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Thursday 7 April 2016
Ten Defendants Charged in White Plains Federal Court with Committing Narcotics Offenses in PeekskillRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Eric Johansen, the Chief of the Peekskill Police Department, and George Longworth, Commissioner-Sheriff of the Westchester County Department of Public Safety, today announced the unsealing of two Complaints charging a total of 10 defendants with committing various narcotics offenses in Peekskill, New York.
Manhattan U.S. Attorney Preet Bharara stated: “The complaints charge conspiracies to distribute large quantities of crack cocaine. With the federal charges brought today we have taken a big step in neutralizing two different drug rings that have been peddling drugs for years in the city of Peekskill.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “People depend on law enforcement to stem the flow of illegal drugs into their communities and reduce associated crime in the area. Although today’s actions have halted a conspiracy to distribute highly addictive drugs in the Peekskill area, there are many steps to be taken in ridding society of crimes of this nature.”
Peekskill Police Chief Eric Johansen stated: “The message is clear: deal drugs in Peekskill and we will continue to pursue you with all of our resources. This community will not tolerate drug dealing and we thank our federal and county partners in law enforcement for supporting our efforts to remove these ten violent, career drug offenders from our streets.”
Westchester County Department of Public Safety Commissioner-Sheriff George Longworth stated: “Sharing resources and conducting joint investigations with federal and local partners remains one of the most effective means we have of combatting the distribution and sale of illegal narcotics in Westchester County. We are grateful for the relationships we have with the U.S. Attorney’s Office, the FBI and the municipal police agencies in our county.”
As alleged in the Complaints unsealed today in White Plains federal court[1]:
United States v. Eric Bolton, et al., 16 Mag. 2293
In at least 2015 and 2016, ERIC BOLTON, a/k/a “E.B.,” 25, DERRICK FRANKS, a/k/a “Skills,” 47, EDWARD REEVES, 21, WILLIAM BOLTON, 27, FRANKLIN BARBER, a/k/a “Nitty,” 35, and XAVIER DABBS, a/k/a “X,” 26, conspired to sell 28 grams or more of crack cocaine. Members of the conspiracy distributed crack in and around Peekskill. Members of the conspiracy also cut up and packaged the crack for resale in a location in Peekskill.
United States v. Kaihiem Taylor, et al., 16 Mag. 2294
In at least 2015 and 2016, KAIHIEM TAYLOR, a/k/a “Killa,” 30, JEROME REED, a/k/a “Popsie,” 27, DESHAWN SMALLS, a/k/a “Scrap,” 24, and NATHANIEL GRAHAM, a/k/a “Happy,” 36, conspired to sell 28 grams or more of crack cocaine. Members of the conspiracy distributed crack in and around Peekskill.
* * *
Five defendants were taken into federal custody this morning and were presented in White Plains federal court today before U.S. Magistrate Judge Paul E. Davison. Two defendants, FRANKLIN BARBER and JEROME REED, remain at large. An additional three defendants, KAIHIEM TAYLOR, ERIC BOLTON, and NATHANIEL GRAHAM, were already in state custody.
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Bharara praised the outstanding investigative work of the FBI, the Peekskill Police Department, and the Westchester Department of Public Safety. Mr. Bharara also thanked the Sullivan County District Attorney’s Office for its ongoing assistance in the case.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorney Jennifer Beidel is in charge of the prosecutions.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Eric Bolton, et al., 16 Mag. 2293
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine.)
ERIC BOLTON,
a/k/a “E.B.,”
DERRICK FRANKS,
a/k/a “Skills,”
EDWARD REEVES, WILLIAM BOLTON, FRANKLIN BARBER,
a/k/a “Nitty,” and
XAVIER DABBS,
a/k/a “X.”
40 years in prison
Mandatory minimum:
five years in prisonUnited States v. Kaihiem Taylor, et al., 16 Mag. 2294
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine.)
KAIHIEM TAYLOR,
a/k/a “Killa,”
JEROME REED,
a/k/a “Popsie,”
DESHAWN SMALLS,
a/k/a “Scrap,” and
NATHANIEL GRAHAM,
a/k/a “Happy.”
40 years in prison
Mandatory minimum:
five years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the descriptions of the Complaints set forth below constitute only allegations, and every fact described should be treated as an allegation.
Temp Agency Owner Pleads Guilty to Personal & Corporate Tax EvasionRead the Press Release
PROVIDENCE, R.I. – Rossy Noriega, 50, of Providence, R.I., owner of New Diamond Work, Inc., a temporary employment agency based in Fall River, Mass., pleaded guilty in federal court in Providence today to charges that she failed to pay $720,923 in employment and personal income taxes due the IRS. Noriega admitted that she failed to pay employment taxes for those employees who she paid in cash, and that she failed to pay personal taxes on unreported cash from her business that she pocketed.
Noriega admitted to the court that during tax years 2009-2013, she made over $2.5 million dollars in cash withdrawals from her company bank accounts. Some of the proceeds of these withdrawals were used to pay employees in cash; while some of the proceeds were used for her own personal benefit.
Noriega’s guilty plea to charges of income tax evasion and failure to withhold and pay over employment taxes is announced by United States Attorney Peter F. Neronha and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Noriega admitted to the court that during tax years 2009-2013, as she made over $2.5 million dollars in cash withdrawals from company accounts, she paid some of her New Diamond Work employees via payroll check while many more were paid in cash, and that she used a significant amount of the cash withdrawn for her own personal use.
Noriega admitted that she failed to accurately report to the IRS the number of employees, total payments to the employees, and the employees’ and the employers’ share of federal employment taxes due the IRS. She also admitted that she failed to accurately report her own personal income, thus she failed to pay the appropriate amount of taxes due the IRS. An investigation by IRS Criminal Investigation revealed that the defendant failed to pay to the IRS $580,066 in payroll taxes on behalf of New Diamond Work, Inc., for the quarters ending March 31, 2009 through and December 31, 2013; and that during tax years 2009-2013, she failed to pay personal income taxes totaling $140,857.
Noriega is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 24, 2016.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation, with the assistance of the U.S. State Department Office of Inspector General.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Tax Fraudsters Sentenced in $200 Million SchemeRead the Press Release
PHILADELPHIA – Andrew Ahn, 41, of Columbia, Missouri, was sentenced today to 30 months in prison while his co-conspirator, Aviel Faliks, 41, of New York, New York, was sentenced to a year and a day for a multi-million dollar tax fraud scheme. In addition to the prison terms, U.S. District Court Judge Berle M. Schiller ordered Faliks to sell his apartment worth approximately $6.5 million and use half of the proceeds to pay restitution in the amount of $48,457,370 to the IRS. Judge Schiller also ordered Ahn to pay restitution of $113,537,679.
Between at least 2003 and 2011, the defendants, with several co-conspirators, designed and implemented a scheme to evade more than $200 million in corporate taxes by purchasing companies with taxable gains and using fraudulent losses to wipe out the gains. The conspirators then pocketed the corporations’ cash, filed fraudulent returns, and, in some instances, fraudulently sought and obtained refunds from the IRS for prior years. The defendants implemented their fraud scheme through four basic steps: (1) initial purchasers---including MidCoast Financial Inc., a company owned by defendant Chandrakant Shah and operated by defendant Samyak Veera---purchased target corporations with cash assets and large anticipated corporate income tax liabilities; (2) the initial purchasers next transferred these target corporations to “straw buyers” controlled on paper by Andrew Ahn and Aviel Faliks for the benefit of Veera; (3) the defendants then evaded the corporations’ income taxes through the use of fraudulent transactions designed to create the illusion that the corporations had incurred capital and ordinary losses; and (4) finally, the defendants distributed proceeds of the scheme through disguised means.
During the course of the conspiracy, Ahn and Faliks took various actions in furtherance of the conspiracy. For example, both Ahn and Faliks signed false and misleading documentation regarding the transactions, caused fraudulent corporate income tax returns to be filed, and made misrepresentations to the IRS regarding the scheme. In addition, both defendants held themselves out as independent, arms-length participants in the transactions and hid Veera’s role as the architect of the scheme from the IRS and others.
Faliks pleaded guilty on July 27, 2015, to one count of conspiracy and one count of corruptly endeavoring to obstruct and impede the Internal Revenue laws; Ahn pleaded guilty on August 30, 2012, to one count of corruptly endeavoring to obstruct and impede the Internal Revenue laws and one count of structuring transactions. Co-defendant Eric Merl, the in-house counsel for MidCoast Financial, pleaded guilty on October 31, 2013, to one count of conspiracy and one count of making a false statement. Merl was sentenced to 24 months in prison on February 22, 2016 by Judge Schiller.
The case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Patrick J. Murray and James Petkun.
Tampa Man Sentenced to More Than Five Years in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Major Dixon to five years and one month in federal prison for his role in a stolen identity refund fraud scheme. As part of his sentence, the Court also ordered him to pay $129,505.33 in restitution to the Internal Revenue Service. Dixon pleaded guilty on December 11, 2015.
According to court documents, between February and September 2012, Dixon and others filed false and fraudulent income tax returns in the names of others, including deceased individuals. In these fraudulent returns, the conspirators represented that they were entitled to the refunds and requested that the IRS direct the funds to accounts the conspirators had established in their respective names at various local financial institutions.
Four others were charged and previously pleaded guilty for their roles in this conspiracy. Sonja Lang was sentenced to time served and was ordered to pay $37,158.04 in restitution to the IRS. Rosea Armstrong was sentenced to 36 months’ probation and was ordered to pay $46,641.59 in restitution to the IRS. Arthur Murray was sentenced to 21 months in federal prison and was ordered to pay $19,235.10 in restitution to the IRS. Finally, Lasia Maxwell will be sentenced on June 2, 2016.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stock Broker and Partner Arrested for Microcap Stock Manipulation SchemeRead the Press Release
BOSTON – A former New Hampshire stock broker and his Florida-based partner were arrested today on charges arising out of their participation in a market manipulation scheme which was actually part of an FBI undercover operation.
Robert Raffa, 56, of Penacook, NH., and David Aubel, 57, of Marco Island, Fla., were charged in a criminal complaint with conspiracy and wire fraud based on their involvement in a scheme to manipulate the market for the publicly traded securities of Green Energy Renewable Solutions, Inc., a penny stock company that claimed to be in the business of developing and operating waste processing and recycling facilities near Detroit, MI. They were arrested at their respective homes in New Hampshire and Florida.
According to the charging documents, in early 2012, Raffa and Aubel used four foreign entities to covertly acquire nearly all of Green Energy’s unrestricted stock without reporting their controlling interest as required by law. They then hired a promoter to send blast e-mails touting Green Energy to potential investors. Meanwhile, it is alleged that Raffa and Aubel were furiously selling their shares without disclosing that they had orchestrated the campaign encouraging investors to buy.
As alleged in the criminal complaint, the initial promotion enabled Raffa and Aubel to sell more than 1.5 million shares of Green Energy stock for proceeds of about $950,000. However, Raffa and Aubel continued to control a substantial amount of Green Energy stock after the promotion ended, so they used manipulative trading techniques to stabilize Green Energy’s stock price while they searched for another promoter to run a second touting campaign. Their search led them to a stock promoter who was secretly cooperating with the FBI and an undercover FBI agent who claimed to have access to a network of corrupt stock brokers who would buy Raffa’s and Aubel’s shares and place them in customer accounts in exchange for kickbacks. Raffa and Aubel allegedly executed a trade in which they sold 174,000 shares of their Green Energy stock to an account purportedly controlled a corrupt broker, which in fact was controlled by the FBI. Following the trade, Raffa and Aubel wired $6,000 to an account they believed to be controlled by the corrupt broker, but which was actually controlled by the FBI.
In a parallel action, the Securities and Exchange Commission (SEC) announced securities fraud charges today against Raffa and Aubel in connection with the scheme.
These charges arise out of a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
Today’s charges follow a series of cases filed by the U.S. Attorney for the District of Massachusetts and the SEC in which more than 30 individuals have been criminally charged and convicted for using kickbacks and other schemes to trigger investment in, or manipulate the stock of, thinly-traded stocks.
