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Thursday 31 March 2016
Orange County man convicted of smuggling Asian songbirds into the U.S.Read the Press Release
LOS ANGELES – A Los Angeles federal jury has convicted a Garden Grove man of smuggling Asian songbirds into the United States concealed in his suitcase at Los Angeles International Airport (LAX).
Can Thanh Nguyen, 63, was found guilty Thursday of importing and bringing Asian songbirds into the United States in violation of federal law.
Nguyen, who had a long history of international travel, landed at LAX April 20 of last year. At a U.S. Customs and Border Protection (CBP) kiosk, Nguyen stated he was not carrying any animals or animal/wildlife products. However, he was subsequently referred by a CBP officer to a secondary agricultural inspection point. While Nguyen was in that inspection area, CBP personnel discovered 27 Asian songbirds that had been carefully concealed in his suitcase. The birds were hidden in cages wrapped in foil or newspaper underneath a layer of foil and clothing to avoid detection. Special agents from the U.S. Fish and Wildlife Service and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) responded to investigate.
“This case demonstrates my office’s commitment to prosecute those who criminally exploit wildlife that is threatened with potential extinction,” said United States Attorney Eileen M. Decker. “The Environmental and Community Safety Crimes Section in my Office is dedicated to protecting endangered species and our eco-system.”
Eleven of the Asian songbirds birds found in Nguyen’s suitcase were identified as Chinese Hwamei, Garrulax canorus, a type of Asian songbird which is protected under the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES). Two of the birds found in the suitcase were already dead, and several others died shortly after.
“This verdict should serve as a warning for individuals who are cashing in by trafficking and selling exotic wildlife that they will be held accountable for their crimes,” said Joseph Macias, special agent in charge for Los Angeles HSI. “Their greed and reckless disregard causes incalculable harm to our environment.”
“One of the highest priorities of the U.S. Fish and Wildlife Service Office of Law Enforcement is to investigate individuals and companies that are involved in the unlawful commercial trafficking and smuggling of protected animals and plants here and around the world,” Said Jill Birchell, special agent in charge of the regional office of the U.S. Fish and Wildlife Service. “This investigation demonstrates our commitment to pursue those who violate fish and wildlife laws for commercial gain as well as those that drive the illegal bird trade nationally and internationally.”
Nguyen’s sentencing is set for June 27. He faces a statutory maximum sentence of 20 years in federal prison.
In addition to HSI and the U.S. Fish and Wildlife Service, CBP, and the U.S. Department of Agriculture provided substantial assistance with the case.
Orange County Man Pleads Guilty to Shooting Laser Pointer at Orange County Sheriff’s Department HelicopterRead the Press Release
SANTA ANA, California – A Santa Ana man pled guilty today to intentionally aiming a laser pointer at a law enforcement helicopter.
Mario Deleon Lopez, 35, pled guilty before United States District Judge Andrew J. Guilford. Lopez’s sentencing was set for July 18 at which time he will face a statutory maximum sentence of five years in prison.
On the evening of November 14, 2015, tactical flight deputies with the Orange County Sheriff’s Department were patrolling over Santa Ana when their helicopter was struck with the beam of a laser, according to investigators. The pilots reported that their aircraft was struck multiple times with a green laser that illuminated the helicopter’s cockpit.
Following the alleged laser attacks, the deputies, along with the Santa Ana Police Department, successfully tracked the source of the laser to a suspect located in the backyard of a residence in Santa Ana. Police on the ground responded to the residence and took Lopez into custody on state charges of pointing a laser at an aircraft. Lopez subsequently posted bail and was released from local custody while the federal investigation continued and culminated with the filing of the indictment.
“This defendant created a dangerous situation for the pilot of the helicopter as well as other innocent bystanders on the ground,” said United States Attorney Eileen M. Decker. “This crime was senseless, but the prosecution highlights the excellent skills and training of the helicopter pilot and the law enforcement team that was able to identify and arrest this defendant.”
This investigation into Lopez was conducted by the Orange County Sheriff’s Department, the Santa Ana Police Department and the FBI.
Reports of laser attacks have increased dramatically in recent years as laser devices have become more affordable and widely available to the public. In addition, technology has improved the effectiveness of laser devices, with a resulting increase in the potential safety hazards for pilots operating aircraft, as well as their passengers and crew. Such safety hazards include temporary distraction and impaired vision, which is particularly dangerous during the critical takeoff or landing phase of flight. California consistently leads the nation in reports of laser attacks. According to the Federal Aviation Administration, which compiles statistics on the number of laser strikes in the United States, 3,960 laser attacks were reported nationwide in 2013.
Northern California Man Who Choked Woman on an Airplane Convicted of AssaultRead the Press Release
LOS ANGELES – A Northern California man has been convicted of a federal assault charge for choking and hitting a fellow passenger on a flight from Los Angeles to San Francisco.
Lawrence Wells, Jr., 54, of Richmond, California, was convicted by a jury yesterday afternoon in United States District Court of federal misdemeanor assault.
According to the evidence at trial, Wells and the victim were passengers on board Southwest Airlines flight 2010 from Los Angeles to San Francisco on October 18 last year. Wells was seated directly behind the victim. The flight was scheduled to take off from Los Angeles International Airport at 7:10 p.m. but was delayed both in boarding and on the tarmac. While the flight was on the tarmac, the victim reclined her seat. Wells summoned a flight attendant and angrily pointed at the victim’s reclined seat. The flight attended instructed the victim to return her seat to the upright position.
The flight did not actually take off until 10:30 p.m. A few minutes after the flight left Los Angeles, the victim reclined her seat again. At that time, Wells reached around the victim’s chair and choked her for five to ten seconds. He also punched her in the head with a closed fist. The pilot returned the flight to LAX.
“Defendant’s violent reaction to the frustrations of air travel was beyond the bounds of civilized behavior,” said United States Attorney Eileen M. Decker. “The victim was fortunate that she did not suffer greater injuries, because she had no way to defend herself from this defendant’s attack.”
The victim testified that, as a result of the assault, she suffered a concussion and experienced persistent nausea, dizziness, headaches, neck pain, loss of appetite, significant anxiety, and ringing in her ear, among other symptoms. The jury, however, acquitted the defendant of the felony count of assault causing serious bodily injury.
After Wells’ conviction yesterday, United States District Judge R. Gary Klausner set sentencing for June 27, 2016. At that time, defendant will face a statutory maximum sentence of six months in federal prison.
This case was investigated by the Federal Bureau of Investigation.
New Jersey Resident Indicted for Obstructing the Internal Revenue Laws and Theft of Public MoneyRead the Press Release
A grand jury returned an indictment on March 23, which was unsealed yesterday, charging a Jersey City, New Jersey, resident with one count of corruptly endeavoring to obstruct the internal revenue laws and one count of theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, Derrick M. Madison, placed hundreds of telephone calls to the Internal Revenue Service’s (IRS) electronic payment system in an attempt to fraudulently obtain credit for hundreds of millions of dollars in fictitious and fraudulent tax payments to the IRS he did not actually make. As part of his scheme, Madison received a U.S. Treasury check in the amount of $170,681.22 based on one such fraudulent overpayment to the IRS, which he deposited into his bank account. Madison was arrested on the charges March 28.
If convicted, Madison faces a total statutory maximum sentence of three years in prison and a $250,000 fine on the charge of obstructing the IRS and 10 years in prison and a $250,000 fine on the theft of public money charge. A trial date has not yet been scheduled.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Eric Powers and Jeffrey Bender of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Navajo Man from Shiprock Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Harrison Cambridge, 56, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to an abusive sexual contact charge. Under the terms of his plea agreement, Cambridge will be sentenced within the range of 30 to 42 months in federal prison followed by a term of supervised release to be determined by the court. Cambridge will also be required to register as a sex offender after he completes his prison sentence.
Cambridge was arrested in Dec. 2015, on a criminal complaint alleging that he sexually abused a Navajo child under the age of 12 on Dec. 20, 2015, on the Navajo Indian Reservation in San Juan County, N.M.
Cambridge was indicted on Jan. 14, 2016, and charged with abusive sexual contact of a child under the age of 12. During today’s change of plea hearing, Cambridge entered a guilty plea to the indictment. Cambridge remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case was prosecuted by Assistant U.S. Attorney Joseph Spindle as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Milwaukee Area Couple Sentenced to Prison for Roles in False Federal Tax Return and Identity Theft FraudRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that on March 31, 2016, Vladimir Sonin (age: 48) of Bayside was sentenced before Judge J.P. Stadtmueller on charges of aiding and abetting mail fraud and aggravated identity theft, in connection with Sonin’s role in a scheme to use stolen identities to file false federal tax returns demanding fraudulent refunds. Sonin was sentenced to 58 months in federal prison, 24 of which were mandatory and consecutive, three years’ supervised release, and was also ordered to pay $308,499 in restitution.
Sonin’s sentencing followed the sentencing of his wife, Natalya Sonina (age: 44), on March 22, 2016, by Judge Stadtmueller, for her participation in the same fraud scheme. Natalya Sonina was sentenced to 39 months in federal prison, 24 of which are mandatory and consecutive, three years’ supervised release, and was ordered to pay $308,499 in restitution along with her husband Vladimir Sonin.
Vladimir Sonin pleaded guilty to the federal charges on November 18, 2015, and Natalya Sonina pleaded guilty to those same charges on November 24, 2015. Records filed in court indicate that the couple participated in a scheme to defraud with others from approximately January 1, 2013 until May 13, 2015, which included stealing money from the IRS and various state treasuries through electronically filed fraudulent tax returns claiming a tax refund in the names of identity theft victims. The couple also received by mail unauthorized access devices issued by financial institutions in the names of identity theft victims, and then caused the IRS and various state treasuries to electronically place stolen tax refunds onto those unauthorized access devices. The scheme also included stealing hundreds of thousands of dollars from unidentified victims who paid to remove a “ransomware” virus that had frozen these persons’ computers. Finally, the couple used those unauthorized access devices at ATMs and transferred a majority of the scheme proceeds to individuals in the Ukraine.
This case was jointly investigated by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service and the United States Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Stephen A. Ingraham.
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Middletown Woman Indicted for Health Care FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that China Scott, age 45, of Middletown, Pennsylvania was indicted yesterday by a federal grand jury in Harrisburg for Health Care Fraud.
According to United States Attorney Peter Smith, between November 2015 and January 2016, Scott provided home health care services to a disabled individual through her employment at Cool Waters, a home health care agency located in Dauphin County. Scott allegedly failed to notify the agency that she is an excluded person, meaning that no payment could be made by a federal health care benefit program for services provided by her due to two previous health care fraud convictions.
The investigation was conducted by the U.S. Department of Health and Human Services and prosecution is assigned to Christy H. Fawcett.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mexican National Pleads Guilty to Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OMAR RICO-ALMANZA, age 34, a citizen of Mexico, plead guilty today to a one-count Indictment for violations of the Federal Gun Control Act.
According to the indictment, on or about November 5, 2015, RICO-ALMANZA, an alien present illegally in the United States, was found in possession of a SCCY Model CPX-2, 9mm semi-automatic pistol.
RICO-ALMANZA faces a maximum term of imprisonment of ten years, followed by three years of supervised release, a fine of $250,000, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Mexican National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BERNARDO RAMIREZ-VARGAS, age 33, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, RAMIREZ-VARGAS was previously removed from the United States on June 30, 2011. RAMIREZ-VARGAS was later found in the Eastern District of Louisiana on January 25, 2016 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
RAMIREZ-VARGAS faces a maximum term of imprisonment of twenty (20) years, as well as a fine of $250,000. U.S. District Court Judge Carl J. Barbier set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mediapolis Man Sentenced to Prison for Receiving Child PornographyRead the Press Release
DAVENPORT, IA – On March 30, 2016, Thomas James McLaughlin, 48, of Mediapolis, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 84 months in prison for receiving child pornography, announced Acting United States Attorney Kevin E. VanderSchel. Hansen was ordered to serve ten years of supervised release following his prison term, comply with the sex offender registry requirement in the state he lives, and to pay $100 towards the Crime Victims’ Fund. McLaughlin was also ordered to forfeit the electronic devices involved in the offense.
McLaughlin pleaded guilty to receiving child pornography on October 26, 2015. According to the plea agreement, on August 10, 2014, a search warrant was executed at McLaughlin’s Mediapolis residence and electronic devices were seized. A forensic examination of those devices concluded there were 5,251 images and 271 videos containing minors engaged in sexually explicit conduct dating from May 2013 through July 2014.
This matter was investigated by the Des Moines County Sheriff’s Department, Iowa Internet Crimes Against Children Task Force, The National Center for Missing and Exploited Children, and the Iowa Division of Criminal Investigation, Cyber-Crime Unit. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.
Media AdvisoryRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office is hosting a native-Iowan author and historian who will detail a subchapter of the state’s rich history of tolerance and acceptance, when it provided a safe haven to refugees fleeing Nazi-occupied Europe during World War II. The Scattergood Hostel located in a then-closed Quaker boarding school near West Branch was that safe haven. The author will discuss this rich history and compare and contrast it to the current mass migration of refugees occurring in Europe fleeing war, poverty and ecological disaster from the Middle East.
