the Southern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division made the announcement.
The indictment alleges that on Feb. 13, 2014, Williams, Binns and Washington assaulted C.V. while he was handcuffed behind his back. The indictment further alleges that Binns and Washington wrote false reports covering up the assault.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty. If convicted of the civil rights charge, each defendant faces a maximum sentence of 10 years in prison. The obstruction of justice counts carry a maximum sentence of 20 years in prison.
The case is being investigated by the FBI’s Augusta Resident Agency. The case is being prosecuted by Assistant U.S. Attorneys Charlie Bourne and C. Troy Clark of the Southern District of Georgia and Trial Attorney Angie Cha of the Civil Rights Division’s Criminal Section.
Williams et al Indictment
Three Former Correctional Officers from Augusta State Medical Prison Indicted for Roles in Beating InmateRead the Press Release
AUGUSTA, GA – Former Augusta State Medical Prison correctional officers John Williams, Antonio Binns and Justin Washington were charged in the Southern District of Georgia with a civil rights violation for their alleged role in the beating of an inmate, known as C.V., on Feb. 13, 2014. Binns and Washington were also charged with one count of obstruction of justice.
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney Edward J. Tarver of the Southern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Division made the announcement.
The indictment alleges that on Feb. 13, 2014, Williams, Binns and Washington assaulted C.V. while he was handcuffed behind his back. The indictment further alleges that Binns and Washington wrote false reports covering up the assault.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty. If convicted of the civil rights charge, each defendant faces a maximum sentence of 10 years in prison. The obstruction of justice counts carry a maximum sentence of 20 years in prison.
The case is being investigated by the FBI’s Augusta Resident Agency. The case is being prosecuted by Assistant U.S. Attorneys Charlie Bourne and C. Troy Clark of the Southern District of Georgia and Trial Attorney Angie Cha of the Civil Rights Division’s Criminal Section. Any questions should be directed to First Assistant United States Attorney James D. Durham at (912) 201-2547.
Tax Charges Filed Against Montgomery County ManRead the Press Release
PHILADELPHIA - Francis J. Bass, 61, of Montgomery County, PA was charged today by Information with four counts of subscribing a false federal income tax return, announced United States Attorney Zane David Memeger. According to the Information, Bass willfully failed to report a substantial amount of income on his 2009 through 2012 tax returns.
If convicted the defendant faces a maximum possible sentence of 12 years in prison, one year of supervised release, a possible fine, restitution to the IRS, and a $400 special assessment.
The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Terri A. Marinari and David J. Ignall.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Syracuse Man Indicted for Distributing Heroin that Killed WomanRead the Press Release
SYRACUSE, NEW YORK - An indictment filed today charges Anthony Vita, 36, of Syracuse, New York, with distributing heroin that resulted in the death of another person.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration (DEA).
The indictment alleges that Vita distributed heroin on or about November 7, 2015 to the victim, described in a criminal complaint as being a 24-year-old resident of Camillus, New York, who was five months pregnant when Vita provided her heroin that led to her overdose death.
U.S. Attorney Richard S. Hartunian said: "Opioid addiction and overdose deaths have become the single greatest danger to the lives and health of our citizens. Our resolve to confront this epidemic and the criminals who supply it is unwavering and we will not hesitate to use all of the tools the law provides us with in this fight."
DEA Special Agent in Charge James J. Hunt stated, "Every aspect of drug trafficking is heinous; but selling a fatal combination of heroin and fentanyl to a mother and unborn child shows how inconsequential drug traffickers view heroin use. The latest trend in opiate abuse- a toxic combination of heroin and fentanyl- is on a deadly rampage throughout the nation resulting in too many lives taken too early. This arrest only highlights the sad extent a dealer will go to in order to make a profit off the sale of drugs."
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
The charge filed against Vita carries a minimum term of imprisonment of 20 years, a maximum sentence of life imprisonment, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Vita was arrested by DEA agents on March 15, 2016, in Virginia Beach, Virginia. The criminal complaint filed against Vita alleged that agents recovered a text message exchange between Vita and the victim on the night of her death that included arrangements for them to meet so he could sell her heroin and a hypodermic needle.
Following his arrest, Vita appeared in Federal Court in Virginia and was transported to Syracuse by the United States Marshals Service. The defendant had an initial appearance in Syracuse before United States Magistrate Judge David E. Peebles on April 1, 2016. Following a hearing on April 6, 2016, Judge Peebles ordered Vita detained without bail pending trial.
This case is being investigated by the U.S. Drug Enforcement Administration (DEA), Syracuse Resident Agency (with Assistance from DEA Norfolk, Virginia), the Onondaga County Sheriff Department and the Town of Camillus (New York) Police Department, and is being prosecuted by Assistant U.S. Attorney Carla Freedman.
Supplier of Heroin Intended for Distribution in Maryland Sentenced to 13 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Taofeeq Ogunlana, age 39, of Chicago, Illinois today to 13 years in prison followed by five years of supervised release for conspiring to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, from January to July 2015, Ogunlana met with Vladimir Lumelsky and supplied him with bulk quantities of heroin. Lumelsky would travel from the Baltimore area to the Chicago area, where he and Ogunlana would meet. Most recently, on July 12, 2015, Ogunlana met with Lumelsky at a hotel and supplied him with more than two kilograms of heroin. While Lumelsky and a companion were driving back from Chicago to the Baltimore area, they were stopped by law enforcement on Interstate 70 in western Maryland. Law enforcement seized more than two kilograms of heroin, which was intended to be redistributed to customers in the Baltimore area.
Ogunlana agreed that he and other co-conspirators distributed and possessed with intent to distribute more than three kilograms of heroin during the conspiracy.
Co-defendants Vladimir Lumelsky, age 41, of Pikesville, Maryland; Lawrence Bibbs, age 68, of Baltimore and Rodell Womack, age 49, of Baltimore previously pleaded guilty to their participation in the drug conspiracy. Lumelsky and Bibbs are scheduled to be sentenced on June 10, 2016 at 11:00 a.m. and May 20, 2016 at 12:30 p.m., respectively. Judge Motz sentenced Womack to four years in prison on April 11, 2016.
United States Attorney Rod J. Rosenstein praised DEA and the Baltimore City and County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Matthew C. Sullivan and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Statewide Initiative Targets Distributors of Heroin and Opioids That Cause Overdose DeathsRead the Press Release
United States Attorney Deirdre M. Daly, Deputy Chief State’s Attorney Leonard C. Boyle and Special Agent in Charge Michael J. Ferguson of the Drug Enforcement Administration today announced a statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Beginning in January 2016, the DEA’s New Haven Tactical Diversion Squad, state and local police, and a team of prosecutors from the U.S. Attorney’s Office, have investigated approximately 20 heroin and opioid overdoses that have occurred in Connecticut. Most of the overdoses have resulted in death. Currently, there are ongoing investigations of overdoses that occurred in Danbury, Derby, Enfield, Greenwich, Middletown, Newtown, New Haven, Norwalk, Norwich, Shelton, Stamford, Vernon, Weston, Willimantic and Woodbridge.
As part of this initiative, the U.S. Attorney’s Office and DEA have developed a protocol for police that respond to heroin and opioid overdose deaths. The protocol calls for local law enforcement to perform time-sensitive investigative techniques and preserve all evidence at the scene of an overdose death. Police also are asked to contact DEA at the early stages of an investigation, and ensure that an autopsy of the decedent is performed. The DEA and local police will then jointly investigate to determine the events leading up to the death, the source of the drug involved, and the composition of the drug. Individuals responsible for distributing drugs causing overdose deaths will be prosecuted.
“We are combatting a tragic opioid epidemic that is plaguing Connecticut and much of the country,” said U.S. Attorney Daly. “Deaths caused by heroin or prescription opioids have devastated hundreds of families from every corner of our state. This statewide initiative will enable law enforcement to quickly determine if a highly toxic drug is on the street and take steps to identify the source of the drug in order to keep it out of the hands of vulnerable users. The police protocol will allow investigators to preserve evidence critical to identifying and convicting those responsible for distributing these drugs. Our aim is to prevent additional deaths and to hold accountable those who distribute these deadly drugs. We thank the DEA for their invaluable leadership in this initiative and appreciate the significant support provided by Connecticut’s local police departments, the Connecticut State Police and the State’s Attorneys.”
“We hope that the use of this protocol will enable law enforcement to effectively track the source of the most dangerous brands of heroin being distributed in Connecticut,” said Deputy Chief State’s Attorney Boyle.
“While those suffering from the disease of heroin addiction need access to treatment and recovery, those responsible for distributing these lethal drugs need to be held responsible for their actions,” said DEA Special Agent in Charge Michael J. Ferguson. “DEA and its federal, state and local partners are committed to bringing to justice those that distribute this poison.”
To date, this initiative has resulted in federal charges against
- Reginald Miles, Jr., 25, of Waterbury, Wade Pettingill, 23, of Middlebury, and Kevin Foster, 23, of Middlebury, in connection with the heroin overdose death of a 22-year-old man in Woodbridge on November 19, 2015;
- Tahir Farid, 21, and Ryan Looney, 19, both of Hamden, in connection with the oxycodone overdose of a 22-year-old man in Weston on January 5, 2016;
- Bradley Commerford, 20, of Derby, in connection with the heroin overdose death of a 23-year-old man in Derby on February 17, 2016, and two non-fatal heroin overdoses of an 18-year-old man and a 22-year-old man in Shelton on February 16, 2016;
- Ryan Budd, 25, of Bethel, in connection with a non-fatal heroin overdose of a 25-year-old female in Danbury on March 1, 2016.
As part of this statewide initiative, on April 8, 2016, the DEA and U.S. Attorney’s Office received funding from two sources for heroin and opioid overdose investigations. First, the DEA received Department of Justice Organized Crime Drug Enforcement Task Force (OCDETF) funding in an investigation focused on large-scale sources of heroin being distributed in Connecticut. Second, in support of the statewide heroin initiative, the DEA received funding under the National Heroin Strategic Initiative. This funding is being used to pay overtime, purchase equipment, fund training, and assist in the investigation of seized cellular telephones.
U.S. Attorney Daly noted that the U.S. Attorney’s Office also continues to work with the DEA, FBI, HSI and other federal, state and local law enforcement to target high volume heroin and oxycodone trafficking organizations. On March 2, 2016, a federal grand jury in Hartford returned an indictment charging a Hartford grocery store owner and two associates with trafficking heroin. During the investigation, investigators seized more than 20 kilograms of heroin destined for Connecticut and approximately $900,000 in cash.
In another ongoing investigation, 11 New Haven-area residents were recently charged with conspiring to steal the personal identification information of over 50 doctors and medical professionals in order to create fraudulent prescriptions to obtain and distribute more than 100,000 oxycodone pills.