The charge of conspiracy provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross loss. The charge of wire fraud provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. 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 and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The United States Attorney’s Office received valuable assistance from the SEC during the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of Ortiz’s Criminal Division and SEC attorney Andrew Palid, who was appointed as a Special Assistant U.S. Attorney.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield, Illinois Men Plead Guilty to Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two men have pleaded guilty to their roles in a heroin trafficking conspiracy in the Springfield, Mo., area.
Deauntee Q. Mosby, 23, of Oak Lawn, Ill., pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, April 6, 2016, to the charge contained in a September 30, 2015, federal indictment. Donald D. Johnson, 27, of Springfield, pleaded guilty to the same charge on March 30, 2016.
By pleading guilty, Mosby and Johnson each admitted that he participated in a conspiracy to distribute more than 100 grams of heroin in Greene County, Mo., between May 29, 2013, and Feb. 12, 2015.
Mosby and Johnson admitted that they bought heroin in the Chicago, Ill., area and had it transported in vehicles to the Springfield area for distribution. Johnson also admitted that he bought heroin in the St. Louis, Mo., area. Mosby and Johnson sold heroin to other co-conspirators.
Mosby was stopped by law enforcement officers on two occasions. On Aug. 28, 2013, he was the passenger in a vehicle that was stopped in Nixa, Mo. Mosby, who smelled of marijuana, was asked to get out of the vehicle. The officer searched the vehicle and found a syringe that contained heroin between the front driver and passenger seat, a digital scale with heroin residue, and $2,373 in the driver’s wallet. The officer also found a firearm in the trunk. Mosby was also stopped in Pulaski County, Mo., on Jan. 12, 2015, by a St. Robert, Mo., police officer. The officer smelled marijuana in the vehicle and arrested Mosby for an active warrant. Officers searched the vehicle and found a plastic bag behind a panel below the center console that contained 59.36 grams of heroin.
Mosby also admitted that he sold seven grams of heroin to a confidential law enforcement informant in Springfield for $1,100 on Sept. 13, 2013.
Johnson admitted that he sold heroin to an undercover law enforcement officer and a confidential informant on three occasions. On March 13, 2014, he sold .7 grams of heroin for $275 in a transaction in Springfield. On March 18, 2014, he sold 2.2 grams of heroin for $500 in a transaction in Ozark, Mo. On Feb. 12, 2015, he sold .93 grams of heroin for $270 in a transaction in Springfield.
Law enforcement officers searched a unit rented by Johnson and a co-conspirator at Bradford Mini Storage in Springfield on May 29, 2014. Inside the storage unit they found a Bushmaster .223-caliber semi-automatic rifle.
The plea agreement also contains references to telephone calls between Johnson and a co-defendant who discussed the conspiracy while she was incarcerated at the Greene County Jail.
Under federal statutes, Mosby and Johnson are each subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Ami Harshad Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
Southbridge Man Pleads Guilty to Illegally Exporting Assault Rifle and Pistol PartsRead the Press Release
Boston – A Southbridge, Mass., man pleaded guilty in U.S. District Court in Worcester today in connection with illegally shipping hundreds of firearm parts to people in 22 countries, including France, Finland, Indonesia, New Zealand, Thailand, Spain, Australia, and Germany.
David L. Maricola, 60, Southbridge, Mass., pleaded guilty to a 32-count indictment charging him with conspiracy, illegally exporting defense articles, making false statements on customs forms, and money laundering. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 30, 2016.
In 2015, Maricola and Arto Laatikanien, a 32-year old Finnish citizen, were indicted in connection with illegally exporting hundreds of assault rifle and firearm components, including parts for M16, M4, AR-15 assault rifles, Glock pistols, and UZI submachine guns.Between November 2010 and March 2012, Maricola shipped more than $100,000 worth of firearm components to Laatikainen in Finland though the U.S. Postal Service.After receiving the parts, Laatikainen sold them to criminal organizations in Finland, including the Cannonballs Outlaw Motorcycle Gang.
At today’s hearing, Maricola admitted to illegally exporting and conspiring to illegally export hundreds of firearm parts overseas using the Postal Service, lying on customs declaration forms about the contents and value of the articles he was sending, and money laundering. Maricola acknowledged that he had obtained many of the parts he illegally exported overseas from Gunbroker.com, an auction type website, and instructed his customers to send money to him using Paypal. Additionally, Maricola admitted that he repeatedly falsely described gun parts on customs forms as merely being “AIRSOFT” or replica firearms rather than being for actual, lethal guns. On numerous occasions, Maricola also falsely described AR-15 assault rifles parts as “aluminum sculptures.”
Laatikanien remains in Finland as Finland does not extradite its own nationals.
The charges of illegally exporting defense articles and money laundering each provide for a sentence of no greater than 20 years in prison. The charges of conspiracy and making false statements each provide for a sentence of no greater than five years in prison. In addition, the charge of illegally exporting defense articles provides for no greater than three years of supervised release and a fine of $1 million on each count. 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Leigh-Allistair Barzey, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; and Michael S. Imbrogna, Special Agent in Charge of the Department of Commerce, Bureau of Indutry and Security, Office of Export Enforcement, Boston Field Office, made the announcement today. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and U.S. Postal Inspection Service provided substantial assistance during the investigation. The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Ortiz’s National Security Unit.
Six Defendants Indicted in Tunnel and Drug SeizuresRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – April 7, 2015
SAN DIEGO – Six people – including two new defendants arrested in Arizona and San Bernardino County, California - were indicted today by a federal grand jury in San Diego in connection with the drug tunnel that was seized last month in Calexico, California.
The new defendants are Bertha Lidia Esquivel, aka Bertha Inzunza, of Rialto, California, and Kenneth Wayne Olmos, Jr., of Tucson, Arizona.
Also charged in the indictment with multiple federal offenses were Agustin Enriquez Cruz, aka Tinky, of Tucson, Arizona; Eva Medina De Duarte, aka Eva Duarte-Medina, aka Eva Duarte de Medina, of Tucson, Arizona; Joel Duarte-Medina of Mexico; and Manuel Gallegos-Jimenez, aka Jorge Alberto Torango, of Mexico. Eva Medina De Duarte is the grandmother of Agustin Cruz and the mother of Joel Duarte-Medina.
The defendants were previously charged via complaint; the grand jury indictment charges them with additional crimes. They are now charged with some or all of the following drug and tunnel related crimes: Conspiracy to distribute marijuana, possession of marijuana with intent to distribute, conspiracy to import marijuana, importation of marijuana, construction and financing a tunnel that crosses the border, use of a tunnel that crosses the border, conspiracy to use and maintain drug related premises, use and maintaining drug related premises, and criminal forfeiture.
All defendants are in federal custody.
Federal officials seized a cross-border tunnel on March 23, 2016 following a lengthy investigation that resulted in multiple arrests and the confiscation of more than a ton of marijuana. The tunnel, approximately 415 yards in length, stretches from El Sarape Restaurant in Mexicali, Mexico to a two-bedroom, two-bath house, located at 902 E. Third Street in Calexico, California, about 300 yards north of the international border. In the front room of the residence, agents found a hole in the floor covered with tile leading to a shaft descending underground.
On the day the tunnel was discovered, defendants Joel Duarte Medina and Manuel Gallegos Jimenez were arrested in Calexico. They were arraigned today on the indictment in El Centro, California, by United States Magistrate Judge Peter Lewis.
Augustin Enrique Cruz, the owner of the house in Calexico where the tunnel exit was discovered, and his grandmother, Eva Medina De Duarte, were arrested in Tucson, Arizona, the day after the tunnel discovery. They will appear before U.S. Magistrate Judge Karen Crawford, in San Diego, California, tomorrow at 2 p.m. for arraignment on the indictment.
Defendant Bertha Lidia Esquivel, who was arrested in Rialto, on March 24, appeared today in San Diego for a detention hearing; her matter was continued to Tuesday, April 12, before U.S. Magistrate Judge Jan Adler. Defendant Kenneth Wayne Olmos, Jr., was arrested in Arizona on March 25 and is pending removal and transfer to San Diego, California, for arraignment.
DEFENDANTS
Agustin Cruz, age 23, of Tucson, Arizona
Eva Medina De Duarte, age 74, of Tucson, Arizona
Joel Duarte-Medina, age 43, of Mexico
Manuel Gallegos-Jimenez, age 49, of Mexico
Bertha Lidia Esquivel, age 52, of Rialto, California
Kenneth Wayne Olmos Jr., age 33, of Tucson, Arizona
CHARGES
Count 1
Conspiracy To Distribute over 1,000 kilograms of marijuana 21 U.S.C 841 and 846
Maximum penalties:
10 year MM/life; 5 years of SR; $1,000,000 fine, $100 SA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 2
Possession With Intent To Distribute 100 kilograms of marijuana 21 U.S.C. 841 and 18 U.S.C. 2
Maximum penalties: 5 year MM/40; 5 years of SR; $500,000 fine, $100 SA
MARCH 7, 2016 SEIZURE OF 1,389 POUNDS OF MARIJUANA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 3
Possession With Intent To Distribute 100 kilograms of marijuana 21 U.S.C. 841 and 18 U.S.C. 2
Maximum penalties 5 year MM/40; 5 years of SR; $500,000 fine, $100 SA
MARCH 23, 2016 SEIZURE OF 1,532 POUNDS OF MARIJUANA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 4
Conspiracy To Import over 1,000 kilograms of marijuana
21 U.S.C 960, 952, 963
Maximum Penalties: 10 year MM/life; 5 years of SR; $1,000,000 fine, $100 SA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 5
Importation of 100 kilograms of marijuana
21 U.S.C. 952, 960 and 18 U.S.C. 2
Maximum Penalties: 5 year MM/40; 5 years of SR; $500,000 fine, $100 SA
MARCH 7, 2016 SEIZURE OF 1,389 POUNDS OF MARIJUANA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 6
Importation of 100 kilograms of marijuana
Aiding & Abetting/Pinkerton Liability
21 U.S.C. 952, 960 and 18 U.S.C. 2
Maximum Penalties: year MM/40; 5 years of SR; $500,000 fine, $100 SA
MARCH 23, 2016 SEIZURE OF 1,532 POUNDS OF MARIJUANA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Count 7
Conspiracy to Construct and Finance of Tunnel
18 U.S.C. 555(a) and (d)
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Agustin Cruz
Count 8
Using Narcotics Tunnel 18 U.S.C. 555(c)
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Count 9
Conspiracy to Maintain/Use Drug-Related Premises
21 U.S.C. 856(a)(1) and 846
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 10
Maintain/Use Drug-Related Premises
21 U.S.C. 856 and 18 U.S.C. 2
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Third Street Residence in Calexico
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Count 11
Maintain /Use Drug Related Premises
21 U.S.C. 856 and 18 U.S.C. 2
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Horizon Residence in Calexico
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 12
Maintain/Use Drug Related Premises
21 U.S.C. 856 and 18 U.S.C. 2
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Avenida Warehouse in Calexico
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
AGENCIES
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations
Homeland Security Investigations, Calexico
U.S. Border Patrol, El Centro Sector
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Sikeston Man Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – James Michael Arnold was sentenced to 30 months in prison on charges involving his false use of the name and Missouri Bar number of a licensed Missouri attorney to practice law.
According to court documents, James Michael Arnold graduated from the University of Missouri School of Law, Kansas City, in July 1992, but never passed the Missouri Bar Examination and has never been licensed to practice law in Missouri or elsewhere.
Between January 2010 and January 2014, James Michael Arnold fraudulently represented to individuals, law firms, legal staffing agencies and other businesses that he was a licensed attorney in order to gain employment as an attorney. As part of his scheme to defraud, Arnold used the name and Missouri Bar number of a licensed Missouri attorney to apply for jobs as an attorney and to file court documents. Arnold’s unsuspecting victims paid him for his fraudulent representation.
Additionally, for tax years 2011, 2012 and 2013, Arnold failed to file tax returns reporting the earnings from the illegal activity described. Arnold’s failure to file the required returns resulted in a tax loss of approximately $74,000.
James Michael Arnold’s scheme to defraud resulted in a loss to the victims of approximately $530,000.
Arnold, Sikeston, Missouri, pled guilty in January to one felony count of mail fraud, one felony count of aggravated identity theft and one count of failure to file tax returns. He appeared today for sentencing in St. Louis before United States District Judge E. Richard Webber.
This case was investigated by the United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney's Office.