United States Attorney Kevin W. Techau will introduce the speaker, Dr. Michael Luick-Thrams. Another planned speaker, Dr. Guenter “George” Krauthamer, is a retired Rutgers University Professor. He will tell via a SKYPE connection about his family’s fleeing Europe and their life at the Scattergood Hostel.
Also available for viewing and parked in front of the Federal Courthouse will be a BUS-eum that contains exhibits reflecting Iowa’s rich cultural history. For details, see: http://roots.traces.org/at-home-in-the-heartland
EVENT DETAILS
When: Monday, April 4, 2016
Where: Cedar Rapids Federal Courthouse (Jury Assembly Room), 111 7th Ave. SE
Time: 1:00 – 2:00 p.m. (speaker presentation); 1:00 – 4 p.m. (BUS-eum tour)
The media interested in attending must contact the office to confirm attendance. Contact information is listed above.
A press release and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Marissa Man Pleads Guilty to Firearm OffenseRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Joshua J. Doty, 28, Marissa, Illinois, plead guilty to Possession of a Firearm by a Previously Convicted Felon in federal court today. The offense took place in Monroe County on July 1, 2015. Sentencing is scheduled for July 8, 2016.
Doty faces a sentence of up to 10 years in federal prison, a $250,000 fine, or both such fine and imprisonment, up to 3 years’ supervised release to follow imprisonment, and a $100 special assessment. Doty agreed to the forfeiture of the firearm he pleaded guilty to possessing.
Court documents establish that on July 1, 2015, the Illinois Department of Corrections, accompanied by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a parole compliance check at the Doty residence. During the compliance check, a New England Firearms Co., Inc., 20 gauge shotgun was found in a bedroom closet used by Doty. Doty acknowledged knowing that the firearm was at the residence and that he could not lawfully possess a firearm as a convicted felon.
Information leading to the charges against Joshua J. Doty was obtained in an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the case was prosecuted by Assistant United States Attorney Kit R. Morrissey.
Man, Woman Indicted for Armed Bank Robberies, Hold-ups at KC BusinessesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., and a Basehor, Kan., man have been indicted by a federal grand jury for two armed bank robberies and a series of armed robberies at three Kansas City, Mo., businesses.
Terry D. Jacobs, 46, of Kansas City, Mo., and Jayme L. Wilson, 26, of Basehor, Kan., were charged in a seven-count superseding indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, March 30, 2016. The superseding indictment replaces an indictment returned on Feb. 3, 2016, adding Wilson as a co-defendant and including additional charges.
The superseding indictment alleges that Jacobs and Wilson stole $3,950 at gunpoint from UMB Bank, 13813 E. 39th Street, Independence, Mo., on Dec. 29, 2015. Jacobs and Wilson are also charged with aiding and abetting each other to brandish a firearm – a Jimenez Arms 9mm pistol – during this crime of violence. Jacobs, who has a prior felony conviction, is also charged with being a felon in possession of a firearm.
The superseding indictment also alleges that Jacobs and Wilson stole $3,788 at gunpoint from UMB Bank, 1800 Grand Blvd., Kansas City, Mo., on Dec. 23, 2015.
In addition to the bank robberies, Jacobs is charged with three armed robberies at Kansas City, Mo., businesses: the Burger King at 3441 Main St. on Dec. 22, 2015; the Family Dollar Store at 3726 Broadway on Dec. 21, 2015; and the Taco Bell at 123 E. Linwood Blvd. on Dec. 20, 2015.
The federal indictment also contains a forfeiture allegation, which would require Jacobs and Wilson to forfeit to the government any property obtained from the proceeds of the alleged offenses, including $8,116, which represents the total amount of money stolen in the robberies.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Independence, Mo., Police Department, the Kansas City, Mo., Police Department and the FBI.
Man Pleads Guilty in Prescription Fraud SchemeRead the Press Release
CONCORD – United States Attorney, Emily Gray Rice announced today that Geoffrey McIntosh, 36, pleaded guilty today in the United States District Court Judge to conspiracy to distribute, and possess with intent to distribute, oxycodone.
According to documents that were filed in United States District Court and statements in the plea proceeding, McIntosh and others passed dozens of false prescriptions for OxyContin pills at pharmacies in the Manchester and Nashua areas. McIntosh arranged for runners to pass these fraudulent prescriptions at pharmacies. The runners would then provide the pills to McIntosh in exchange for pills or cash. McIntosh would then sell the pills or have others sell them on his behalf. During the investigation, law enforcement officers identified over 100 fraudulent prescriptions for OxyContin, which were filled in 2009 and 2010.
A sentencing hearing has been scheduled for July 1, 2016. The statutory maximum prison term for the crime charged is 20 years. The court will sentence McIntosh after it has had an opportunity to review a presentence report prepared by the United States Probation & Pretrial Services Office.
The case was investigated by the Drug Enforcement Administration, with assistance from other law enforcement agencies, including the Nashua Police Department, Manchester Police Department, Merrimack Police Department, and the New Hampshire State Police. The case was prosecuted by Assistant United States Attorney John J. Farley.
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Man Arrested Responding to Ad to Have Sex with 13-Year-Old Girl Faces More Than 15 Years in PrisonRead the Press Release
LOS ANGELES - A man who responded to an Internet advertisement to have sex with a young girl has been arrested and now faces more than 15 years in prison.
Joshua Paul Crouch, 28, of San Pedro, was arrested Wednesday in San Pedro and charged Thursday with attempted sex-trafficking of a minor. This is one of the first prosecutions in Los Angeles under a recent change to the federal sex-trafficking statute.
According to the affidavit filed in support of the criminal complaint in the case, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and other law enforcement agencies, posted an online advertisement on the Internet using coded language in a ruse offering sex with young girls. The advertisement used catch words such as “daddy,” “petite,” and “young.” Crouch responded to the advertisement and was told by an undercover law enforcement agent that one of the girls advertised was “Cassie,” a 13-year-old girl. Crouch sought to have oral sex with “Cassie” in exchange for $60. Crouch chose "Cassie" instead of a 15-year-old girl who was also offered by the undercover agent. Crouch followed the directions provided by the undercover agent and was arrested when he arrived at “Cassie’s” hotel room. No actual minors were at risk or involved in the operation.
“Human trafficking is modern-day slavery and victimizes large numbers of women and children,” said United States Attorney Eileen M. Decker. “This case demonstrates that law enforcement has changed its approach in combatting human trafficking, by now focusing on customers and commercial sex traffickers and by treating the women and children as crime victims. This defendant is one of the first individuals charged in Los Angeles under this federal statute, but he will not be the last.”
If convicted of the charge contained in the criminal complaint, Crouch would face a mandatory minimum sentence of 15 years of imprisonment and a statutory maximum sentence of life.
“Individuals who pay for sex with minors are contributing in no small way to the current epidemic of teen and child sex-trafficking,” said Joseph Macias, special agent in charge for HSI Los Angeles. “The coercion of minors into prostitution is unconscionable under any circumstances. We intend to hold the perpetrators accountable for their actions, which rob the underage victims in these cases of their youth and their innocence.”
Crouch made an initial appearance Thursday in U.S. District Court in Los Angeles and was ordered released on bond.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
This case was investigated by HSI’s Human Trafficking Group, the Los Angeles Police Department, the Los Angeles Sheriff's Department, and the U.S. Department of State.
Lovington, New Mexico Man Sentenced to Federal Prison for Assault on Law Enforcement OfficialsRead the Press Release
In Pecos today, a federal judge sentenced a Lovington, NM, man to 300 months in federal prison for a crime spree during which five law enforcement officials were assaulted, announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that 29–year-old Enrique Sanchez Quiroga be placed on supervised release for a period of three years after completing his prison term.
On November 2, 2015, Quiroga pleaded guilty to one count each of conspiracy to impede or injure officers; assaulting, resisting or impeding officers; unlawful transport of firearms; transportation of stolen firearms; receipt of stolen firearms; use of a firearm during a crime of violence; and, transportation of a stolen motor vehicle.
According to court records, during the early morning hours on December 14, 2015, near Sierra Blanca, TX, a U.S. Border Patrol agent attempted to stop a vehicle whose occupants included Quiroga, along with Hobbs, NM residents Maritza Navarrette Mota, age 23, and Sayra Baeza, age 26. The trio failed to yield and began firing shots from their stolen vehicle at the Border Patrol agent and a second Border Patrol agent who had joined in the pursuit. The trio ultimately abandoned the stolen vehicle and ran into the desert. Law enforcement, which by now also included Texas Department of Public Safety troopers and an officer with the Texas Department of Wildlife, continued to pursue the defendants on foot. Mota and Baeza eventually surrendered while Quiroga continued firing his weapon at law enforcement authorities. Ultimately, Quiroga was subdued after being shot several times by law enforcement during the pursuit.
According to court records, the arrests of the defendants served as the end of a crime spree which began approximately five days prior in New Mexico where there were reports of a stolen firearm, a stolen vehicle and a burglary of a department store had occurred.
On February 16, 2016, U.S. District Judge Lee Yeakel sentenced Mota and Baeza to 144 months and 128 months in federal prison, respectively, for their roles in the criminal activity.
This case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, and Texas Department of Public Safety, with the assistance of the El Paso County Attorney’s Office. Assistant United States Attorney James J. Miller, Jr. prosecuted this case on behalf of the Government.
Lincoln Man Sentenced for Possession with Intent to Distribute Methamphetamine and Gun ChargeRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 31, 2016, Jamie Dean Lewis, 29, of Lincoln, was sentenced to five years and ten months (70 months) for possession with the intent to distribute five grams or more of methamphetamine and five years (60 months) using, carrying, or possessing a firearm during or in furtherance of a drug trafficking crime. The sentence for the firearm offense must run consecutive to the sentence for the drug conviction. Following the prison term, Lewis will serve five years on supervised release.
On May 28, 2015, officers contacted Lewis, who had an outstanding warrant, at a Lincoln convenience store. Lewis attempted to run from the officers and, as he ran, he discarded a bag. He was taken into custody after a short foot pursuit. Officers found 18 grams of actual/pure methamphetamine on Lewis’s person along with cash, a methamphetamine pipe, and a scale with crystalline residue. The bag which Lewis had discarded during the foot pursuit was located and in the bag officers found a 9mm pistol with a full magazine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lancaster County Man Indicted on Child Pornography ChargesRead the Press Release
PHILADELPHIA - Jeremy Hachey, 23, of Lititz, PA, was charged today by Indictment with receipt and possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a mandatory minimum sentence of five years in prison, with a maximum possible sentence of 40 years, mandatory minimum of five years of supervised release, a possible fine, and $10,200 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Jennifer B. Jordan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Justice Department Warns Public to Beware of Fraudulent Tax Return Preparers and Tax Scheme Promoters, Urges Taxpayers to Pay Federal Income Taxes on Time and in FullRead the Press Release
With tax season in full swing, the Justice Department urged the public today to avoid dishonest tax-return preparers who fleece their customers and illegally drain the U.S. Treasury. Noting that every taxpayer is ultimately responsible for the contents of his or her own return, Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division also warned the public to be wary of anyone who guarantees a refund or who claims to sell a sure-fire way to reduce your taxes.
Dishonest Return Preparers Cost Their Clients and the United States
U.S. taxpayers filed approximately 150 million returns in 2014. According to statistics available from the Treasury Inspector General for Tax Administration, the Internal Revenue Service (IRS) identified more than 2.1 million of those returns that claimed fraudulent refunds totaling more than $15.7 billion. As in past years, the IRS has designated return preparer fraud as one of 2016’s “Dirty Dozen” tax scams to avoid during return filing season. In 2015, the Tax Division permanently shut down more than 35 fraudulent tax-return preparers located all over the United States. The defendants in those cases spanned the spectrum from large-scale return preparation franchises to small, independent return preparers.
“Every year, thousands of federal income tax returns are prepared by people who care much more about making a quick buck than about preparing accurate returns,” said Acting Assistant Attorney General Ciraolo. “Most tax return preparers are honest. But some preparers who charge clients a percentage of their tax refund intentionally prepare false returns to increase their clients’ refund, and thus their own fees. Likewise, some preparers who charge by the form will intentionally prepare incorrect forms that their clients don’t need in order to increase their compensation. Taxpayers might think that they’re getting a good deal on their taxes, or that as long as someone else prepares the return, they’re not responsible. They’re wrong. Taxpayers who have their return prepared incorrectly are required to pay the tax they owe, or pay back the refund they weren’t entitled to get. These clients might also owe interest and penalties, which can be substantial. Fortunately, there are red flags that taxpayers can look for and avoid when choosing a return preparer.”
Your refund should never be deposited directly into a preparer’s bank account.
In United States v. Elton L. Barnes, No. 2:14-cv-05621 (C.D. Cal.), the court barred a return preparer who caused other people’s tax returns to be deposited to bank accounts in his name.
Never sign a blank return or a blank form, or sign a return or a form without reading it first.
