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Wednesday 30 March 2016
Mexican National Pleads Guilty to Unlawful Transfer of Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MEINARDO ALONSO-CASTILLO, age 30, a citizen of Mexico, pled guilty today to a one-count Bill of Information for the unlawful transfer of identification documents.
ALONSO-CASTILLO faces five years imprisonment, followed by five years of supervised release, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentence for July 13, 2016.
According to court documents, from or about September 10, 2015 through December 9, 2015, ALONSO-CASTILLO transferred, without lawful authority, a means of identification of another person, to wit, Social Security cards, with the intent to commit, or to aid or abet, or in connection with, unlawful activity that constitutes social security fraud.
U.S. Attorney Polite praised the work of the Department of Homeland Security Investigations and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican National Pleads Guilty to Unlawful Transfer of Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MEINARDO ALONSO-CASTILLO, age 30, a citizen of Mexico, pled guilty today to a one-count Bill of Information for the unlawful transfer of identification documents.
ALONSO-CASTILLO faces five years imprisonment, followed by five years of supervised release, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentence for July 13, 2016.
According to court documents, from or about September 10, 2015 through December 9, 2015, ALONSO-CASTILLO transferred, without lawful authority, a means of identification of another person, to wit, Social Security cards, with the intent to commit, or to aid or abet, or in connection with, unlawful activity that constitutes social security fraud.
U.S. Attorney Polite praised the work of the Department of Homeland Security Investigations and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican National Pleads Guilty to Federal Gun ChargeRead the Press Release
POCATELLO - Juan Carlos Sepulveda-Castro, 31, a citizen of Mexico, pleaded guilty today to one count of possession of a firearm by a prohibited person, U.S. Attorney Wendy J. Olson announced. Sepulveda-Castro was indicted by a federal grand Jury in Pocatello on February 23, 2016.
According to the plea agreement, Idaho Falls police arrested Sepulveda-Castro after a report that he had threatened several others with a gun during a dispute. Officers found a loaded, Sig Sauer Model 522, .22 caliber, assault-style rifle that Sepulveda-Castro admitted to possessing. The defendant is prohibited from possessing firearms because he is an alien illegally and unlawfully in the United States.
The charge of unlawful possession of a firearm is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release. The government is seeking forfeiture of the firearm the defendant illegally possessed.
Sentencing is set for June 22, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by Idaho Falls Police, U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case was prosecuted by the new Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho. The Eastern Idaho Special Assistant U.S. Attorney was hired to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 11 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Martinsville Man Sentenced for Illegal ReentryRead the Press Release
DANVILLE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Martinsville, Virginia man who was convicted of illegally reentering the United States after being previously deported.
Ruben Canela-Nunuez, of Martinsville, Va., previously pled guilty to one count of illegal reentry of a removed alien. Tuesday in the District Court for the Western District of Virginia in Danville, Canela-Nunez was sentenced to eight months in federal prison.
“Upholding the nation’s immigration laws is an important part of the work of the United States Attorney’s Office,” United States Attorney John P. Fishwick Jr. said today.
According to evidence presented at previous hearings by Assistant United States Attorney C. Patrick Hogeboom III, Canela-Nunez was arrested in Martinsville, Va. in July 2015 and was found to have illegally reentered the United States after being deported on multiple occasions, including his removal from Hidalgo, Texas in January 2015.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement. Assistant United States Attorney C. Patrick Hogeboom III and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Liverpool Man and Syracuse Woman Indicted for Sexual Exploitation of Three Children Under the Age of FiveRead the Press Release
SYRACUSE, NEW YORK – Jason Kopp, 40, of Liverpool, New York and Emily Oberst, 23, of Syracuse, New York were indicted for conspiracy to sexually exploit a child, sexual exploitation of a child, distribution of child pornography, and possession of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
The 28 count indictment charges Kopp and Oberst with one count of conspiracy to sexually exploit a female born in 2014 and two counts of sexual exploitation of that child. The indictment also charges Kopp, individually, with eight counts of sexual exploitation of children, nine counts of distribution of child pornography, and two counts of possession of child pornography. Kopp is accused of producing and distributing images depicting a female born in 2014 and a male born in 2013. As for Oberst, the indictment charges her, individually, with two counts of sexual exploitation of children and four counts of distribution of child pornography. Oberst is accused of producing and distributing images depicting a female born in 2014 and another female born in 2011.
Upon conviction, Kopp and Oberst would face a mandatory minimum sentence of fifteen years and a maximum sentence of thirty years imprisonment, on the conspiracy charge as well as each count of sexual exploitation of a child. On each count of distribution of child pornography, if convicted, Kopp and Oberst are subject to a mandatory minimum sentence of five years and a maximum sentence of twenty years imprisonment. If convicted of possession of child pornography, Kopp would face a maximum sentence of twenty years imprisonment on each charge. In addition, all of the charges provide for a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender.
Kopp and Oberst were previously arrested pursuant to criminal complaints and arrest warrants filed on Saturday, March 19, 2016. On that day, Kopp and Oberst appeared before United States Magistrate Judge Baxter in Syracuse, New York and were detained without bail.
United States Attorney Hartunian said: "The indictment alleges criminal conduct that is unspeakable – the sexual exploitation and abuse of the most vulnerable members of our society, our very young children. We will seek to have the defendants held accountable to the fullest extent of the law. We commend the Federal Bureau of Investigation, the District of Columbia
Metropolitan Police Department-FBI Child Exploitation Task Force, and the New York State Police for the investigation which led to these charges, and appreciate the assistance of Onondaga County District Attorney William J. Fitzpatrick and his staff in pursuing justice for the victims and their families."
"Today's charges are the result of the combined efforts of several law enforcement agencies that are committed to ending the sexual exploitation of our most innocent citizens," said Special Agent in Charge Andrew W. Vale. "Our children deserve to be safe from alleged predators such as Kopp and Oberst, and the FBI will continue to work tirelessly with our law enforcement partners to stop and ultimately prevent such evil acts."
The charges in the indictments are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by FBI Albany Division (Syracuse Resident Agency), the District of Columbia Metropolitan Police Department-Federal Bureau of Investigation ("MPD-FBI") Child Exploitation Task Force (Washington Field Office), and the New York State Police and is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Robert Levine.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Lackawanna Woman Pleads Guilty to Distribution of Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Charisma Royster, 25, of Lackawanna, NY, pleaded guilty to possession with intent to distribute, and distribution of, crack cocaine before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that on September 15, 2014, the defendant sold a quantity of crack cocaine to a confidential informant working with officers of the Lackawanna Police Department. Subsequent analysis confirmed the presence of crack cocaine.
Royster is one of 18 defendants arrested in a drug trafficking operation that included sales made in and near the Gates Housing Project in Lackawanna. She is the sixth defendant to be convicted. 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.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge.
Sentencing will be scheduled at a later date.Kansas Man Pleads Guilty to Robbing Bank in Prairie VillageRead the Press Release
KANSAS CITY, KAN. – A Kansas man pleaded guilty Wednesday to robbing a bank in Prairie Village, U.S. Attorney Barry Grissom said.
Tarone Hollins, 41, Kansas City, Mo., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Oct. 22, 2015, he robbed the Community America Credit Union at 7620 State Line Road in Prairie Village, Kan. After surveillance of the robbery was made public, eleven callers to the Greater Kansas City Crime Stoppers identified Hollins as the robber.
Sentencing will be set for a later date. Both parties have agreed to recommend five years in federal prison. Grissom commended the Prairie Village Police Department, the FBI, and Assistant U.S. Attorney Tris Hunt for their work on the case.
Justice Department Reaches Agreement with City of Newark, New Jersey, to Reform Police Department’s Unconstitutional PracticesRead the Press Release
The Justice Department announced today it has reached a comprehensive settlement with the city of Newark, New Jersey, that will bring wide-ranging reforms and changes to the Newark Police Department (NPD). The agreement, which is subject to court approval, resolves the department’s findings that NPD has engaged in a pattern or practice of unconstitutional stops, searches, arrests, use of excessive force and theft by officers in violation of the First, Fourth and 14th Amendments. The proposed consent decree also resolves the department’s findings that NPD’s law enforcement practices had a disparate impact on minorities in Newark.
The Justice Department’s findings were announced in July 2014 following a comprehensive investigation into the NPD started in May 2011. The investigation also found that this pattern of constitutional violations has eroded public confidence in the police. As a result, public safety suffers and the job of delivering police services was more difficult and more dangerous.