Sentencings for April 5 - 6, 2016Read the Press Release
Andrew Jivelekas, 60, of Worland, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 6, 2016 for wire fraud. Jivelekas appeared pursuant to a summons. He received 12 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $25,781.73. Jivelekas fraudulently obtained unemployment benefits from the Wyoming Department of Workforce Services, Unemployment Insurance Division ("Workforce Services"). Jivelekas invented a sham company and submitted quarterly reports to Workforce Services in which he falsely reported earnings by various purported employees, including himself, none of whom actually worked for the company. Jivelekas repeatedly filed for unemployment benefits in the names of the purported employees, claiming they had been laid off. This case was investigated by the U.S. Secret Service.
Dustin Blaine Headley, 25, of Arapahoe, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 5, 2016, for assault resulting in serious bodily injury. Headley was arrested in Arapahoe, Wyoming. He received 28 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Indian Affairs.
Luis Enrique Monreal-Lovatos, aka Luis Monreal-Lovatos, aka Carlos Rodriguez-Lovars, 37, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 5, 2016, for illegal re-entry of a previously deported alien into the United States. Monreal-Lovatos was arrested in Worland, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Travis Alan Schone, 36, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 5, 2016, for conspiracy to distribute 50 grams or more of methamphetamine and aiding and abetting. Schone was arrested in Fremont County, Wyoming. He received 39 months imprisonment, to be followed by four years of supervised release, and
was ordered to pay a $100.00 special assessment and restitution in the amount of $400.00. This case was investigated by the Wyoming Division of Criminal Investigation.
Roswell Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Jason Martinez, 27, of Roswell, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges under a plea agreement with the U.S. Attorney’s Office.
Martinez and his co-defendant Joseph Vallejos, 23, also of Roswell, were charged in a criminal complaint with conspiracy and possession of methamphetamine with intent to distribute in Sept. 2015, in Chaves County, N.M. According to the criminal complaint, on Sept. 10, 2015, Martinez and Vallejos sold quantities of methamphetamine to an undercover agent on the following dates: 15.3 grams on Sept. 10, 2015, 15 grams on Sept. 11, 2015, and 56.7 grams on Sept. 16, 2015. Vallejos was also charged with possessing a firearm during the Sept. 16, 2015 transaction.
Martinez and Vallejos were subsequently indicted on Dec. 17, 2015, and charged with conspiracy to distribute methamphetamine and three counts of distributing methamphetamine. The indictment also charged Vallejos with using a firearm in relation to a drug trafficking crime. The indictment included forfeiture allegations requiring Martinez and Vallejos to forfeit $3,000.00 to the United States.
During today’s proceedings, Martinez pled guilty to the indictment and admitted conspiring to sell a total of 87 grams of methamphetamine to an undercover agent in Chaves County in Sept. 2015.
At sentencing, Martinez faces a statutory minimum of five years and a maximum of 40 years in federal prison followed by not less than four years of supervised release. Martinez remains in custody pending a sentencing hearing which has yet to be scheduled.
Vallejos has entered a not guilty plea to the indictment and remains in custody pending trial which is currently scheduled for June 20, 2016. Charges in indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the DEA and the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Retired United States Postal Service Executive Sentenced to ProbationRead the Press Release
PLANO, Texas - U.S. Attorney John M. Bales announced today that a former United States Postal Service executive has been sentenced to probation for an offense committed in the Eastern District of Texas.
Russell Sykes, 64, of Boynton Beach, Florida, a retired executive level employee of the United States Postal Service, was sentenced to three years’ probation and was fined $5000 during a hearing before Judge Amos L. Mazzant on March 29, 2016.
According to information presented in court, Sykes had been employed by the Postal Service in an Executive Service position as Manager of the Surface Transportation Category Management Center in Largo, MD. Sykes retired from this position on May 31, 2011. Immediately before his retirement, Sykes was heavily involved, in accordance with his position as a manager for the Postal Service, in negotiating contracts with Alan Richey, Inc. (ARI), a company that leased trailers to the Postal Service to transport mail. After his retirement, Sykes represented ARI in matters related to contracts between ARI and the Postal Service in violation of the statute. As a result, Sykes was paid fees totaling $30,000 by ARI, and additional contracts were awarded to ARI. Federal law prohibits, for two years, former government employees who served in an executive level position from contacting or communicating with their former department or agency about any matter that was pending before that department or agency and over which the employee had official responsibility.
Area Special Agent in Charge Curtis Lembke, U.S. Postal Service OIG, Special Inquiries Division, stated, “Sykes used his former position with the Postal Service for his own personal gain. This criminal behavior is not tolerated, and the results of this investigation serve as a deterrent to others.”
This case was investigated by the United States Postal Service, Office of the Inspector General (OIG), and prosecuted by the United States Attorney’s Office of the Eastern District of Texas.
Racketeering Conspiracy Charged in Payday Lending CaseRead the Press Release
PHILADELPHIA – Charles M. Hallinan, 75, of Villanova, PA, and Wheeler K. Neff, 67, of Wilmington, DE, were charged by indictment, unsealed today, with two counts of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (“RICO”) relating to “payday lending” businesses, announced United States Attorney Zane David Memeger. A third defendant, Randall Ginger, 66, a Canadian citizen, was charged with Hallinan and Neff in one count of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as two counts of mail fraud and three counts of wire fraud. Hallinan and Ginger were also charged with nine counts of international money laundering.
According to the indictment, Hallinan and Neff participated in a conspiracy that violated the usury laws of Pennsylvania and other states and generated more than $688 million in revenues, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania which prohibits such loans. It is further alleged that Hallinan, Neff, and Ginger conspired to defraud nearly 1,400 people, who had sued one of Hallinan’s payday loan companies, into abandoning a lawsuit valued as high as $10 million.
Hallinan owned, operated, financed, and/or worked for more than a dozen businesses between 1997 and 2013 that issued and collected debt from small, short-term loans that were commonly known as “payday loans” because the customers were supposed to pay them back with their next paychecks. Hallinan’s companies allegedly charged customers about $30 for every $100 they borrowed, which meant that the annual interest rates on the loans often exceeded 700 percent. Pennsylvania and more than a dozen other states have passed laws criminalizing such loans as usurious. The indictment alleges that Hallinan and Neff conspired to evade such laws by, among other things, paying thousands of dollars each month to three Indian tribes to pretend that they were the actual payday lenders and claim that “tribal sovereign immunity” shielded their conduct from state laws and regulations.
Hallinan and Neff are also charged with helping another payday lender, Adrian Rubin, charged elsewhere, evade state anti-usury laws by entering into sham contracts with an Indian tribe that were designed to give the false impression that the tribe was the true lender.
Ginger, it is alleged, claimed to be a “hereditary chief” of one of the tribes that Hallinan and Neff used to try to hide Hallinan’s payday lending activity from state law enforcement officers and regulators. In 2010, a class action lawsuit was filed in Indiana against Apex 1 Processing, a payday lending company that Hallinan ran out of offices in Bala Cynwyd, Pennsylvania. According to the indictment, Hallinan offered to pay Ginger $10,000 every month to pretend that he owned Apex 1 and that Apex 1 had no assets, so the plaintiffs would settle their lawsuit for pennies on the dollar. Neff allegedly facilitated that scheme.
If convicted of all charges, Hallinan faces a possible advisory sentencing guideline range of at least 12 years in prison, three years of supervised release, a possible fine, and a $1,700 special assessment. Neff and Ginger both face sentencing guideline ranges of at least eight years in prison. Restitution may also be ordered.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Joel M. Sweet.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Queensbury Man Pleads Guilty to Tax EvasionRead the Press Release
ALBANY, NEW YORK – Jason Holcomb, age 46, of Queensbury, New York, pled guilty today to tax evasion, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
As part of his plea, Holcomb admitted that he willfully evaded the payment of income taxes he owed to the Internal Revenue Service for the 2002 to 2005 tax years. While working as a construction contractor, Holcomb concealed his assets by putting assets in the names of other people and dealing in cash, to try to hide his income from the government. As a result, Holcomb failed to pay $193,215 in taxes, which does not include interest and penalties that the IRS could assess.
Holcomb faces up to 5 years in prison, a maximum fine of $250,000, and a maximum term of post-imprisonment supervised release of 3 years when he is sentenced by United States District Judge Mae A. D’Agostino. 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. Holcomb may also be ordered to pay restitution to the Internal Revenue Service.
This case was investigated by the New York Field Office of the IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Emily Farber.
Quakertown Man Charged with Defrauding Lehigh University Fraternities and SororitiesRead the Press Release
PHILADELPHIA – An indictment was filed today charging Albert Fisher, 76, of Quakertown, PA, with conspiring to defraud fraternities, sororities and fraternity alumni associations at Lehigh University, announced United States Attorney Zane David Memeger. The defendant is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and five counts of subscribing to false tax returns.
Fisher and Person #1 operated Fraternity Management Association (“FMA”), located in Bethlehem, PA, and allegedly created a fictitious consulting company, “Fisher and Associates,” which had FMA as its sole client. During the period charged, Person #1 was the Executive Director of FMA while Fisher was employed by FMA as both a full-time employee and as an independent contractor for Fisher and Associates. According to the indictment, between 2009 and 2013, Fisher and FMA’s Executive Director conspired to take money, as payment for future services, that was intended to pay for the operations and upkeep of the fraternities and sororities which included food services and the financial management of expenses. Instead of paying for future services, Fisher and the Executive Director allegedly misappropriated at least $1,461,777.96 in funds from FMA and the victim fraternities which he and the Executive Director used for their own personal purposes, including purchases of goods and services, vacation expenses, home furnishings, and designer clothing. Fisher allegedly lied to the victims about the money that was entrusted to FMA. When FMA ceased operations during the Spring of 2014, Fisher and the Executive Director caused an additional $990,157.41 in expenses for the fraternities, sororities and other victims, including Lehigh University, when the victims had to pay for operations and upkeep of the fraternities.
It is further alleged that Fisher filed tax returns for tax years 2009 to 2013 which failed to report $614,398 in income, which included the defendant’s personal expenses that were paid by FMA and consulting fees authorized by the Executive Director and paid on behalf of FMA.
If convicted, Fisher faces a maximum possible sentence of 50 years in prison, up to three years of supervised release, restitution, a possible fine, and a $700 special assessment.
The case was investigated by Internal Revenue Service Criminal Investigations and the FBI Allentown Resident Agency. It is being prosecuted by Assistant United States Attorney John Gallagher.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Porcupine Man Indicted for Assault on a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Assaulting a Federal Officer.
Michael Lone Hill, age 27, was indicted on March 22, 2016. Lone Hill appeared before U.S. Magistrate Judge Daneta Wollmann on April 1, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to an incident on March 17, 2016, at Evergreen Housing, when Lone Hill used a vehicle to assault a law enforcement officer employed with the Oglala Sioux Tribe Department of Public Safety.
The charge is merely an accusation and Lone Hill is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Lone Hill was released on bond pending trial. A trial date has been set for June 7, 2016.
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Pittsburgh Man Pleads Guilty to in Heroin and Crack Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH – A Pittsburgh resident pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Sekou Brooks, 40, of Pittsburgh, Pa., pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that from in and around December 2013, and continuing to in and around June 2014, in the Western District of Pennsylvania and elsewhere, Brooks conspired with others to distribute and possess with the intent to distribute more than 100 grams of heroin and more than 280 grams of crack cocaine.
Judge Hornak scheduled sentencing for Aug. 10, 2016 at 1:30 p.m. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Troy Rivetti and Tonya Sulia Goodman are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department conducted the investigation that led to the prosecution of Brooks.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pine Ridge Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Orville Red Feather, age 43, was indicted on March 22, 2016. Red Feather appeared before U.S. Magistrate Judge Daneta Wollmann on April 1, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Red Feather failing to register and update his registration as a convicted sex offender between January 1, 2016, and March 22, 2016, at Rapid City.
The charge is merely an accusation and Red Feather is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Red Feather was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 7, 2016.
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Philadelphia Man Charged in Two Bank RobberiesRead the Press Release
PHILADELPHIA - David Robinson, 42, of Philadelphia, PA, was charged today by indictment with two counts of bank robbery, announced United States Attorney Zane David Memeger.