By law, a return preparer must provide a client with a completed copy of the return no later than the time the customer is asked to sign the return. In United States v. Syed N. Ahmed et al., No. 2:15-cv-11461 (E.D. Mich.), the United States alleged that the defendants’ Liberty Tax Service franchises asked customers to sign blank forms that stated that the customers had non-existent businesses, which were then used to maximize the customer’s refund. Although the defendants did not admit to the allegations in the complaint, they agreed to an order from a federal court permanently shutting down the stores.
Don’t use a preparer who mischaracterizes your expenses.
In United States v. Lawrence Preston Siegel, No. 3:15-00643 (S.D. Cal.), the defendant prepared returns that falsely characterized personal purchases as deductible expenses. For instance, one customer’s return deducted purchases at Tiffany & Co., Louis Vuitton, and Royal Caribbean Cruise Lines as “medical expenses.” The court permanently barred Siegel from preparing tax returns or providing tax advice for compensation.
Do not use a preparer who fabricates business expenses or deductions, or who claims bogus credits to which you are not entitled, such as the Earned Income Tax Credit, the child care credit, or the education credit.
One of the most common dishonest return-preparation practices is to prepare returns that include non-existent businesses, sometimes based on a client’s hobbies. In 2015, for example, federal courts shut down tax return preparers in Kahului, Hawaii; Appleton, Wisconsin; and Chicago, Illinois, who fabricated supposed “businesses” for their clients. Federal courts have also ordered return preparers in Miami, Florida, and Memphis, Tennessee to submit to third-party monitoring at their own expense to make sure they are not preparing returns with fraudulent “businesses.”
Some other fraudulent schemes and practices that have been stopped through injunction orders entered by federal courts throughout the country include:
- Fabricating fake Form W-2 (Wage and Tax Statement) information;
- Claiming bogus education and first-time homebuyer credits;
- Claiming phony child and dependent care credits or residential energy credits;
- Claiming fraudulent fuel tax credits;
- Falsely exempting foreign earned income;
- Inflating unreimbursed employee business expense deductions; and
- Fraudulently inflating or decreasing a client’s income or deductions to maximize the Earned Income Tax Credit.
In January 2016, a federal court in Orlando, Florida entered a preliminary injunction against Jason Stinson, who ran a series of tax return preparer storefronts under the name “Nation Tax Services,” requiring him to shut down the stores pending resolution of the case. As part of its explanation for why it was ordering Stinson’s stores to shut down in the middle of the case, the court said that Stinson’s business “exposes . . . [his] customers to individual tax liability. Both the Government and Stinson’s customers will suffer irreparable harm if an injunction is not granted. Moreover, it is in the public’s best interest to protect vulnerable customers from the inaccurate preparation of their taxes, not to deplete Government resources, and to maintain the public trust in the tax system.” The case is United States v. Jason Stinson et al., No. 6:14-cv-1534 (M.D. Fla.).
The IRS advises taxpayers who ask a tax professional to prepare their return to be careful in the professional they select. The IRS offers some basic tips and guidelines to assist taxpayers in choosing a reputable tax professional and is also offering taxpayers a number of instructional YouTube videos to help them prepare their own taxes for the upcoming filing season. Several options, including free assistance with preparation and electronic filing for the elderly and individuals making $50,000 or less, are available to help taxpayers prepare for the current tax season and receive their refunds as easily as possible.
Tax Division Sues to Shut Down Promoters of Fraudulent Tax Schemes
In addition to return preparers who deliberately falsify returns, the Tax Division targets those who peddle schemes that purportedly reduce taxes—but in fact rely on false statements or financial sleight-of-hand.
In United States v. Wayne Reeves et al., No. 12-cv-1916 (D. Nev.), the court found that defendants Wayne Reeves and Diane Vaoga advised their clients “to set up sham trusts and have their wages directed into accounts for those trusts as a way to improperly reduce their tax liability.” They advised their clients that the income the clients received from the trusts was “nontaxable and did not need to be reported on tax returns.” The court further found that Reeves prepared tax returns that “willfully attempted to understate his clients’ correct tax liabilities,” and that Vaoga assisted him in doing so. In January 2015, the court permanently barred both Reeves and Vaoga from preparing returns or giving tax advice to others.
In November 2015, the Tax Division sued to shut down an alleged tax scheme based on a purported solar energy generation facility in Utah. The case is United States v. RaPower-3 LLC et al., No. 2:15-cv-00828 (D. Utah). The United States’ complaint alleges that the defendants purportedly sell “solar thermal lenses” to customers, and tell their customers that they are entitled to claim depreciation expenses and the solar energy credit for the lenses—even though the defendants allegedly know or have reason to know that their customers are not in the business of producing and selling solar energy and that the defendants’ purported solar energy facilities do not actually produce solar energy in a manner that meets the Internal Revenue Code’s requirements for claiming the credit.
And in the same month, in United States v. James Tarpey et al., No. 2:15-cv-00072 (D. Mont.), the Tax Division sued to shut down an alleged timeshare donation scheme. According to the United States’ complaint in that case, the defendants have their customers give rights in a timeshare to “Donate for a Cause,” a tax-exempt entity operated by Tarpey. The complaint alleges that the customers receive an appraisal that grossly overvalues the donated timeshare rights and use that appraisal to claim a large charitable donation deduction, even when the true market value of the timeshare right is a small fraction of the appraised value.
“The Tax Division is committed to stopping those who promote fraudulent tax shelters and other schemes or who prepare false returns,” Acting Assistant Attorney General Ciraolo said. “Along with our colleagues at the IRS, we will find dishonest preparers and fraudulent tax-scheme promoters and work to shut them down. We will hold accountable those who willfully assist taxpayers to file false returns. And in appropriate cases, we will prosecute them. But everyone can help stop fraud and protect our public finances. Pay attention to your tax return and make sure that it’s right. If you think that a tax return preparer is deliberately preparing incorrect returns, or you suspect someone is selling a phony tax-loss scheme, report that person to the IRS.”
The IRS website has information about how to report a dishonest return preparer, as well as information about how to report other types of tax fraud. The Justice Department’s website has a list of tax-return preparers and tax-scheme promoters whom the courts have shut down.
In addition to the civil enforcement through injunctions that stop their illegal actions, many return preparers and promoters also face prosecution. Examples of those investigations can be found for fiscal years 2014 and 2015.
Justice Department Warns Public to Beware of Fraudulent Tax Return Preparers and Tax Scheme Promoters, Urges Taxpayers to Pay Federal Income Taxes on Time and in FullRead the Press Release
Washington – With tax season in full swing, the Justice Department urged the public today to avoid dishonest tax-return preparers who fleece their customers and illegally drain the U.S. Treasury. Noting that every taxpayer is ultimately responsible for the contents of his or her own return, Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division also warned the public to be wary of anyone who guarantees a refund or who claims to sell a sure-fire way to reduce your taxes.
Dishonest Return Preparers Cost Their Clients and the United States
U.S. taxpayers filed approximately 150 million returns in 2014. According to statistics available from the Treasury Inspector General for Tax Administration, the Internal Revenue Service (IRS) identified more than 2.1 million of those returns that claimed fraudulent refunds totaling more than $15.7 billion. As in past years, the IRS has designated return preparer fraud as one of 2016’s “Dirty Dozen” tax scams to avoid during return filing season. In 2015, the Tax Division permanently shut down more than 35 fraudulent tax-return preparers located all over the United States. The defendants in those cases spanned the spectrum from large-scale return preparation franchises to small, independent return preparers.
“Every year, thousands of federal income tax returns are prepared by people who care much more about making a quick buck than about preparing accurate returns,” said Acting Assistant Attorney General Ciraolo. “Most tax return preparers are honest. But some preparers who charge clients a percentage of their tax refund intentionally prepare false returns to increase their clients’ refund, and thus their own fees. Likewise, some preparers who charge by the form will intentionally prepare incorrect forms that their clients don’t need in order to increase their compensation. Taxpayers might think that they’re getting a good deal on their taxes, or that as long as someone else prepares the return, they’re not responsible. They’re wrong. Taxpayers who have their return prepared incorrectly are required to pay the tax they owe, or pay back the refund they weren’t entitled to get. These clients might also owe interest and penalties, which can be substantial. Fortunately, there are red flags that taxpayers can look for and avoid when choosing a return preparer.”
Your refund should never be deposited directly into a preparer’s bank account.
In United States v. Elton L. Barnes, No. 2:14-cv-05621 (C.D. Cal.), the court barred a return preparer who caused other people’s tax returns to be deposited to bank accounts in his name.
Never sign a blank return or a blank form, or sign a return or a form without reading it first.
By law, a return preparer must provide a client with a completed copy of the return no later than the time the customer is asked to sign the return. In United States v. Syed N. Ahmed et al., No. 2:15-cv-11461 (E.D. Mich.), the United States alleged that the defendants’ Liberty Tax Service franchises asked customers to sign blank forms that stated that the customers had non-existent businesses, which were then used to maximize the customer’s refund. Although the defendants did not admit to the allegations in the complaint, they agreed to an order from a federal court permanently shutting down the stores.
Don’t use a preparer who mischaracterizes your expenses.
In United States v. Lawrence Preston Siegel, No. 3:15-00643 (S.D. Cal.), the defendant prepared returns that falsely characterized personal purchases as deductible expenses. For instance, one customer’s return deducted purchases at Tiffany & Co., Louis Vuitton, and Royal Caribbean Cruise Lines as “medical expenses.” The court permanently barred Siegel from preparing tax returns or providing tax advice for compensation.
Do not use a preparer who fabricates business expenses or deductions, or who claims bogus credits to which you are not entitled, such as the Earned Income Tax Credit, the child care credit, or the education credit.
One of the most common dishonest return-preparation practices is to prepare returns that include non-existent businesses, sometimes based on a client’s hobbies. In 2015, for example, federal courts shut down tax return preparers in Kahului, Hawaii; Appleton, Wisconsin; and Chicago, Illinois, who fabricated supposed “businesses” for their clients. Federal courts have also ordered return preparers in Miami, Florida, and Memphis, Tennessee to submit to third-party monitoring at their own expense to make sure they are not preparing returns with fraudulent “businesses.”
Some other fraudulent schemes and practices that have been stopped through injunction orders entered by federal courts throughout the country include:
-
Fabricating fake Form W-2 (Wage and Tax Statement) information;
-
Claiming bogus education and first-time homebuyer credits;
-
Claiming phony child and dependent care credits or residential energy credits;
-
Claiming fraudulent fuel tax credits;
-
Falsely exempting foreign earned income;
-
Inflating unreimbursed employee business expense deductions; and
- Fraudulently inflating or decreasing a client’s income or deductions to maximize the Earned Income Tax Credit
In January 2016, a federal court in Orlando, Florida entered a preliminary injunction against Jason Stinson, who ran a series of tax return preparer storefronts under the name “Nation Tax Services,” requiring him to shut down the stores pending resolution of the case. As part of its explanation for why it was ordering Stinson’s stores to shut down in the middle of the case, the court said that Stinson’s business “exposes . . . [his] customers to individual tax liability. Both the Government and Stinson’s customers will suffer irreparable harm if an injunction is not granted. Moreover, it is in the public’s best interest to protect vulnerable customers from the inaccurate preparation of their taxes, not to deplete Government resources, and to maintain the public trust in the tax system.” The case is United States v. Jason Stinson et al., No. 6:14-cv-1534 (M.D. Fla.).
The IRS advises taxpayers who ask a tax professional to prepare their return to be careful in the professional they select. The IRS offers some basic tips and guidelines to assist taxpayers in choosing a reputable tax professional and is also offering taxpayers a number of instructional YouTube videos to help them prepare their own taxes for the upcoming filing season. Several options, including free assistance with preparation and electronic filing for the elderly and individuals making $50,000 or less, are available to help taxpayers prepare for the current tax season and receive their refunds as easily as possible.
Tax Division Sues to Shut Down Promoters of Fraudulent Tax Schemes
In addition to return preparers who deliberately falsify returns, the Tax Division targets those who peddle schemes that purportedly reduce taxes—but in fact rely on false statements or financial sleight-of-hand.
In United States v. Wayne Reeves et al., No. 12-cv-1916 (D. Nev.), the court found that defendants Wayne Reeves and Diane Vaoga advised their clients “to set up sham trusts and have their wages directed into accounts for those trusts as a way to improperly reduce their tax liability.” They advised their clients that the income the clients received from the trusts was “nontaxable and did not need to be reported on tax returns.” The court further found that Reeves prepared tax returns that “willfully attempted to understate his clients’ correct tax liabilities,” and that Vaoga assisted him in doing so. In January 2015, the court permanently barred both Reeves and Vaoga from preparing returns or giving tax advice to others.
In November 2015, the Tax Division sued to shut down an alleged tax scheme based on a purported solar energy generation facility in Utah. The case is United States v. RaPower-3 LLC et al., No. 2:15-cv-00828 (D. Utah). The United States’ complaint alleges that the defendants purportedly sell “solar thermal lenses” to customers, and tell their customers that they are entitled to claim depreciation expenses and the solar energy credit for the lenses—even though the defendants allegedly know or have reason to know that their customers are not in the business of producing and selling solar energy and that the defendants’ purported solar energy facilities do not actually produce solar energy in a manner that meets the Internal Revenue Code’s requirements for claiming the credit.