In addition, the U.S. Attorney’s Office continues to prioritize the prosecution of medical professionals who prescribe prescription narcotics outside the scope of accepted medical practice. On November 4, 2015, John Katsetos, a doctor who practiced medicine for more than 20 years in Stamford and Milford was sentenced to 84 months in prison. The investigation revealed that from November 2011 to October 2013, Dr. Katsetos authorized more than two million dosage units of Schedule II through IV controlled substances to more than 2000 patients. His conduct created opioid addictions in dozens of patients, led to the overdose death of a New York woman, and supplied individuals with a vast quantity of prescription pills that they illegally distributed to others.
“While policy makers and mental health officials, with our full support, work to address issues aimed at lessening the demand for illegal opioids, we in law enforcement will continue to marshal resources to address the supply side of the equation,” said U.S. Attorney Daly. “We will tirelessly investigate and disrupt the activities of heroin traffickers and prescription pill distributors who put profit above public health and safety.”
U.S. Attorney Daly stressed that charges are only allegations and not evidence of guilt. Each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA’s New Haven Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
- Reginald Miles, Jr., 25, of Waterbury, Wade Pettingill, 23, of Middlebury, and Kevin Foster, 23, of Middlebury, in connection with the heroin overdose death of a 22-year-old man in Woodbridge on November 19, 2015;
South Charleston woman sentenced to Federal prison for methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A South Charleston woman was sentenced today to three years in federal prison for a methamphetamine crime, announced Acting United States Attorney Carol Casto. Jonda Grandoni, 52, previously pleaded guilty in January 2016 to possession with intent to distribute methamphetamine.
Grandoni admitted that on October 12, 2012, she arranged to have a package containing methamphetamine shipped via FedEx to an individual who would then deliver the package to Grandoni for distribution. Law enforcement intercepted the package before it was delivered and found that it contained 11.5 grams of methamphetamine. Officers then set up a controlled delivery of the package to Grandoni, who accepted the package and was arrested. In addition to the methamphetamine recovered on October 12, 2012, Grandoni admitted that she was responsible for the distribution of over 520 grams of additional methamphetamine.
This case was investigated by the Metropolitan Drug Enforcement Network Team and the Putnam County Sheriff’s Department. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including 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 other drugs in communities across the Southern District.
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Seven Indicted for Gun Thefts from Multiple Firearms DealersRead the Press Release
ROME, Ga. – Seven defendants have been indicted on federal charges of a conspiracy to steal firearms from the premises of federal firearms dealers, possession of multiple stolen firearms, and theft from firearms dealers in the cities of Tallapoosa, Thomson, Monroe, Warner Robins, Dalton, Macon, LaGrange, and Athens, Georgia as well as Heflin, Alabama.
“Thefts from firearms dealers have become a serious issue in our district and elsewhere, and sometimes stolen firearms are used to commit other crimes,” said U. S. Attorney John A. Horn. “The arrests and indictment of these seven individuals is a significant step in solving these crimes and helping to prevent the distribution of stolen firearms in our community.”
“This is another reminder that ATF and our law enforcement partners will remain on the frontlines of preventing violent crime and not allow criminal behavior to threaten the safety of innocent civilians,” said ATF Assistant Special Agent in Charge John Schmidt.
According to U.S. Attorney Horn, the charges, and other information presented in court: Between October 2015 and December 2015, there were seven thefts and three attempted thefts from firearms dealers in Northwest Georgia, along with other parts of the state, as well as in the state of Alabama. The indictment alleges that during the investigation, these seven defendants were identified as the ones who committed the burglaries. The perpetrators always struck at night. They entered either by driving a stolen car through the storefront, or using bolt cutters and a window punch to break into the businesses. Approximately 130 guns were stolen in these thefts, and there is evidence that some of the conspirators sold some of the stolen guns.
ATF agents worked closely with local law enforcement to connect the thefts and develop information on the conspirators, including the Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robbins Police Department, Lagrange Police Department, and the Pearl, Mississippi Police Department.
The following defendants were arraigned on April 13, 2016, before United States Magistrate Judge Walter E. Johnson:
- Terry Eugene Brown, 26, of Atlanta, Georgia, has been charged with conspiracy to possess and steal firearms, three counts of theft of firearms from federally licensed dealers, three counts of possession of stolen firearms, and unlawful possession of firearms while pending felony indictment .
- Jakeisia Miller, 19, of Atlanta, Georgia has been charged with conspiracy to possess and steal firearms, three counts of aiding and abetting the theft of firearms from federally licensed dealers, and three counts of aiding and abetting the possession of stolen firearms.
- Demontra Sharod Lucear, 26, of Atlanta, Georgia has been charged with conspiracy to possess and steal firearms.
- Dillon James Leborgne, 21, of Atlanta, Georgia conspiracy to possess and steal firearms, three counts of theft of firearms from federally licensed dealers, and three counts of possession of stolen firearms.
- Eric Jerome Moore, 22, of Atlanta, Georgia, has been has been charged with conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, one count of possession of stolen firearms, and unlawful possession by a convicted felon.
The following two defendants will be arraigned on May 3, 2016:
- Jacquez Miller, 23, of Atlanta, Georgia has been charged conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, and one count of possession of stolen firearms.
- Jameel Yusef Drinkard, 35, of Atlanta, Georgia, has been charged with conspiracy to possess and steal firearms, one count of theft of firearms from a federally licensed dealer, one count of possession of stolen firearms, and unlawful possession by a convicted felon.
Brown, Jakeisia Miller, Jacquez Miller, Lucear, Leborgne, Moore, and Drinkard were indicted by a federal grand jury on March 22, 2016.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Tallapoosa Police Department, Dalton Police Department, Clayton County Police Department, Bibb County Sheriff’s Office, Monroe Police Department, Thomson Police Department, Athens-Clarke County Police Department, Warner Robbins Police Department, Lagrange Police Department, and the Pearl, Mississippi Police Department.
Assistant United States Attorneys Jennifer Keen and Katherine M. Hoffer are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Salem Man Pleads Guilty to Federal Drug ChargeRead the Press Release
ROANOKE, VIRGINIA – A Salem, Virginia man, who trafficked cocaine from Atlanta into the Roanoke Valley, pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced today.
Broderick Lamar Shovely Jr., 36, of Salem, Virginia, pled guilty yesterday in District Court to one count of possessing with the intent to distribute 500 grams or more of cocaine and one count of possessing a firearm in furtherance of a drug trafficking crime.
“The United States Attorney’s Office will continue to work with our partners in law enforcement to take the dangerous combination of drugs and guns off our streets,” United States Attorney John P. Fishwick Jr. said today. “This defendant was a drug trafficker who brought large amounts of cocaine into Roanoke and possessed an array of firearms while dealing. Our city is safer with him now in prison.”
According to evidence presented at yesterday’s hearing by Assistant United States Attorney Ashley B. Neese, law enforcement officers were conducting surveillance outside of Shovely’s residence in Salem, Virginia on June 6, 2014 after receiving information that he was selling crack cocaine. Officers observed Shovely leave his residence and a traffic stop was conducted on the car Shovely was driving. During that traffic stop and after being alerted by a free air sniff by a K9 officer, officers searched Shovely’s vehicle and found a .45 caliber handgun, a Glock .45 caliber handgun and a .380 caliber handgun. In addition, officers found two pieces of off-white chunky material. A search warrant for Shovely’s home was obtained and later executed, where officers found approximately 703 grams of cocaine hidden in a computer hard-drive in a bedroom. Multiple firearms, including one firearm located with the cocaine, were also found during the execution of the search warrant at Shovely’s residence.
After being provided his Miranda Rights, Shovely admitted to trafficking cocaine from Atlanta, Georgia to Roanoke, Virginia for at least the last year. Shovely admitted that he paid $19,800 for 18 ounces of cocaine from his source in Atlanta and would then transport that cocaine back to Roanoke for distribution. Shovely also admitted the cocaine was often cooked into crack cocaine and he would then sell it from a home on Gilmer Avenue in Roanoke.
The investigation of the case was conducted by the Salem Police Department, the Roanoke City Police Department, the Virginia State Police, the Drug Enforcement Agency, and the United States Marshals Service. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Realty and Property Ownership and Management Company Owner Pleads Guilty to Bankruptcy FraudRead the Press Release
PROVIDENCE, R.I. – Linda Davis Griffin, 48, of Warwick, owner of Vision Adventures, LLC, a Providence based property ownership and management company, pleaded guilty in federal court in Providence today to one count of alteration of bankruptcy records, admitting to the court that she falsified bank documents in order to conceal the conversion of bankruptcy estate funds to her own use.
Ms. Griffin Davis’ guilty plea is announced by United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to information presented to the court, in March 2013, Vision Adventures filed a voluntary bankruptcy petition with the U.S. Bankruptcy Court in Providence. The U.S. Bankruptcy Code requires that an authorized person file monthly operating reports with both the U.S. Trustee and the U.S. Bankruptcy Court. The monthly operating reports provide information regarding the income and expenses of the debtor and copies of related bank statements to substantiate the activity. Linda Davis Griffin is the sole member of Vision Adventures and was the authorized person to file monthly operating reports.
Appearing before U.S. District Court Chief Judge William E. Smith, Ms. Davis Griffin admitted to the court that several of the monthly operating reports she provided to the U.S. Trustee and the U.S. Bankruptcy Court contained altered bank records, making it appear that there was less money in Vision Adventure bank accounts than actually existed. According to information presented to the court, Ms. Davis Griffin provided the altered bank documents in order to conceal the fact that she converted a total of $25,480 of debtor funds for her own use.
Ms. Davis Griffin is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on July 15, 2016.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Assistant U.S. Attorney Gerard B. Sullivan.
The matter, investigated by the FBI, was referred to the United States Attorney’s Office by the U.S. Department of Justice Office of the United States Trustee for the Districts of Maine, Massachusetts and Rhode Island.
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Pleasant Hills Man Sentenced to 5 Years in Prison for Role in Cocaine Trafficking RingRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 60 months’ imprisonment on his conviction of conspiracy to distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Andre Collington, 44, of Pleasant Hills, Pa.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Andre Collington was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Collington.
Philadelphia Man Charged with Stealing Dead Mother's Retirement BenefitsRead the Press Release
PHILADELPHIA - Daryl McCall, 60, of Philadelphia, Pennsylvania, was charged by Information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for his mother, after his mother’s death in March 2009 until August 2013. The defendant’s alleged actions resulted in a loss to the government of approximately $52,314.
If convicted, the defendant faces a statutory maximum sentence of 10 years in prison, up to three years of supervised release, restitution to the government of $52,314, a possible fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Lying on Gun FormsRead the Press Release
PHILADELPHIA - Somath Hom, 24, of Philadelphia, PA was charged today by Indictment with two counts of making false statements to a federal firearms licensee regarding guns he purchased on November 3 and November 9, 2015 from federal firearms licensees, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 10 years in prison, three years of supervised release, a possible fine and a $200 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oklahoma Man Sentenced for Possession of a Firearm by a Prohibited Person and Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sand Springs, Oklahoma, man convicted of Possession of a Firearm by a Prohibited Person and Failure to Register as a Sex Offender was sentenced on April 4, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
As to the charge of Possession of a Firearm by a Prohibited Person, Garnette Titus, age 43, was sentenced to 77 months in custody, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. As to the Failure to Register as a Sex Offender charge, Titus was sentenced to 60 months in custody, 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. The periods of custody and supervised release are to run concurrent to each other.