According to the indictment, on March 19, 2016, Robinson robbed the PNC Bank at 4753 N. Broad Street in Philadelphia, of approximately $3,020. It is further alleged that on March 21, 2016, Robinson robbed the PNC Bank at 3244 N. Broad Street in Philadelphia, of $1,190.
If convicted of all charges, Robinson faces a maximum sentence of 40 years in prison, a possible fine, up to three years of supervised release, and a $200 special assessment.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Sentenced for Cyberstalking and “Sextorting” Massachusetts College StudentRead the Press Release
BOSTON – A Pennsylvania man was sentenced today in U.S. District Court in Boston for engaging in a “sextortion” campaign against a Boston-area college student.
James F. Connor V, 20, of West Chester, Penn., was sentenced by U.S. District Court Judge William G. Young to time served, three years of supervised release, the first 10 months to be served in home confinement, a $5,000 fine and 500 hours of community served. In January 2016, Connor pleaded guilty to one count of cyberstalking and one count of extortion.
In 2012, Connor and the victim met through social media and developed an online relationship. In the course of that relationship, the victim sent Connor naked pictures of herself through Snapchat and engaged in sexually explicit video chats with him using FaceTime. Connor preserved many of these images without her consent. After the relationship ended, Connor attempted to continue communications with the victim and initiated a campaign of harassment and intimidation. He threatened to harm her physically and harm her reputation by publicly disseminating the sexually explicit images. Connor also repeatedly threatened to commit suicide if the victim did not take his calls, and sent her pictures of himself holding a knife to his throat with blood, which was later determined to be fake, dripping down his neck.
In September 2015, Connor escalated his campaign of harassment when he began blackmailing the victim and threatening to send the sexually explicit images to her parents and Twitter followers if she did not send additional naked pictures and engage in sexually explicit video chats with him. As part of Connor’s cyberstalking and sextortion campaign, he sent the victim a detailed list of sexual demands, which included, among other things, that she send him five sexually explicit pictures and have five sexually explicit video chat sessions per week over a five week period. Connor also insisted that she break up with her current boyfriend.
Connor frequently employed a telephone and text message spoofing, or anonymizing, application that allows users to easily change telephone numbers to conceal their identity. In October 2015, Connor was arrested and charged via criminal complaint after the victim reported the threats and prior pattern of harassment to law enforcement authorities.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Owner of Virginia Beach Tourist Attractions Sentenced for Tax EvasionRead the Press Release
NORFOLK, Va. – David A. Parker, 49, of Virginia Beach, was sentenced today to 24 months in prison for evading income tax assessment and payment. Parker was also ordered to pay restitution in the amount of $1,070,358.26 and a fine of $50,000.
Parker pleaded guilty on Oct. 22, 2015. According to court documents, Parker is the owner of Rudee Inlet Jet Skis and Adventure Parasail, Inc. – two companies that are in the business of providing jet ski rentals and parasailing tours at the Virginia Beach oceanfront to tourists and residents. During the relevant timeframe, Parker was also a partner in Duck Parasail, Inc., located in Duck, North Carolina, which provided similar services. In a statement of facts filed with the plea agreement, Parker admitted that from 2005 until 2011, he completely failed to file individual federal income tax returns and, also declined to file business income tax returns after 2007. For several years, Parker ignored attempts by the Internal Revenue Service to recoup his tax balance. In February 2012, an IRS Revenue Officer – again attempting to recover Parker’s outstanding tax balance – interviewed Parker about his failure to file individual income tax returns and his current finances. Parker failed to disclose all of his assets to the officer and maintained that he had little money, thus could not pay his tax balance. In the weeks after his meeting with the revenue officer, and rather than repay any portion of his tax balance, Parker traveled to casinos in Florida and Atlantic City, where he purchased nearly $50,000 in chips. Despite this meeting with the Revenue Officer, Parker continued to choose not to file his tax returns for the next several years. The combined tax due and owing resulting from Parker’s failure to file individual and business income tax returns for tax years 2005 through 2011 is over $1 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-113.
Owner and Captain of Commercial Fishing Vessel Indicted for Clean Water and Ship Pollution ViolationsRead the Press Release
The owner and captain of the commercial F/V Native Sun, were indicted Thursday for conspiracy, as well as violations of the Clean Water Act (CWA) and Act to Prevent Pollution from Ships (APPS).
According to the indictment, starting in 2011 and continuing into 2013, Bingham and Randall Fox discharged and caused other crewmembers to illegally discharge oil and other pollutants into waters of the United States, coastal waters near Blaine, Washington, and the open ocean where the ship operated.
The discharge of oil and other bilge wastes are regulated by the CWA and APPS to protect the nation's waterways, port and ocean water quality. The discharge of oils and other pollutants in waters of the United States is prohibited absent a CWA permit. Open ocean discharges are also prohibited without using the oil-water separation (OWS) equipment specified in APPS.
The indictment describes that Bingham Fox owned the Native Sun and, as part of its dockside maintenance, ordered crew members to discharge oil and other bilge wastes overboard into the harbor and adjoining shorelines of Blaine. Bingham Fox’s son, Randall Fox, served both as a crewmember and later a captain aboard the Native Sun and ordered crewmembers to discharge oil and bilge wastes overboard while the vessel was underway on fishing trips. The Native Sun had neither a CWA permit to discharge wastes nor the OWS equipment on-board, as required by APPS.
The maximum penalty for each count of violating the Clean Water Act is three years in prison and a fine of $250,000. Knowing violations of APPS are punishable by up to six years in prison and a $250,000 fine.
The defendants will be summoned to appear in U.S. district court in Seattle on April 14, 2016.
This case is being prosecuted by Trial Attorney Brandy Parker and Senior Trial Attorney Todd W. Gleason of the Environment and Natural Resources Division. The prosecution is the result of an investigation by the U.S. Coast Guard Sector Puget Sound and the Coast Guard Investigative Service Northwest Region.
An indictment contains only allegations against an individual and, as with all defendants, the Foxes must be presumed innocent unless and until proven guilty.
Orlando Man Sentenced to over Thirteen Years for Firing on Police OfficersRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza today sentenced Johan O. Lopez (29, Orlando) to 13 years in federal prison for possessing with intent to distribute marijuana and discharging a firearm in furtherance of a drug trafficking offense. He pleaded guilty on January 19, 2016.
According to court documents, on May 29, 2015, officers from the Orlando Police Department executed a search warrant at Lopez’s downtown Orlando residence. Prior to entering, the officers announced themselves and the fact they had a search warrant. As the officers entered Lopez’s apartment, Lopez fired two gunshots. The officers found Lopez next to a handgun, which appeared to have an unused round jammed in the firing chamber. They also found approximately one pound of marijuana in Lopez’s residence.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.
Okreek Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that an Okreek, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on April 4, 2016, by U.S. District Judge Roberto A. Lange.
Robert J. LaVallie, a/k/a Robert Gross, age 34, was sentenced to 15 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. LaVallie also forfeits interest in the firearms seized during a search of his residence.
LaVallie was originally indicted by a federal grand jury on November 13, 2014. A superseding indictment was filed on November 10, 2015, charging LaVallie with Assault with a Dangerous Weapon, and Brandishing, Carrying or Possessing a Firearm During and In Relation to a Crime of Violence. He pled guilty to Assault with a Dangerous Weapon on January 7, 2016.
The conviction arose from an incident on May 31, 2014, in Todd County, South Dakota, when LaVallie and the victim got into a verbal argument. LaVallie began yelling at the victim and pointing at her, telling their children, “If I shoot myself, it’s because of this right here.” The children ran out of the house and the victim went to phone for help. LaVallie was carrying a handgun in a holster on his waist. He withdrew the firearm, waved it around, and threatened to kill the victim. He then grabbed two assault-type rifles and started putting clips into them. The victim left the house, called the police, and LaVallie was taken into custody. A search warrant of the residence resulted in the seizure of several firearms and ammunition.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
LaVallie was immediately turned over to the custody of the U.S. Marshals Service.
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North Jersey Real Estate Developer Admits Soliciting Bribe to Palisades Park OfficialRead the Press Release
NEWARK, N.J. – A real estate developer and landlord of commercial buildings in Palisades Park, New Jersey, today admitted soliciting a $50,000 bribe payment to a Palisades Park borough official, U.S. Attorney Paul J. Fishman announced.
Chung S. Kho, 68, of Fort Lee, New Jersey, pleaded guilty to an information charging him with one count of using facilities in interstate commerce to promote bribery.
According to the documents filed in this case and statements made in court:
Beginning in October 2010, Kho met with an individual (“Individual #1”) who sought to open a karaoke business at a multi-unit commercial building in Palisades Park owned by Kho. During the initial discussions between Kho and Individual #1 about opening the karaoke business, Kho guaranteed that there would be no problem in obtaining a change-of-use approval from Palisades Park to operate a karaoke business at the location.
Kho admitted today that, between October and December 2010, he used his cellphone to facilitate the offer of a bribe payment by Individual #1 to a borough official in Palisades Park for a favorable decision by the borough official regarding the change-of-use request. According to Kho, that offer involved a payment of $30,000 to obtain approval for one karaoke business and $50,000 to obtain approval for two karaoke businesses. Individual #1 initially was hesitant to make the payment. By the time Individual #1 agreed to pay the bribe, Kho informed him that it was too late to make the payment.
The charge of using facilities in interstate commerce to promote bribery carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 18, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Garret Mountain Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division in Newark.
Defense counsel: Edward T. Kang, Esq., Alston & Bird LLP
New York Tax Return Preparation Business Owner Sentenced to Prison for Preparing False Tax ReturnsRead the Press Release
A Staten Island, New York, tax return preparer and business owner was sentenced to prison today for preparing false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Alabi Gbangbala aka Babatunde Alabi Babaia, 52, was sentenced by U.S. District Court Judge Carol Bagley Amon to serve 18 months in prison, followed by one year of supervised release, and ordered to pay $178,209 in restitution to the Internal Revenue Service (IRS). Gbangbala pleaded guilty on June 1, 2015, to one count of preparing a false tax return.
According to court documents and in-court statements, Gbangbala was the operator of Broadfield, a tax return preparation business located in Staten Island. For tax years 2008 and 2009, Gbangbala prepared false federal individual income tax returns for Broadfield clients by, among other things, failing to report accurate exemptions, falsifying business receipts and losses on Schedules C, and inflating or fabricating charitable contributions and unreimbursed employee expenses. He also filed false tax returns for himself by underreporting his income for tax years 2008 through 2010.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mark S. McDonald and Christopher P. O’Donnell of the Tax Division, who are prosecuting the case.
New Haven Man Sentenced to More Than 7 Years in Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAJOUN JULIOUS, also known as “Snuggles,” 23, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 87 months of imprisonment, followed by three years of supervised release, for .
According to court documents and statements made in court, in the early morning hours of September 1, 2015, an investigation of an armed robbery of three male victims in the vicinity of 824 Elm Street led New Haven Police to JULIOUS, who was sitting in a parked car on Morse Street. After JULIOUS was ordered out of the car and frisked for weapons, officers searched the car and found a loaded Smith and Wesson .38 Special and a loaded Davis Industries model P380, .380 caliber semi-automatic pistol. Officers also found three iPhones underneath the car and two iPhones in nearby bushes. One of the iPhones was identified as stolen during the armed robbery. In an interview, JULIOUS admitted that the .380 caliber pistol was his.
JULIOUS, a member of the Reade Street, or “R2,” group, has a violent criminal history that includes felony convictions for first degree assault, intimidating a witness, and carrying a dangerous weapon. In 2009, JULIOUS shot a victim twice at close range. In 2010, JULIOUS was found with a firearm shortly after a group of males shot a victim who was riding his bike.
JULIOUS has been detained since September 1, 2015. On December 3, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
National Reentry Week Recognized in Middle GeorgiaRead the Press Release
The United States Department of Justice has designated April 24 – 30, 2016 as National Reentry Week. Major steps have been taken to make the criminal justice system just, fair, and effective at reducing recidivism. In recognition of National Reentry Week, the Macon Reentry Coalition (MRC), a local nonprofit that connects returning citizens to resources, will host free events open to the public in Macon, Georgia.
“Supporting successful reentry is an essential part of our mission to promote public safety,” Attorney General Loretta Lynch stated. “If we can reduce recidivism by helping individuals return to productive, law-abiding lives, we will reduce crime across this country, make our prisons safer, and make our neighborhoods better places to live.”