And in the same month, in United States v. James Tarpey et al., No. 2:15-cv-00072 (D. Mont.), the Tax Division sued to shut down an alleged timeshare donation scheme. According to the United States’ complaint in that case, the defendants have their customers give rights in a timeshare to “Donate for a Cause,” a tax-exempt entity operated by Tarpey. The complaint alleges that the customers receive an appraisal that grossly overvalues the donated timeshare rights and use that appraisal to claim a large charitable donation deduction, even when the true market value of the timeshare right is a small fraction of the appraised value.
“The Tax Division is committed to stopping those who promote fraudulent tax shelters and other schemes or who prepare false returns,” Acting Assistant Attorney General Ciraolo said. “Along with our colleagues at the IRS, we will find dishonest preparers and fraudulent tax-scheme promoters and work to shut them down. We will hold accountable those who willfully assist taxpayers to file false returns. And in appropriate cases, we will prosecute them. But everyone can help stop fraud and protect our public finances. Pay attention to your tax return and make sure that it’s right. If you think that a tax return preparer is deliberately preparing incorrect returns, or you suspect someone is selling a phony tax-loss scheme, report that person to the IRS.”
The IRS website has information about how to report a dishonest return preparer, as well as information about how to report other types of tax fraud. The Justice Department’s website has a list of tax-return preparers and tax-scheme promoters whom the courts have shut down.
In addition to the civil enforcement through injunctions that stop their illegal actions, many return preparers and promoters also face prosecution. Examples of those investigations can be found for fiscal years 2014 and 2015.
-
Justice Department Warns Public to Beware of Fraudulent Tax Return Preparers and Tax Scheme Promoters, Urges Taxpayers to Pay Federal Income Taxes on Time and in FullRead the Press Release
Washington – With tax season in full swing, the Justice Department urged the public today to avoid dishonest tax-return preparers who fleece their customers and illegally drain the U.S. Treasury. Noting that every taxpayer is ultimately responsible for the contents of his or her own return, Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division also warned the public to be wary of anyone who guarantees a refund or who claims to sell a sure-fire way to reduce your taxes.
Dishonest Return Preparers Cost Their Clients and the United States
U.S. taxpayers filed approximately 150 million returns in 2014. According to statistics available from the Treasury Inspector General for Tax Administration, the Internal Revenue Service (IRS) identified more than 2.1 million of those returns that claimed fraudulent refunds totaling more than $15.7 billion. As in past years, the IRS has designated return preparer fraud as one of 2016’s “Dirty Dozen” tax scams to avoid during return filing season. In 2015, the Tax Division permanently shut down more than 35 fraudulent tax-return preparers located all over the United States. The defendants in those cases spanned the spectrum from large-scale return preparation franchises to small, independent return preparers.
“Every year, thousands of federal income tax returns are prepared by people who care much more about making a quick buck than about preparing accurate returns,” said Acting Assistant Attorney General Ciraolo. “Most tax return preparers are honest. But some preparers who charge clients a percentage of their tax refund intentionally prepare false returns to increase their clients’ refund, and thus their own fees. Likewise, some preparers who charge by the form will intentionally prepare incorrect forms that their clients don’t need in order to increase their compensation. Taxpayers might think that they’re getting a good deal on their taxes, or that as long as someone else prepares the return, they’re not responsible. They’re wrong. Taxpayers who have their return prepared incorrectly are required to pay the tax they owe, or pay back the refund they weren’t entitled to get. These clients might also owe interest and penalties, which can be substantial. Fortunately, there are red flags that taxpayers can look for and avoid when choosing a return preparer.”
Your refund should never be deposited directly into a preparer’s bank account.
In United States v. Elton L. Barnes, No. 2:14-cv-05621 (C.D. Cal.), the court barred a return preparer who caused other people’s tax returns to be deposited to bank accounts in his name.
Never sign a blank return or a blank form, or sign a return or a form without reading it first.
By law, a return preparer must provide a client with a completed copy of the return no later than the time the customer is asked to sign the return. In United States v. Syed N. Ahmed et al., No. 2:15-cv-11461 (E.D. Mich.), the United States alleged that the defendants’ Liberty Tax Service franchises asked customers to sign blank forms that stated that the customers had non-existent businesses, which were then used to maximize the customer’s refund. Although the defendants did not admit to the allegations in the complaint, they agreed to an order from a federal court permanently shutting down the stores.
Don’t use a preparer who mischaracterizes your expenses.
In United States v. Lawrence Preston Siegel, No. 3:15-00643 (S.D. Cal.), the defendant prepared returns that falsely characterized personal purchases as deductible expenses. For instance, one customer’s return deducted purchases at Tiffany & Co., Louis Vuitton, and Royal Caribbean Cruise Lines as “medical expenses.” The court permanently barred Siegel from preparing tax returns or providing tax advice for compensation.
Do not use a preparer who fabricates business expenses or deductions, or who claims bogus credits to which you are not entitled, such as the Earned Income Tax Credit, the child care credit, or the education credit.
One of the most common dishonest return-preparation practices is to prepare returns that include non-existent businesses, sometimes based on a client’s hobbies. In 2015, for example, federal courts shut down tax return preparers in Kahului, Hawaii; Appleton, Wisconsin; and Chicago, Illinois, who fabricated supposed “businesses” for their clients. Federal courts have also ordered return preparers in Miami, Florida, and Memphis, Tennessee to submit to third-party monitoring at their own expense to make sure they are not preparing returns with fraudulent “businesses.”
Some other fraudulent schemes and practices that have been stopped through injunction orders entered by federal courts throughout the country include:
-
Fabricating fake Form W-2 (Wage and Tax Statement) information;
-
Claiming bogus education and first-time homebuyer credits;
-
Claiming phony child and dependent care credits or residential energy credits;
-
Claiming fraudulent fuel tax credits;
-
Falsely exempting foreign earned income;
-
Inflating unreimbursed employee business expense deductions; and
-
Fraudulently inflating or decreasing a client’s income or deductions to maximize the Earned Income Tax Credit.
In January 2016, a federal court in Orlando, Florida entered a preliminary injunction against Jason Stinson, who ran a series of tax return preparer storefronts under the name “Nation Tax Services,” requiring him to shut down the stores pending resolution of the case. As part of its explanation for why it was ordering Stinson’s stores to shut down in the middle of the case, the court said that Stinson’s business “exposes . . . [his] customers to individual tax liability. Both the Government and Stinson’s customers will suffer irreparable harm if an injunction is not granted. Moreover, it is in the public’s best interest to protect vulnerable customers from the inaccurate preparation of their taxes, not to deplete Government resources, and to maintain the public trust in the tax system.” The case is United States v. Jason Stinson et al., No. 6:14-cv-1534 (M.D. Fla.).
The IRS advises taxpayers who ask a tax professional to prepare their return to be careful in the professional they select. The IRS offers some basic tips and guidelines to assist taxpayers in choosing a reputable tax professional and is also offering taxpayers a number of instructional YouTube videos to help them prepare their own taxes for the upcoming filing season. Several options, including free assistance with preparation and electronic filing for the elderly and individuals making $50,000 or less, are available to help taxpayers prepare for the current tax season and receive their refunds as easily as possible.
Tax Division Sues to Shut Down Promoters of Fraudulent Tax Schemes
In addition to return preparers who deliberately falsify returns, the Tax Division targets those who peddle schemes that purportedly reduce taxes—but in fact rely on false statements or financial sleight-of-hand.
In United States v. Wayne Reeves et al., No. 12-cv-1916 (D. Nev.), the court found that defendants Wayne Reeves and Diane Vaoga advised their clients “to set up sham trusts and have their wages directed into accounts for those trusts as a way to improperly reduce their tax liability.” They advised their clients that the income the clients received from the trusts was “nontaxable and did not need to be reported on tax returns.” The court further found that Reeves prepared tax returns that “willfully attempted to understate his clients’ correct tax liabilities,” and that Vaoga assisted him in doing so. In January 2015, the court permanently barred both Reeves and Vaoga from preparing returns or giving tax advice to others.
In November 2015, the Tax Division sued to shut down an alleged tax scheme based on a purported solar energy generation facility in Utah. The case is United States v. RaPower-3 LLC et al., No. 2:15-cv-00828 (D. Utah). The United States’ complaint alleges that the defendants purportedly sell “solar thermal lenses” to customers, and tell their customers that they are entitled to claim depreciation expenses and the solar energy credit for the lenses—even though the defendants allegedly know or have reason to know that their customers are not in the business of producing and selling solar energy and that the defendants’ purported solar energy facilities do not actually produce solar energy in a manner that meets the Internal Revenue Code’s requirements for claiming the credit.
And in the same month, in United States v. James Tarpey et al., No. 2:15-cv-00072 (D. Mont.), the Tax Division sued to shut down an alleged timeshare donation scheme. According to the United States’ complaint in that case, the defendants have their customers give rights in a timeshare to “Donate for a Cause,” a tax-exempt entity operated by Tarpey. The complaint alleges that the customers receive an appraisal that grossly overvalues the donated timeshare rights and use that appraisal to claim a large charitable donation deduction, even when the true market value of the timeshare right is a small fraction of the appraised value.
“The Tax Division is committed to stopping those who promote fraudulent tax shelters and other schemes or who prepare false returns,” Acting Assistant Attorney General Ciraolo said. “Along with our colleagues at the IRS, we will find dishonest preparers and fraudulent tax-scheme promoters and work to shut them down. We will hold accountable those who willfully assist taxpayers to file false returns. And in appropriate cases, we will prosecute them. But everyone can help stop fraud and protect our public finances. Pay attention to your tax return and make sure that it’s right. If you think that a tax return preparer is deliberately preparing incorrect returns, or you suspect someone is selling a phony tax-loss scheme, report that person to the IRS.”
The IRS website has information about how to report a dishonest return preparer, as well as information about how to report other types of tax fraud. The Justice Department’s website has a list of tax-return preparers and tax-scheme promoters whom the courts have shut down.
In addition to the civil enforcement through injunctions that stop their illegal actions, many return preparers and promoters also face prosecution. Examples of those investigations can be found for fiscal years 2014 and 2015.
-
Jury Finds Man Guilty of Racially Motivated Hate CrimeRead the Press Release
A man who stomped on and kicked the head of an African American man because of the victim’s race was convicted by a jury on March 30, 2016, after a three-day trial in federal court in Cedar Rapids.
Randy Metcalf, age 40, from Dubuque, Iowa, was convicted of one count of committing a federal hate crime. The verdict was returned following about three hours of jury deliberations.
The evidence at trial showed that on January 12, 2015, Metcalf assaulted an African American male at the Northside Bar in Dubuque, Iowa, by stomping on and kicking his head as the victim lay barely conscious on the floor of the bar. Metcalf assaulted the victim and was then pushed away from him by another person in the bar, but then returned to kick and stomp the victim in the head again. The evidence further showed that he assaulted this man because he was African American and that Metcalf had been using racial slurs in reference to the man over the course of the night prior to the assault. Metcalf also displayed a swastika tattoo to other people who were in the bar prior to the assault and bragged about having burned crosses.
“Racially motivated acts of violence have no place in our state or country,” said Kevin W. Techau United States Attorney for the Northern District of Iowa. “This office is committed to vigorously prosecuting federal laws prohibiting violent acts of hate and protecting the civil rights of the citizens of Iowa.”
“Hate violence violates the fundamental promise of equal protection for all that defines a free and tolerant society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “As this conviction shows, the Department of Justice will continue to aggressively prosecute hate crimes to ensure that we safeguard the rights of victims and hold perpetrators accountable.”
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Metcalf remains in the custody of the United States Marshal pending sentencing. Metcalf faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case was investigated by the Dubuque Police Department and the Federal Bureau of Investigation. The case is being jointly prosecuted by Assistant United States Attorney Anthony Morfitt and Trial Attorney Christopher Perras of the Justice Department’s Civil Rights Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-1032.
Follow us on Twitter @USAO_NDIA.
Jury Convicts Springfield Man for Enticement of a MinorRead the Press Release
Urbana, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced that a jury convicted Jeffrey Parkhurst, 59, of the 1100 block of Reynolds St., Springfield, Ill., today for attempted enticement of a minor. The jury deliberated for approximately 26 minutes before returning the verdict. Sentencing has been scheduled for Aug. 1, 2016, before U.S. District Judge Colin S. Bruce.
During the trial, which began on Tuesday, Mar. 29, the government presented evidence to establish that in July 2015, Parkhurst used the Internet and a cellular telephone to knowingly attempt to entice an individual he believed to be a minor to engage in illegal sexual activity.
Parkhurst was arrested on Jul. 27, 2015, in Decatur, Ill. and charged initially by state authorities. He has remained in custody since his arrest. The defendant was remanded to the custody of the U.S. Marshals Service on Sept. 18, 2015.
The statutory penalty for attempted enticement of a minor is 10 years to life in prison plus a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Decatur Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigations in cooperation with the Macon County State’s Attorney.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Joplin Man Sentenced to 27 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for sexually abusing a 7-year-old victim to produce child pornography.