“This agreement holds the potential to make Newark a national model for constitutional, effective and accountable community policing in the 21st century,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice looks forward to working closely with the city as we implement this agreement and begin to change policies, improve systems and rebuild trust between Newark police officers and the residents they serve.”
“The men and women who wear the uniform of the Newark Police Department bring enormous dedication, integrity and pride to their jobs every day,” said U.S. Attorney Paul Fishman of the District of New Jersey. “At the same time, the department is challenged in fundamental ways and has engaged in a pattern and practice of unconstitutional policing in a broad range of areas. And it is also clear that the Police Department’s relationship with the people of the city has suffered dramatically from the combination of those practices. Community trust has deteriorated, and that in turn has compromised the effectiveness of the Department. Today we are taking a major step toward breaking that cycle.”
Under the consent decree, the city of Newark and NPD will implement comprehensive reforms in 12 substantive areas. The agreement ensures that:
- NPD will improve officer training to ensure that officers develop the necessary technical and practical skills required to carry out NPD directives consistently.
- NPD will revise search and seizure policies, training and supervision to ensure that all stops, searches and arrests are conducted in accordance with the Constitution and in a manner that takes into account community priorities.
- NPD will integrate bias-free policing principles into all levels of the organization, including comprehensive training of officers and supervisors.
- NPD will reform use of force policies, including requirements for using de-escalation techniques whenever possible and appropriate, prohibiting retaliatory force and ensuring mandatory reporting and investigation standards following use of force.
- NPD will deploy in-car and body-worn cameras to promote accountability, instill community confidence and improve law enforcement records.
- NPD will implement measures to prevent theft of property by officers, including robust reporting and complete accounting of property or evidenced seized.
- Office of Professional Standards investigators will be appropriately qualified and trained. Investigations of civilian complaints will be conducted in an objective, thorough and timely manner.
- Newark will create a civilian oversight entity to give voice to and pursue concerns of its residents.
- NPD will develop protocols for conducting compliance reviews and integrity audits.
- NPD will implement steps to ensure that the disciplinary process is fair and consistent.
- NPD will improve records management and early intervention systems and collect data on all uses of force and investigatory stops, searches and arrests, and develop a protocol for the comprehensive analysis of the data. The information will be publicly reported.
- NPD will strengthen its public information programs to ensure that members of the public are informed of NPD’s progress toward reform.
Newark and the Department of Justice have jointly proposed Peter Harvey to lead the team of experts that will monitor the city’s compliance with the agreement. Harvey is a former New Jersey Attorney General, and has experience under a Justice Department consent decree in the New Jersey State Police Case. He brings a deep understanding of issues specific to New Jersey and Newark and has direct experience overseeing organizational change and law enforcement reforms. Harvey will propose a team of local and nationally-recognized experts who are all committed to ensuring effective and constitutional policing, subject to the approval of the city and the Justice Department.
The investigation was conducted jointly by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the District of New Jersey. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information about the U.S. Attorney’s Office of the District of New Jersey, please visit http://www.justice.gov/usao/nj.
NPD Consent Decree
NPD Complaint
NPD Fact Sheet
SPL Police Accomplishments
Justice Department Reaches Agreement with City of Newark, New Jersey, to Reform Police Department’s Unconstitutional PracticesRead the Press Release
NEWARK, N.J. – The Justice Department announced today it has reached a comprehensive settlement with the city of Newark, New Jersey, that will bring wide-ranging reforms and changes to the Newark Police Department (NPD). The agreement, which is subject to court approval, resolves the department’s findings that NPD has engaged in a pattern or practice of unconstitutional stops, searches, arrests, use of excessive force and theft by officers in violation of the First, Fourth and 14th Amendments. The proposed consent decree also resolves the department’s findings that NPD’s law enforcement practices had a disparate impact on minorities in Newark.
The Justice Department’s findings were announced in July 2014 following a comprehensive investigation into the NPD started in May 2011. The investigation also found that this pattern of constitutional violations has eroded public confidence in the police. As a result, public safety suffers and the job of delivering police services was more difficult and more dangerous.
“This agreement holds the potential to make Newark a national model for constitutional, effective, and accountable community policing in the 21st century,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice looks forward to working closely with the city as we implement this agreement and begin to change policies, improve systems and rebuild trust between Newark police officers and the residents they serve.”
“The men and women who wear the uniform of the Newark Police Department bring enormous dedication, integrity, and pride to their jobs every day,” Paul Fishman, U.S. Attorney for the District of New Jersey, said. “At the same time, the department is challenged in fundamental ways and has engaged in a pattern and practice of unconstitutional policing in a broad range of areas. And it is also clear that the Police Department’s relationship with the people of the city has suffered dramatically from the combination of those practices. Community trust has deteriorated, and that in turn has compromised the effectiveness of the Department. Today we are taking a major step toward breaking that cycle.”
Under the consent decree, the city of Newark and NPD will implement comprehensive reforms in 12 substantive areas. The agreement ensures that:
- NPD will improve officer training to ensure that officers develop the necessary technical and practical skills required to carry out NPD directives consistently.
- NPD will revise search and seizure policies, training and supervision to ensure that all stops, searches and arrests are conducted in accordance with the Constitution and in a manner that takes into account community priorities.
- NPD will integrate bias-free policing principles into all levels of the organization, including comprehensive training of officers and supervisors.
- NPD will reform use of force policies, including requirements for using de-escalation techniques whenever possible and appropriate, prohibiting retaliatory force and ensuring mandatory reporting and investigation standards following use of force.
- NPD will deploy in-car and body-worn cameras to promote accountability, instill community confidence and improve law enforcement records.
- NPD will implement measures to prevent theft of property by officers, including robust reporting and complete accounting of property or evidenced seized.
- Office of Professional Standards investigators will be appropriately qualified and trained. Investigations of civilian complaints will be conducted in an objective, thorough and timely manner.
- Newark will create a civilian oversight entity to give voice to and pursue concerns of its residents.
-
NPD will develop protocols for conducting compliance reviews and integrity audits.
-
NPD will implement steps to ensure that the disciplinary process is fair and consistent.
-
NPD will improve records management and early intervention systems and collect data on all uses of force and investigatory stops, searches and arrests, and develop a protocol for the comprehensive analysis of the data.The information will be publicly reported.
-
NPD will strengthen its public information programs to ensure that members of the public are informed of NPD’s progress toward reform.
Newark and the Department of Justice have jointly proposed Peter Harvey to lead the team of experts that will monitor the city’s compliance with the agreement. Harvey is a former New Jersey Attorney General, and has experience under a Justice Department consent decree in the New Jersey State Police Case. He brings a deep understanding of issues specific to New Jersey and Newark and has direct experience overseeing organizational change and law enforcement reforms. Harvey will be assisted by a variety of local and nationally-recognized experts who are all committed to ensuring effective and constitutional policing.
The investigation was conducted jointly by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the District of New Jersey. For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt. For more information about the U.S. Attorney’s Office of the District of New Jersey, please visit http://www.justice.gov/usao/nj.
Jury Convicts Iowa Man of Racially Motivated Hate Crime for Attacking an African-American ManRead 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 today after a three-day trial in the Northern District of Iowa.
Randy Metcalf, 40, of Dubuque, Iowa, was convicted of one count of committing a federal hate crime. The verdict was returned this afternoon following about three hours of jury deliberations.
The evidence at trial showed that on Jan. 12, 2015, Metcalf assaulted an African-American male at the Northside Bar in Dubuque 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 of the victim’s race, 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.
“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 Justice Department’s 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.”
“Racially motivated acts of violence have no place in our state or country,” said U.S. Attorney Kevin W. Techau of 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.”
Sentencing before Chief U.S. District Judge Linda R. Reade of the Northern District of Iowa will be scheduled at a later date. Metcalf faces a maximum sentence of 10 years in prison, a $250,000 fine, a $100 special assessment and three years of supervised release following any imprisonment. He remains in custody of the U.S. Marshals pending sentencing.
The case was investigated by the Dubuque Police Department and the FBI. The case is being jointly prosecuted by Assistant U.S. Attorney Anthony Morfitt of the Northern District of Iowa and Trial Attorney Christopher Perras of the Civil Rights Division’s Criminal Section.
Jury Convicts Doctor of Home Health Care FraudRead the Press Release
HOUSTON – A federal jury sitting in Houston has returned guilty verdicts against Dr. Warren Dailey, 68, on five counts related to health care fraud following a three-day-trial, announced U.S. Attorney Kenneth Magidson. The jury deliberated for approximately three hours this afternoon before finding Dailey guilty of conspiracy to commit health care fraud, two counts of false statements relating to health care matters, one count of conspiracy to pay and receive health care kickbacks and one count of payment and receipt of health care kickbacks.