“The successful assimilation of returning citizens back into our communities, with new skills and attitudes, is beneficial both to the communities and to the returning citizens,” Acting United States Attorney G.F. Peterman, III commented. “I am proud of the ongoing participation of my office in this initiative.”
An official proclamation by Mayor Robert Reichert designating National Reentry Week in Macon-Bibb County will be held Thursday, April 21 at City Hall in Downtown Macon at 11 a.m.
“We have the people and resources right here in Middle Georgia to help returning citizens get back on the right track and be successful,” said Macon-Bibb County Mayor Robert Reichert. “Our entire community will benefit from people getting back to work and having a reduction in the crime rate.”
On Wednesday, April 27, the Macon Reentry Coalition meeting and resource fair will be held at the Goodwill Helms Career Center located at 240 Broadway. The meeting will begin at 9 a.m. with a community resource fair immediately following. Local representatives from education, housing, counseling, health, veteran services and employment agencies will answer questions and assist in making referrals. Light refreshments will be available.
“Macon-Bibb and the Middle Georgia region contain vast and critical resources to help ensure the successful reintegration of our returning citizens,” Macon Reentry Coalition CEO Todd Robinson noted. “Many of these men and women are talented, hard-working individuals that just need counsel and direction. Since 2008, the Macon Reentry Coalition has brought resources together to help reentrants become productive citizens who can support their families. Stronger families equates to a safer community.”
The Bureau of Prisons will be coordinating reentry events at their facilities across the country during National Reentry Week. The U.S. Attorney’s Office plans to host private reentry events in the district as well.
Questions regarding National Reentry Week or the Macon Reentry Coalition can be directed to Brittney Kish Lightsey, Community Relations Assistant, at 478-621-2735 or [email protected].
The Macon Reentry Coalition is a 501(c)(3) nonprofit organization, a collaborative effort among federal, state, and local agencies, mentors and advocates, faith-based and philanthropic organizations, and community resource partners to empower returning citizens.
Nashville Tax Return Preparer Indicted for Tax FraudRead the Press Release
Nicole Bond Hicks, 45, of Nashville, Tenn., was indicted yesterday by a federal grand jury in Nashville, Tenn., on charges related to preparing and filing false income tax returns, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Tracey D. Montaño, Special Agent in Charge, IRS-Criminal Investigation. Hicks was charged with 14 counts of aiding and assisting in the preparation of false tax returns for other individuals and one count of interfering with the administration of the internal revenue laws.
According to the indictment, Hicks was the owner of America’s Tax Table, a tax preparation business in Nashville, Tennessee. During the period of around 2007 through 2011, Hicks prepared and caused to be filed approximately 3,700 tax returns on behalf of her clients. Specifically, the indictment charges that she aided in the preparation of at least 14 false tax returns for other individuals from January 2010 through March 2011. The fraudulent returns inflated or created fictitious medical and dental expenses, cash charitable contributions, and fictitious, unreimbursed employee business expenses. These fictitious expenses created hundreds of thousands of dollars in false expenses and deductions and allowed clients to obtain income tax refunds they were not legally entitled to.
If convicted, Hicks faces up to three years in prison and a $250,000 fine on each count.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Thomas J. Jaworski is representing the United States.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Mission Woman Sentenced to 60 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on April 5, 2016, by U.S. District Judge Roberto A. Lange.
Danielle Lane Provancial, age 21, was sentenced to 60 months in custody, followed by 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Provancial was indicted by a federal grand jury on September 15, 2015. She pled guilty on January 20, 2016, to distributing 50 grams or more of methamphetamine.
Beginning in March of 2015, Provancial received and distributed methamphetamine in South Dakota. The individuals who provided Provancial with large amounts of methamphetamine knew she intended to engage in further distribution. Provancial had other dealers working for her, and she carried a .22 pistol for protection because she was worried that she would be robbed while selling methamphetamine. It was reasonably foreseeable to Provancial that more than 50 grams of methamphetamine would be distributed during the course of this conspiracy.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Ted L. McBride and SaraBeth Donovan prosecuted the case.
Provancial was immediately turned over to the custody of the U.S. Marshals Service.
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Mission Man Sentenced to 120 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on April 4, 2016, by U.S. District Judge Roberto A. Lange.
Leon Lloyd Farmer, age 35, was sentenced to 120 months in custody, 5 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Farmer was originally indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on May 19, 2015. He pled guilty on January 7, 2016, to distributing 500 grams or more of methamphetamine.
Beginning no later than November of 2013, Farmer received distributable quantities of methamphetamine from other individuals who knew he intended to engage in further distribution of the methamphetamine. Farmer provided methamphetamine to others, knowing they intended to engage in further distribution of the methamphetamine within South Dakota. It was reasonably foreseeable to Farmer that more than 500 grams of methamphetamine would be distributed during the course of his conspiracy.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Ted L. McBride and SaraBeth Donovan prosecuted the case.
Farmer was immediately turned over to the custody of the U.S. Marshals Service.
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Mission Man Sentenced for Assault with a Dangerous Weapon and Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of two counts of Assault with a Dangerous Weapon and Aiding and Abetting, one count of Prohibited Person in Possession of Ammunition, and two counts of Failure to Register as a Sex Offender was sentenced on March 28, 2016, by U.S. District Court Judge Roberto A. Lange.
Richard Timothy Fool Bull, age 38, was sentenced to 117 months in custody, followed by 5 years of supervised release, $500 in special assessments to the Federal Crime Victims Fund, and $661.25 in restitution.
On February 10, 2015, Fool Bull was indicted by a federal grand jury for Failure to Register as a Sex Offender. On March 11, 2015, Fool Bull was indicted by a federal grand jury for Discharge of a Firearm During Crime of Violence, Felon in Possession of a Firearm, Failure to Register as a Sex Offender, and six counts of Assault with a Dangerous Weapon. He pled guilty on January 7, 2016, to two counts of Assault with a Dangerous Weapon and Aiding and Abetting, one count of Prohibited Person in Possession of Ammunition, and two counts of Failure to Register as a Sex Offender.
Fool Bull pled guilty to a violation of Sexual Abuse of a Minor on October 20, 1998, in U.S. District Court for the District of South Dakota. Between November 14, 2014, and December 9, 2014, and between January 31, 2015, and March 1, 2015, Fool Bul1, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender.
On November 14, 2014, Fool Bull was released from federal custody following incarceration for supervised release violations in an unrelated case. Fool Bull was directed to report to a halfway house in Sioux Falls immediately following his release. Fool Bull did not report to the halfway house, and he absconded from his federal supervision. Fool Bull was arrested on December 9, 2014. Fool Bull did not register as a sex offender with any jurisdiction, as required, between the date of his release from federal custody on November 14, 2014, and the date of his arrest on December 9, 2014.
On January 13, 2015, Fool Bull was released from federal custody following incarceration for supervised release violations in an unrelated case. Fool Bull was placed at the Glory House in Sioux Falls. On January 14, 2015, Fool Bull registered as a sex offender with the Sioux Falls Police Department. On January 31, 2015, Fool Bu1l absconded from the Glory House. Fool Bull was arrested on May 26, 2015. Fool Bull did not register as a sex offender with any jurisdiction, as required, between January 31, 2015, and the date of his arrest on May 26, 2015.
On the evening of February 27, 2015, Fool Bull drove to Sunrise Apartments in Mission, with James Iron Ring and a juvenile. Iron Ring and the juvenile remained in the vehicle while Fool Bull approached the apartment. Fool Bull stood outside of the apartment and discharged a firearm eight times into the apartment. Iron Ring then drove Fool Bull and the juvenile away from the apartments.
Five individuals were inside of the apartment at the time of the shooting. One of the bullets struck a victim in the arm. The bullet was slowed by traveling through the walls of the apartment and the bullet did not break the skin on the victim’s arm.
James Iron Ring has pled guilty to one count of Assault with a Dangerous Weapon and Aiding and Abetting. Iron Ring’s sentencing is currently scheduled for June 1, 2016.
This case was investigated by the U.S. Marshals Service and Rosebud Sioux Tribal Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Fool Bull was immediately turned over to the custody of the U.S. Marshals Service.
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Mission Man Charged with Conspiracy to Distribute Methamphetamine and Marijuana and Possession of FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person.
Norman Lee Ritter, age 48, was indicted on March 15, 2016. He appeared before U.S. Magistrate Mark A. Moreno on April 1, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is at least 5 years, up to 40 years, in custody and/or a $5,000,000 fine, at least 4 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 1, 2015, and March 15, 2016, Ritter knowingly and intentionally combined, conspired, confederated and agreed with other persons to knowingly and intentionally distribute and possess with intent to distribute methamphetamine and marijuana in South Dakota. The Indictment further alleges that on or about September 17, 2015, in Todd County, Ritter knowingly possessed a firearm and was prohibited from doing so because he had previously been convicted of a felony, was a fugitive from justice, and was a user of and addicted to a controlled substance.
The charges are merely an accusation and Ritter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, and Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Ritter was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for June 7, 2016.
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Metairie Man Sentenced to Six Years in Prison for Receipt of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALBERT J. DOYLE, JR., age 47, of Metairie, was sentenced today for crimes involving the sexual exploitation of children.
U.S. District Judge Eldon E. Fallon sentenced DOYLE to 72 months incarceration to be followed by ten years of supervised release. In addition, DOYLE was ordered to register as a sex offender under the Sex Offender Registration Notification Act.
According to court records, this investigation developed in April 2015 as a result of an undercover investigation conducted by the U.S. Department of Homeland Security-Homeland Security Investigations (“HSI”). After determining DOYLE was downloading images depicting the sexual victimization of children, HSI executed search warrants at DOYLE’s residences in Metairie and Baton Rouge. DOYLE was arrested during the execution of the search warrant after confessing to downloading and possessing images and videos depicting child pornography. HSI computer forensic examiners conducted a search of DOYLE’s seized computer equipment and located approximately 563 videos and 6,385 images depicting the sexual victimization of children on DOYLE’s electronic devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney Polite praised the work of the U. S. Department of Homeland Security-HSI in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba was in charge of the prosecution.
Maryland Men Indicted for Conspiracy to Transport Stolen GoodsRead the Press Release
Baltimore, Maryland – A federal grand jury indicted William Albert Engel, Jr., age 40, of Baltimore and Brian Nelson Halsey, age 42, of Westminster, Maryland, formerly of Dundalk, Maryland, on charges arising from a scheme to steal property from shopping mall kiosks and sell the stolen property online. The indictment was returned on March 29, 2016 and unsealed today upon the arrest of Halsey.
The indictment 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, Baltimore Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to the two-count indictment, from October 7, 2014 through July 30, 2015, the defendants conspired to steal property, including designer sunglasses, with a retail value of more than $500,000, and sell the items online. Specifically, the indictment alleges that Engel and others engaged in at least six thefts from shopping mall kiosks, stealing designer sunglasses and other items. Engel provided the stolen property to Halsey and others, who sold the property through an online market, then used the U.S. Postal Service to ship the stolen property to the buyers. The indictment alleges that Halsey provided proceeds from the sale of the stolen property to Engel and also helped to finance Engel’s travel and travel expenses to other states to commit thefts in order to obtain more property for sale.
The indictment alleges that Engel broke into kiosks and stores in shopping malls in Capre Girardeau and St. Louis, Missouri; Myrtle Beach and Florence, South Carolina; and Hagerstown, Maryland, stealing a total of 1,276 pairs of designer sunglasses and 18 luxury watches. Engel brought the stolen items back to Halsey in Maryland. On August 28, 2015, Halsey possessed 790 pairs of stolen designer sunglasses at his home in Maryland. Some of the sunglasses were traceable to thefts and burglaries allegedly committed by Engel in Missouri and South Carolina.
Engel and Halsey face a maximum sentence of five years in prison for the conspiracy and a maximum of 10 years in prison for transportation of stolen goods. Halsey had an initial appearance today in U.S. District Court in Baltimore and was detained pending a detention hearing scheduled for Tuesday, April 12, 2016 at 1:30 p.m. before U.S. Magistrate Judge Beth P. Gesner. No court appearance has been scheduled for Engel, who is in custody on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended FBI and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Maryland Man Sentenced on Federal Heroin and Cocaine ChargeRead the Press Release
HARRISONBURG, VIRGINIA –A Maryland man, who authorities said was responsible for selling heroin that led to at least six overdoses in the Winchester, Virginia, area, three of which were fatal, was sentenced today in federal court, United States Attorney John P. Fishwick Jr. announced.