Joseph William Colvin, 26, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 27 years in federal prison without parole. The court also sentenced Colvin to spend the rest of his life on supervised release following incarceration.
On Oct. 13, 2015, Colvin pleaded guilty to the sexual exploitation of a child. Colvin admitted that he sexually abused a 7-year-old victim from April 20 through July 10, 2014, and recorded video of the abuse with his cell phone. He also admitted to taking two videos of the abuse, which investigators found on his cell phone.
According to court documents, Colvin was also in possession of child pornography that he downloaded from the Internet. Law enforcement officers seized Colvin’s laptop computer, an external hard drive and a cell phone, which must be forfeited to the government.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Jasper County, Mo., Sheriff’s Department and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
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."
Jonesville Man Sentenced on Murder for Hire ChargesRead the Press Release
ABINGDON, VIRGINIA – A Jonesville, Virginia man, who previously pled guilty to attempting to hire someone to murder a Pennington Gap Police Officer, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon on a pair of related federal charges, United States Attorney John P. Fishwick Jr. announced.
Harold Wayne Owen, 49, of Jonesville, Va., pled guilty in 2015 to one count of the use of a facility of interstate commerce to commit murder for hire and one count of possessing a firearm in furtherance of a crime of violence and using a firearm during and in relation to a crime of violence.
Today in District Court, Owen was sentenced to 248 months in federal prison and three years of supervised release thereafter.
“Mr. Owen tried to have one of the brave men who protect our communities murdered for simply doing his job,” United States Attorney John P. Fishwick Jr. said today. “Every day, men and women all across this country put on a uniform to serve and protect their communities. It’s an honorable and oftentimes dangerous job. This case should show that we will do whatever we can to protect those officers when their lives are threatened in any way.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Owen attempted to hire an individual [ATF-CI] to kill a Pennington Gap, Virginia police officer whom Owens held a grudge against for previously administering a field sobriety test to Owen during a traffic stop for driving under the influence.
Beginning on December 15, 2014, Owen approached ATF-CI and said he was waiting for a $100,000 insurance settlement and asked if ATF-CI wanted to do something for him for $20,000. Owen said he would tell ATF-CI more about the job later. The next day, Owen told ATF-CI there was a police officer working for the Pennington Gap Police Department who had been harassing him and he wanted something done. On December 17, 2014, Owen called ATF-CI and gave him a detailed physical description of the police officer (which matched an officer working for the department at the time) and further stated that a picture of the intended target could be found in the newspaper. Owen told ATF-CI he could not possess a firearm because he was a felon but said he could provide a .223 rifle to use for the job, which again Owen said would pay $20,000.
On January 6, 2015, ATF-CI met with Owen at his residence to again discuss the plan to be paid $20,000 to murder a Pennington Gap police officer. During that meeting, Owen again described the officer and talked about how the ticket he wrote Owen ruined him. ATF-CI mentioned that he was a felon and could not purchase a firearm, Owen stated that he, too, was a felon but could “take care of everything you need.” The two men talked about staging an alibi for Owen during the time the murder was to take place and the type of firearm that would be used for the murder. At one point during the conversation, AFT-CI asked Owen if killing the officer was worth it. Owen said no, but “I’m a grudge keeping fu**er.” Owen said he did not know where the officer lived but could find out. ATF-CI said he wanted to be sure the officer he killed was the right one, Owen said he did too because he couldn’t afford to pay ATF-CI to kill two police officers.
On January 14, 2015, Owen met with ATF-CI and told him he expected his insurance claim money to be paid in the next thirty to sixty days. For killing the Pennington Gap Police Office, Owen told ATF-CI he would pay him $12,000 if he received a $100,000 insurance check, $15,000 if he received $115,000 and $20,000 if he received more than $130,000. Owen also told ATF-CI that he would get him a .223 rifle, 308 rifle or a hand gun. Owen said if AFT-CI was going to use a rifle, there was a water tower they could sit in with a straight view of the Pennington Gap Police Department.
On February 7, 2015, Owen facilitated the sale of a firearm, an AK-47 style rifle, from a third party, to ATF-CI, for use in the murder for hire plot to kill the Pennington Gap Police Officer.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lee County Sheriff’s Office and the Pennington Gap Police Department. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Iron Mountain and Recall Holdings Agree to Divest Records Management Assets as a Condition to Proceed with TransactionRead the Press Release
Divesture Protects Competition and Consumers in 15 Metropolitan Areas
The Department of Justice’s Antitrust Division announced today that it will require Iron Mountain Inc. to divest records management assets in 15 metropolitan areas in order to proceed with its $2.6 billion acquisition of Recall Holdings Ltd. The Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed acquisition and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
Iron Mountain and Recall both offer records management services – storing, protecting and organizing large volumes of hard-copy records at secure, off-site locations – in many cities across the United States. To address the division’s competitive concerns, the parties will divest records management assets in the following 15 metropolitan areas where they are two of the three largest providers of these services and there are few, if any, significant remaining competitors: Detroit; Kansas City, Missouri; Charlotte, North Carolina; Durham, North Carolina; Raleigh, North Carolina; Buffalo, New York; Tulsa, Oklahoma; Pittsburgh; Greenville/Spartanburg, South Carolina; Nashville, Tennessee; San Antonio, Texas; Richmond, Virginia; San Diego; Atlanta; and Seattle.
“Iron Mountain’s proposed acquisition of Recall would have harmed records management customers in 15 metropolitan areas by dramatically reducing competition in these markets,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “As a result of today’s settlement, these customers will continue to enjoy the fruits of competition – lower prices and higher quality services.”
The transaction is also being reviewed by the Australian Competition and Consumer Commission, the United Kingdom’s Competition & Markets Authority and the Canadian Competition Bureau. The department cooperated closely with them throughout the course of its investigation, with frequent contact between the agencies.
Iron Mountain is a Delaware corporation headquartered in Boston. Iron Mountain is the largest records management company in the United States, providing document storage and related services throughout the nation. For fiscal year 2014, Iron Mountain reported worldwide revenues of approximately $3.1 billion.
Recall is an Australian company headquartered in Norcross, Georgia. As the second-largest records management company in the United States, Recall provides document storage and related services throughout the nation. Recall’s worldwide revenues for fiscal year 2014 were approximately $836.1 million.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed final judgment upon finding that it serves the public interest.
Interstate Stalker Pleads Guilty in San AntonioRead the Press Release
In San Antonio, 57-year-old Gabriel Robert Caggiano of Los Angeles, CA, faces up to five years in federal prison after pleading guilty to stalking a former employer and his wife who reside in San Antonio announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Xavier Rodriguez, Caggiano pleaded guilty to one count of stalking. According to court records, in 2008, Caggiano was employed a television station in Corpus Christi, TX. Caggiano was ultimately terminated from his employment at the station
By pleading guilty, Caggiano admitted that from March 15, 2015 until August 26, 2015, he repeatedly used voicemails, text messaging, social media and the U.S. Mail to retaliate against his victims. In those communications, Caggiano threatened physical violence against his victims as well as to embarrass, humiliate and cause substantial emotional distress to his victims by destroying the reputation of his former employer and his wife.
On November 12, 2015, Caggiano was arrested in Los Angeles. On November 24, 2015, Judge Rodriguez revoked Caggiano’s bond. He remains in federal custody. Sentencing is scheduled for 1:30pm on July 13, 2016.
This investigation was conducted by the FBI in San Antonio and Los Angeles. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
Gang Member Pleads Guilty to Stolen Firearm and Ammunition ChargeRead the Press Release
Contact Person: Stacey D. Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Anthony Leroy Doctor, a/k/a “Amp,” age 26, of Columbia, South Carolina plead guilty today in federal court. Doctor plead guilty to being in possession of a stolen firearm and ammunition, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2). United States District Judge Mary Geiger Lewis of Columbia accepted the plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court established that shortly before midnight on June 7, 2015, Doctor and others became involved in a disturbance in the parking lot outside a nightclub located in a strip mall at Broad River Road and Rushmore Road in Columbia. Doctor was armed with a firearm and when confronted by club security, Doctor left the premises and discarded the firearm in some bushes along a parking lot behind a restaurant across from the club. Later, Doctor returned to the bushes and attempted to retrieve the firearm, but was asked to leave the premises by the restaurant security. Doctor continued to return to search the bushes and while Doctor was looking for the firearm in the bushes, a deputy with the Richland County Sheriff’s Department arrived in response to the restaurant’s call about a suspicious person in their parking lot. When asked what he was doing, Doctor, without turning around, replied that he was looking for his gun. Doctor then turned around and noticed that the security guard had been joined by the Richland County deputy. Doctor, who was intoxicated, was placed in investigative detention while deputies searched for the firearm. Deputies called a K-9 to the scene. The K-9 performed an article search and retrieved the firearm from the bushes where Doctor had been searching earlier. Doctor, an admitted gang member, was placed under arrest for state weapon charge and disorderly conduct. The firearm, a Taurus 9mm handgun was loaded with one round of 9mm ammunition, and had previously been stolen in the fall of 2014 from a vehicle in Aiken. The case was referred to federal authorities for prosecution as Doctor, who was on state probation at the time, is prohibited under federal law from possessing firearms and/or ammunition based upon his prior state felony convictions, which include carjacking, assault and battery with intent to kill, strong arm robbery, and possession of a firearm by a person convicted of a violent crime.
Doctor faces a maximum of 10 years imprisonment and/or a fine of $250,000 on the stolen firearm/ammunition charge. Doctor stipulated and agreed to imposition of the maximum 10 years imprisonment sentence as part of his federal plea agreement.
The case was investigated by the Richland County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Fugitive Extradited from Lebanon to Face Money Laundering ChargesRead the Press Release
PHILADELPHIA – Karim Messaoud, 47, a foreign national of Senegal and Morocco, made his initial appearance today after being extradited from Lebanon to the United States, announced United States Attorney Zane David Memeger.
In 2005, a federal grand jury handed up a 36-count indictment charging Messaoud with one count of conspiracy to launder monetary instruments, and 35 counts of laundering of monetary instruments. Messaoud fled the United States shortly after his indictment. U.S. District Court Judge Paul S. Diamond will preside over the trial. No date has yet been set.
According to the indictment, from April 2000 through September 2002 Messaoud illegally transferred monies through Western Union and other sources. At the time he committed these acts, Messaoud believed he was doing so for drug dealers, and that the funds were the proceeds of their drug trafficking. Messaoud structured the transfers in smaller amounts and in ficitious names to evade United States reporting requirements and to conceal the true source of the funds, and directed his co-conspirator to do the same. There were 24 illegal transactions by Messaoud totalling $337,500, and between Messaoud and his co-conspirator, a grand total of $407,500 in funds that were illegally transferred.
The extradition of this fugitive was a complex process that involved collaboration between the United States Attorney’s Office in the Eastern District of Pennsylvania and the Department of Justice, Office of International Affairs in Washington D.C., the Federal Bureau of Investigation, the United States Marshal Service, and the Lebanese government.
This case was investigated by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
Four Plead Guilty to Running Puerto Rican ID Theft RingRead the Press Release
CINCINNATI – Four defendants have pleaded guilty in U.S. District Court to charges related to an identity theft ring operated with Puerto Rican birth certificates and Social Security cards.
Oris Mercedes Baez Ramirez, 50, of Hamilton, Ramon E. Fuentes Morillo, 50, of Puerto Rico, and Cipriano Diaz, 39, of Cincinnati, and Chilango Zuniga, 40, of Hamilton, all pleaded guilty to charges related mail and wire fraud and aggravated identity theft.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Division, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS), Marlon V. Miller, Special Agent in Charge, Homeland Security Investigations (HSI), and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General, announced the pleas entered into before U.S. District Susan J. Dlott.
According to court documents, beginning at least as early as April 2014 and continuing until July 2015, the defendants conspired to enrich themselves by trafficking in Puerto Rican birth certificates and Social Security cards. Some document sets were issued to real people and some were illegally manufactured using the names and information of real people.
The defendants tried to avoid detection by using fake names on the document packages they sent via Priority or Express Mail to various addresses. They wired money to and from Puerto Rico in order to purchase more documents to then sell at a profit.
Ramirez pleaded guilty on January 20 to one count of conspiracy to commit mail and wire fraud and four counts of aggravated identity theft.
Morillo pleaded guilty on February 23 to one count of conspiracy to commit mail and wire fraud, four counts of aggravated identity theft and one count of money laundering.
Diaz pleaded guilty yesterday to one count of conspiracy to commit mail and wire fraud, two counts of aggravated identity theft and one count of money laundering.
Zuniga also pleaded guilty yesterday to one count of conspiracy to commit mail and wire fraud.
Conspiracy to commit mail and wire fraud and money laundering are crimes punishable by up to 20 years in prison. Each count of aggravated identity theft carries a mandatory two year addition to sentences for the underlying felony offense.