Titus was indicted for the charges on June 16, 2015. Titus pled guilty on August 24, 2015.
The charges related to Titus being in possession of a .380 pistol on March 18, 2015, near Pine Ridge, after having been previously convicted of felonies. Titus also failed to register as a convicted sex offender between April 1, 2014, and March 18, 2015. While Titus was unregistered, he assaulted a tribal corrections officer.
This case was investigated by the Bureau of Indian Affairs Division of Drug Enforcement, the Oglala Sioux Tribe Department of Public Safety, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the U.S. Marshals Service. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Titus was immediately returned to the custody of the U.S. Marshals Service.
# # #
Oklahoma City Man Sentenced to 188 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that PHILLIP EARL AMEY, a/k/a Crazy, age 34, of Oklahoma City, Oklahoma, was sentenced to 188 months imprisonment, followed by 5 years of supervised release for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(l) and 841(b)(l)(A).
The Indictment alleged that beginning in or about July 2014, the exact date being unknown to the Grand Jury, and continuing until on or about April 7, 2015, within the Eastern District of Oklahoma and elsewhere, the defendant, PHILLIP EARL AMEY, a/k/a Crazy, did knowingly and intentionally conspire, confederate and agree together and with David Dean Cagle, Brandon Michael Jones, Gilbert Espinoza, a/k/a Snow, Jonathan Miranda, Jessica Suzanne Felix, a/k/a Sarah, and others, to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma City Police Department, Oklahoma Highway Patrol, McAlester Police Department, Checotah Police Department, McIntosh County Sheriff’s Department, District 18 District Attorney’s Drug Task Force, Bureau of Indian Affairs, United States Marshal Service, Bureau of Alcohol, Tobacco and Firearms, Federal Bureau of Investigation and the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Ohio Seminary Student Pleads Guilty, Admits Seeking Sex with Infants in TijuanaRead the Press Release
Assistant U. S. Attorney Alessandra Serano (619) 546-8104
NEWS RELEASE SUMMARY – April 13, 2016
SAN DIEGO – Joel Alexander Wright, a former seminary student from Ohio, pleaded guilty in federal court today, admitting that he attempted to adopt or purchase female infants and toddlers in Tijuana in order to sexually molest them.
In his plea agreement, Wright admitted that he was the author of numerous sexually explicit emails in which he describes to a cooperating witness and an undercover federal agent how he intended to sexually assault various children in Mexico, from infants up to 4 years old.
Wright admitted the following in his plea agreement:
Beginning in November of 2015, he placed ads on Craigslist Tijuana purporting to seek a female tour guide. When he received a response from a cooperating witness, he confided that he wanted to “adopt/own a baby girl (under the age of 3) and I want to have intercourse with her after I own her but don’t be telling people that…I won’t pay until I have seen the baby and I will pay the parents then…the cheapest baby under 3 would be good.”
In another email with an undercover federal agent, Wright admitted that he wrote he had “picked up an infant pain relief med and a pretty outfit which I think should fit the 1 or 2 year old.” He emailed that he “will try to find some lube here at the store that we can use.” He also wrote that he had purchased an American Airlines ticket to travel from Ohio to San Diego on January 29, 2016, arriving at 11:30 a.m.
On January 29, Wright deplaned at San Diego International Airport and called a number to the undercover agent stating that he had landed. Wright had two cell phones and a duffle bag. Inside the bag agents found baby clothes, sleep aids, bottles, toys, candy and lubricant.
Wright was arrested at the airport and has remained in custody since. He is scheduled to be sentenced on July 1, 2016 at 9 a.m. before U.S. District Judge Dana M. Sabraw.
“There are no words to describe the horror that might have happened, had this man carried out what he intended to do - sexually exploit and assault innocent toddlers and infants,” said U.S. Attorney Laura Duffy. “There is nothing more important on my agenda than keeping children safe from individuals who have a sexual interest in children both here in the United States and abroad from individuals who travel from the U.S. with that nefarious intent.”
“I commend our cybercrimes special agents whose tireless work during an exhaustive investigation has prevented further exploitation of innocent children by a significantly heinous, unspeakable form of child sexual predator activity,” said Dave Shaw, special agent in charge for HSI San Diego. “HSI is committed to working closely with our law enforcement partners both here and abroad to protect children from becoming victims of child sex predators.”
DEFENDANT Case Number: 16CR0354-DMS
Joel Alexander Wright Age: 23
SUMMARY OF CHARGE
Attempted Enticement of a Minor, in violation of Title 18, U.S. code Sec. 2422(b).
Maximum Penalty: Life in prison, with minimum mandatory 10-year sentence, maximum $250,000 fine, lifetime registration as a sex offender
AGENCY
New Orleans Man Sentenced to 22 Years in Prison for Selling Heroin, Including While Being Incarcerated in OPPRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LIONEL THOMAS, age 30, of New Orleans, was sentenced today after previously pleading guilty to an Indictment charging him with violations of the Federal Controlled Substances Act.
U.S. District Judge Kurt D. Engelhardt sentenced THOMAS to 264 months imprisonment, to be followed by 10 years of supervised release.
According to the court records, THOMAS conspired with others known and unknown to possess with the intent to distribute and to distribute one kilogram or more of a mixture or substance containing a detectable amount of heroin, a Scheduled I drug controlled substance. THOMAS admitted to using the phone system while incarcerated at the Orleans Parish Prison, where all calls are recorded, to further his drug trafficking activities. Law enforcement officers also seized over $60,000 from THOMAS during various stops and searches in the fall of 2013.
U.S. Attorney Polite praised the work of the Special Agents of the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI), with assistance from Louisiana State Police and the New Orleans Police Department in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
New Orleans Man Sentenced for Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRIN MCCRAINEY, a/k/a “Skutta,” a/k/a “Darren McCraney,” age 33, of New Orleans, was sentenced today after pleading guilty to a one-count superseding Bill of Information for a violation of the Federal Gun Control Act.
U.S. District Judge Ivan L.R. Lemelle sentenced MCCRAINEY to 84 months, followed by five years of supervised release, and/or a fine of $250,000, and a $100 special assessment fee. MCCRAINEY will be surrendered to the custody of the Bureau of Prisons.
According to court documents, on April 4, 2015, MCCRAINEY brandished a firearm during and in relation to a drug trafficking crime as he robbed the victim of a quantity of marijuana, which affected interstate commerce.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Former Special Assistant United States Attorney Brian Ebarb was in charge of the prosecution.
Muse Man Sentenced to 48 Months for Firearm Possession, 12 Months for Illegally Taken WildlifeRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that RICKY DALE BARRON, age 61, of Muse, Oklahoma, was sentenced to 48 months imprisonment, followed by 3 years of supervised release for Felon in Possession of Firearm, in violation of Title 18, United States Code, Section 641 and 12 months imprisonment, followed by 1 year of supervised release for Interstate Transportation of Illegally Taken Wildlife, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(2). The sentences will be served concurrently.
The charges arose from an investigation by the United States Forest Service.
The Information filed in December, 2015, alleged that on or about October 25, 2015, within the Eastern District of Oklahoma, the defendant, RICKY DALE BARRON, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Remington Model 1100, 12 gauge, shotgun, serial number N280403V, which had been shipped and transported in interstate commerce. It further alleged that From on or about December 14, 2014 to on or about April 2, 2015, within the Eastern District of Oklahoma, and elsewhere, the defendant, knowingly transported wildlife, to wit: a black bear and parts thereof, in interstate commerce from Oklahoma to Arkansas, when in the exercise of due care, the defendant should have known that said wildlife was taken and possessed in a violation of and in a manner unlawful under the laws and regulations of Oklahoma.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
Assistant United States Attorney Chris Wilson represented the United States.
Members of Rochester Credit Card Fraud and Identity Theft Ring Sentenced to Federal PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Shawn Smith, 28, Odell Edwards, 31, Sebastian Ferrell, 32, and Courtney Campbell-Cooper, 27, all of Rochester, NY, who were convicted of conspiracy to commit bank fraud and aggravated identity theft, were sentenced by Chief U.S. District Judge Frank P. Geraci. The sentences included:
• Smith-26 months in prison;
• Edwards-77 months in prison;
• Ferrell-77 months in prison; and
• Campbell-Cooper-51 months in prison.
Ferrell also received an additional 14 months in prison for violation of supervised release. The defendants were also ordered to pay a total of $435,274 in restitution to Discover Bank as part of their sentences.
“This case demonstrates why it is so important to regularly and consistently keep track of your credit cards and financial statements," said U.S. Attorney Hochul.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that in April 2014, the United States Secret Service began investigating reports of access device fraud and identity theft in the Rochester area. They were assisted by the United States Postal Inspection Service, Rochester Police Department, Monroe County Sheriff’s Office, and the Brighton Police Department. The investigation involved fraudulently obtained credit cards issued by Discover Financial Services being used at various locations in the Western District of New York and elsewhere.
The scheme involved legitimate credit card accounts which were compromised. The financial institution would receive a telephone call requesting that a particular name be added to the account as an authorized user and that a new credit card be issued. Other times the request was simply for the issuance of replacement cards in the actual account holder’s name. The new cards were sent to various addresses in Rochester and were then intercepted by subjects of the fraud ring, including the defendants. The investigation revealed that the true holders of the credit card accounts had not authorized the issuance of new cards in these names or the issuance of replacement cards, and had not authorized the subsequent use of these credit cards. The investigation linked Smith, Edwards, Ferrell, and Campbell-Cooper to multiple fraudulent credit card accounts, and showed that they were using other people’s credit accounts to make unauthorized purchases around the country.
As the defendants received the fraudulent cards, they immediately made fraudulent purchases and cash withdrawals in area stores and banks. On one visit to a local Best Buy alone, the defendants purchased over $6,000 worth of electronics using fraudulent credit cards. The cards were also used extensively at high end retailers and at various designer stores at the Eastview mall. The defendants also visited area banks and ATM machines to make fraudulent cash withdrawals using the stolen cards and false identity documents.
In addition to fraudulent purchases made in the Rochester area, some of the defendants traveled outside of New York with the stolen cards. Surveillance video recovered during the investigation showed the defendants making fraudulent purchases at hotels, stores, and casinos in Illinois, Florida, and Ohio. As a result of the scheme, the defendants stole more than $435,000.