Christopher Rojuan Giles, a.k.a. “C” and “Charlie,” 28, of Randallstown, Maryland, previously pled guilty to a one count Information charging him with conspiracy to distribute more than 1,000 grams of heroin, which resulted in six overdoses, more than 280 grams of cocaine base (“crack”), and powder cocaine. Giles admitted that between February 2013 and October 2014, he and other members of the conspiracy conspired to distribute these drugs in and around Winchester, Virginia, and elsewhere, including West Virginia.
Today in the United States District Court for the Western District of Virginia in Harrisonburg, Giles was sentenced to 25 years in Federal prison.
“Heroin is destroying families and communities all across the Commonwealth and only through the type of cooperative law enforcement we are seeing in places like Winchester and up and down the Shenandoah Valley will we in the law enforcement community begin to make progress in putting an end to this tragic epidemic,” United States Attorney John P. Fishwick Jr. said today.
“This case is an example of what can be accomplished with the cooperative efforts of the Drug Enforcement Administration, the Northwest Virginia Regional Drug and Gang Task Force, and the United States Attorney’s Office,” Virginia State Police Supervisory Special Agent Jay Perry, coordinator of the Task Force, said. “The hundreds of investigative hours that were put into this case resulted in multiple convictions of heroin dealers both locally and from the Baltimore, Maryland area. Tragically, this investigation, like many others, began with a fatal overdose. Through the diligent efforts of investigators and prosecutors we were able to identify and target the larger scale dealers from Baltimore that were supplying our region.”
“The sentencing of Mr. Giles today ends a tragedy that played out in our communities in Western Virginia, affecting dozens of families and loved ones of his victims. Mr. Giles will now face the consequences of his actions. Prescription opioids like OxyContin and hydrocodone are fueling the demand for heroin. This addiction is tearing the fibers of communities, of our families, apart. This investigation is just one of many that exemplify drug law enforcement’s efforts to investigate and dismantle drug trafficking organizations, like Mr. Giles’ organization, responsible for fueling heroin addiction and overdose deaths,” said Special Agent in Charge of the Washington Field Division of the Drug Enforcement Administration, Karl C. Colder.
According to evidence presented at previous hearings by Assistant United States Attorney Elizabeth G. Wright, Giles, who operated in various locations in and around Baltimore, Maryland, was a major source of heroin for lower-level dealers and heroin users in the Winchester area. Evidence presented also proved that the heroin Giles distributed led to at least six heroin overdoses, including three fatal overdoses. The overdoses include the death of T.R.C. on November 17, 2013, the death of R.F.L. on March 19-20, 2014, the overdose of J.H.H. on March 21, 2014, the overdose of B.D.W. on April 5, 2014, the overdose of G.R.F. on September 5, 2014, and the death of B.E.W. on October 10, 2014.
As part of his plea, Giles specifically admitted he provided the heroin that led to the non-fatal overdoses of J.H.H. and B.D.W. and the fatal overdose of R.F.L., as noted above, in March and April 2014. Three other defendants, Colin Patrick Butler, 31, of Cross Junction, Virginia, David Josueh Medina, 35, of Cross Junction, Virginia, and Eric Keith Pennington, 33, of Middletown, Virginia, have previously been sentenced in federal court based upon the overdose of J.H.H. Two other defendants, Stephanie Diane Alkire, 23, of Winchester, Virginia, and Donna Jean Jenkins, 37, of Winchester, Virginia, have previously been sentenced in federal court based upon the overdose of B.D.W. Two other defendants, Scott Matthew Pierce, 45, of Stephens City, Virginia, and Brandy Dawn Kelly, 37, of Stephens City, Virginia, have previously been sentenced in federal court based upon the overdose of R.F.L.
One other defendant, Warren Evans, Jr., 39, of Windsor Mill, Maryland, has entered a plea of guilty to conspiracy to distribute more than 1,000 grams of heroin, more than 280 grams of crack, and powder cocaine, and conspiracy to distribute heroin that resulted in the fatal overdose of R.F.L. At sentencing, Evans faces a statutory penalty of between 20 years and life in prison.
The investigation of these cases was conducted by the Northwest Virginia Regional Drug and Gang Task Force and the Drug Enforcement Administration, Winchester Resident Office. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg, and the Virginia State Police. Assistant United States Attorney Elizabeth G. Wright prosecuted the cases for the United States.
Marrero Man Pleads Guilty to Theft of Government Funds Related to Hurricane KatrinaRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PRENTISS MARTIN, age 51, of Marrero, pled guilty today to theft of government funds.
According to court documents, the Federal Emergency Management Agency (FEMA), an agency of the United States under the Department of Homeland Security, provided federal funds to the Hazard Mitigation Grant Program (HMGP), which provided grants to states and local governments to implement long-term hazard mitigation measures after a major disaster declaration.
MARTIN executed application documents with the HMGP to receive federal grant funds to reconstruct his house on Bay Street in New Orleans, Louisiana, which was damaged by Hurricane Katrina. In support of his HMGP Home Reconstruction Grant application, MARTIN submitted fraudulent documents. As a result of his fraudulent submissions, MARTIN accepted and received federal HMGP grant monies in the amount of $80,000 to reconstruct his house in New Orleans, Louisiana. When special agents from the U.S. Department of Homeland Security, Office of Inspector General traveled to MARTIN’s property on Bay Street, they observed a vacant lot.
MARTIN faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment. U.S. District Judge Eldon E. Fallon set sentencing for July 21, 2016.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of the Inspector General, in investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen is in charge of the prosecution.
Maple Heights man indicted for selling heroinRead the Press Release
A three-count indictment was filed charging a Maple Heights man with distributing heroin, said Acting U.S. Attorney Carole S. Rendon.
Rodney A. Haynes, 34, sold heroin on three occasions in the fall of 2015, according to the indictment.
Prosecutors are seeking to seize more than $12,000 in cash seized as part of the investigation.
This case is being prosecuted by Assistant U.S. Attorneys Marisa Darden and Margaret Sweeney following an investigation by the Drug Enforcement Administration.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Local Pizza Restaurant Owner Charged on Federal Child Exploitation ChargesRead the Press Release
St. Louis, MO – Loren Copp was charged in a criminal complaint alleging that he produced child pornography. He will appear for his initial appearance in federal court on Friday, April 8, 2016.
According to the affidavit filed with the criminal complaint, Copp owned and operated a business at 4601 Morganford Road, St. Louis, known as "Dojo Pizza." After multiple complaints that minor females were living there, law enforcement obtained state and federal search warrants, which were executed between November and December 2015. Multiple types of digital media were seized and analyzed and found to contain child pornography.
If convicted, production of child pornography carries a maximum penalty of 30 years in prison and/or fines up to $250,000. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty
Letcher Father and Son Sentenced on Conspiracy and Tax CrimesRead the Press Release
United States Attorney Randolph J. Seiler announced that Theodore “Ted” J. Nelson, Jr., age 68, and his son, Steven A. Nelson, age 46, both of Letcher, South Dakota, were sentenced on April 4, 2016, for conspiracy to defraud the United States, failure to file income tax returns, and impeding the Internal Revenue Service.
U.S. District Judge Karen E. Schreier sentenced Theodore Nelson to seventy months in prison, and his son Steven Nelson to twelve months and one day in prison, and ordered to pay restitution jointly and severally in the amount of $1,842,102.14. In May 2015, they were found guilty of tax crimes as a result of a federal jury trial in Sioux Falls, South Dakota.
The Nelsons were indicted by a federal grand jury on July 9, 2013. Ted Nelson was charged with one count of conspiracy to defraud the United States, six counts of failure to file income tax returns, and one count of impeding the Internal Revenue Service. Steven Nelson was charged with one count of conspiracy to defraud the United States, seven counts of failure to file income tax returns, and one count of impeding the Internal Revenue Service.
The Nelsons inherited a family farm and business from Ted Nelson’s parents. They planted and sold grain, raised cattle, performed custom work for neighbors, ran hunting/lodging businesses, leased out their land, and sold some of the land.
The Internal Revenue Service placed a lien against Ted Nelson’s real estate in January 2004. After that time, the Nelsons created over 30 trusts, corporations, LLCs, and other entities, in an effort to hide their ownership of the farm and its income. Also in 2004, the Nelsons opened a series of bank accounts with themselves or another person as signors, using false tax identification numbers and Social Security numbers. Steve Nelson filed income tax returns through 1996 and Ted Nelson filed them through 1998, and then both stopped filing.
“The lesson learned from this case should be very clear,” said U.S. Attorney Seiler. “Regardless of how elaborate your strategy is, and no matter what you do for a living, if you intentionally dodge your responsibility to pay your fair share of taxes, federal prison will be a consequence of that decision.”
“As filing season comes to an end, the sentencings imposed on the Nelson’s should send a message to those taxpayers who are thinking about participating in fraudulent tax schemes," said Shea Jones, Special Agent in Charge of the St. Paul Field Office. "The sentencings of Theodore Nelson and Steven Nelson again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
This case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorneys John E. Haak and Ann M. Hoffman prosecuted the case.
Steven Nelson was ordered to self-surrender to the U.S. Marshals Service on April 18, 2016. Ted Nelson, who was remanded to the custody of the U.S. Marshals Service after trial, remains in custody.
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Leader of Major Drug Trafficking Ring and Seven Co-Conspirators Sentenced to PrisonRead the Press Release
STATESVILLE, N.C. – One of the leaders and seven co-conspirators of a major drug ring responsible for trafficking more than 450 kilograms of cocaine to Western North Carolina and funneling millions in drug proceeds back to Mexico were sentenced earlier this week, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Richard L. Voorhees presided over the sentencing hearings.
The eight men sentenced on Monday and Tuesday in federal court in Statesville are:
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David Maldonado-Rendon, 33, of Mexico – Sentenced to 210 months and five years of supervised release.
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Pedro Maldonado-Sanchez, 24, of Mexico – Sentenced to 87 months and five years of supervised release.
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Larry Woodley, 26, of Landon, S.C. – Sentenced to 66 months and three years of supervised release.
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Juan Pablo Diaz-Herrera, 26, of Troutman, N.C. – Sentenced to 57 months and three years of supervised release.
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Germaine Woodley, 42, of Waxhaw, N.C. – Sentenced to 48 months and three years of supervised release.He was also ordered to forfeit $1.2 million in drug proceeds.
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Miguel Ibarra-Espinoza, 35, of Mexico – Sentenced to 46 months and five years of supervised release.
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Alberto Pedraza, 56, of Farmville, N.C. – Sentenced to 46 months and three years of supervised release.
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Brian Maldonado-Reyes, 22, of Madera, California – Sentenced to eight months and three years of supervised release.
Three more main participants of the drug conspiracy, Fortino Maldonado-Guillen, James Davis, and the drug ring’s co-leader Maria Abernethy, aka Rosy Maldonado, will be sentenced on June 8, 2016. Two other indicted co-conspirators, Saloman Maldonado and Saul Maldonado-Guillen, aka Valeria Maldonado-Guillen, remain fugitives. Over the course of the investigation, law enforcement also seized approximately $750,000 in U.S. currency, six vehicles and five properties.
According to filed documents and statements made during court proceedings:
Over the course of the conspiracy, which lasted from about 2010 to about November 2014, David Maldonado, at first working with his uncle, Fortino Maldonado, and later with his wife, Rosy Maldonado, established a drug trafficking operation responsible for distributing approximately 450 kilograms of cocaine to Western North Carolina, South Carolina and elsewhere. James Davis, Germaine Woodley and his brother, Larry Woodley, were David Maldonado’s main buyers. At different times, the remaining co-conspirators operated as drivers, or “drug mules,” for the drug conspiracy.
February to July 2011 – David Maldonado and Fortino Maldonado
From about February 2011, David Maldonado and Fortino Maldonado began trafficking cocaine that Fortino Maldonado obtained from a source in Virginia. The two men trafficked between two and 10 kilograms of cocaine at a time, and resold it mainly to James Davis, Germaine and Larry Woodley and other local cocaine dealers. Between February and July 2011, David and Fortino Maldonado trafficked approximately 100 kilograms of cocaine and received approximately $3.2 million in drug proceeds.