At trial, the jury heard that from approximately 2009 through 2012, Dailey was a physician specializing in family practice in Houston and defrauded Medicare by authorizing Medicare beneficiaries for home health care when such services were not needed. The evidence at trial demonstrated Dailey conspired with a home health care owner here in Houston and agreed to sign Medicare authorization forms certifying services in exchange for a monthly flat fee from the home health owner. Dailey signed hundreds of authorization forms for beneficiaries that would falsely certify the patients were homebound, that home health was medically necessary and that the beneficiaries were under his care. Medicare paid the home health owner approximately $913,620 for home health services Dailey referred.
U.S. District Judge David Hittner presided over the trial and has set sentencing for June 23, 2016. At that time, Dailey faces a maximum of 10 years in federal prison as well as a possible $250,000 fine.
Previously released on bond, Dailey was remanded to custody pending sentencing.
The charges are a result of the investigative efforts of the U.S. Department of Health and Human Services -Office of Inspector General, Office of Investigations and the FBI. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Tina Ansari prosecuted the case.
Jemez Pueblo Man Sentenced to Life Imprisonment for Federal Felony Murder ConvictionRead the Press Release
ALBUQUERQUE – Gavin Yepa, 31, a member and resident of Jemez Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to life imprisonment on his felony murder conviction. The sentence was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division.
Yepa was arrested on Jan. 3, 2012, on a criminal complaint charging him with killing a 38-year-old Navajo woman during a sexual assault that took place at Yepa=s residence on Jemez Pueblo on the night of December 28, 2011. Yepa previously had been arrested on related tribal charges on Dec. 28, 2011, and remained in tribal custody until his arrest on the federal criminal complaint.
In Jan. 2012, a federal grand jury indicted Yepa on a felony murder charge alleging that the victim died as the result of an aggravated sexual assault by Yepa. Trial of the case was delayed by interlocutory appeals. The trial commenced on July 27, 2015, and concluded Aug. 7, 2015, when the jury returned a guilty verdict on the sole count of the indictment.
The evidence at trial established that Yepa met the victim in San Ysidro, N.M., on the evening of Dec. 28, 2011, and took her to his residence. Shortly before midnight, Yepa contacted tribal officials and reported that there was a woman in his home who was not breathing. When Yepa escorted the officials into his residence, they observed a large amount of blood on the floor throughout the house and found the victim’s nude body, which was covered with blood, in a bedroom.
The investigation revealed that the victim had been brutally sexually assaulted with three items, all of which were found at the crime scene. DNA analysis confirmed that the victim’s blood was on all three items.
“Native American women experience violence, including domestic violence, dating violence, sexual assault, stalking and murder, at rates dramatically higher than other women in this country. This is a cycle of violence that cannot be tolerated and must end,” said U.S. Attorney Damon P. Martinez. “The U.S. Attorney’s Office is committed to improving the safety of women in our tribal communities by working with tribal governments to decrease the number of Native American women who fall victim to violence; to strengthen the capacity of tribal governments to respond to violent crimes and support victims; and to ensure that perpetrators like Gavin Yepa are held accountable for their crimes and are removed from the community.”
“No one in this country deserves to be a victim of violence. Unfortunately, violence in our Native American communities ravages families, harming mothers, daughters and sisters. They and their loved ones depend on us for justice. Today’s sentencing sends a strong message the FBI and our partners will vigorously pursue justice for each and every victim, especially those who suffer unspeakable crimes and can no longer speak for themselves,” said FBI Special Agent in Charge Terry Wade. “The FBI appreciates the U.S. Attorney's Office's aggressive prosecution in this case, and we thank Jemez Pueblo and the New Mexico State Police for their assistance.”
This case was investigated by the Albuquerque office of the FBI with assistance from the Jemez Pueblo Tribal Officials, the Jemez Pueblo Tribal Police Department and the Crime Scene Unit of the New Mexico State Police. Assistant U.S. Attorneys Niki Tapia-Brito and Linda Mott prosecuted the case.
The prosecution of this case was part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Jackson Businessman Pleads Guilty to FraudRead the Press Release
A Jackson party store owner was sentenced today to 30 months in prison after pleading guilty to a fraud scheme to burn down his store to collect insurance proceeds, U.S. Attorney Barbara L. McQuade announced today
McQuade was joined in the announcement by Robin Shoemaker, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearm, and Explosives (ATF), Marlon Miller, Special Agent in Charge, Homeland Security, Immigration and Customs Enforcement, and Director Matthew Heins, Jackson Police Department.
Rajinder Singh, 25, formerly of Jackson, Michigan was sentenced by U.S. District Judge Judith Levy in Ann Arbor, Michigan. Judge Levy also ordered Singh to pay restitution in the amount of $10,000.
According to court records, Singh admitted that in May 2014, he conspired with others to intentionally set fire to his business, Robinson’s Party Store, located at 1233 S. West Avenue, Jackson, Michigan. The object of the conspiracy was to obtain the insurance proceeds for the business. Singh agreed to pay the men to set the fire. In pleading guilty to charges of conspiracy to commit malicious use of fire, wire fraud, misleading communication to hinder investigation of a federal offense and immigration document fraud, Singh admitted to making a fraudulent claim to his insurance company. Singh also admitted that he lied to a police detective by falsely stating that the fire was likely racially motivated on the mistaken belief that he is an "Arab." Singh filed a claim with his insurance company seeking payment of at least $400,000 for the damage to his building, the inventory lost in the fire and lost business income.
A month after the fire, Singh, prepared, or caused to be prepared, a Department of Homeland Security Form N-400 (Application for Naturalization) in an attempt to become a naturalized United States citizen. Several questions on the form required Singh to disclose his entire criminal history, even crimes for which he had not been charged. In response to those questions, Singh answered falsely when asked if he had ever committed, assisted in committing or attempted to commit a crime or offense for which he had not be arrested. Singh signed the form under penalty of perjury and mailed it to the U.S. Citizenship and Immigration Services offices.
“Committing any fraud scheme harms victims, but intentionally setting a fire creates a danger to public safety and firefighters that far exceeds the financial loss,” McQuade said. “This defendant attempted to exploit laws designed to protect people from hate crimes.”
“Arson for profit is not a victimless crime. Our communities as a whole become the victims because arson destroys property and places and increases economic burden on our communities”, said ATF Special Agent in Charge S. Robin Shoemaker. “ATF is committed to the investigation and prevention of arson and arson for profit schemes. I would also like to thank the Jackson Police and Fire Departments, Homeland Security, Immigration and Customs and the Eastern district of the United States Attorney’s Office.”
“Rajinder Singh sentence reflects his selfish actions of setting his business on fire to collect insurance money and used race to fuel his lie. He placed peace officers and firemen lives in danger, in the name of greed,” said Marlon V. Miller, special agent in charge of HSI Detroit. “HSI remains committed to working with our law enforcement partners to investigate and expose fraudulent activities regardless of the scheme.”
“This case is another outstanding example of interagency cooperation leading to conviction of Mr. Singh for his criminal activity in the City of Jackson, stated Chief Heins. "The ongoing partnership between the Jackson Police Department, ATF, and U.S. Attorney’s Office is invaluable in a case of this nature. Jackson Police Department Detectives Holly Rose and Gary Schuette were instrumental in bringing this case to the forefront.”
McQuade thanked the agents of ATF for their investigation of the case. She also thanked the Jackson Police Department for assisting in the investigation
The case was prosecuted by Assistant U.S. Attorneys John O’Brien and Shane Cralle.
Indianapolis Businessman pleads guilty in fraud schemeRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Angel Marchena Suazo, 41, Indianapolis, pled guilty to theft of federal government funds before U.S. District Judge William T. Lawrence.
“When someone files fraudulent tax returns, in essence, they steal from all Americans,” said Minkler. “This office will always pursue tax thieves and as the deadline approaches for all of us to pay our taxes, those who choose to steal Treasury funds should be watching over their shoulder.”
Marchena Suazo owned Don Angel Multiservices, LLC, which purported to provide tax services and check cashing services in Indianapolis. The Internal Revenue Service-Criminal Investigation determined that between July 2012 and April 2013, Marchena Suazo cashed approximately 800 stolen or fraudulent tax refund checks through his business, depositing approximately $2.9 million in his business accounts. Marchena would typically withdraw most of these funds to pay the sources of the stolen or fraudulent refund checks. He would keep approximately 15 percent of the proceeds for his services in cashing the checks.