U.S. Attorney Hochul further stated: “The best defense against fraud is knowing how to detect and thwart the wide variety of criminals who seek to steal your identity and money. Visit stopfraud.gov to learn how to identify fraud and how to protect against such schemes”
The sentencings are the culmination of a multi-state investigation, coordinated by Special Agents with the Rochester Resident Office of the United States Secret Service, under the direction of C. Todd Laster, Special Agent in Charge; Inspectors with the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector In Charge of the Boston Division; Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli; Deputies with the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn; and Officers with the Brighton Police Department, under the direction of Chief Mark Henderson.Mass. Resident Admits to Reselling Stolen Firearms Purchased with Fraudulent ChecksRead the Press Release
PROVIDENCE, R.I. – Edwin William Rosa, 45, of Peabody, Mass., pleaded guilty in federal court in Providence, R.I., today to possession of stolen firearms. Rosa admitted to the court that on several occasions he purchased firearms from registered dealers in Massachusetts using bogus bank checks and then sold the stolen guns to firearms dealers in Rhode Island.
Appearing before U.S. District Court Chief Judge William E. Smith, Rosa admitted to the court that between September 8 and September 30, 2015, he used personal checks from closed bank accounts to purchase eight firearms from registered firearms dealers in Massachusetts. Rosa then sold the firearms to registered firearms dealers in Rhode Island for immediate payment in cash or by check.
Rosa’s guilty plea is announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rosa is scheduled to be sentenced on July 15, 2016.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF, with the assistance of the Smithfield, R.I., and Seekonk, Fall River and Somerset, Mass., Police Departments.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Manhattan U.S. Attorney Announces Charges Against 11 Individuals for Money Laundering CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, David Schnorbus, Special Agent-in-Charge of the New York Field Office of the United States Department of State, Diplomatic Security Service (“DOS-DSS”); Angel M. Melendez, the Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations, New York Field Office (“HSI”); Shantelle P. Kitchen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (“IRS-CI”); and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS” and together with DSS, HSI, and the IRS, the “Investigating Agencies”), announced charges today against 11 individuals, RYAN JUNGHUN KIM, a/k/a “Ryan Junghun Choi,” a/k/a “Ki Soo Choi,” a/k/a “Lion King,” HOI HAM, SUNG HWAN KIM, a/k/a “Sean Kim,” YOUNG HO JOO, a/k/a “Jay Joo,” MI SOOK KIM, SU YEON YUN, a/k/a “Bebe,” HYUN JOO LEE, HYUN JOO SHIN, YING AI LI, a/k/a “Sung Soon Kim,” JIN AE JUNG, a/k/a “Jaqueline Kim,” a/k/a “Jackie Kim,” and MOOJA PETERSON, a/k/a “MJ,” for laundering in excess of $1.4 million in illegal proceeds between 2011 and 2016. These illegal proceeds were generated by at least 10 illegal brothels in and around the New York City metro area that the defendants owned, operated, managed, or advertised.
HOI HAM, YOUNG HO JOO, SU YEON YUN, HYUN JOO SHIN, YING AI LI, and JIN AE JUNG and were arrested in the New York City metro area today. SUNG HWAN KIM was arrested in Pennsylvania today. These defendants will be presented in the Southern District of New York today before United States Magistrate Judge James L. Cott. RYAN JUNGHUN KIM was arrested in Seoul, South Korea. MI SOOK KIM, MOOJA PETERSON, and HYUN JOO LEE have not yet been apprehended.
Manhattan U.S. Attorney Preet Bharara said: “Eleven individuals are charged with laundering more than a million dollars of proceeds from their illegal commercial sex businesses. I want to thank our federal and local law enforcement partners and recognize the assistance of the Seoul Metropolitan Police Agency.”
Special Agent-in-Charge David Schnorbus said: “The dismantling of this international conspiracy, stretching from South Korea to the United States, is an important achievement made possible by the coordinated efforts of all agencies supporting this investigation and prosecution. Diplomatic Security’s global presence enables our organization to partner with foreign law enforcement, and the investigative support of the Seoul Metropolitan Police Agency highlights that global reach.”
Special Agent in Charge Angel M. Melendez said: “Today's arrests and search warrants are the result of the great partnership between HSI and its law enforcement partners to shut down a large international prostitution and money laundering organization operating illegal brothels here in New York. Sex businesses like these pose a threat to public safety in our communities and must not be tolerated.”
Special Agent in Charge Shantelle P. Kitchen said: “Money laundering is not just a crime committed by drug dealers. The kinds of criminal enterprises that launder money to conceal illicit proceeds and to keep their operations going are as diverse as the ways that money can be laundered. IRS-Criminal Investigation is always ready to bring its financial investigative expertise to money laundering investigations of all kinds.”
Inspector-in-Charge Philip R. Bartlett said: “These individuals operated an illegal prostitution ring, lining their pockets with the profits from the world’s oldest profession. Today's arrests are yet another example of law enforcements commitment to identify, disrupt and dismantle organized criminal enterprises.”
According to the Complaint[1] unsealed today in Manhattan federal court:
Since 2012, the Investigating Agencies have been investigating a group of brothels (the “Brothels”) operating in and around New York. Each of the Brothels is independently owned and operated, but the owners of the Brothels work cooperatively through, among other things, the sharing of approved customer lists and information. Defendants RYAN JUNGHUN KIM, HOI HAM, SUNG HWAN KIM, YOUNG HO JOO, MI SOOK KIM, SU YEON YUN, HYUN JOO LEE, HYUN JOO SHIN, YING AI LI, JIN AE JUNG, and MOOJA PETERSON are individuals who operated the Brothels, including advertisers, website developers, brothel owners, and brothel managers.
The defendants typically used websites associated with the Brothels to advertise the women prostituted in the Brothels (the “Brothel Websites”). The Brothel Websites describe, among other things, specific services that the Brothels offer, including a service called the “girlfriend experience.” In addition to the Brothel Websites, the Brothels used an online aggregator of advertisements to advertise the Brothels (the “Advertising Website”). The management of online advertising and payment for this advertising was coordinated by the defendants. The defendants would regularly email among themselves sexually explicit photographs of women prostituted in the Brothels to be used in online advertising, as well as instructions for how certain posts should appear. They would also exchange emails concerning, among other things, advertising for the Brothels and payment of advertising fees to the Advertising Website.
To pay for these advertising fees, the defendants would use hundreds of thousands of dollars in illegal proceeds generated by the Brothels’ prostitution business. These proceeds would be transferred among the defendants through several methods, including cash deliveries, payment of credit card balances, and wire transfers. An account associated with RYAN JUNGHUN KIM received tens of thousands of dollars from accounts in the names of several of the defendants. HOI HAM, the defendant, made cash pickups from the Brothels on multiple occasions, and even discussed these pickups in electronic chat messages with RYAN KIM. Moreover, between December 2012 and May 2014, approximately $326,381 was transferred from a single credit card in HAM’s name to the Advertising Website. Similarly, between December 2011 and September 2013, approximately $150,000 in cash was deposited into an account in the name of SUNG HWAN KIM and approximately $90,000 during that same period was remitted to the Advertising Website. Finally, between December 2011 and May 2014, approximately $268,000 was deposited into a bank account maintained in the name of YOUNG HO JOO, the defendant, and another individual. During this same period, this account remitted approximately $92,311 to the Advertising Website. To date, the investigation, which is ongoing, has identified more than $1.4 million worth of illegal transactions.
* * *
Each of the defendants is charged with one count of conspiracy to commit money laundering, which carries of maximum sentence of 20 years in prison; and one count of conspiracy to violate the Travel Act, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to: http://www.usdoj.gov/usao/nys/victimwitness.html
Mr. Bharara praised the outstanding efforts of DSS, HSI, the IRS, USPIS, the New York City Police Department, and the Seoul Metropolitan Police Agency. He added that the investigation is ongoing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Sidhardha Kamaraju, Lauren Schorr, and Michael Neff are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Manhattan U.S. Attorney and FBI Assistant Director Announce Insider Trading Charges Against Analyst at Investment FundRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that JOHN AFRIYIE, a former analyst at a Manhattan-based private investment fund (the “Fund”), was arrested this morning and charged with insider trading. AFRIYIE made approximately $1.5 million in profits in connection with options trading based on material nonpublic information he misappropriated from the Fund about an impending acquisition of a publicly traded company. AFRIYIE was presented today in Manhattan federal court before United States Magistrate Judge James L. Cott.
Manhattan U.S. Attorney Preet Bharara said: “In February of this year, John Afriyie made a quick $1.5 million profit by trading in options of ADT stock. His profits were not the result of trading acumen, diligent research, or blind luck, but rather the alleged spoils of criminal insider trading. Afriyie allegedly traded on material nonpublic information he had obtained about a pending acquisition of ADT that had not yet been made public. Afriyie’s attempts to keep his alleged criminal insider trading secret by trading in his mother’s name failed, and thanks to the efforts of the FBI and the SEC, he will now answer to federal securities fraud charges.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Afriyie allegedly disregarded insider trading laws to enrich himself. The FBI is committed to working with our partners to pursue those who commit these crimes and undermine the public's confidence in the financial markets.”
According to the Complaint filed today Manhattan federal court:[1]
In January 2016, Apollo Investment Management LLC (“Apollo”) contacted the Fund to discuss whether the Fund would provide debt financing for Apollo’s potential acquisition of ADT Corporation (“ADT”) in an all-cash transaction. The Fund entered into a non-disclosure agreement with Apollo and was granted access to an electronic data room for the ADT transaction. As an investment analyst at the Fund, AFRIYIE had access to the Fund’s network server, which maintained, among other things, electronic shared directory file folders containing material nonpublic information, including information about Apollo’s acquisition of ADT.
In violation of the Fund’s policies and in breach of his duties to the Fund and its clients, AFRIYIE accessed material nonpublic information about Apollo’s pending acquisition of ADT in an electronic shared drive folder on the Fund’s network server. In approximately 28 separate transactions between January 28, 2016, and February 12, 2016, AFRIYIE purchased approximately 2,279 ADT call options for a total of $24,254.02 before the public announcement of that transaction. AFRIYIE purchased the ADT call options through a brokerage account in the name of AFRIYIE’s mother, which AFRIYIE controlled. AFRIYIE did not reveal his affiliation with the Fund in the account opening documents for the brokerage account or in his communications with the brokerage firm. Nor did AFRIYE reveal his trades or the existence of the brokerage account to the Fund.
The public announcement of Apollo’s acquisition of ADT in February 2016 caused ADT shares to increase in value from $29.20 per share on the day AFRIYIE began purchasing ADT options to $39.64 per share, resulting in a corresponding increase in the value of the call options AFRIYIE had purchased. As a result of the insider trading alleged in the Complaint, AFRIYIE earned at least $1.53 million in realized and unrealized profits.