December 2011 to November 2014 – David Maldonado and Rosy Maldonado
In or about December 2011, David Maldonado and his wife, Rosy Maldonado, began trafficking large amounts of cocaine supplied by a source in Mexico known to Rosy Maldonado. From about December 2011 to about November 2014, David and Rosy Maldonado and their co-conspirators trafficked approximately 350 kilograms of cocaine and received more than $11 million in drug proceeds. David and Rosy Maldonado funneled most of the drug proceeds back to Mexico, after keeping a portion of the money for running the drug conspiracy.
Over the course of the conspiracy, Rosy and David Maldonado made multiple trips to Texas to pick up the packaged cocaine from their Mexican supplier, which they transported back to North Carolina hidden in compartments the pair had installed in numerous vehicles. These secret compartments were located at different areas of the vehicles, depending on the type of car used, including under the front passenger seat, the rear bench seat, the vehicle’s truck bed and elsewhere. Some of the hidden compartments were large enough to transport as much as 19 kilograms in a single trip. Each time the pair picked up the packaged cocaine from Texas, they delivered large cash payments to their Mexican supply source. For example, between August and November 2012, the pair transported approximately 65 kilograms of cocaine from Texas and delivered approximately $1.7 million in U.S. currency.
Sometime after September 2013, Rosy and David Maldonado hired Juan Pablo Diaz-Herrera and Brian Maldonado-Reyes as drivers for the conspiracy. Juan Diaz and Brian Maldonado began transporting the cocaine and cash to and from Texas in the same manner. The conspiracy began to unravel when, in November 2013, law enforcement in Gulfport, Mississippi stopped the vehicle Juan Diaz and Brian Maldonado were driving to Texas, seizing more than $392,000 in cash.
“This highly active drug ring was responsible for trafficking hundreds of kilos of cocaine to the area,” said U.S. Attorney Rose in making today’s announcement. “I want to thank the multiple law enforcement agencies in North Carolina and other states for their hard work over the course of this investigation. Working with our law enforcement partners, we effectively traced and dismantled this poisonous pipeline of cocaine that has undoubtedly destroyed many lives and has affected the families of those addicted to the drug.”
In addition to the prison terms, the Judge Voorhees ordered David Maldonado, Pedro Maldonado and Miguel Ibarra to be deported to Mexico upon completion of their respective prison terms. All federal sentences are served without the possibility of parole.
The case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement, U.S. Attorney Rose thanked the multiple agencies involved in this case for their investigative efforts and assistance in dismantling this major drug trafficking ring. Specifically, U.S. Attorney Rose commended the work of the Drug Enforcement Administration (DEA); the Internal Revenue Service, Criminal Investigation Division; the United States Marshals Service; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Matthews Police Department; the Pineville Police Department; the Monroe Police Department; the Gastonia Police Department; the Charlotte-Mecklenburg Police Department; the Cornelius Police Department; the Gaston County Sheriff’s Office; the Union County Sheriff’s Office; the Iredell County Sheriff’s Office; the Beaufort County Sheriff’s Office; the Gilford County Sheriff’s Office; the Charleston County Sheriff’s Office; the Mississippi Highway Patrol; and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Intelligence Center.
Assistant U.S. Attorney Elizabeth Greene led the prosecution for the U.S. Attorney’s Office. Assistant U.S. Attorney Sanjeev Bhasker handled the sentencings of the defendants.
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Lawton Resident, Douglas Scott Wolhuis, Sentenced for Hoax Bomb and Anthrax Bank RobberiesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that Douglas Scott Wolthuis, 51, of Lawton, was sentenced to 54 months in prison by U.S. District Judge Robert Holmes Bell. He will be supervised for two years after he is released, and he was ordered to pay restitution and a fine. Wolthuis pled guilty to one count of bank robbery in December pursuant to a plea agreement under which the second count of bank robbery was to be dismissed.
In April 2015, Wolthuis robbed a Fifth Third Bank branch in Kalamazoo. In June 2015,he robbed a Chase Bank branch in Battle Creek. He concealed his identity for both robberies, including with a mask, and passed demand notes. For the first robbery, he claimed in his demand note that he had a bomb. For the second robbery, he claimed in his note that he had anthrax. When he was arrested a short time after the second robbery, responding officers found a clear container of white powder in his vehicle. Biohazard response teams secured the scene, shutting down traffic for hours, until they confirmed that the substance was not a biological weapon.
“Armed bank robberies are extremely dangerous, even when robbers use hoax weapons, because of the law enforcement response that is necessarily provoked,” U.S. Attorney Miles said. “I am very grateful for the work of the Michigan National Guard, the Kalamazoo County Sheriff’s Department (“KCSD”), the Battle Creek Police Department (“BCPD”), the Battle Creek Fire Department, and the Federal Bureau of Investigation (“FBI”) in addressing this potential hazard to the public’s health and safety. It instills confidence that we are prepared should we ever face such a threat.” U.S. Attorney Miles also praised the BCPD officer whose quick response to the Chase robbery led to the apprehension of Wolthuis.
“Mr. Wolthuis’s crimes go beyond the financial theft,” said David P. Gelios, Special Agent in Charge, FBI Detroit. “His claims of having various weapons of mass destruction disrupted the public and necessitated the emergency response of numerous community resources, including those of the BCPD, the BCFD, and their Hazardous Response Team, and the Michigan National Guard’s 51st Civil Support Battalion, as well as the FBI’s Weapons of Mass Destruction Coordinator. The response of each of these organizations was outstanding and critical to law enforcement’s ability to solve this case.”
The FBI, the KCSD, and the BCPD investigated the robberies. Assistant U.S. AttorneyJustin M. Presant prosecuted the case.
END
KC Restaurant Owner Pleads Guilty to $566,000 Tax SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the owner of a Kansas City, Mo., restaurant pleaded guilty in federal court today to filing a false tax return as part of a scheme to avoid paying more than $566,000 in corporate taxes.
Roger Geisler, 67, of Lenexa, Kan., waived his right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to a federal information that charges him with filing a false tax return.
Geisler has owned and operated two restaurants in Kansas City, Mo. – Domo Sushi bar and Grill in the Brookside area and Matsu Japanese Restaurant (from 1980 to 2010) in the Westport area.
Geisler admitted that, for tax years 2007, 2008 and 2009, he signed and submitted corporate returns for his company, Lee’s Pacific Foods, that underreported his restaurants’ gross receipts. The total unreported income for those tax years totaled $2,297,013. As a result of Geisler’s omissions, the amount of tax due and owing totaled $402,860.
In addition to the 2007 to 2009 income taxes, Geisler admitted that he failed to report and pay over employment taxes from 2007 to 2010. A conservative calculation of employment tax due totals $163,268, bringing the total loss from the overall scheme to $566,128.
Geisler also admitted that he did not file individual tax returns for 2007 through 2010.
After Geisler was contacted by the IRS, his accountant asked him how he thought he would get away with not reporting business income and payroll taxes. Geisler responded “I thought I would be dead before they caught on.”
Geisler spent at least $156,988 in business funds on personal expenses, including a home in Lenexa and a 2004 Lexus SUV. Geisler admitted he has a large gambling problem and gambled extensively at area casinos. For example, he gambled $159,706 in 2007 (at Argosy and Isle of Capri.) In 2010, Geisler gambled $290,175 at the 7th Street Casino.
Under federal statutes, Geisler is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation.
Justice Department Settles with Indiana Doctor over Discrimination Against an Individual with HIVRead the Press Release
The Justice Department filed a lawsuit and consent decree today to resolve allegations that Pain Management Care P.C., of South Bend, Indiana, refused to treat an individual because he has HIV, in violation of Title III of the Americans with Disabilities Act (ADA).
The department’s investigation found that the individual had sought interventional pain management treatment through anesthesiologist and pain management specialist Dr. Joseph Glazier. An employee of Pain Management Care informed the individual that Glazier would not treat him “due to [his] condition of being HIV positive.” Title III of the ADA prohibits public accommodations, such as healthcare providers, from discriminating against people with disabilities, including HIV.
Under the consent decree, which still must be approved by the court, Pain Management Care P.C. will develop a non-discrimination policy, provide ADA training to its employees, submit annual reports to the United States, pay $20,000 to the complainant in monetary damages and $10,000 in civil penalties to the United States.
“The Justice Department is committed to eradicating discrimination resulting from the unfounded fear and dangerous stereotype that someone with HIV would pose a threat to a medical provider,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Discrimination by those in the medical profession breaks a trust critical to ensuring access to appropriate treatment for all.”
This settlement is part of the department’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s Offices across the nation to target enforcement efforts in a critical area for individuals with disabilities: access to health care. For more information on the Barrier-Free Health Care Initiative visit http://www.ada.gov/usao-agreements.htm.
For more information on the ADA, HIV discrimination and this lawsuit, visit www.ada.gov/aids. Those interested in finding out more about the obligations of healthcare providers under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
The relevant court documents can be found at the following links: complaint and consent decree.
Jerome Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Patrick Lee Jewell, 34, of Jerome, Idaho, pleaded guilty today in United States District Court to possession of child pornography, U.S. Attorney Wendy J. Olson announced. Jewell pleaded guilty to a one count information filed by the U.S. Attorney on January 21, 2016.
According to the plea agreement, Jewell admitted utilizing his e-mail account to communicate with an individual through Craigslist regarding the exchange of images of child pornography in November and December of 2013. In February of 2014, agents with the Department of Homeland Security executed search warrants at Jewell's residence in Jerome, Idaho, and for his e-mail accounts. Additionally, Jewell admitted possessing 61 images of child pornography in his e-mail account, and five images of child pornography on his iPhone.
Sentencing is set for June 28, 2016, before Chief U.S. District Judge B. Lynn Winmill.
Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $100 special assessment. As part of his plea, Jewell also agreed to forfeit an iPhone and a Samsung laptop computer used in the commission of the charged offense.
The case was investigated by the U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), the Jerome County Sheriff's Office, and the Jerome Police Department, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Jamaican Man Charged in Lottery Fraud SchemeRead the Press Release
NEWARK, N.J. – A Jamaican man was charged today with defrauding residents of the United States and Canada by allegedly tricking them into believing they had won multimillion-dollar lotteries and sweepstakes, U.S. Attorney Paul J. Fishman announced.
Ricardo Reid, 30, of Jamaica, West Indies, was indicted by a federal grand jury on one count of conspiracy to commit mail and wire fraud. He will be arraigned at a date to be determined.
According to the indictment:
Reid and others would target their victims by purchasing client lists of elderly and vulnerable individuals from brokers specializing in such information. Reid and his conspirators would initiate contact with the victims by telephone calls from Jamaica and falsely represent themselves to be lottery officials, bankers, or IRS agents.
Reid and his conspirators would then falsely inform the victims that they had won millions of dollars in a lottery or sweepstakes, but in order to redeem these winnings, they had to pay registration and/or other fees and taxes. Reid and his conspirators would direct the victims to pay the bogus fees using several methods, including mailing cash or money orders to other victims or to other members of the conspiracy in the United States. The money was then either smuggled to Jamaica or deposited into United States bank accounts and withdrawn from ATMs located in Jamaica. In other instances, the victims were directed to either wire the bogus fees through Western Union or Money Gram directly to Jamaica.
Reid and his conspirators would generally direct the victims to make repeated payments of fees until either the victim’s funds were depleted or, after realizing they had been scammed, the victims refused to make additional payments. At times, Reid and his conspirators induced and caused the victims to liquidate assets in order to pay the bogus fees.
Reid and his conspirators would conceal their identities using various methods, including aliases like “Robert Gates,” “Mr. Bogohazian,” “Damien Boswell,” “Mr. Washington,” and “Mark Anderson,” and the use of call forwarding and Magic Jack to make and receive calls while masking their phone number and location.
The alleged victims include an 88-year-old resident of Arkansas who lost $110,932; a 57-year-old New Jersey resident who lost $249,394; a 76-year-old Canadian resident who lost $71,919; and a 74-year-old resident of Puerto Rico, who lost $64,433.
The conspiracy count with which Reid is charged carries maximum punishment of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Fishman credited special agents of the Homeland Security Investigations, under the direction of Special Agent in Charge Terence Opiola in Newark; and the U.S. Postal Inspection Service, under the direction of Acting Postal Inspector in Charge James Ball, with the investigation leading to today’s indictment.