Starting around January 2014, Marchena Suazo began submitting fraudulent tax returns himself. In all, he submitted approximately 100 fraudulent returns in an attempt to obtain approximately $227,000 in unearned refunds from the IRS. In total, he only received approximately $21,000 as the IRS caught most of these fraudulent tax returns and denied payment.
As part of Marchena Suazo’s plea agreement, he will be ordered by the court to pay full restitution for the criminal tax loss of approximately $2,900,000.
“With tax season upon us, I want to assure the American taxpayers that IRS Criminal Investigation has made refund fraud and identity theft a top priority,” said Acting Special Agent in Charge Darrell Waldon. “We will continue to aggressively pursue the criminals who would steal from the American taxpayer. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible just as we have done with this multi-state stolen identity theft fraud ring, involved in procuring bogus checks.”
According to Assistant United States Attorney Winfield D. Ong, who is prosecuting the case for the government, the offense is punishable by a maximum sentence of ten (10) years imprisonment, a $250,000 fine, and three (3) year supervised release following any term of imprisonment. No date for sentencing has been set.
Hillsville Man Sentenced on Bank Fraud, Tax ChargesRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Hillsville man on a bank fraud charge and tax evasion charge.
Robert Donald Morgan III, 44, of Hillsville, Va., previously pled guilty to one count of bank fraud and one count of conspiracy to willfully fail to pay taxes. Tuesday in the United States District Court for the Western District of Virginia in Abingdon, Morgan was sentenced to six months imprisonment and ordered to pay $284,796 in restitution.
“This defendant betrayed his duties as a bookkeeper and accountant for his own personal gain,” United States Attorney John P. Fishwick said today. “I am grateful to the agents and investigators who worked hard to bring this defendant to justice.”
“Today’s sentencing serves as a reminder that committing fraud is inexcusable and IRS-CI is committed to working with the United States Attorney’s Office to bring culpable individuals to justice,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.
According to evidence presented at previous hearings by Assistant United States Attorney Jennifer R. Bockhorst, between April 2013 and March 2015, Morgan executed a scheme to defraud Grayson National bank through a series of false representations. Morgan has admitted that while working as a bookkeeper and accountant for Company A, he fraudulently caused checks to be deposited into his own personal bank account without authority. In all, Morgan fraudulently obtained $66,776.
In addition, Morgan, and others, at Company A, devised and executed a scheme in which a portion of some employees’ salaries would be in cash and therefore lessening the payroll tax burden owed by Company A.
The investigation of the case was conducted by agents of the Internal Revenue Service, the United States Secret Service, and the Virginia State Police. Assistant United States Attorney Jennifer R. Bockhorst prosecuted the case for the United States.
Harvey Woman Pleads Guilty to Conspiracy to Receive Illegal KickbacksRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ELESHIA WILLIAMS, age 45, of Harvey, pled guilty today to one count of conspiracy to receive illegal kickbacks.
On March 12, 2015, WILLIAMS was indicted along with 19 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud.
According to court documents, WILLIAMS was a marketer for Abide Home Health Care Services, Inc. (Abide), a Louisiana home health agency. WILLIAMS contacted an Abide employee to confirm that the person she fraudulently referred for home health was a Medicare beneficiary. Once it was determined the referred individual was a Medicare beneficiary, an Abide co-conspirator scheduled a physician visit, usually with an Abide House Doctor – also a co-conspirator – well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional.
WILLIAMS faces a maximum term of five years imprisonment, followed by three years of supervised release and a $250,000 fine. U.S. District Judge Susie Morgan set sentencing for September 21, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Gibsonton Couple Pleads Guilty to Stolen Identity Refund Fraud ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Ynessa Brown and Thelonius Robertson today pleaded guilty to conspiring to commit tax fraud and aggravated identity theft. Each faces a maximum penalty of five years in federal prison for the conspiracy charge, to be followed by two years in federal prison for the identity theft charge. Robertson and Brown have agreed to make full restitution and pay a money judgment of $767,398, the proceeds of the conspiracy.
According to court documents, between January 2012 and June 2013, Brown and Robertson used stolen identities to electronically file false and fraudulent tax returns. Many of those false tax returns were filed jointly, in two names, and in many cases, one or both victims was deceased.
Brown and Robertson directed the refunds from the fraudulent filings to debit cards, many in other people’s names. The debit cards were sent directly to Brown and Robertson, as well as to their friends and family, and to vacant addresses. Brown and Robertson spent the fraudulently obtained tax refund money at various retail locations and also obtained cash via ATM withdrawals. In total, Brown and Robertson filed false tax returns requesting more than $2.7 million from the IRS.
This case was brought as part of the Tampa Bay Identity Theft Alliance, an initiative dedicated to combating the scheme of using stolen identities to file fraudulent federal income tax refund claims. It was investigated by the Hillsborough County Sheriff’s Office and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Kelley C. Howard-Allen is prosecuting the case.
Former President of North Carolina Board of Funeral Service and His Business Partner Sentenced to Prison for Tax FraudRead the Press Release
The former President of the North Carolina Board of Funeral Service and his business partner were sentenced to prison yesterday for their involvement in a conspiracy to defraud the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
Kenneth Dale Stainback, 62, of Burlington, North Carolina, the secretary of McClure Funeral Service (McClure) and former president of the North Carolina Board of Funeral Service, was sentenced to 14 months in prison and three years of supervised release. Stephen Ray Smith, 60, of Mebane, North Carolina, the president of McClure, was sentenced to six months in prison and three years of supervised release. The court ordered both defendants to pay $158,530.11 in restitution to the IRS for the corporate tax loss. The court also ordered Stainback and Smith to pay $12,213 and $116, respectively, in restitution to the IRS for their individual tax loss. The court also ordered Stainback and Smith to pay $8,000, respectively, in fines.
According to court documents and statements in court, Stainback and Smith conspired to defraud the United States by filing false corporate tax returns for McClure. Stainback, Smith and another co-conspirator bought McClure in 2004 and began diverting gross receipts from the business and omitting that income from the corporation’s tax returns. The co-conspirators opened a checking account at Mid-Carolina Bank for the purpose of diverting funds from McClure, including commission checks payable from insurance providers and checks from clients for payment of services. The co-conspirators wrote checks to themselves from this account, with Stainback and Smith receiving the vast majority of the diverted funds. Stainback also opened another bank account at SunTrust Bank, which he used to embezzle additional funds from McClure without the knowledge of his co-conspirators. The co-conspirators also pocketed cash payments from clients of McClure. To conceal discovery of their scheme, the co-conspirators deleted and altered invoices in the business’s accounting system. Even after they were aware that the IRS was conducting an examination of the business, Stainback and Smith continued to divert funds from McClure.
“As Messrs. Stainback and Smith have learned, cheating the IRS and stealing from the U.S. Treasury brings serious penalties, including prison, fines and the potential loss of professional licenses,” said Acting Assistant Attorney General Ciraolo. “Taxpayers who think they can skim funds from their own businesses and conceal their criminal conduct by falsifying records underestimate the ability of the IRS and Department of Justice to detect, investigate and prosecute these crimes.”
During the 2009 through 2012 fiscal years, Stainback, Smith and the other co-conspirator diverted more than $419,000 from McClure. Because the co-conspirators also deleted and falsified invoices, the amount diverted underestimates the amount the co-conspirators excluded from the corporate tax returns. The co-conspirators caused a corporate tax loss of $158,530.11 and additional individual tax loss based on their failure to report the diverted funds on their individual income tax returns.
Acting Assistant Attorney General Caroline D. Ciraolo and U.S. Attorney Ripley Rand commended special agents of IRS – Criminal Investigation who investigated the case, and Assistant U.S. Attorney Clifton T. Barrett of the Middle District of North Carolina and Trial Attorney Kathryn A. Kimball of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former President of North Carolina Board of Funeral Service and His Business Partner Sentenced to Prison for Tax FraudRead the Press Release
The former President of the North Carolina Board of Funeral Service and his business partner were sentenced to prison yesterday for their involvement in a conspiracy to defraud the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
Kenneth Dale Stainback, 62, of Burlington, North Carolina, the secretary of McClure Funeral Service (McClure) and former president of the North Carolina Board of Funeral Service, was sentenced to 14 months in prison and three years of supervised release. Stephen Ray Smith, 60, of Mebane, North Carolina, the president of McClure, was sentenced to six months in prison and three years of supervised release. The court ordered both defendants to pay $158,530.11 in restitution to the IRS for the corporate tax loss. The court also ordered Stainback and Smith to pay $12,213 and $116, respectively, in restitution to the IRS for their individual tax loss. The court also ordered Stainback and Smith to pay $8,000, respectively, in fines.