Nine individuals were indicted in total in this case. The other co-defendants include:
Jorge Roblero, 35, of Cincinnati
Kathya Roblero, 50, of Cincinnati
Esmeralda Hernandez Cervantes, 36, of Cincinnati
Susana Angiolina Urena, 45, of Hamilton
Fernano Evelio Velasquez-Morales, 32, of Cincinnati
Acting U.S. Attorney Glassman commended the cooperative investigation of this case by law enforcement, as well as Assistant United States Attorney Jessica W. Knight and Cincinnati Branch Chief Emily N. Glatfelter, who are representing the United States in this case.
Fort Smith Woman Sentenced to 14 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Adelina Magana Fernandez, aka Adenlina Magana Hernandez, age 28, of Fort Smith, was sentenced this week to 168 months in federal prison followed by five years of supervised release on one count of Aiding and Abetting Distribution of More than five (5) Grams of Methamphetamine. She was also ordered to pay a $7,500.00 fine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
Adelina Fernandez was arrested by the DEA on October 13, 2015, indicted by a federal grand jury on October 28, 2015, and pleaded guilty to the charge in November, 2015.
Luis Calderon-Fernandez pleaded guilty to the same charges as Magana-Fernandez in February, 2016 and is currently awaiting sentencing.
This case was investigated by the Springdale Police Department and the Drug Enforcement Administration. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Former Wilkes-Barre Towing Contractor Charged with Mail Fraud and Filing A False Income Tax ReturnRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Leo Glodzik, age 45, of Wilkes-Barre has been charged in a Criminal Information filed today in the United States District Court in Scranton with Mail Fraud, Being a Felon in Possession of a Firearm, and Subscribing to a False Federal Income Tax Return.
According to United States Attorney Peter Smith, the charges, in part, arose as a result of a towing contract Glodzik’s firm, LAG Transport, Inc. (LAG), had with the City of Wilkes-Barre for the exclusive rights to tow all vehicles as requested by the City, and/or the Wilkes-Barre Police Department, and/or the city’s agents. The contract began in January 2005 and was ended in June 2013, after disclosures of complaints from residents related to LAG’s towing practices.
According to the charges in the Criminal Information, LAG towed vehicles throughout Wilkes-Barre as the result of accidents, police incidents or vehicle abandonment. Vehicles were towed to locations owned and controlled by Glodzik.
Glodzik allegedly devised a scheme to defraud lawful owners of the vehicles by charging excessive towing and storage fees for LAG’s services or intentionally hindering the owners’ access to their vehicles in a way that resulted in additional fees. This allegedly resulted in owners signing over title to vehicles to LAG or Glodzik to discharge the fees.
Glodzik then allegedly gained ownership of the vehicles through use of abandonment procedures administered by the Pennsylvania Department of Motor Vehicle (PennDot) to transfer ownership from registered owners to LAG. Forms were submitted to PennDot, using the U.S. Postal Service.
The forms submitted to PennDot stated that vehicles had a value of less than $500, when, in fact, the values were greater. This resulted in Glodzik being able to avoid legal advertisement of abandoned vehicles and payments to the Commonwealth of Pennsylvania of money received for vehicles sold at auctions that were above and beyond Glodzik’s own business costs.
As a result of the scheme, Glodzik allegedly enriched himself by unlawfully taking ownership of vehicles to which he was not entitled and using intentional misrepresentations to reduce his own expenses and costs.
The fraud scheme is set out in a mail fraud charge in the Criminal Information relating to a vehicle for which a notice of declaration of abandonment was mailed to PennDot in April 2011.
Glodzik is charged in the Criminal Information with Federal Income Tax Fraud, specifically, the filing of a federal tax return for 2008, in which he claimed zero taxable income, when, in fact, his actual taxable income for that year was allegedly $408,618.
The Criminal Information also charges Glodzik with being a convicted felon in possession of a firearm. The charge was part of an Indictment of Glodzik previously returned by a federal grand jury in Scranton in April 2015. The discovery of the firearms was pursuant to searches by agents of the Federal Bureau of Investigation and Internal Revenue Service Investigations.
The charges are the result of investigations by the Scranton Office of the Federal Bureau of Investigation, the Internal Revenue Service Investigations, and the Pennsylvania State Police into local government practices and contracting in Luzerne County. Prosecution is assigned to Assistant United States Attorneys Michelle Olshefski and John Gurganus.
Glodzik was also previously charged in the April 2015 federal indictment with bank fraud in connection with activities of the Wilkes-Barre City Employees Federal Credit Union. A former Wilkes-Barre City police officer and a former credit union employee were charged and pleaded guilty in that investigation. The government has agreed to dismiss the bank fraud charge against Glodzik as part of a plea agreement in the Criminal Information filed today. The agreement is subject to the approval of the court. No date has been scheduled for the entry of Glodzik’s plea.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under the mail fraud federal statute is 20 years of imprisonment. The firearm charge is punishable by up to 10 years’ imprisonment, and the maximum penalty for the tax charge is three years’ imprisonment. Each crime is also punishable by a term of supervised release following imprisonment, and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Texas D.P.S. Employee Pleads Guilty to Fraudulent Drivers License SchemeRead the Press Release
In San Antonio, 54-year-old Jose A. Ytuarte, a former Texas Department of Public Safety Customer Service Representative in Hondo, TX, pleaded guilty to his role in a scheme to provide fraudulent drivers’ licenses to undocumented aliens announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Xavier Rodriguez, Ytuarte pleaded guilty to one count of use of interstate facility in aid of unlawful activity--bribery. By pleading guilty, Ytuarte admitted that from May 2013 to July 2015, he accepted cash bribes from a co-conspirator in exchange for inputting materially fraudulent information, namely that the individual was born in the United States, into the DPS computer system in order to process and issue a driver’s license to an undocumented alien.
Ytuarte’s co-defendant, 44-year-old Azeez Mistry of San Antonio, is charged in the conspiracy count. He is also charged with one count of transfer of false identification documents and four counts of use of an interstate communication facility in aid of unlawful activity. According to the indictment, Mistry would direct undocumented and documented aliens who could not get a driver’s license legally to Ytuarte. Mistry would charge between $1,000 and $5,000 for each license and then pay a portion of that fee to Ytuarte as a cash bribe.
Ytuarte, who faces up to five years in federal prison, remains on bond pending sentencing scheduled for July 13, 2016. Mistry, who is also currently on bond, is scheduled for jury selection and trial on May 2, 2016. Upon conviction, he faces up to 15 years in federal prison.
This case was investigated by the FBI, Texas Rangers and U.S. Customs and Border Protection. Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. Mistry is presumed innocent until proven guilty in a court of law.
Former Nurse at Federal Prison in Lexington Sentenced for BriberyRead the Press Release
LEXINGTON – A former nurse at the federal prison in Lexington has been sentenced for smuggling tobacco into the prison, in exchange for payments from inmates.
On Wednesday, U.S. District Judge Danny Reeves sentenced 47 year-old Michael Hardin, formerly employed as a registered nurse at the Federal Medical Center in Lexington, to twelve months in prison, for bribery of a public official. Under federal law, Hardin must serve the entire term of his sentence; and at the conclusion of his incarceration, he must serve one year of home detention. Hardin will also be required to complete 400 hours of community service during his three-year term of supervised release.
According to his plea agreement, from July 2014 to August 2015, Hardin smuggled tobacco into the prison facility for inmates, who paid him a total of $22,429 in return. The inmates used family members and friends to send the money to Hardin. As a condition of his plea agreement, Hardin repaid all the money he received.
Prisoners incarcerated in federal correctional facilities, including FMC Lexington, are prohibited from possessing contraband, such as tobacco.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; John F. Oleskowicz, Special Agent in Charge, Department of Justice, Office of the Inspector General, Chicago Field Office; Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service; Pittsburg Division; and Howard S. Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The investigation was conducted by the Department of Justice, Office of the Inspector General; the Federal Bureau of Investigation; and the United States Postal Inspection Service. Assistant U.S. Attorney Andy Smith prosecuted this case on behalf of the federal government.
Former Loudoun County Sheriff’s Deputy Guilty of Asset Forfeiture EmbezzlementRead the Press Release
ALEXANDRIA, Va. – Frank Michael Pearson, 45, a former Loudon County Sheriff’s Deputy from Winchester, was convicted after a bench trial today on four counts of theft in relation to his embezzlement of over $229,000 from the asset forfeiture fund at the Loudon County Sheriff’s Office.
Pearson was indicted on July 9, 2015. According to court records and evidence presented at trial, beginning in 2006 Pearson was designated as the deputy responsible for overseeing the asset forfeiture program for the Loudon County Sheriff’s Office. The evidence presented at trial showed that beginning in or about February 2010, and continuing through October 2013, Pearson embarked on a scheme and continuing course of conduct to embezzle and steal money that had been seized by other members of the Loudoun County Sheriff’s Office for potential asset forfeiture. The evidence showed that Pearson embezzled money from 80 separate cases over this period, taking in excess of $229,000 that had been entrusted to him.
The evidence further proved that Pearson concealed his embezzlement scheme by making false statements to his coworkers and others about the timing and fact of whether he had deposited seized money into an escrow account maintained by the Loudoun County Sheriff’s Office at a local bank. For example, the evidence showed that on two separate occasions, Pearson re-used an old deposit slip from an unrelated case and passed it off as a new deposit slip to conceal the fact that he had not deposited all of the money entrusted to him. The evidence further showed that in at least one instance, Pearson took money seized in one case and passed it off as money that had been seized in another case, to hide his ongoing embezzlement.
Pearson will be sentenced on June 17, and faces a maximum penalty of 10 years in prison on each of the four counts. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the verdict was delivered by U.S. District Judge T.S. Ellis, III.
This case was investigated by the FBI’s Washington Field Office and the Virginia State Police. The Loudon County Sheriff’s Office cooperated with the investigation. Assistant U.S. Attorneys Matthew Burke and Mark D. Lytle prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-193.
Former Elmira Teacher Indicted on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has indicted Howard Edward Brooks, 39, of Elmira, NY, on charges of receipt, attempted distribution, and possession of child pornography involving prepubescent minors. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the indictment and a previously filed complaint, Brooks, a former teacher at the Elmira Christian Academy, was arrested in August, 2015 following the execution of a federal search warrant at his Elmira residence. During that search, FBI agents found several digital items containing photos and videos of children as young as toddlers being raped.
When FBI agents arrived to execute the search warrant, Brooks tried to flush several thumb drives down the toilet. He told the agents he did so because he saw the FBI in his driveway and knew the thumb drives contained child pornography. However, agents recovered the thumb drives from the sewer under the defendant’s residence with the assistance of the Chemung County Department of Public Works. These drives were then forensically analyzed and hundreds of child pornography videos were recovered from each.
The indictment is the culmination of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Former Charles County Circuit Court Judge Sentenced for Civil Rights ViolationRead the Press Release
Greenbelt, Maryland – U.S. Magistrate Judge William Connelly sentenced former Charles County Circuit Court Judge Robert C. Nalley, of La Plata, Maryland, today to one year of probation for deprivation of rights under color of law for ordering a deputy sheriff to activate a stun-cuff worn by a pro se criminal defendant during a pre-trial court proceeding. As a condition of his probation, Nalley must attend anger management classes. Magistrate Judge Connelly also ordered Nalley to pay a fine of $5,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General for the Department of Justice Civil Rights Division Vanita Gupta; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office..
“Disruptive defendants may be excluded from the courtroom and prosecuted for obstruction of justice and contempt of court, but force may not be used in the absence of danger,” said U.S. Attorney Rod J. Rosenstein.
From 1988 to September 2014, Nalley served as a judge of the Circuit Court for Charles County, Maryland. According to his guilty plea, on July 23, 2014, Nalley presided over the jury selection for the victim, who was representing himself in a criminal proceeding in Charles County court. Before the proceedings began, a deputy sheriff informed Nalley that the victim was wearing a stun-cuff. Nalley was aware that when activated, the stun-cuff would administer an electrical shock to the victim, thereby incapacitating him and causing him pain.
Several minutes after the proceedings began, Nalley asked the victim whether he had any questions for the potential jurors. The victim repeatedly ignored Nalley and instead read from a prepared statement, objecting to Nalley’s authority to preside over the proceedings, while standing calmly behind a table in the courtroom. The victim did not make any aggressive movements, did not attempt to flee the courtroom, and did not pose a threat to himself or to any other person at any point during the proceedings. Nalley twice ordered the victim to stop reading his statement, but the victim continued to speak.
According to his plea agreement, Nalley then ordered the deputy sheriff to activate the stun-cuff, which administered an electric shock to the victim for approximately five seconds. The electric shock caused the victim to fall to the ground and scream in pain. Nalley then recessed the proceedings.
United States Attorney Rod J. Rosenstein and Principal Deputy Assistant Attorney General Vanita Gupta commended the FBI for its work in the investigation, and thanked Assistant U.S. Attorneys Kristi N. O’Malley and Daniel C. Gardner of the District of Maryland, and Trial Attorney Mary J. Hahn of the Civil Rights Division, who prosecuted the case.
Florida Man Indicted on Federal Bank and Wire Fraud ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Leigh Farrington Fiske (52, formerly of Tampa) with three counts of bank fraud and seven counts of wire fraud affecting a financial institution. If convicted on all counts, he faces a maximum penalty of 30 years in federal prison.