The USPIS is warning older Americans and caregivers to beware foreign lottery or sweepstakes schemes. No legitimate sweepstakes or lottery will ask for fees or taxes to be paid in order to claim a prize. Anyone contacted to play a foreign lottery or sweepstakes should follow these tips:
• Don’t give out personal or financial information to anyone over the Internet or phone;
• Never wire or send money to anyone, anywhere who says you’ve won a foreign lottery or sweepstakes;
• Don’t be pressured into making an immediate decision;
• Never purchase anything until you get all the information in writing.
• Visit deliveringtrust.com for helpful information on protection from fraud.
Mail fraud can be reported online at: www.postalinspectors.uspis.gov or by phone at 1-877-876-2455.
Defense counsel: K. Anthony Thomas Esq. Assistant Federal Public Defender, Newark
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on April 6, 2016 and entering pleas of Not Guilty were:
- FRANK E. BARNES, a 35-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, BARNES faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-25
- DARRELL DUANE BAUMGARTNER, a 43-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, BAUMGARTNER faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 16-31
- ROPER RAY BLANKENSHIP, a 22-year-old resident of Miles City, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, BLANKENSHIP faces life in prison, $5,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-07
- DERRICK LEE DEAN MOORE, a 31-year-old resident of Cartwright, North Dakota, appeared on charges of unlawful possession of a firearm and possession of a firearm by a person under a domestic order. If convicted of the most serious charge contained in the indictment, MOORE faces 10 years in prison, $250,000 in fines and 3years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-17
Appearing before U.S. Magistrate Ostby in Billings on April 5, 2016 and entering pleas of Not Guilty were:
- ANTJUAN MARIO BROWN, a 44-year-old transient, appeared on charges of failure to register as a sex offender. If convicted of the charge contained in the indictment, BROWN faces 10 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 16-08
- JONATHAN GRIMALDO CASTRO, a 23-year-old resident of Billings, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, CASTRO faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 15-120
Appearing before U.S. Magistrate Lynch in Missoula on April 5, 2016 and entering pleas of Not Guilty were:
- CHRISTOPHER ISSAC COX, a 25-year-old resident of Butte, appeared on charges of felon in possession of a firearm and possession of stolen firearms. If convicted of the most serious charge contained in the indictment, COX faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-07
Appearing before U.S. Magistrate Johnston in Great Falls on April 5, 2016 and entering pleas of Not Guilty were:
- JASON CHAULK, a 40-year-old resident of Columbia Falls, appeared on charges of theft of government property. If convicted of the charge contained in the information, CHAULK faces 1 year in prison, $100,000 in fines and 1 year supervised release. The case was investigated by the National Park Service. PACER Case Reference. 16-13
Appearing before U.S. Magistrate Ostby in Billings on March 31, 2016 and entering pleas of Not Guilty were:
- SHAWNA RAE WILSON, a 36-year-old resident of Garryowen, appeared on charges of assault with a dangerous weapon and use and discharge of a firearm during and in relation to a crime of violence. If convicted of the most serious charge contained in the indictment, WILSON faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-36
Appearing before U.S. Magistrate Johnston in Great Falls on March 31, 2016 and entering pleas of Not Guilty were:
- SUNDOWN WILLIAM NELSON, a 38-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, NELSON faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Homeland Security Investigations and Russell Country Drug Task Force. PACER Case Reference. 16-23
Appearing before U.S. Magistrate Johnston in Great Falls on March 29, 2016 and entering pleas of Not Guilty were:
- BRIAN KELLY EAGLEMAN, a 53-year-old resident of Box Elder, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe/wire, and theft from and Indian tribal organization. If convicted of the most serious charges contained in the indictment, EAGLEMAN faces 20 years in prison, $250,000 in fines and years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, U.S. Department of Health and Human Service Office of Inspector General, Internal Revenue Service, and the Federal Bureau of Investigation. PACER Case Reference. 16-22
- KEVIN DAVID McGOVERN, a 46-year-old resident of Billings, appeared on charges of conspiracy to defraud the Chippewa Cree Tribe, scheme to defraud the Chippewa Cree Tribe/wire, and bribery/offering. If convicted of the most serious charges contained in the indictment, McGOVERN faces 20 years in prison, $250,000 in fines and years supervised release. The case was investigated by the U.S. Department of Interior Office of Inspector General, U.S. Department of Health and Human Service Office of Inspector General, Internal Revenue Service, and the Federal Bureau of Investigation. PACER Case Reference. 16-22
Appearing before U.S. Magistrate Lynch in Missoula on March 29, 2016 and entering pleas of Not Guilty were:
- NICHOLAS RICHARD AXELBERG, a 36-year-old resident of Lakeside, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, AXELBERG faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration. PACER Case Reference. 16-11
Appearing before U.S. Magistrate Ostby in Billings on March 28, 2016 and entering pleas of Not Guilty were:
- WENDY REINHOLZ, a 59-year-old resident of Molt, appeared on charges of misappropriation of postal funds. If convicted of the charge contained in the indictment, REINHOLZ faces 10 year in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the U.S. Postal Service Office of Inspector General. PACER Case Reference. 16-20
Appearing before U.S. Magistrate Johnston in Great Falls on March 24, 2016 and entering pleas of Not Guilty were:
- AARON DOUGLAS WILCOX, a 44-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute and to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the charge contained in the indictment, WILCOX faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Homeland Security Investigations and Russell Country Drug Task Force. PACER Case Reference. 16-23
Appearing before U.S. Magistrate Ostby in Billings on March 24, 2016 and entering pleas of Not Guilty were:
- JESSE MARIO GONZALEZ, a 38-year-old resident of Billings, appeared on charges of prohibited person in possession of a firearm. If convicted of the charge contained in the indictment, GONZALEZ faces 10 year in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-32
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Henrico Man Sentenced for Selling High Capacity FirearmsRead the Press Release
RICHMOND, Va. – Nassau Isiah Lucas, 26, of Henrico County, was sentenced today to 140 months in prison for possessing a high capacity firearm while being a convicted felon.
Lucas was found guilty after a jury trial on Dec. 30, 2015. According to court documents and evidence presented at trial, Lucas possessed a 9-millimeter semi-automatic pistol and a 7.62 millimeter semi-automatic rifle when he sold them in August 2014 and September 2014. During the two-day jury trial, evidence was presented that Lucas, a convicted felon, possessed and then sold the firearms to individuals he believed were gun runners who would sell the firearms in New York In fact, the individuals were undercover police officers with the Richmond Police Department.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Alfred Durham, Chief of the Richmond Police Department; and Douglas A. Middleton, Chief of Henrico County Police Department, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney David T. Maguire prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-077.
Grand Jury Indicts Five in Meth, Firearms CasesRead the Press Release
Rock Island, Ill. - A federal grand jury has returned indictments charging five individuals in separate cases in the Central District of Illinois, as announced by U.S. Attorney Jim Lewis. The indictments had remained sealed pending the defendants’ arrests and court appearances. Alejandro Lopez appeared before U.S. Magistrate Judge Jonathan E. Hawley on Friday, April 1, 2016, in Peoria, and the other four defendants appeared today before U.S. Magistrate Judge Stephen B. Jackson, Jr. in Rock Island. After the hearings, all five defendants were remanded to the custody of the U.S. Marshal.
Kirk Curtis Bryner, 61, of the 200 block of North Street, Neponset, Ill., is charged with unlawful possession of a short-barreled shotgun on Jan. 1, 2016, and possession of a firearm after having been previously convicted of a felony offense. If convicted of both charges, the statutory maximum penalty is 20 years in prison.
Dimitri Miles Lopez, 28, of the 600 block of Cole Street, Kewanee, Ill., is charged with unlawful possession of a short-barreled shotgun on Dec. 2, 2015; possession of a firearm after having been previously convicted of a felony offense; possession of a firearm in furtherance of a drug trafficking crime; possession with intent to distribute methamphetamine; and distribution of methamphetamine on June 18, 2015 and July 13, 2015. If convicted of all charges, the statutory maximum penalty is life in prison.
Alejandro M. Lopez, 30, of the 700 block of 12th Street, Moline, Ill., is charged with possession with intent to distribute methamphetamine and distribution of methamphetamine on Dec. 1, 2015. If convicted of both charges, the statutory maximum penalty is 60 years in prison.
Heath Aaron Petty, 28, of the 300 block of Olive Street, Toulon, Ill., is charged with possession with intent to distribute methamphetamine on Nov. 25, 2015 and on Dec. 3, 2015; and unlawful possession of a hand gun on Dec. 3, 2015, after having been previously convicted of a felony offense. If convicted of all charges, the statutory maximum penalty is life in prison.
Kristina Rachel Johnson, 26, of the 600 block of 11th Street, Kewanee, Ill., is charged with possession with intent to distribute methamphetamine on Jan. 11, 2016. If convicted, the statutory maximum penalty is life in prison.
The charges are the result of investigations by the Illinois State Police’s Blackhawk Area Task Force, the Kewanee Police Department, the Henry County Sheriff’s Office, the Bureau County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Glendale Tax Return Preparer Arrested on Federal Fraud ChargesRead the Press Release
LOS ANGELES – The operator of a Glendale tax preparation business was arrested this morning on charges that he defrauded customers of his tax preparation business by diverting their tax refunds into his own bank accounts.
Michael Joseph Calalang Cabuhat, 40, a resident of the Hollywood Hills West neighborhood of Los Angeles, who refers to himself in online postings as “celebritytaxguy,” was arrested by special agents with IRS Criminal Investigation and the United States Treasury Inspector General for Tax Administration (TIGTA).
This morning’s arrest was made pursuant to a criminal complaint that charges Cabuhat with wire fraud, aggravated identity theft and structuring financial transactions to evade reporting requirements.
“Corrupt tax return preparers harm their clients, other taxpayers, and the United States government,” said United States Attorney Eileen M. Decker. “Mr. Cabuhat’s clients entrusted him with an important duty that we all have at this time of year, and he abused that fundamental trust.”
Cabuhat is half-owner of VisionQwest Resource Group, Inc., which operates VisionQwest Accountancy Group and Icon Tax Group, Inc., in Glendale. According to a 36-page affidavit filed in the case, Cabuhat defrauded his clients in at least two ways.
In some instances, the taxpayer-client was given a copy of a tax return that showed a much smaller refund amount than on the tax return that Cabuhat actually filed with the IRS on behalf of the taxpayer, according to the affidavit. Sometimes, Cabuhat would simply increase the amount of tax owed on the taxpayer’s copy of the return, thereby decreasing the refund; and sometimes he would manipulate the expenses reported on the filed returns to increase the refund. Without the taxpayer’s knowledge, Cabuhat directed the IRS to deposit the small amount reflected on the taxpayer’s copy of the tax return into the taxpayer’s bank account, and to deposit the remainder into a bank account that Cabuhat controlled.
In other instances, according to the complaint, Cabuhat gave the taxpayer-client a copy of a tax return that falsely showed a tax due, but Cabuhat would file with the IRS a tax return that sought a refund. In these instances, Cabuhat would tell the taxpayer to make the “tax payment” directly to him so he could remit the payment to the IRS. In fact, Cabuhat allegedly kept the “tax payment” and directed the IRS to deposit the refund that the client should have received into a bank account that he controlled.
From 2010 through 2015, Cabuhat allegedly used this scheme to steal more than $1.2 million in refunds that should have gone to 144 clients,
In addition to the tax refund scheme, in September of 2014, Cabuhat structured cash deposits to avoid federal bank reporting requirements. Specifically, Cabuhat structured a $29,700 cash deposit into three separate transactions of $9,900 over seven days, allegedly to evade the reporting requirement triggered by cash transactions of more than $10,000. On the day after these structured transactions were completed, Cabuhat wrote a $24,500 check to purchase a Ferrari 360 Spider. That vehicle was seized today by federal agents.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Cabuhat is expected to make his initial appearance this afternoon in United States District Court.
If convicted of the charges in the complaint, Cabuhat would face a statutory maximum sentence of 27 years in federal prison.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. Additional information about and enforcement efforts by the United States Department of Justice may be found on the Tax Division’s website.