According to court documents and statements in court, Stainback and Smith conspired to defraud the United States by filing false corporate tax returns for McClure. Stainback, Smith and another co-conspirator bought McClure in 2004 and began diverting gross receipts from the business and omitting that income from the corporation’s tax returns. The co-conspirators opened a checking account at Mid-Carolina Bank for the purpose of diverting funds from McClure, including commission checks payable from insurance providers and checks from clients for payment of services. The co-conspirators wrote checks to themselves from this account, with Stainback and Smith receiving the vast majority of the diverted funds. Stainback also opened another bank account at SunTrust Bank, which he used to embezzle additional funds from McClure without the knowledge of his co-conspirators. The co-conspirators also pocketed cash payments from clients of McClure. To conceal discovery of their scheme, the co-conspirators deleted and altered invoices in the business’s accounting system. Even after they were aware that the IRS was conducting an examination of the business, Stainback and Smith continued to divert funds from McClure.
“As Messrs. Stainback and Smith have learned, cheating the IRS and stealing from the U.S. Treasury brings serious penalties, including prison, fines and the potential loss of professional licenses,” said Acting Assistant Attorney General Ciraolo. “Taxpayers who think they can skim funds from their own businesses and conceal their criminal conduct by falsifying records underestimate the ability of the IRS and Department of Justice to detect, investigate and prosecute these crimes.”
During the 2009 through 2012 fiscal years, Stainback, Smith and the other co-conspirator diverted more than $419,000 from McClure. Because the co-conspirators also deleted and falsified invoices, the amount diverted underestimates the amount the co-conspirators excluded from the corporate tax returns. The co-conspirators caused a corporate tax loss of $158,530.11 and additional individual tax loss based on their failure to report the diverted funds on their individual income tax returns.
Acting Assistant Attorney General Caroline D. Ciraolo and U.S. Attorney Ripley Rand commended special agents of IRS – Criminal Investigation who investigated the case, and Assistant U.S. Attorney Clifton T. Barrett of the Middle District of North Carolina and Trial Attorney Kathryn A. Kimball of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Finance Director of Pit River Tribe Indicted for Tax Evasion, Failure to File a Tax Return, and Theft from the Pit River TribeRead the Press Release
SACRAMENTO, Calif. — Kenley Black, 41, formerly of Burney, California, was arrested today at his home in Ft. Defiance, Arizona on charges of tax evasion, failure to file income taxes, and embezzlement and theft from a tribal organization, United States Attorney Benjamin B. Wagner announced.
A federal grand jury returned a 25-count indictment on Thursday, March 24, 2016, against Kenley, who served as the the Finance Director for the Pit River Tribe from 2009 to 2013. Black is not a member of the Pit River Tribe.
According to court documents, while employed as Finance Director, Black earned over $810,000 yet did not file income taxes and evaded paying over $225,000 in taxes. He is charged with five counts of tax evasion and five counts of failure to file income taxes. Additionally, he is charged with 15 counts of embezzlement and theft from a tribal organization for embezzling $81,578 from the Pit River Tribe in 2012 and 2013.
This case is the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Justin Lee is prosecuting the case.
If convicted, Black faces a maximum statutory penalty of five years in prison and a $100,000 fine for each count of tax evasion. Additionally, Black faces up to one year in prison for each count of failure to file a tax return and up to five years in prison for each count of theft from a tribal organization. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Employee of the Scottsville Baptist Church Sentenced to 18 Months in Prison for Embezzling Church FundsRead the Press Release
Ordered to pay $274, 846 in restitution
Paid personal expenses with the funds
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. today announced the sentencing of an Allen County, Kentucky, woman to18 months in prison for committing three counts of wire fraud, and was ordered to pay $274,846 restitution to her former employer, the Scottsville (Kentucky) Baptist Church.
“The 18 month prison term imposed by Judge Stivers, reflects the seriousness of these offenses and the callous nature of the crime,” stated U.S. Attorney John Kuhn. “While the less fortunate turn to the church for life’s necessities, Patricia Barlow stole from the church to satisfy her greed.”
Barlow, age 49, was a secretary at the Scottsville Baptist Church (SBC), located at 301 East Main Street, in Scottsville, Kentucky, and on numerous occasions made unauthorized wire transfers to pay for personal expenses using SBC funds. The scheme to defraud SBC began in January of 2011, and lasted until SBC discovered the fraud in the spring of 2015. Three of the alleged wire transfers were made on January 1, 2007, in the amount of $512.29; January 14, 2011, in the amount of $1,400; and a wire transfer of $425.00 on January 28, 2015.
Barlow’s criminal conduct was not a one-time lapse in judgment. Barlow’s six-figure scheme involved scores of fraudulent checks, bogus credit card charges, thefts of cash donations, and false accounting entries submitted time and again over the course of four years. Moreover, Barlow did not steal from the church to pay for a family emergency, or because of an addiction to drugs or gambling. Rather, Barlow stole over $274,000 from the SBC for luxuries she and her family otherwise could not legitimately afford, such as vacations, jewelry, clothes, and trips to beauty salons.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the United States Secret Service and Scottsville (Kentucky) Police Department.
Former EMI Owners Sentenced for Multi-Million Dollar Fraud SchemeRead the Press Release
Springfield, Ill. – Brothers Joel and Eric Andrews, former principal owners of Environmental Management of Illinois, Inc. (EMI), Springfield, Ill., were sentenced today to three years and two and one-half years, respectively, in federal prison for a scheme that defrauded the Illinois Environmental Protection Agency of millions of dollars. Co-defendant Michael Keebler, who bought the business in 2006, was sentenced in August 2015 to five years in prison for the scheme, which, over a period of 12 years, from 2001 to 2013, swindled money from a fund administered by Illinois EPA to clean up sites contaminated by leaking underground storage tanks.
U.S. District Judge Sue E. Myerscough allowed both men to remain on bond until they report to the federal Bureau of Prisons in July 2016. Following their release from prison, both were ordered to serve the first 12 months of a three-year term of supervised release under home confinement.
Joel Andrews, 47, of New Berlin, Ill., Eric Andrews, 52, of Shipman, and Michael Keebler, 42, of Sherman, each share, jointly and severally, in the court’s order to pay restitution of no more than $13.36 million to the Illinois EPA minus any offsets agreed to by the government. Thus far, the three defendants have posted $6.2 million with the court toward the total amount of restitution ordered, and any of their remaining assets, including EMI, are subject to forfeiture proceedings by the government.
Joel and Eric Andrews each pled guilty on Mar. 2, 2015, to one count of conspiracy to commit mail fraud. Keebler entered pleas of guilty on Feb. 27, 2015, to two counts of conspiracy to commit mail fraud.
The U.S. EPA has a cooperative agreement with the State of Illinois to administer the UST (underground storage tanks) program. IEPA and the Illinois Office of the State Fire Marshal share administration of the UST fund which assists tank owners and operators with the cleanup costs of petroleum leaks from USTs. The State Fire Marshal administers the preventative and permitting aspects of the program. If there is a spill or leak, IEPA is responsible for oversight of the cleanup investigation and the corrective action, in order to clear the property for use again. State taxes and fees paid on the purchase of gasoline fund the Leaking UST (LUST) program.
Joel Andrews founded EMI in 1997 and served as president, and Eric Andrews joined in 1999 as vice-president. In April of 2001, professional engineer Michael Keebler joined the firm. In 2006, the firm was sold to Michael Keebler, who remained as the firm’s principal owner and president.
The environmental consulting firm, located at 1154 N. Bradfordton Road, Springfield, worked with property owners to clean up sites contaminated by petroleum leaks, spills, or overfills from underground storage tanks. The firm then sought reimbursement of its costs to remediate the land from a fund administered by a designated section within Illinois EPA.
According to plea agreements filed by the parties and during court hearings, each of the men admitted that they conspired to defraud the LUST fund by artificially inflating expenses they incurred in remediating property. For example, agreements were made with vendors to submit two invoices for certain services; one that listed the actual costs of the service provided and the payment to be made by EMI, and a second invoice which inflated the amount of work performed and supplies used, the amount charged for the work, or both. The inflated invoice would then be provided to Illinois EPA for reimbursement. Certain vendors were also paid a reduced rate, but EMI misrepresented to the Illinois IEPA that they had been paid full price. At other times, invoices were created or existing invoices modified to reflect a higher charge than was actually paid before they were submitted to IEPA for reimbursement.