* * *
AFRIYIE is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and thanked the SEC, which has filed civil charges in a separate action. He added that the FBI’s investigation is ongoing.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Edward A. Imperatore is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Leader of Conspiracy to Rob an Owings Mills Jewelry Store Sentenced to 30 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Stanislav “Steven” Yelizarov, age 26, of Pikesville, Maryland, today to 30 years in prison, followed by five years of supervised release, for a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a carjacking and kidnapping. Judge Motz also entered an order requiring Yelizarov to pay restitution of $500,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Yelizarov was the leader of a conspiracy to rob an Owings Mills jewelry store, and was also the leader of an armed home invasion robbery designed to obtain firearms, which were subsequently used in the robbery of the jewelry store.
Specifically, on July 22, 2012, Yelizarov, his brother MaratYelizarov, Aleksy Sosonko, and Grigory Zilberman robbed a home in Reisterstown, Maryland. Zilberman was familiar with the layout of the home, and knew that the residents owned firearms, having been there as a guest on a number of occasions. Zilberman had handled and fired some of the weapons. After conducting surveillance of the home for several days prior to the robbery, at 2:30 a.m. on July 22, 2012, S. Yelizarov, who was armed with a handgun, Sosonko, M. Yelizarov, and Zilberman traveled to the home in Reisterstown. Dressed all in black and wearing ski masks and latex gloves, the co-conspirators entered the home through the unlocked garage door. Sosonko, M. Yelizarov, and Zilberman grabbed long guns from the residence and carried them throughout the home. A resident of the home was asleep when the four robbers entered his bedroom and woke him up, pointing guns at him and shining flashlights in his eyes. S. Yelizarov beat the resident when he tried to resist while M. Yelizarov tied up the resident with a belt and a cord. For approximately one hour the robbers ransacked the home looking for firearms and other valuables. After the robbers left, the resident was able to free himself and call police. The resident was taken to the hospital for treatment of his injuries. Among the items stolen from the house were 10 long guns (rifles and shotguns), a crossbow, a laptop computer, and jewelry. Numerous electronic devices including computers and televisions were destroyed during the robbery. The value of the items stolen was approximately $10,000.
In the fall of 2012, Yelizarov devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore. Yelizarov was the leader of the conspiracy and had final decision making authority over the execution of the scheme. Yelizarov recruited Zilberman, Sosonko, Igor Yasinov, Peter Magnis, M. Yelizarov, Sorhib Omonov, and others to participate in the robbery. In preparation for the robbery, on December 25, 2012, S. Yelizarov, Yasinov, and others committed a burglary of a residence in Baltimore, during which they stole a shotgun and semiautomatic handgun. The handgun was used in the robbery of the jewelry store on January 16, 2013. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance. S. Yelizarov purchased and attached a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee. According to S. Yelizarov’s plea agreement, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. While the employee was at Zilberman’s home, the conspirators met at Yelizarov’s residence to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Early in the morning on January 16, 2013, M. Yelizarov and Omonov followed the employee from Zilberman’s home and notified the other conspirators of the employee’s location so they could follow the employee. S. Yelizarov, Sosonko, Yasinov, and Magnis driving in a rental car obtained by Yasinov, used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms which were supplied by S. Yelizarov, the conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location.
According to the plea agreement, once at the location, S. Yelizarov and the co-conspirators continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, while Yasinov and Magnis stayed with the employee, holding him bound and blindfolded at gunpoint. M. Yelizarov and Omonov were stationed near the jewelry store to act as “look-outs.” S. Yelizarov and Sosonko entered the store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, S. Yelizarov sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, S. Yelizarov traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, he returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. S. Yelizarov determined how much each participant received based on his perception of the risk and the conduct of each participant.
On January 25, 2013, S. Yelizarov was arrested in Buffalo, New York, on federal misuse of passport charges. From January 25 through February 2, 2013, S. Yelizarov placed calls directing his brother, M. Yelizarov, and others, to remove from his residence and dispose of evidence related to the jewelry store robbery, including cash from the sale of the jewelry, firearms used during the conspiracy, the law enforcement light bar, the GPS device, a laptop computer, and other evidence of the crimes.
Grigoriy (Greg) Zilberman, age 25, and Aleksey Sosonko, age 35, both of Owings Mills, Maryland; Igor Yasinov, age 26, of Baltimore; and Marat Yelizarov, age 27, of Pikesville, previously pleaded guilty to their roles in the robbery conspiracy and are awaiting sentencing. Peter Aleksandrov Magnis, age 28, of Hydes, Maryland, and Sorhib Omonov, age 27, of Baltimore, also pleaded guilty and were sentenced to seven years in prison and four years in prison, respectively.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Las Vegas Man Indicted for Defrauding 39 Persons in Investment Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A man who convinced persons to invest money with him by falsely representing himself to be a successful securities trader and investor, was indicted by the federal grand jury today for stealing almost $2 million from his victims, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Social media platforms are increasingly being used by persons with criminal intentions,” said U.S. Attorney Bogden. “Be very cautious and investigate the background of persons who request your money with promises to invest it.”
Sean Christopher Sladek, 39, most recently of Henderson, Nev., and Liberty, Texas, is charged with two counts of wire fraud, two counts of money laundering, and criminal forfeiture. Sladek is scheduled to appear before U.S. Magistrate Judge Nancy Koppe on April 21, 2016, for an arraignment and plea. Sladek has been in federal custody since March 31, when he was arrested by the FBI at McCarran Airport.
According to the indictment, from about January 2011 to March 2016, Sladek allegedly solicited persons, including some he met through social media sites, such as online dating platforms Tinder and Bumble, and through Craigslist, for investment funds. Sladek falsely told the victims and potential victims that he was a successful securities trader and investor, and that he would invest any monies they gave him to earn positive returns on their investments. In fact, Sladek was not a successful investor or securities trader, and used the funds he received from the victims for gambling, personal expenses, and to enrich himself. When the victim investors complained to Sladek about non-payment of investment returns, Sladek gave numerous false excuses and reasons for why they had not been paid. The indictment states that on May 10, 2013, and September 12, 2014, Sladek received $100,000 from one victim in California and $40,000 from another victim in South Carolina, respectively, and, within one day of receiving those funds, he deposited cashier’s checks for almost the same amounts into two casino accounts in Las Vegas. Sladek did not pay investment returns to any known victim, and wrongfully obtained approximately $1.7 million from about 39 known victims.
If convicted, Sladek faces a maximum of 20 years in prison on each wire fraud count and up to 10 years in prison on each money laundering count, as well as fines of up to $250,000 on each count.
The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Jiamin Chen.
If you believe you are a victim of this offense, please contact your local FBI field office.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Kansas Business Owner Convicted on Federal Tax ChargesRead the Press Release
WASHINGTON – A Leawood, Kansas, business owner was convicted today of tax fraud following a month-long jury trial, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Barry R. Grissom of the District of Kansas.
The jury found Kathleen Stegman, 58, guilty of four counts of tax evasion relating to her evasion of corporate income taxes for the years 2008 and 2009 and individual income taxes for the years 2007 and 2008. Stegman and her husband, Christopher Smith, 51, were both acquitted on the charge of conspiracy to defraud the United States and Stegman was acquitted on one count of tax evasion.
Stegman owned Midwest Medical Aesthetics Center in Leawood, which provided aesthetic services including microdermabrasion, laser hair removal and anti-aging procedures and products. Smith owned Encompass Construction Group in Independence, Missouri.
“Today’s verdict is a reminder to business owners that they cannot use their companies as their personal piggy banks,” said Acting Attorney General Ciraolo. “All taxpayers must file true and accurate returns with the IRS to report their income and expenses. Those that fail to do so face significant consequences, including criminal prosecution, prison and monetary penalties.”
According to the evidence at trial, Stegman under-reported her company’s gross receipts and overstated her company’s expenses on the corporate tax returns filed with the Internal Revenue Service (IRS). Stegman also diverted income from the company for her personal use and failed to report the income on her tax returns. The government also presented evidence that Stegman and Smith agreed to fabricate a repairs and maintenance contract between Smith and Midwest Medical in order to increase the company’s business deductions and divert money from the company to their personal use. In December 2010, Stegman wrote a check in the amount of $50,575 to Encompass Construction, which was drawn on Midwest Medical’s bank account. Smith used the money to buy gold coins that were shipped to Stegman’s business address in Leawood. On Midwest Medical’s 2010 corporate tax return, Stegman fraudulently deducted this payment as a business expense for repairs and maintenance.
“Today’s verdict is an important victory for America’s taxpayers who play by the rules and have no tolerance for those who make up their own rules,” said Special Agent in Charge Karl Stiften of IRS-Criminal Investigation. “There is no such thing as free money and there are no awards or incentives for creativity when it comes to crime.”
Stegman faces a statutory maximum sentence of five years in prison and a $250,000 fine on each count of tax evasion. A sentencing date has not yet been set.
Assistant Attorney General Ciraolo and U.S. Attorney Grissom thanked special agents of IRS Criminal Investigation, who investigated the case and Trial Attorneys Ryan R. Raybould and John T. Mulcahy from the Tax Division and Assistant U.S. Attorney Jabari B. Wamble of the District of Kansas, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Justice Department and Federal Trade Commission Officials Meet with Officials Responsible for Chinese Anti-Monopoly AgenciesRead the Press Release
Assistant Attorney General Bill Baer of the U.S. Department of Justice’s Antitrust Division and Federal Trade Commission Chairwoman Edith Ramirez participated in high level bi-lateral meetings with officials responsible for China’s three anti-monopoly agencies – National Development and Reform Commission (NDRC) Vice Minister Hu Zucai, Ministry of Commerce (MOFCOM) Assistant Minister Tong Daochi and State Administration for Industry and Commerce (SAIC) Vice Minister Wang Jiangping.
The meetings took place this morning in Washington, D.C., and allowed the participating agencies to exchange information and views on antitrust developments and priorities. In addition, the agencies discussed the role of competition enforcement and advocacy in promoting innovation. The meetings will continue this afternoon and tomorrow with separate meetings between U.S. antitrust enforcers and each of the three Chinese agencies.
These are the third joint, high-level meetings between the agencies since the Justice Department and the FTC signed an antitrust memorandum of understanding with the Chinese antitrust agencies on July 27, 2011. The MOU is designed to promote communication and cooperation between U.S. and Chinese antitrust enforcement agencies and provides for periodic high-level consultations.
Justice Department Reminds Taxpayers That Willful Failure to Comply with Our Nation’s Tax Laws is a CrimeRead the Press Release
Highlights Focus on Traditional Tax Enforcement
With the annual tax return filing deadline approaching, the Justice Department’s Tax Division reminds U.S. taxpayers that willful failure to comply with our nation’s tax laws is a crime. Whether they willfully fail to file returns, file false returns, or evade tax due, taxpayers who cheat will face serious consequences including prison and monetary sanctions.
“Our nation depends on all taxpayers, regardless of age, profession or economic status, to file accurate returns and promptly pay their taxes,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Individuals and businesses that willfully fail to comply with their legal responsibilities harm not only the U.S. Treasury, but also all Americans who are paying their fair share. The department is committed to continuing to aggressively prosecute those individuals who seek to circumvent U.S. tax laws.”