According to the indictment, Fiske opened a business trust account at a national financial institution’s local branch, in Tampa, for a shell company that he controlled. Beginning in June 2010, Fiske deposited or assisted in depositing multiple checks that had purportedly been written to his company by legitimate third-party businesses and financial institutions. In fact, none of the deposited checks were genuine; all had been counterfeited or altered. After the fraudulently obtained funds posted to the account, Fiske would quickly move the money offshore, wire it to accounts held by other shell companies that he controlled, and make withdrawals and other transfers for his own benefit. The intended loss of the scheme was over $485,000.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Eric K. Gerard.
Five Sacramento Men Indicted for Trafficking in Drugs and GunsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 32-count indictment today against five Sacramento men, charging them with various crimes related to trafficking in narcotics and firearms, United States Attorney Benjamin B. Wagner announced.
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Osvaldo Hernandez, 33, is charged with conspiring to distribute methamphetamine and heroin; distributing methamphetamine, heroin, and cocaine; and possessing with the intent to distribute methamphetamine, heroin, and cocaine.
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Hector Gonzalez, 36, is charged with conspiring to distribute methamphetamine and heroin; conspiring to deal firearms without a license, distributing methamphetamine and heroin; dealing firearms without a license; and possessing with the intent to distribute methamphetamine.
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Christopher McCurin, 40, is charged with conspiring to deal firearms without a license and being a felon in possession of a firearm.
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Noe Baeza-Bravo, 30, is charged with conspiring to distribute methamphetamine; conspiring to deal firearms without a license; distributing methamphetamine; and dealing firearms without a license.
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Vidal Gonzalez, 56, is charged with conspiring to distribute methamphetamine; distributing methamphetamine, and dealing firearms without a license.
According to court documents, between June 2014 and February 2016, on at least 19 different occasions, agents purchased methamphetamine, heroin, cocaine, and assault rifles from various defendants. According to the indictment, between April 2015 and October 2015, Baeza-Bravo, McCurin, and Hector Gonzalez conspired to willfully engage in the business of dealing in firearms without a license. Vidal Gonzalez, Baeza-Bravo, and Hector Gonzalez sold assault rifles to an FBI source.
All five defendants were arrested on March 16, 2016. All have been released pending trial except for Hector Gonzalez, who remains in custody.
If convicted, the defendants face the following penalties: the penalty for conspiring to distribute methamphetamine is 10 years to life in prison; the maximum penalty for conspiring to distribute heroin is 20 years in prison; the maximum penalty for conspiring to deal firearms without a license is five years in prison; the maximum penalty for distributing methamphetamine, heroin or cocaine is 20 years in prison; the maximum penalty for dealing firearms without a license is five years in prison; the maximum penalty for possessing with the intent to distribute methamphetamine, heroin, or cocaine is 20 years in prison; and the maximum penalty for being a felon in possession of a firearm is 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Police Department. Assistant United States Attorney Ross K. Naughton is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Five Defendants Sentenced for their Participation in a Stolen Identity Tax Refund Fraud SchemeRead the Press Release
The last of five defendants involved in a stolen identity tax refund scheme have been sentenced in United States District Court.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to court documents, from January 2014, through April 2014, defendants, John Mackenley Cesar, a/k/a “Cesar,” 26, of Miami, Lawrence Bernadel, a/k/a “Bernadel,” 22, of Tallahassee, Chedlor Dorilus, a/k/a “Dorilus,” 22, of Hollywood, Lubens Inalien, a/k/a “Lubaby,” a/k/a “Inalien,” 29, of Fort Lauderdale, and Ariel Ronet Walker, a/k/a “Walker,” 22, of Tallahassee, used the same Electronic Filing Identification Number (“EFIN”) at residences located in Broward County and Leon County, Florida, to file approximately 158 fraudulent tax returns with the IRS using stolen personal identifying information (“PII”) that belonged to other individuals. In order to receive the tax refunds from those fraudulent tax returns, the defendants arranged to have the tax refunds deposited onto pre-paid debit cards, including pre-paid debit cards from H & R Block. Once the tax refunds were deposited onto the pre-paid debit cards, the funds were used to purchase personal items or were withdrawn from ATMs in Broward County and elsewhere.
During the search of the residences used by the defendants to facilitate the fraudulent scheme, law enforcement recovered over 1,800 names, dates of birth, and Social Security numbers belonging to other individuals. The total intended loss amount from the unauthorized tax filings and PII recovered from the residences was between $1 million and $2.5 million dollars.
Cesar, Bernadel and Dorilus pleaded guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286; and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. Walker pleaded guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286. Inalien pleaded guilty to one count of misprision of a felony, in violation of Title 18, United States Code, Section 4.
On August 14, 2015, Dorilus was sentenced to 70 months in prison, to be followed by three years of supervised release. On December 11, 2015, Inalien was sentenced to 8 months in prison, to be followed by one year of supervised release. On January 22, 2016, Walker was sentenced to 5 years’ probation. On March 23, 2016, Cesar was sentenced to 58 months in prison, to be followed by three years of supervised release. On March 30, 2016, Bernadel was sentenced to 42 months in prison, to be followed by three years of supervised release. Cesar, Bernadel, Dorilus and Inalien were also ordered to pay joint and several restitution in the amount of $580,584. Walker was ordered to pay restitution in the amount of $124,631.
Mr. Ferrer commended the investigative efforts of the Stolen Identity Refund Fraud Task Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Workers Compensation Kickback Conspirators Plead GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Tampa residents Lenin Perez and Lois Luis (a/k/a Ireno Delgado) pleaded guilty to conspiracy and kickbacks. Each faces a maximum penalty of five years in federal prison.
According to the plea agreements, Perez and Luis, who met in federal prison, conspired with each other and with others to pay kickbacks to Perez for his referring injured federal workers receiving care through the federal workers compensation program to AmeriMed Diagnostic Services, Inc., a company substantially run by Luis. In 2007, while in prison together in Alabama, Luis and Perez discussed Perez sending injured federal workers to Luis for treatment. In exchange for the referrals, Perez was supposed to receive 15-20% of the profits from AmeriMed. The amount of the kickbacks paid to Perez during the course of the conspiracy exceeded $1 million, including approximately $250,000 that was paid to Perez’s daughter for an essentially “no-show,” part-time marketing job that was actually substantially passed through her to Perez.
This case was investigated by the U.S. Department of Labor’s Office of Labor Racketeering and Fraud Investigations, the U.S. Postal Service’s Office of the Inspector General, the U.S. Department of Veterans Affairs’ Office of the Inspector General, the U.S. Department of Homeland Security’s Office of the Inspector General, the U.S. Marshals Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Federal Jury Finds Suffolk County Conservative Party Chairman Edward Walsh Guilty in Scheme to Defraud the Suffolk County Sheriff’s OfficeRead the Press Release
Walsh Falsely Represented that He Worked Regular and Overtime Hours for
the Suffolk County Sheriff’s Office When He Was Playing Golf, Visiting Casinos, or
Performing Work on Behalf of the Suffolk County Conservative PartyLate this afternoon, following three weeks of trial, a federal jury in Central Islip, returned a guilty verdict against Suffolk County Conservative Party Chairman Edward M. Walsh, Jr., on charges that he engaged in a scheme to steal wages for regular and overtime hours in connection with his employment with the Suffolk County Sheriff’s Office (SCSO). The jury convicted the defendant of both counts of an indictment charging him with theft of government funds and wire fraud, in violation of Title 18 U.S.C. §§ 666 and 1343, respectively.
The verdict was announced by Robert L. Capers, United States Attorney for the Eastern District of New York and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
At trial, the government successfully proved that from January 2011 to April 2014, Walsh, a SCSO Correction Officer III Investigator, falsely represented to the SCSO that he had worked certain regular and overtime hours when, in fact, he did not work those hours. Contrary to his representations, the government successfully established that Walsh was, among other things, playing golf, gambling at Foxwoods Casino, or performing work on behalf of the Suffolk County Conservative Party. In reliance on Walsh’s false representations, the SCSO paid Walsh wages for hours he did not work. At trial, investigators estimated that Walsh was paid more than $200,000 for regular and overtime hours he did not work.
“Today’s verdict once again establishes that no one person is above the law. Edward Walsh abused his position and authority as a political boss to steal from taxpayers in order to fund his personal and political activities. Now he will be held accountable for his actions,” stated United States Attorney Capers. “We and our partners in the FBI will continue to root out government corruption and fraud wherever we find it.”
Assistant Director-in-Charge Rodriguez stated, “Defrauding the government never pays as Mr. Walsh found out today with the guilty verdict. Mr. Walsh cheated Suffolk County and ultimately the tax payers for hours never worked. The FBI remains committed to working with our law enforcement partners to root out fraud to the government in any form.”
Upon sentencing the defendant Walsh faces a potential sentence of up to 30 years at the time of sentence.
The government’s case was prosecuted by Assistant United States Attorneys Catherine M. Mirabile and Raymond A. Tierney
The Defendant:
Edward M. Walsh, JR.
Age: 50
East Islip, New YorkE.D.N.Y. Docket No. 15-CR-091(ADS)
Federal Indictment Charges Defendant with Drug Trafficking & Firearms Charges Linked to Murder of Seaside Police SergeantRead the Press Release
PORTLAND, Ore. – Jamie Lee Jones, 44, a former resident of Nevada, was indicted today on drug trafficking, firearms, and witness tampering charges, announced U.S. Attorney Billy J. Williams. Jones was living in Seaside in early February 2016, during the time of the alleged offense conduct. The indictment charges Jones with possession with intent to distribute methamphetamine; felon in possession of a firearm; two counts of tampering with a witness by physical force or threat; and use and carry of a firearm during and in relation to a crime of violence. The defendant is currently in custody. Trial will be scheduled at defendant’s initial appearance and arraignment on the federal indictment.
The federal charges arise after a two-month, multi-agency investigation tracing the firearm used in the February 5, 2016, homicide of Seaside Police Sergeant Jason Goodding. As alleged in the indictment, Jones is accused of tampering with two witnesses by using physical force and the threat of physical force against them with the intent of hindering or preventing the witnesses from communicating information to law enforcement regarding the federal offense of being a felon in possession of a firearm, and the use of that firearm by another to shoot and kill a law enforcement officer. Specifically, Jones is accused of threatening to kill a witness, striking a witness, and discharging a firearm near both witnesses, all with the intent to hinder or prevent them from communicating information to law enforcement.
Douglas Dawson, Special Agent in Charge of the ATF in Oregon stated, “The ATF remains committed in our partnership with state and local law enforcement, holding responsible anyone who threatens the safety of our community.”
The use of a firearm count carries a 10-year mandatory minimum, a maximum sentence of life in prison and a fine of $250,000. An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The agencies participating in the investigation are the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Clatsop County Sheriff’s Office, the Clatsop County Major Crimes Team, the Cannon Beach Police Department, the Astoria Police Department, the Oregon State Police, the Clatsop County District Attorney’s Office, and the U.S. Attorney’s Office, District of Oregon.
The case is being prosecuted by Assistant U.S. Attorney Leah K. Bolstad.
The indictment can be found attached below.
Federal Grand Jury Indicts Two Men for Robbing Individuals at Gunpoint at ATMs in West and Northwest SuburbsRead the Press Release
CHICAGO — Two men have been indicted in connection with the armed robberies of individuals at automated-teller machines in the west and northwest suburbs of Chicago, federal authorities announced today.
The indictment alleges that KENNETH HAYES and ANTONIO DUNNER forced victims to withdraw money from drive-thru ATMs. Wearing disguises to cover their faces, the pair verbally threatened the individuals while Hayes brandished a firearm, the indictment states. Hayes and Dunner divided the proceeds between themselves, according to the indictment.
The indictment was returned yesterday in U.S. District Court in Chicago. It charges Hayes, 21, of Carpentersville, and Dunner, 22, of Elgin, with one count of conspiracy to interfere with commerce by threats or violence, five counts of interfering with commerce by threats or violence, and two counts of carrying, using or brandishing a firearm in connection with a crime of violence.
An arraignment date in federal court has not yet been scheduled.
The indictment alleges that the pair robbed or attempted to rob individuals at drive-thru ATMs in Glen Ellyn on Sept. 16, 2015; Park Ridge on Sept. 23, 2015; Arlington Heights on Oct. 19, 2015; and Northbrook on Sept. 23, 2015, and Oct. 8, 2015.
The pair is also accused in the indictment of robbing a gas station in Elmhurst on Nov. 1, 2015, with Hayes brandishing a firearm during the heist.
According to the indictment, Hayes and Dunner scouted drive-thru ATMs for potential robberies. Once the pair settled on a location, they traveled to the site together in Hayes’ vehicle and concealed themselves while watching for individuals using the ATMs. In addition to cash, Hayes and Dunner often stole the victims’ cellular telephones and disposed of them to prevent the victims from being able to quickly contact law enforcement, according to the indictment.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Police Departments from Arlington Heights, Carpentersville, Elgin, Northbrook, Glen Ellyn, Park Ridge and Elmhurst provided substantial assistance in the investigation.