The case was prosecuted by First Assistant U.S. Attorney Patrick D. Hansen. The charges resulted from a two-year investigation by the Federal Bureau of Investigation and the U.S. Environmental Protection Agency, Criminal Investigation Division.
Former Blackstone Woman Pleads Guilty to Stealing Customers’ Personal InformationRead the Press Release
BOSTON – A former Blackstone woman pleaded guilty today in U.S. District Court in Boston in connection with her role in a scheme to steal personal information from clients of her former employer.
Jasmine Banks, 29, pleaded guilty to one count of conspiracy to commit identity theft and access device fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for June 22, 2016.
In 2014, Banks was a customer service employee for Mercer, Inc., in Norwood, and assisted customers with retirement plans that were administered by Mercer. In connection with her work, she had access to detailed account information and personally identifiable information (PII) for customers’ accounts. From February 2014 through April 2014, Banks accessed Mercer account information at her computer and provided the names, addresses, and bank account of approximately 270 Mercer account holders to one of her co-conspirators via email and text message. In many cases, she also provided dates of birth and social security numbers. In addition, Banks selected 401(k) accounts with large balances and sent the co-conspirator detailed account access information for four of them. Based on the information Banks provided, a fraudulent withdrawal of $23,485 was made from one of the retirement accounts.
Mercer fully cooperated with law enforcement to prevent further account breaches and withdrawals.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney David J. D’Addio of Ortiz’s Cybercrime Unit.
Former Arkansas DHS Employee Pleads Guilty to Accepting Bribes and Conspiracy in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that former DHS employee Gladys Waits, 36, of Little Rock, pled guilty to one count of conspiring to commit wire fraud and one count of receipt of a bribe in connection with USDA funds intended to feed children in low income areas during the school year and summer.
Today’s plea hearing took place in Little Rock before United States District Judge James M. Moody, Jr., who will sentence Waits at a later date.
The United States Department of Agriculture (USDA) funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. USDA also funds the Summer Food Service Program. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding program, and they are reimbursed for the eligible meals they serve.
Waits worked for DHS, and her responsibilities included processing applications from sponsors who applied to participate in the feeding programs, determining their eligibility, and approving their proposed feeding site(s).
According to the facts read at the hearing, three other co-defendants, Jacqueline Mills, Kattie Jordan and Dorothy Harper, were sponsors of feeding programs from in or about January 2012 to in or about August 2014. Mills was a sponsor and had approved sites in cities including Helena and Marianna, Arkansas. Mills’ programs received more than $2.5 million in federal funds from DHS. Jordan was a sponsor through Save Our Youth and Save Our Community, which had approved sites in cities including Dermott, Dumas, Eudora, and Lake Village, Arkansas. Jordan’s programs received more than $3.5 million in federal funds from DHS. Harper was a sponsor for the feeding programs through Kingdom Land Youth Outreach Ministries which had approved sites in cities including England, Keo, Allport, Tucker, Toltec, Coy and Altheimer, Arkansas and Harper’s program received more than $1.3 million in federal funds from DHS.
Waits was responsible for approving the feeding programs for Mills, Jordan, and Harper at various times from in or about January 2012 to in or about August 2014. Mills and Jordan made bribe payments to Waits. Some bribes were made directly by checks made payable to Gladys Waits or indirectly through payments to her relatives. Mills made some bribe payments via check to Anthony Waits. Harper also made cash payments to Anthony Waits. Anthony Waits is the husband of Gladys Waits.
In exchange for these bribe payments, Gladys Waits, knowing that these sponsors would submit inflated claims, would still approve their applications, which contained the location of the sites and the maximum number of children who would be fed at each site.
During the time described in the Indictment, Mills, Jordan, and Harper all submitted inflated claims for reimbursement to DHS. They claimed that more children were fed at their sites than were actually fed. Because their applications had been approved for a specified number of sites and a specified number of children who could be fed at the sites, inflated claims were approved and paid by DHS without further scrutiny. Gladys Waits also helped Mills, Jordan, and Harper avoid DHS’s detection of the fraud.
Jordan pled guilty to conspiracy to commit wire fraud in connection with the feeding programs and was sentenced to 63 months in prison on March 15, 2016.
Also, according to the facts read at the change of plea, Anthony Waits recruited additional sponsors to participate in the feeding programs. These sponsors gave a percentage of the money received from the feeding programs to Anthony Waits. Christopher Nichols, the Anthony Waits’ nephew, and Reuben Nims, Anthony Waits’ brother-in-law, are two of the recruited sponsors who received payments for inflated claims. Gladys Waits approved those sponsors’ applications. Nichols and Nims have pled guilty in connection with fraud in the feeding programs.
Gladys Waits is the seventh person to plead guilty (see chart below) concerning the theft of USDA feeding program funds for children. The amount of fraud these seven people have admitted to exceeds $5.3 million. Previous charges filed in this investigation detail alleged fraud involving over $10.5 million in USDA feeding program funds.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release. The statutory penalty for accepting bribes is not more than 10 years, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg, and Cameron McCree. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Pled guilty, awaiting sentencing
**Kattie Jordan (4:15-cr-00250-JM) —$3.6 million fraud
Francine Leon (4:16-cr-00010-JM) —$1 million fraud
Chris Nichols (4:15-cr-00045-JLH —$333,000 fraud
Erica Warren and Alexis Young (DHS employee) (4:16-cr-015-BSM) —$253,000 fraud
Reuben Nims (4:15-cr-00199-JM) —$182,000 fraud
** sentenced to 63 months’ incarceration, 3 years supervised release on March 15, 2016.
Indicted, awaiting trial
Anthony Waits (4:15-cr-00250-JM)
Tonique Hatton (DHS employee) (4:15-cr-00250-JM)
Jacqueline Mills (4:15-cr-00250-JM)
Dorothy Harper (4:15-cr-00250-JM)
Maria Nelson (4:15-cr-000246-JLH)
Mike Lee (4:15-cr-00149-BSM)
Trial date — May 16, 2016
Trial date — June 6, 2016
Trial date – August 29, 2016
Five California Residents Plead Guilty to Defrauding Homeowners in Nationwide Home Loan Modification ScamRead the Press Release
ALEXANDRIA, Va. – Five California men have pleaded guilty for their roles in a nationwide home loan modification scam that defrauded over 400 homeowners out of over $3.8 million.
Roscoe Umali, 38; Jefferson Maniscan, 34; Raymund Dacanay, 47; Isaac Perez, 33; and Joshua Johnson, 36, all resided in the greater Los Angeles area.
According to statements of facts filed with their plea agreements, from at least October 2012 through September 2014, the defendants and their co-conspirators targeted struggling homeowners and made a series of misrepresentations to induce those homeowners to make payments of thousands of dollars in exchange for supposed home loan modification assistance. Operating under the names of fictional companies like “Equity Restoration Group,” the defendants falsely held themselves out as a non-profit organization or as affiliated with a real government program, the “Home Affordable Modification Program” (HAMP), designed to help homeowners at risk of foreclosure. Through mass mailings, phone calls, faxes, and emails with their victims, the defendants convinced homeowners to send them “reinstatement fees” and to make several monthly “trial mortgage payments” to the conspiracy, rather than to the homeowners’ lenders. The defendants then did nothing to help modify any mortgages. Instead, they used the victims’ payments for their own personal benefit and to further the fraud scheme.
This scam victimized over 400 individuals and families nationwide, resulting in a total loss of over $3.8 million. It also resulted in many victims losing their homes, despite the victims’ efforts to modify their mortgages and continue to make payments on their loans.
The defendants were indicted on Oct. 22, 2015, and each faces a maximum penalty of 20 years in prison. Umali, Maniscan, and Dacanay will be sentenced on June 23, while Perez and Johnson will be sentenced on July 7. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants 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; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program; and Robert Wemyss, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service, made the announcement after the pleas were accepted by Senior U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Samantha P. Bateman and James P. Gillis are prosecuting 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. 1:15cr301.
Federal Judge Sentences South Carolina Man to Prison for Unlawful Possession of A FirearmRead the Press Release
CHARLOTTE, N.C. – A South Carolina man was sentenced today to 52 months in prison for a firearms violation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term handed down by U.S. District Judge Max O. Cogburn, Jr., Buster Marshall, 44, of Fort Mill, S.C. was also ordered to serve a three-year term of supervised release. Marshall pleaded guilty in November 2015 to one count of unlawful possession of a firearm. Marshall’s previous felony convictions prohibit him from possessing a firearm.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Chief Rob Hunter of the Matthews Police Department; Sheriff Eddie Cathey of the Union County Sheriff’s Office; and Chief J. Bryan Gilliard of the Monroe Police Department.