“Paying taxes is not a choice but a responsibility,” said Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI). “IRS-Criminal Investigation works with our partners at the Department of Justice to enforce our nation’s tax laws and ensure that we are all playing by the same rules. IRS-CI special agents are specifically trained to investigate complex financial fraud, and bring their considerable skill and experience to these investigations. Those who think they can evade our efforts will find they are terribly mistaken.”
Over the past year, the Tax Division and the U.S. Attorney’s Offices have worked closely with the IRS and other law enforcement partners to enforce the nation’s tax laws fully, fairly and consistently through criminal investigations and prosecutions across the country.
Failure to File Tax Returns and Failure to Pay Taxes
- In April 2016, James Redding, the president of an interior construction business in the District of Columbia and Maryland, was sentenced to two years in prison for failing to pay over $1.4 million in income and employment taxes. Redding also filed false tax returns on behalf of himself and his wife and on behalf of his business. Instead of paying his company’s employment taxes, Redding used company funds to pay the company’s creditors and for the benefit of himself and his family members. This case was prosecuted by the U.S. Attorney’s Office for the District of Columbia.
- In September 2015, Thomas Tilley, a businessman in North Carolina, was sentenced to 32 months in prison and ordered to pay more than $7 million in restitution to the IRS for a decades-long scheme, which included his failure to file returns despite earning a substantial income, sending fraudulent financial instruments to the IRS in an effort to discharge his tax debt, using nominee entities and sham trusts to purchase and sell real estate and placing false liens on his properties to prevent the IRS from collecting his taxes. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the Middle District of North Carolina.
- In June 2015, Ronald Martin, the former owner and operator of a New Hampshire construction company, pleaded guilty to three counts of tax evasion. Martin failed to file corporate or individual tax returns despite the fact that his company generated more than $1 million in gross revenue over a three year period. Martin also attempted to conceal the business revenue from the IRS by directing that payments be made in his nephew’s name, depositing only a fraction of the business receipts into the business’s bank accounts, and diverting a significant portion to his personal use. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the District of New Hampshire.
Filing False Tax Returns
- In March 2016, Lorenzo Shane Stewart, the owner of an excavation and construction business in Illinois, was sentenced to 30 months in prison following his guilty plea to tax evasion. Stewart failed to report his business income on his tax returns and failed to pay more than $1.12 million in income taxes. This case was prosecuted by the U.S. Attorney’s Office for the Central District of Illinois.
- In February 2016, Avan Nguyen, the owner of a wholesale beauty supply business in Texas, was sentenced to three years in prison, ordered to forfeit $1.1 million, and ordered to pay restitution to the IRS for aiding and assisting in the filing of a false tax return. Nguyen caused a tax return to be filed for his company that omitted nearly $5 million of income. This case was prosecuted by the U.S. Attorney’s Office for the Northern District of Texas.
- In November 2015, Tammy Denise Westbrooks, a Texas resident and manager of a tax return preparation business in Charlotte, North Carolina, was convicted for filing false tax returns and attempting to obstruct the IRS. Westbrooks underreported her net business profit by inflating her business expenses, paid workers in cash, and failed to file the required Forms W-2 and 1099 to report workers’ compensation to the government. This case was prosecuted by the Tax Division.
Concealing Income and Assets Through Nominee Entities and Offshore Bank Accounts
- In April 2016, Michael D. Brandner, an Alaska plastic surgeon, was sentenced to four years in prison for wire fraud and tax evasion. After his wife filed for divorce, Brandner collected millions of dollars in marital assets and drove from Tacoma, Washington, to Costa Rica, where he opened two bank accounts into which he deposited over $350,000 in cash and hid a thousand ounces of gold in a safe deposit box. He then traveled to Panama where he opened an account under the name of a sham corporation and in 2008, deposited $4.6 million into the account. Brandner concealed both the existence of the accounts and the interest income earned on those accounts from the court in the divorce proceedings and from the IRS. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the District of Alaska.
- In January 2016, Gregory Claxton, a Michigan certified public accountant and tax return preparer, pleaded guilty to tax evasion after he concealed assets from the IRS to avoid paying nearly $150,000 in taxes. Claxton admitted he deposited the proceeds of his business into bank accounts in his wife’s name to avoid the appearance that he had the ability to pay his income taxes. Claxton also admitted that, just two days prior to meeting with the IRS to discuss his ability to pay his outstanding tax bill, he transferred title to his house to a trust in his wife’s name in an effort to thwart IRS collection efforts. This case was prosecuted by the U.S. Attorney’s Office for the Western District of Michigan.
- In October 2015, Terry Myr, a Michigan mechanic, who specialized in repairing classic and rare cars, including Ferraris, was sentenced to two years in prison for tax evasion and failure to file tax returns. Myr attempted to prevent the IRS from collecting nearly $200,000 in taxes by transferring property to third parties, using nominee companies and dealing in cash. Myr also failed to file tax returns for multiple years to report his income to the government. This case was prosecuted by the Tax Division.
Using Businesses to Pay Personal Expenses
- In March 2016, Faiger Blackwell, the owner of a North Carolina funeral home and other businesses, was sentenced to two years in prison for tax fraud and bankruptcy fraud. Blackwell filed for bankruptcy after accumulating more than $300,000 in federal taxes and more than $1 million in other debts. During the bankruptcy proceedings, Blackwell concealed rental income and used the money to pay for business and personal expenses. After the IRS levied one of Blackwell’s business bank accounts, he set up another company and corresponding bank accounts to divert and conceal funds and circumvent the levy. Blackwell used these funds to pay business and personal expenses, including paying for a cruise. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the Middle District of North Carolina.
- In September 2015, Sheila Mohammed, a doctor in Florida, was sentenced to one year in prison and ordered to pay restitution for filing false income tax returns for herself and her medical practice. Mohammed used the more than one million dollars she failed to disclose to the IRS to purchase vehicles and properties in Florida, Hawaii and New Mexico. This case was prosecuted by the U.S. Attorney’s Office for the Northern District of Florida.
Obstructing IRS Efforts to Assess and Collect Taxes
- In January 2016, James S. Faller II, a former private investigator and legal consultant in Kentucky, was sentenced to serve three years in prison for obstructing the IRS, tax evasion and failing to file tax returns. Faller failed to file tax returns to report his income, which ranged from $126,000 to $289,000 per year, and attempted to hide his income from the IRS by having his income paid to a nominee and using nominee bank accounts. Faller also signed and submitted a false Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to an IRS revenue officer as part of the IRS’s efforts to collect his unpaid taxes. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the Eastern District of Kentucky.
- In August 2015, F. William Messier, a Maine businessman who earned income by leasing telecommunications towers located on his property, was sentenced to one year and one day in prison for conspiracy to defraud the United States and corruptly endeavoring to impair and impede the due administration of the internal revenue laws. Messier attempted to obstruct the IRS by, among other things, providing false tax documents to customers, submitting a fake money order and other false documents to the IRS, and dealing extensively in cash. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the District of Maine.
- In April 2015, John Fall, a Rhode Island real estate consultant, was sentenced to 30 months in prison for obstructing the IRS, tax evasion, and aiding in the filing of false corporate tax returns. Fall used nominee entities and business names to conceal his business and financial transactions, caused false tax returns to be filed in the name of his wife’s dental practice, and attempted to obstruct an IRS audit by encouraging his wife’s accountant not to provide information to the IRS and providing false documents during the audit. This case was prosecuted by the Tax Division.
“The Justice Department, along with our colleagues in the IRS, will continue to identify and vigorously pursue those engaged in tax crimes,” said Acting Assistant Attorney General Ciraolo. “These efforts are critical to the continued integrity of our national tax system and send a strong message to those individuals who make good faith efforts to comply with their tax obligations that we will hold accountable those who do not. If someone suspects or knows of an individual or a business that is not complying with the tax laws, we encourage them to report that information to the IRS.”
More information about the Tax Division’s civil and criminal enforcement efforts in these and other areas is on the division’s website. The IRS website also has information about how to report tax fraud.
- In April 2016, James Redding, the president of an interior construction business in the District of Columbia and Maryland, was sentenced to two years in prison for failing to pay over $1.4 million in income and employment taxes. Redding also filed false tax returns on behalf of himself and his wife and on behalf of his business. Instead of paying his company’s employment taxes, Redding used company funds to pay the company’s creditors and for the benefit of himself and his family members. This case was prosecuted by the U.S. Attorney’s Office for the District of Columbia.
Justice Department Reminds Taxpayers That Willful Failure to Comply with Our Nation's Tax Laws Is a CrimeRead the Press Release
WASHINGTON - With the annual tax return filing deadline approaching, the Justice Department’s Tax Division reminds U.S. taxpayers that willful failure to comply with our nation’s tax laws is a crime. Whether they willfully fail to file returns, file false returns, or evade tax due, taxpayers who cheat will face serious consequences including prison and monetary sanctions.
“Our nation depends on all taxpayers, regardless of age, profession or economic status, to file accurate returns and promptly pay their taxes,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “Individuals and businesses that willfully fail to comply with their legal responsibilities harm not only the U.S. Treasury, but also all Americans who are paying their fair share. The department is committed to continuing to aggressively prosecute those individuals who seek to circumvent U.S. tax laws.”
“Paying taxes is not a choice but a responsibility,” said Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI). “IRS-Criminal Investigation works with our partners at the Department of Justice to enforce our nation’s tax laws and ensure that we are all playing by the same rules. IRS-CI special agents are specifically trained to investigate complex financial fraud, and bring their considerable skill and experience to these investigations. Those who think they can evade our efforts will find they are terribly mistaken.”
Over the past year, the Tax Division and the U.S. Attorney’s Offices have worked closely with the IRS and other law enforcement partners to enforce the nation’s tax laws fully, fairly and consistently through criminal investigations and prosecutions across the country.
Failure to File Tax Returns and Failure to Pay Taxes
- In April 2016, James Redding, the president of an interior construction business in the District of Columbia and Maryland, was sentenced to two years in prison for failing to pay over $1.4 million in income and employment taxes. Redding also filed false tax returns on behalf of himself and his wife and on behalf of his business. Instead of paying his company’s employment taxes, Redding used company funds to pay the company’s creditors and for the benefit of himself and his family members. This case was prosecuted by the U.S. Attorney’s Office for the District of Columbia.
- In September 2015, Thomas Tilley, a businessman in North Carolina, was sentenced to 32 months in prison and ordered to pay more than $7 million in restitution to the IRS for a decades-long scheme, which included his failure to file returns despite earning a substantial income, sending fraudulent financial instruments to the IRS in an effort to discharge his tax debt, using nominee entities and sham trusts to purchase and sell real estate and placing false liens on his properties to prevent the IRS from collecting his taxes. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the Middle District of North Carolina.