The conspiracy charge and each count of interfering with commerce by threats or violence carries a maximum sentence of 20 years. Carrying, using or brandishing a firearm in connection with a crime of violence is punishable by a mandatory minimum sentence of seven years for the first count, and a mandatory minimum of 25 years for the second count.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Jordan Palmore.
Indictment
Drug Dealer from Brooklyn, New York Sentenced in Federal Court to over Nine Years Imprisonment for Distributing Heroin and Crack Cocaine in Rutland CountyRead the Press Release
The United States Attorney for the District of Vermont, Eric Miller, announced today that Raymond Fernandez, 33, of Brooklyn, Vermont was sentenced to nine years and two months imprisonment by Chief Judge Christina Reiss in United States District Court in Burlington. Fernandez had previously pled guilty to conspiracy to distribute heroin and crack cocaine. In addition to the term of imprisonment, Chief Judge Reiss sentenced Fernandez to eight years of supervised release, which will begin when he finishes his prison term.
According to court records, Raymond Fernandez was one of the leaders of the Gritty Gang from Brooklyn, New York. The Gritty Gang is not a gang in the common usage of the word but a group of associates and relatives from the Albany Projects of Brooklyn, who often worked together to bring heroin and crack cocaine to Rutland County to distribute. The name originated from a rap group by that name that some of these individuals had formed.
According to court records the common scheme of this conspiracy was to use young women drug addicts, often from Rutland County, to body pack heroin and crack cocaine from Brooklyn, New York to Rutland County. These woman, along with other addicts from the Rutland area, distributed many of these drugs in Rutland County for Fernandez and his Brooklyn based associates. One female addict testified that Fernandez once hit her because she used some of Fernandez’ drugs she was holding for him.
According to court records, between late 2012 and mid-2014, Fernandez was involved in bringing over 400 grams of crack cocaine to the Rutland area and over 250 grams of heroin. The Court also found there was sufficient evidence to conclude that when one of Fernandez’ Brooklyn coconspirators broke off from Fernandez and started selling drugs in Rutland County independently from Fernandez, Fernandez stabbed him on the streets of Brooklyn.
The Government also alleged, and the Court found, that in early 2014 Fernandez participated in a prostitution organization in New York City, which involved bringing young women addicts from the Rutland Vermont area to New York City where they would engage in prostitution for Fernandez’ profit. The Government alleged in its sentencing memorandum:
When one of these girls reached out to her family in March 2014, and thereby caused the FBI to start investigating, the defendant assaulted this woman and feigned shooting her up with rat poison. This young woman thought she was going to die.
In support of its sentencing recommendation, the Government also stated:
It is difficult to quantify the amount of havoc and destruction wrought by the defendant’s drug dealings. It cannot be disputed, however, that it was significant given the quantities of heroin and crack cocaine involved here. There can be no question that the defendant, in lining his own pockets, is, in part, responsible for assisting in the shattering of the lives of drug addicts and their families.
This investigation was initiated in early 2015, when federal, state, and local law enforcement focused significant resources on dismantling this large drug trafficking organization which brought significant amounts of heroin and crack cocaine from the Brooklyn, New York area to Rutland County. This extensive investigation resulted in federal charges and convictions for over 30 individuals from Brooklyn, New York and Vermont. All but two individuals have pled guilty and most all have been sentenced. U.S. Attorney Eric Miller stated, “the success of this operation is the direct result of the hard and dedicated work of a team of law enforcement agents from the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Rutland City Police.”
The United States is represented in this matter by Assistant U.S. Attorney Joseph Perella. Fernandez is represented by Chandler Mattson, Esq. of Stowe, Vermont.
Dominican Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Edwin Orlando Tejeda Aria, of the Dominican Republic, was sentenced to twenty-four months in federal prison, after pleading guilty to illegally reentering the United States after having been previously deported.
On June 16, 2015 two United States Immigration and Customs Enforcement (ICE) officers assigned to Enforcement and Removal Operations responded to the New Hampshire Division of Motor Vehicles in Salem, New Hampshire after receiving a call from New Hampshire State Police asking for assistance identifying a male individual, subsequently identified as the defendant, who was presenting fraudulent identification to obtain a New Hampshire Driver's License. The fraudulent document included a Puerto Rican Birth certificate, a Social Security card, a Pennsylvania Driver's License, and a Comcast bill. Both ICE officers identified themselves to the defendant, and then one of them fingerprinted him and submitted the prints to the FBI’s Integrated Automated Fingerprint Identification System (IAFIS) and the ICE Automated Biometric Identification System (IDENT). Both systems produced a match for Edwin Orlando Tejeda-Aria, an alien who had been deported in 2011 from Louisiana to the Dominican Republic.
Tejeda Aria was taken into ICE custody and transported to the Manchester ICE office where a full set of fingerprint impressions were taken from him and submitted to the Department of Homeland Security's IDENT system and to the FBI’s IAFIS system for comparison to databases of known fingerprints. Both systems confirmed the match to the submitted fingerprints of the defendant.
Tejeda Aria pled guilty to the charge on December 9, 2015.
The case was investigated by the New Hampshire State Police and the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
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District Man Pleads Guilty to Disfiguring Victim in Knife Attack in Southeast WashingtonRead the Press Release
WASHINGTON - Meguiel Jackson, 36, of Washington, D.C., pled guilty today to a charge of malicious disfigurement while armed for cutting a woman approximately 28 times, all over her body, with a knife in an attack that occurred at an apartment building in Southeast Washington, U.S. Attorney Channing D. Phillips announced.
Jackson pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a prison sentence of 12 years. The Honorable José M. López scheduled sentencing for June 3, 2016.
According to the government’s evidence, on the evening of Jan. 22, 2016, Jackson entered an apartment building in the 4700 block of C Street SE. He was brought to an apartment by the victim, and she permitted him into her bedroom. Jackson became angry when the victim refused to allow him to inspect her cellular telephone to see her text messages. At one point, he said words to the effect of “I am tired of you ---,” and began to assault her. She lost consciousness. While she was unconscious, Jackson took a knife and began to cut her.
Jackson cut the victim’s body approximately 28 times all over, including her face, her chest, her back, her buttocks, and her legs. Some of the wounds were so deep that tissue was exposed. Jackson ultimately broke the knife in the process of cutting her. He then left the building later that evening. He was arrested Jan. 30, 2016 and has been in custody ever since.
The victim was found to have suffered a total of 28 wounds to the face and body. Also, during the attack, she received a broken jaw and a broken orbital bone in her face. The victim is permanently disfigured as a result of the injuries inflicted by Jackson.
In announcing the plea, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sixth District, the patrol officers who responded in a major snowstorm to the crime scene, and the crime scene officers who processed the scene. U.S. Attorney Phillips also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Shawn Slade; Supervisor Security Specialist Michael Hailey; Victim/Witness Security Specialist M. Laverne Forrest; and Paralegal Specialist Tierra Nanches. Finally, U.S. Attorney Phillips thanked Assistant U.S. Attorneys Stuart D. Allen and Julianne Johnston, who investigated and prosecuted the case.
Department of Justice Issues Final Rule Extending Religious Liberty Protections to Beneficiaries of Federally-Funded ProgramsRead the Press Release
Today the Department of Justice, along with other federal agencies, published a final rule that will provide religious liberty protections to beneficiaries of social services provided by faith-based organizations that receive federal financial assistance and will affirm that such organizations are able to compete for government funds on the same basis as other organizations.
For example, under the new regulations, a religious organization that is awarded a grant to carry out a social service must notify any beneficiary, in writing, that he or she may not be discriminated against based on religion and may request an alternative provider if he or she objects to the religious character of the organization. In addition, the regulations specify that all decisions about federal financial assistance must be based on merit, not on an organization’s religious affiliation or lack thereof. The regulations—which are being published after public notice and comment—formally implement Executive Order 13559, entitled “Fundamental Principles and Policymaking Criteria for Partnerships with Faith-Based and Other Neighborhood Organizations.”
Among other things, the department’s final regulations:
- Require that all decisions about awards of federal financial assistance from the department must be made on the basis of merit, not on the basis of religion, religious belief, or lack thereof and must be free from political interference, or even the appearance of such interference.
- Reaffirm that faith-based or religious organizations are eligible to participate in any department program for which they are otherwise eligible on the same basis as any other organization.
- Clarify that organizations that receive direct federal financial assistance from the department may not engage in “explicitly religious activities” unless they are offered separately, providing examples of such activities.
- Prohibit organizations that receive federal financial assistance from the department from discriminating against beneficiaries or prospective beneficiaries on the basis of religion, a religious belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice.
- Require faith-based or religious organizations providing services under a program supported by direct federal financial assistance from the department to provide written notice of certain protections to beneficiaries and prospective beneficiaries, including the following statements—
- The organization may not discriminate against beneficiaries or prospective beneficiaries on the basis of religion, a religious belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice;
- The organization may not require beneficiaries or prospective beneficiaries to attend or participate in any explicitly religious activities that are offered by the organization and any participation by beneficiaries in such activities must be purely voluntary;
- The organization must separate in time or location any privately funded explicitly religious activities from activities supported by direct federal financial assistance;
- If a beneficiary or prospective beneficiary objects to the religious character of the organization, the organization will undertake reasonable efforts to identify and refer the beneficiary or prospective beneficiary to an alternative provider to which the beneficiary or prospective beneficiary has no objection; and
- Beneficiaries or prospective beneficiaries may report an organization’s violation of these protections, including any denials of services or benefits by an organization, by contacting or filing a written complaint with the Office for Civil Rights or the intermediary that awarded funds to the organization.
The final regulations become effective 30 days after publication in the Federal Register and recipients of federal financial assistance must comply with the regulations 90 days after publication in the Federal Register. For more information, click here.
- Require that all decisions about awards of federal financial assistance from the department must be made on the basis of merit, not on the basis of religion, religious belief, or lack thereof and must be free from political interference, or even the appearance of such interference.
Department of Justice Announces Solicitation for Community Policing Development ProgramRead the Press Release
Up to $8 million to support community policing and implementation of the recommendations of the President’s Task Force on 21st Century Policing
The Office of Community Oriented Policing Services (COPS Office) today announced the opening of the application period for its Community Policing Development (CPD) Program. Up to $8 million is available to fund projects that support implementation of the recommendations of the President’s Task Force on 21st Century Policing Report. These recommendations aim to strengthen public trust and foster strong relationships between local law enforcement and communities, while also promoting effective crime reduction.
The CPD Program is designed to address critical topics in the law enforcement field by building on the principles of community policing through training and technical assistance, the development of innovative community policing strategies, applied research, guidebooks and best practices that are national in scope.
This year, the program will fund projects related to six topic areas: The Microgrant Initiative for Law Enforcement, Critical Response Technical Assistance, Community Policing Emerging Issues Forums, Community Policing Training Projects, Law Enforcement Led 21st Century Policing Demonstration Projects and 21st Century Policing Implementation Projects.
“The funding announced today reflects this Administration’s commitment to and support for law enforcement,” said COPS Office Director Ronald Davis. “Through this program, the COPS Office will provide substantial assistance to law enforcement in its efforts to build community trust and enhance public safety and national security.”
The CPD Program is a competitive solicitation, open to all public governmental agencies, profit and nonprofit institutions, institutions of higher education, community groups and faith-based organizations. For more information on program requirements, application instructions, frequently asked questions and other information, visit the CPD Program page on the COPS Office website.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Dennis Richard Smith Sentenced to More Than 19 Years in Prison for KidnappingRead the Press Release
KNOXVILLE, Tenn. – On March 31, 2016, Dennis Richard Smith, 55, of Knoxville, Tenn., was sentenced by the Honorable Pamela L. Reeves, U.S. District Court Judge, to serve 235 months in federal prison.
In July 2014, Smith pleaded guilty to the May 2014 kidnapping of his ex-wife from a home where she worked as a housekeeper in west Knoxville. Evidence presented at the sentencing hearing showed that Smith broke a window to gain entry into the residence. He then brandished an airsoft pistol, placed the pistol against the victim’s head, threatened to kill her, and forcibly kidnapped her. The victim did not realize that the pistol was an airsoft pistol until after she was rescued by law enforcement. The victim had previously been stalked and harassed by Smith and had a valid order of protection against Smith. After taking the victim and holding her for several hours, Smith fled with her to North Carolina. He communicated with the victim’s family by phone and told them that if anyone tried to stop him, they would never see her again.
In the late hours of May 7, 2014, law enforcement determined that the vehicle Smith was driving was at a rest area on Interstate-40E in North Carolina. After surrounding the vehicle, law enforcement arrested Smith and freed the victim.
Agencies involved in this investigation include the Federal Bureau of Investigation (FBI) Safe Streets Task Force, Knoxville Division, which is made up of agents with the FBI and officers from Knoxville Police Department and Knox County Sheriff’s Office; Knoxville Police Department; FBI, Charlotte, North Carolina Division; McDowell County, North Carolina, Sheriff’s Department; Marion, North Carolina Police Department; North Carolina Highway Patrol; and McDowell County, North Carolina Office of Emergency Management. Assistant U.S. Attorney Cynthia F. Davidson represented the United States.