According to filed court documents and statements made in court, on March 25, 2015, Marshall confronted his ex-girlfriend at the parking lot of a fast food restaurant located in Matthews, N.C. Court records show that when the woman refused to speak with Marshall, he pulled out a revolver, pointed it at her and pulled back the hammer. When Marshall’s ex-girlfriend called 9-1-1, Marshall drove off in his car. According to court records, law enforcement attempted to pull over Marshall’s vehicle, but Marshall eluded the officers driving at high speed, eventually striking another vehicle in Monroe, N.C. Court records indicate that after hitting the other car, Marshall fled from law enforcement on foot with the silver revolver tucked in his waistband. Marshall then unsuccessfully tried to take another vehicle and he was arrested by law enforcement shortly thereafter.
Marshall has been in federal custody since July 2015 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF, the Matthews Police Department, the Union County Sheriff’s Office and the Monroe Police Department. Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecutions.
Federal Judge Revokes U.S. Citizenship of Man Charged with Concealing His Criminal HistoryRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that U.S. District Judge Max O. Cogburn, Jr. revoked the U.S. citizenship of a man charged with concealing his criminal history on his naturalization application. Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (ICE/HSI) in Georgia and the Carolinas joins U.S. Attorney Rose in making today’s announcement.
Wilson Rene Cagua-Anzules, 34, of Charlotte, pleaded guilty in July 2015 to one count of making false and misleading statements during the application process to become a United States citizen. Yesterday, Judge Cogburn sentenced Cagua-Anzules to a year of probation stemming from that conviction and granted the government’s motion to revoke the defendant’s American citizenship. The defendant was also ordered to return to the government his certificate of naturalization, his American passport, his voting card and any other documents evidencing American citizenship. The Court also ordered that Cagua-Anzules must leave the United States voluntarily on or before Friday, April 8, 2016, or otherwise be arrested by immigration agents.
According to the sentencing hearing and court documents filed in the case, Cagua-Anzules was born in Ecuador in 1982, and entered the United States in 1999 as a lawful permanent resident. In June 2010, Cagua-Anzules filed an application for naturalization, and answered “No” on the application form’s question, “Have you ever committed a crime or offense for which you were not arrested?” In February 2011, Cagua-Anzules’ naturalization application was approved, following an oral interview with a United States Citizenship and Immigration Services (USCIS) officer. Cagua-Anzules received his certificate of naturalization in March 2011.
According to court records, on or about February 15, 2012, Cagua-Anzules pleaded guilty in Mecklenburg County Superior Court to one count of taking indecent liberties with a child and received a sentence of 15 to 18 months in prison. Court records show that in his state court proceedings, Cagua-Anzules admitted that he had committed this crime in August 2010. Court records indicate that the criminal act occurred during Cagua-Anzules’ naturalization process, but the defendant failed to reveal this material information both on his naturalization application form and during his interview with a USCIS officer.
“Today, a federal judge stripped the U.S. citizenship of a man who did not deserve such privilege,” said U.S. Attorney Rose. “Cagua-Anzules violated our immigration laws and compromised the integrity of our naturalization proceedings. The United States has always been a welcoming country to honest, law-abiding foreign nationals in search of freedom, prosperity and the pursuit of the American dream. But make no mistake that we will prosecute those who try to cheat their way into an American citizenship. Liars and cheats need not apply,” Rose added.
The investigation was handled by ICE/HSI. Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte was in charge of the prosecutions.
Federal Grand Jury Indicts St. Clair County Man for Receiving, Distributing, and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a St. Clair County man on multiple charges of receipt, distribution and possession of child pornography, announced U.S. Attorney Joyce White Vance, Alabama Law Enforcement Agency Secretary Stan Stabler and FBI Special Agent in Charge Roger C. Stanton.
A three-count indictment filed in U.S. District Court charges DANNY C. OLIVER Sr., 62, with receiving, distributing and possessing child pornography between 2014 and 2015.
Because Oliver was previously convicted of sexual abuse in the first degree in the State of Alabama, the maximum penalty for receiving and distributing child pornography is 40 years in prison and a $250,000 fine, and the maximum penalty for possessing child pornography is 20 years in prison and a $250,000 fine.
ALEA and the FBI investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Agents Make Third Arrest in Operation Ice StormRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A Charlottesville man was arrested this morning and charged with federal drug trafficking charges in relation to a larger investigation into the trafficking of methamphetamine into the Charlottesville area, United States Attorney John P. Fishwick Jr. announced today.
Jose Alfredo Gonzalez-Martinez, 32, of Charlottesville, was arrested this morning on a federal criminal complaint and charged with distributing 50 grams or more of methamphetamine. Gonzales-Martinez is the third man charged in recent months as part of Operation Ice Storm, a federal law enforcement initiative targeting those trafficking methamphetamine into and around the greater Charlottesville area.
“Methamphetamine, especially the more potent ‘Ice’ form of the drug some of these defendants are trafficking in, is devastatingly addictive,” United States Attorney John P. Fishwick Jr. said today. “The use and addiction to this drug has a dramatic effect on our communities and our families and we will continue to work with our law enforcement partners to do all we can to stop the flow of this dangerous substance into our communities.”
Gonzales-Martinez is the third man charged as part of Operation Ice Storm, a multi-agency operation headed by the Drug Enforcement Administration and in partnership with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The operation’s goal is to target larger distributors and traffickers of methamphetamine into Charlottesville and surrounding areas.
In addition to today’s charges against Gonzalez-Martinez, two other men, Alfonso Lopez-Rios, 33, of Charlottesville, Va. and John Mark Fisher, 54, of Roanoke, Va., have both previously pled guilty to charges brought as part of Operation Ice Storm.
Lopez-Rios pled guilty in August 2015 to possession with intent to distribute and distributing 50 grams or more of methamphetamine. Lopez-Rios has admitted to participating in a larger conspiracy in which he would travel from Charlottesville, Virginia to North Carolina to obtain large quantities of methamphetamine. In his travels, Lopez-Rios would also drive to Roanoke to sell half-pound and pound quantities of methamphetamine to Fisher, another high-level distributor in the Roanoke area. In January 2016, Fisher pled guilty to possession with the intent to distribute and distributing 50 grams or more of methamphetamine. Lopez-Rios and Fisher are scheduled to be sentenced on April 14, 2016, and April 15, 2016, respectively.
The investigation of the case was conducted by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Christopher Kavanaugh is prosecuting the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Fayette County Man Charged with Possession of Destructive DevicesRead the Press Release
Trevor John Satrom, 33, from Oran, Iowa, has been charged with one count of possession of a National Firearms Destructive Device Not Registered to Possessor. The charges are contained in an Indictment filed on March 23, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about February 10, 2016, Satrom was in possession of four destructive devices: three explosive bombs more particularly described as pipe bombs and one explosive bomb more particularly described as a pressure cooker bomb. Satrom had failed to register any of these destructive devices in the National Firearms Registration and Transfer Record as required by federal law.
If convicted, Satrom faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
Satrom appeared on March 25, 2016, in federal court in Cedar Rapids and was held without bond. Satrom’s next appearance for trial is set for May 23, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Criminal Investigation, the Fayette County Sheriff’s Office, the Iowa State Fire Marshal’s Office, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2016.
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FBI, DEA, NYPD and New York State Police Seize over 200 Kilograms of K2 from Narcotics Factory Operating in Queens StorefrontRead the Press Release
A joint raid conducted by the Federal Bureau of Investigation and Drug Enforcement Administration’s New York Drug Enforcement Task Force last night resulted in the discovery of a manufacturing facility and the seizure of at least 200 kilograms of synthetic cannabinoids, commonly sold on the street under the brand names “K2” or “Spice,” from a storefront in Queens, New York. One defendant, Osvaldo Maria Vasquez, was arrested at the site in connection with a previously-issued arrest warrant charging him with participating in a conspiracy to distribute cocaine in 2014 and 2015.
The seizure and arrest were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), Commissioner William J. Bratton, New York City Police Department (NYPD) and Joseph A. D’Amico, New York State Police Superintendent.