- In June 2015, Ronald Martin, the former owner and operator of a New Hampshire construction company, pleaded guilty to three counts of tax evasion. Martin failed to file corporate or individual tax returns despite the fact that his company generated more than $1 million in gross revenue over a three year period. Martin also attempted to conceal the business revenue from the IRS by directing that payments be made in his nephew’s name, depositing only a fraction of the business receipts into the business’s bank accounts, and diverting a significant portion to his personal use. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the District of New Hampshire.
Filing False Tax Returns
- In March 2016, Lorenzo Shane Stewart, the owner of an excavation and construction business in Illinois, was sentenced to 30 months in prison following his guilty plea to tax evasion. Stewart failed to report his business income on his tax returns and failed to pay more than $1.12 million in income taxes. This case was prosecuted by the U.S. Attorney’s Office for the Central District of Illinois.
- In February 2016, Avan Nguyen, the owner of a wholesale beauty supply business in Texas, was sentenced to three years in prison, ordered to forfeit $1.1 million, and ordered to pay restitution to the IRS for aiding and assisting in the filing of a false tax return. Nguyen caused a tax return to be filed for his company that omitted nearly $5 million of income. This case was prosecuted by the U.S. Attorney’s Office for the Northern District of Texas.
- In November 2015, Tammy Denise Westbrooks, a Texas resident and manager of a tax return preparation business in Charlotte, North Carolina, was convicted for filing false tax returns and attempting to obstruct the IRS. Westbrooks underreported her net business profit by inflating her business expenses, paid workers in cash, and failed to file the required Forms W-2 and 1099 to report workers’ compensation to the government. This case was prosecuted by the Tax Division.
Concealing Income and Assets Through Nominee Entities and Offshore Bank Accounts
- In April 2016, Michael D. Brandner, an Alaska plastic surgeon, was sentenced to four years in prison for wire fraud and tax evasion. After his wife filed for divorce, Brandner collected millions of dollars in marital assets and drove from Tacoma, Washington, to Costa Rica, where he opened two bank accounts into which he deposited over $350,000 in cash and hid a thousand ounces of gold in a safe deposit box. He then traveled to Panama where he opened an account under the name of a sham corporation and in 2008, deposited $4.6 million into the account. Brandner concealed both the existence of the accounts and the interest income earned on those accounts from the court in the divorce proceedings and from the IRS. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the District of Alaska.
- In January 2016, Gregory Claxton, a Michigan certified public accountant and tax return preparer, pleaded guilty to tax evasion after he concealed assets from the IRS to avoid paying nearly $150,000 in taxes. Claxton admitted he deposited the proceeds of his business into bank accounts in his wife’s name to avoid the appearance that he had the ability to pay his income taxes. Claxton also admitted that, just two days prior to meeting with the IRS to discuss his ability to pay his outstanding tax bill, he transferred title to his house to a trust in his wife’s name in an effort to thwart IRS collection efforts. This case was prosecuted by the U.S. Attorney’s Office for the Western District of Michigan.
- In October 2015, Terry Myr, a Michigan mechanic, who specialized in repairing classic and rare cars, including Ferraris, was sentenced to two years in prison for tax evasion and failure to file tax returns. Myr attempted to prevent the IRS from collecting nearly $200,000 in taxes by transferring property to third parties, using nominee companies and dealing in cash. Myr also failed to file tax returns for multiple years to report his income to the government. This case was prosecuted by the Tax Division.
Using Businesses to Pay Personal Expenses
- In March 2016, Faiger Blackwell, the owner of a North Carolina funeral home and other businesses, was sentenced to two years in prison for tax fraud and bankruptcy fraud. Blackwell filed for bankruptcy after accumulating more than $300,000 in federal taxes and more than $1 million in other debts. During the bankruptcy proceedings, Blackwell concealed rental income and used the money to pay for business and personal expenses. After the IRS levied one of Blackwell’s business bank accounts, he set up another company and corresponding bank accounts to divert and conceal funds and circumvent the levy. Blackwell used these funds to pay business and personal expenses, including paying for a cruise. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the Middle District of North Carolina.
- In September 2015, Sheila Mohammed, a doctor in Florida, was sentenced to one year in prison and ordered to pay restitution for filing false income tax returns for herself and her medical practice. Mohammed used the more than one million dollars she failed to disclose to the IRS to purchase vehicles and properties in Florida, Hawaii and New Mexico. This case was prosecuted by the U.S. Attorney’s Office for the Northern District of Florida.
Obstructing IRS Efforts to Assess and Collect Taxes
- In January 2016, James S. Faller II, a former private investigator and legal consultant in Kentucky, was sentenced to serve three years in prison for obstructing the IRS, tax evasion and failing to file tax returns. Faller failed to file tax returns to report his income, which ranged from $126,000 to $289,000 per year, and attempted to hide his income from the IRS by having his income paid to a nominee and using nominee bank accounts. Faller also signed and submitted a false Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to an IRS revenue officer as part of the IRS’s efforts to collect his unpaid taxes. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the Eastern District of Kentucky.
- In August 2015, F. William Messier, a Maine businessman who earned income by leasing telecommunications towers located on his property, was sentenced to one year and one day in prison for conspiracy to defraud the United States and corruptly endeavoring to impair and impede the due administration of the internal revenue laws. Messier attempted to obstruct the IRS by, among other things, providing false tax documents to customers, submitting a fake money order and other false documents to the IRS, and dealing extensively in cash. This case was prosecuted jointly by the Tax Division and the U.S. Attorney’s Office for the District of Maine.
- In April 2015, John Fall, a Rhode Island real estate consultant, was sentenced to 30 months in prison for obstructing the IRS, tax evasion, and aiding in the filing of false corporate tax returns. Fall used nominee entities and business names to conceal his business and financial transactions, caused false tax returns to be filed in the name of his wife’s dental practice, and attempted to obstruct an IRS audit by encouraging his wife’s accountant not to provide information to the IRS and providing false documents during the audit. This case was prosecuted by the Tax Division.
“The Justice Department, along with our colleagues in the IRS, will continue to identify and vigorously pursue those engaged in tax crimes,” said Acting Assistant Attorney General Ciraolo. “These efforts are critical to the continued integrity of our national tax system and send a strong message to those individuals who make good faith efforts to comply with their tax obligations that we will hold accountable those who do not. If someone suspects or knows of an individual or a business that is not complying with the tax laws, we encourage them to report that information to the IRS.”
More information about the Tax Division’s civil and criminal enforcement efforts in these and other areas is on the division’s website. The IRS website also has information about how to report tax fraud.
Jamaican Native Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Seymour Ellis, 43, most recently of Queens, NY, pleaded guilty to assault of a federal officer, before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of eight years in prison.Special Assistant U.S. Attorney Brian J. Counihan, who is handling the case, stated that in April 2015, the defendant, while in custody at the Buffalo Federal Detention Facility in Batavia, NY, attacked and assaulted a detention officer. Ellis was awaiting removal from the United States to Jamaica. The defendant lost his permanent resident status because of New York State narcotics trafficking, robbery, and theft convictions.
The plea is the result of an investigation by Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Special Agent in Michael Phillips.
Sentencing is scheduled for July 15, 2016 at 10:30 a.m. before Judge Geraci.
Iowa City Men Found Guilty in Heroin Distribution CaseRead the Press Release
DAVENPORT, IA – On April 12, 2016, Alfred Latrell Jackson, 25, and Curtis Lee Kemp, 49, both of Iowa City, Iowa, were found guilty following a four day jury trial for their involvement in a heroin distribution conspiracy, announced Acting United States Attorney Kevin E. VanderSchel. United States District Court Judge Stephanie M. Rose presided over the jury trial. Jackson was found guilty of one count of conspiracy to distribute at least 100 grams of heroin. Kemp was found guilty of one count of conspiracy to distribute heroin and three counts of distribution of heroin.
Evidence was presented at trial that between December 2013 and May 2015, Jackson and Kemp conspired with others to distribute heroin in the Iowa City area. Kemp will be sentenced by Judge Rose on August 19, 2016, at 8:30 a.m. He may be sentenced up to twenty years on each of the four counts he was found guilty. Jackson will be sentenced by Judge Rose on August 19, 2016, at 11:15 a.m., and faces a maximum sentence of forty years imprisonment.
This matter was investigated by the Johnson County Multi-Jurisdictional Drug Task Force, Johnson County Sheriff’s Office, Coralville Police Department, Iowa Division of Narcotics Enforcement, Drug Enforcement Agency, Iowa City Police Department, North Liberty Police Department, University of Iowa Police Department, Muscatine County Drug Task Force, and the Washington County Drug Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Interactive drug education program returns to Harrison County, WV schoolsRead the Press Release
BRIDGEPORT, WEST VIRGINIA – Students in Harrison County, West Virginia participated in a dynamic drug education and prevention initiative this week, United States Attorney William J. Ihlenfeld, II, announced.
Seventh and tenth grade students at Mountaineer Middle School, Bridgeport Middle School, Bridgeport High School, and South Harrison Middle School are participating in an initiative known as “Drug Prevention On The Move!” The centerpiece of the “On The Move” program is a unique, interactive mobile classroom trailer where students learn about a variety of drugs and their effects on the body and brain. Students answer questions electronically, providing useful insight into their perceptions of various drugs. The students also participate in an interactive impaired and distracted driving simulation.
“Empowering young people to make informed decisions based on accurate, factual information about illicit drugs is a critical component of the continued effort to loosen the grip of substance abuse and addiction in our region,” noted U.S. Attorney Ihlenfeld. “I commend Harrison County Schools for their continued dedication to providing their students with innovative and impactful drug education and prevention initiatives like the ‘On The Move!’ trailer.”
The “On The Move!” program, which originally visited Harrison County in December 2015, is an initiative of Operation UNITE, a non-profit organization based in London, Kentucky. Operation UNITE works to rid communities of illegal drug use through undercover investigations, treatment, support, and education. The educational trailer is also provided in partnership with the United States Health Resources and Services Administration and the Appalachia High Intensity Drug Trafficking Area, an initiative of the White House Office of National Drug Control Policy.
Immigration Charges Unsealed Against Liberian NationalRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Mohammed Jabbateh, 49, a citizen of Liberia residing in East Lansdowne, PA, with immigration fraud and perjury, announced United States Attorney Zane David Memeger and Acting Special Agent-in-Charge Jack Staton, Homeland Security Investigations. Jabbateh, a/k/a “Jungle Jabbah,” is charged with two counts of fraud in immigration documents and two counts of perjury.
According to the indictment, in December of 1998, when making application for asylum and later for permanent legal residency, the defendant was not truthful about his activities during Liberia’s first civil war while he was a member of The United Liberation Movement for Democracy in Liberia (ULIMO) and later ULIMO-K, a rebel group that battled for control of Liberia. Jabbateh was a commander or higher ranking officer in ULIMO and ULIMO-K. According to the indictment, Jabbateh, during his overall time as a ULIMO commander or higher ranking officer, either personally committed, or ordered ULIMO troops under his command to commit the following nonexclusive list of acts: 1) the murder of civilian noncombatants; 2) the sexual enslavement of women; 3) the public raping of women; 4) the maiming of civilian noncombatants; 5) the torturing of civilian noncombatants 6) the enslavement of civilian noncombatants; 7) the conscription of child soldiers; 8) the execution of prisoners of war; 9) the desecration and mutilation of corpses; and 10) the killing persons because of race, religion, nationality, ethnic origin or political opinion.
In January of 1999, during the asylum seeking process, Jabbateh was interviewed by an immigration asylum officer for purposes of determining whether his application should be granted. To this end, it is alleged that Jabbateh falsely responded "no" to the following two queries: 1) "[H]ave you ever committed a crime?"; and 2) "[H]ave you ever harmed anyone else?" On or about December 23, 1999, Jabbateh, largely based upon his answers to questions posed on his Form I-589 asylum application and his answers to questions posed during his asylum application interview, received asylum.
It is alleged that when Jabbateh applied for legal permanent residency by filing a Form I-485 with United States immigration authorities, he falsely responded "No" to the following two questions:
Have you ever engaged in genocide, or otherwise ordered, incited, assisted or otherwise participated in the killing of any person because of race, religion, nationality, ethnic origin or political opinion?
Are you under a final order of civil penalty for violating section 274C of the Immigration and Nationality Act for use of fraudulent documents or have you, by fraud or willful misrepresentation of a material fact, ever sought to procure, procured, or procured, a visa, other documentation, or entry into the U.S. or any immigration benefit?
According to the indictment, the defendant knew his answer was false in that he had ordered, incited, assisted, and otherwise participated in the killing of any person because of religion, nationality, ethnic origin, and political opinion; and knew that he had procured asylum in the United States by fraud and willful misrepresentation of material fact.
“This defendant allegedly committed unspeakable crimes in his home country, brutalizing numerous innocent victims,” said Memeger. “He then sought to escape to the United States where he lied about his criminal background on federal immigration forms. This office will use whatever tools are available to bring to justice serious criminals who abuse our immigration process by concealing their background and history.”
“The United States has always welcomed refugees and those fleeing oppression, but we will not be a safe haven for alleged human rights violators and war criminals,” said Staton.
If convicted, Jabbateh faces a maximum possible sentence of 30 years in prison, a possible fine, a $400 special assessment, and a period of supervised release.
The case was investigated by U.S. Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
To support the victims in this case and others in the community that may have been victimized by Jabbateh but have not yet reported, Homeland Security Investigations has established a Victim Assistance Hotline. Impacted individuals are encouraged to call (215) 717-4987 to speak with a Victim Assistance Specialist.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hopkinton Felon Sentenced to Federal Prison for Attempting to Manufacture Meth with his WifeRead the Press Release
A Hopkinton felon who attempted to manufacture methamphetamine with his wife in June 2015 was sentenced yesterday to nearly twenty years in federal prison.
Jody Lee Davis, 47, from Hopkinton, Iowa, received the prison term after a November 16, 2015 guilty plea to one count of Attempted Manufacture and Aiding and Abetting the Attempted Manufacture of Methamphetamine. At the guilty plea, Davis admitted he had three prior methamphetamine-related Iowa felony convictions when, on June 20, 2015, he tried to manufacture methamphetamine and helped his wife, Lisa Ann Davis, try to do the same. Deputies with the Delaware County Sheriff’s Office arrested the Davises following the execution of a search warrant at their Hopkinton home on June 20, 2015. In November 2015, a jury convicted Lisa Ann Davis of three federal methamphetamine-related charges. She is awaiting sentencing.
Davis was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Davis was sentenced to 210 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Davis is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and Special Assistant United States Attorney Erin Eldridge and investigated by the Delaware County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-2028-1.
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Hogansburg, Ny Man Charged with Shipping and Possessing Contraband CigarettesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Ian Tarbell, 43, of Hogansburg, NY, was arrested and charged by criminal complaint with possession of contraband cigarettes, failing to maintain information about the shipment, sale and distribution of more than 10,000 cigarettes and refusing to pay and evading the payment of a tax. The charges carry a maximum penalty of five years in prison, and a fine of $250,000.Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that according to the complaint, the defendant was arrested on February 16, 2016 in Pembroke, NY following a traffic stop by the Genesee County Sheriff’s Office. Tarbell was operating a truck that was pulling a trailer containing untaxed and unstamped cigarettes. In total, the defendant is accused of shipping and transporting more than 900,000 unstamped and untaxed cigarettes.
Tarbell made an initial appearance this morning before U.S. Magistrate Judge Michael J. Roemer and was released on $100,000 bond.
The complaint is the result of an investigation by the Genesee County Sheriff’s Office, under the direction of Gary Maha, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Delano A. Reid, Special Agent in Charge, new York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Hanson Man Charged with Child EnticementRead the Press Release
BOSTON – A Hanson man was arrested today and charged in U.S. District Court in Boston in connection with sending sexually explicit videos to two pre-teen girls.
Mark L. Leach, 48, was charged in a criminal complaint with one count of coercion and enticement of a child. Leach is scheduled to appear before U.S. District Court Magistrate Judge M. Page Kelley at 4:30 p.m. today.
According to the complaint, law enforcement learned that Leach had used the Skype screen name “funtimehockey” to send sexually explicit messages via text, live video and audio with two pre-teen girls. The victims told law enforcement that Leach asked them to send naked and sexually explicit photos and videos of themselves. Leach also allegedly exposed himself.
Leach was arrested by law enforcement this morning as he was leaving his home. According to the complaint, during a consensual interview, Leach admitted that he had set up the Skype account to communicate with the minor girls, and requested that the girls expose themselves to him during conversations. He also admitted that he masturbated in front of them.
The charging statute provides for a minimum mandatory sentence of 10 years and no greater than a lifetime in prison, up to a lifetime 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; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Hanson Police Chief Michael Miksch; and Whitman Police Chief Scott D. Benton, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information related to this case, or any information relating to the sexual exploitation of children, should call (617) 748-3274.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hamden Man Sentenced to 5 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTOPHER DUNCAN, also known as “Woozer,” 31, of Hamden, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by five years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on November 20, 2014, law enforcement officers made a controlled purchase of PCP from DUNCAN in New Haven. After the purchase, investigators followed the car DUNCAN was driving to a store on Kimberly Avenue in New Haven and observed DUNCAN entering the store. Investigators then entered the store and placed DUNCAN under arrest. A subsequent court-authorized search of DUNCAN’s vehicle revealed a Ruger nine millimeter handgun with a large capacity clip, which was located on the floor in front of the driver’s seat.
DUNCAN was originally arrested on state drug and firearm offenses. On January 29, 2015, he was charged federally and has been detained since that time. On January 13, 2016, he pleaded guilty to one count of carrying of a firearm in furtherance of a drug trafficking crime.
This matter was investigated by Federal Bureau of Investigation, the New Haven Police Department and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
Gang Member Pleads Guilty to Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – Jaheeim Benton, 26, of Pawtucket, a member of the YNIC street gang, pleaded guilty in federal court in Providence today to trafficking crack cocaine, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to court documents, on at least six occasions between January and November 2015, Benton sold a person, who was assisting an ATF law enforcement task force in their investigation of Benton’s gang and drug trafficking activities, several plastic baggies containing crack cocaine. Each of the transactions was monitored by law enforcement.
In addition, according to a plea agreement filed in this matter, a court authorized search of Benton’s residence on November 4, 2015, resulted in the seizure of approximately 1.2 grams of crack cocaine and numerous items used in the packaging and distribution of crack cocaine.
Appearing before U.S. District Court Chief Judge William E. Smith, Benton pleaded guilty possession with the intent to distribute crack cocaine.
Benton, who has been detained in federal custody since his arrest on November 4, 2015, is scheduled to be sentenced on July 15, 2016. According to court records and information presented to the court, Benton was previously convicted in Rhode Island state court on multiple assault and firearms charges.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
This matter was investigated by an ATF Task Force consisting of agents and officers from ATF; Providence, Cranston, Central Falls and Pawtucket Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Fort Hall Woman Pleads Guilty to Assault on an OfficerRead the Press Release
POCATELLO – Demetres Ish, 23, of Fort Hall, Idaho, pleaded guilty today in United States District Court to assault on an officer, U.S. Attorney Wendy J. Olson announced. Ish was indicted by the federal grand jury in Pocatello on October 27, 2015.
On March 30, 2015, a Fort Hall Police officer who was a school resource officer at the Sho-Ban Junior/Senior High School spoke to a student who was a passenger in a vehicle which was parked in front of the school. The officer confirmed that the driver of the vehicle, Demetres Ish, had two active tribal court warrants for her arrest on file. The officer tried to get Ish to voluntarily go with him to into custody on the warrants, but she began to argue with the officer and refused to get out of the vehicle. Another officer arrived to assist and Ish fought with both officers and resisted their efforts to remove her from the vehicle. When she was finally removed from the vehicle officers handcuffed her and put her on the ground while the officers dealt with another matter. She slipped out of her handcuffs and went over to one of the officers and kicked him in the back. She was then handcuffed again and eventually taken to jail. Under the specific federal law that Ish pleaded guilty to violating, Fort Hall police officers are considered “federal officers.”
The charge of assault on an officer is punishable by up to eight years in prison, up to three years of supervised release, and a fine of up to $250,000.
Ish is scheduled to be sentenced on June 23, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Fort Hall Police Department and the Federal Bureau of Investigation.
Former Postal Employee Sentenced on Conspiracy ChargesRead the Press Release
St Louis, MO – Quentin Cook, Florissant, MO, was sentenced to 48 months in prison. In February, after a three-day trial before United States District Judge Ronnie L. White, he was convicted of diverting mail believed to contain clothing, marijuana and other items to addresses that he and his co-defendants controlled. Cook and his co-defendants were former Postal employees of the Network Distribution Center in Hazelwood.
According to court documents and testimony presented at trial, Edward Lewis, Sean West, Korey Howard and Quentin Cook are former employees of the United States Postal Service. West, Howard and Cook searched for and identified mail and over-labeled it to redirect it from its original sender’s intended recipient to themselves, Lewis and others. The diverted mail included clothing, marijuana, electronics, computer equipment, pottery and personal effects.
Korey Howard, Florissant, MO; Edward Lewis, Hazelwood, MO; and Sean West, Florissant, MO, pled guilty to multiple charges, including conspiracy, obstruction of correspondence and theft or receipt of stolen mail in December 2015. Howard and West were each sentenced to 24 months in prison. Edward Lewis will be sentenced later this month.
This case was investigated by the U.S. Postal Service-Office of Inspector General and the Postal Inspection Service. Assistant United States Attorneys Anthony Franks and Dianna Collins handled the case for the U.S. Attorney’s Office.