According to the detention memorandum, a search warrant was executed last night at “Excellent Tire Shop Services,” a business in Queens Village that purported to sell tires. Upon entry into the premises, the agents located approximately 170 kilograms of suspected synthetic cannabinoids already packaged for immediate sale to customers. Concealed behind a tarp in the rear of the premises was a narcotics manufacturing facility, where agents found industrial quantities of the chemicals used to manufacture synthetic cannabinoids, scales, packaging materials, flavoring agents, as well as a large amount of processed cannabinoids that were not yet packaged for sale. In total, at least 200 kilograms of suspected synthetic cannabinoids were seized from the location. Law enforcement estimates this quantity of synthetic cannabinoids to have a street value of at least $200,000.
“Synthetic cannabinoids present a new danger to public health. While sometimes called synthetic marijuana, use of these drugs can have unpredictably severe and even lethal effects,” stated United States Attorney Robert L. Capers. “Last night’s seizure by the FBI and DEA represents another step in law enforcement’s response to this deadly serious problem.”
FBI Assistant Director in Charge Diego Rodriguez said “the production of synthetic drugs creates serious concerns for the law enforcement community and poses a significant public safety risk for consumers of these volatile and potentially deadly substances. As we confront an epidemic in which society is saturated with the dissemination of many illegal substances, we stand with our partners in confronting this emerging challenge."
DEA Special Agent in Charge James J. Hunt said “rearing its ugly head, synthetic cannabinoids were being manufactured and packaged with intentions to be unleashed in our city. Due to good police work, a clandestine K2 lab was dismantled in Queens, demolishing the health and the societal dangers caused by K2 use along with it.”
“This makeshift synthetic cannabinoid lab, which operated out of sight in the rear of a tire shop, was used to produce this poison in the vicinity of several homes and businesses,” said Police Commissioner William J. Bratton. “I commend the work of the Drug Enforcement Task Force and our FBI partners for seizing this drug before it reached the streets of New York.”
Joseph A. D’Amico, New York State Police Superintendent said “the dangers of synthetic narcotics are well documented, with very serious health and public safety issues that have occurred because of the increase in use. With this bust, we have succeeded in taking a large quantity of synthetic drugs off the streets, and shutting down the lab where they were produced. The State Police is committed to working with our law enforcement partners to keep these hazardous substances out of our communities.”
The defendant was arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn. The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Lauren Howard Elbert and Jennifer Sasso Carapiet are in charge of the prosecution.
The Defendant:
OSVALDO MARIA VASQUEZ
Age: 36
Queens, New YorkE.D.N.Y. Docket No. 16 MJ 256
El Paso Income Tax Return Preparer Indicted by Federal Grand JuryRead the Press Release
In El Paso, Gabriela Chavez Garcia, owner and operator of G & A Tax Service, is charged with 38 counts of aiding and abetting the preparation of a false income tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
A federal grand jury indictment, unsealed this afternoon, alleges that from March 2011 to April 2013, Garcia prepared and filed fraudulent federal Income Tax Returns. The indictment further alleges that the fraudulent returns, submitted on behalf of 20 individuals, contained fraudulent claims and figures, including Earned Income Credit, Child Tax Credit, Additional Child Tax Credit, certain business expenses, certain unreimbursed job expenses and other miscellaneous deductions to which the taxpayers were not entitled.
IRS-CI agents arrested Garcia yesterday. Garcia was released on a $20,000 bond at her initial appearance today in front of U.S. Magistrate Judge Robert Castaneda.
Upon conviction, each charge calls for up to three years in federal prison.
This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Nikhil Bhagat is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
Easton Man Charged with Possessing Destructive DevicesRead the Press Release
PHILADELPHIA – Donald Frey, 31, of Easton, Pennsylvania, was charged yesterday by Indictment with one count of possession of destructive devices, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli. The defendant is alleged to have knowingly possessed two destructive devices, specifically two pipe bombs, on January 10, 2014, in Lower Saucon Township, in the Eastern District of Pennsylvania.
If convicted, defendant Frey faces a maximum possible sentence of 10 years in prison, three years of supervised release, a possible fine, and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives,, the Northampton County District Attorney’s Office, and the Lower Saucon Township Police Department. It is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eastern District of Pennsylvania Forms Regional Elder Justice Task ForceRead the Press Release
PHILADELPHIA – Today, the Department of Justice announced the launch of 10 regional Elder Justice Task Forces, including one in the Eastern District of Pennsylvania. These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents.
The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services, state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.
“When our seniors enter a nursing home or long-term care facility there is a valid expectation that they will receive reasonable, appropriate and adequate care,” said United States Attorney Zane David Memeger. “Unfortunately, my office has handled far too many cases in recent years where elderly citizens and their families were victimized by care facilities that put profits ahead of serving those expectations. The Elder Care Task Force will allow us to more effectively hold those who are providing substandard care accountable for their reprehensible conduct.”
“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”
In addition to the Eastern District of Pennsylvania, Elder Justice Task Forces are being launched in: District of Maryland, Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, Southern District of Ohio, Middle District of Tennessee and the Western District of Washington.
“Too often, our elderly citizens are exploited, many times without their knowledge,” said Special Agent-in-Charge Nick DiGiulio, of Health and Human Services Office of Inspector General. “The formation of this task force brings additional resources to uncover abuses, bring justice to more vulnerable victims, and raise awareness about the repercussions that exist for providing substandard care to the elderly.”
“Pennsylvania’s Medicaid fraud Control Section fully supports this federal undertaking to protect and serve the most vulnerable of citizens,” said Andrew Demarest, Pennsylvania Chief Deputy AG, Medicaid Fraud Control Section.
The Elder Justice Task Forces reflect the Department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the Department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the Department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
East Haven Man Sentenced to More Than 5 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW VOLOSHIN, 30, of East Haven was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 66 months of imprisonment, followed by three years of supervised release, for trafficking marijuana and unlawfully possessing firearms.
This matter stems from a DEA Task Force investigation that included the use of court-authorized wiretaps, controlled purchases of marijuana and physical surveillance. On June 4, 2013, VOLOSHIN and Jesse Wrubel were arrested on state charges. Search warrants executed in association with their arrests revealed two loaded handguns and approximately $50,000 that were found at VOLOSHIN’s residence, and three handguns and approximately 40 pounds of marijuana that were found at an East Haven garage rented by VOLOSHIN. Three of the five firearms were stolen. Law enforcement also seized approximately 20 pounds of marijuana, approximately $15,000 and a loaded nine millimeter rifle from Wrubel.
On January 30, 2014, a grand jury returned an indictment charging VOLOSHIN and Wrubel with marijuana and firearm offenses. VOLOSHIN has been detained since his arrest on February 7, 2014. On June 30, 2015, he pleaded guilty to one count of conspiracy to distribute more than 20 kilograms of marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.
Wrubel, of West Haven, also has been detained since his arrest on February 7, 2014. On November 24, 2015, he pleaded guilty to one count of conspiracy to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. He is scheduled to be sentenced tomorrow at 1:00 p.m.
This matter has been investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Amy Brown.
Drug and Gun Charges Filed Against Bethlehem ManRead the Press Release
PHILADELPHIA – Steven Kitchell, a/k/a “Lotti,” 37, of Bethlehem, Pennsylvania, was charged by Information, filed yesterday, with one count of possession with intent to distribute controlled substances, and one count of possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli.
According to the information, Kitchell knowingly possessed a .40 caliber Sig Sauer semiautomatic pistol and a variety of controlled substances with intent to distribute them on April 20, 2015, in the City of Bethlehem, in the Eastern District of Pennsylvania.
If convicted of all charges, Kitchell faces a mandatory minimum sentence of five years in prison with a statutory maximum sentence of life in prison, up to a lifetime of supervised release, a possible fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Division, the Northampton County District Attorney’s Office, and the City of Bethlehem Police Department, and is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein and Assistant United States Attorney Kishan Nair.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
District Man Pleads Guilty to Charges in New Year's Crash in Downtown WashingtonRead the Press Release
WASHINGTON – Malik Lloyd, 25, of Washington, D.C., pled guilty today to charges of felony assault, destruction of property, and driving under the influence of alcohol or drugs stemming from a car crash early Jan. 1, 2016 in downtown Washington that caused significant injuries to three people, U.S. Attorney Channing D. Phillips announced.
Lloyd pled guilty in the Superior Court of the District of Columbia to three counts of assault with significant bodily injury, one count of destruction of property, and one count of driving under the influence of alcohol or a drug.
In a separate case, Lloyd pled guilty to one count of unlawful possession of a firearm and one count of possession with intent to distribute cocaine. The Honorable Zoe Bush scheduled sentencing in the cases for May 25, 2016.
According to the government’s evidence, on Jan. 1, 2016, at about 1:30 a.m., Lloyd was driving a Chrysler 200 northbound on 17th Street NW. He struck a Honda CRV that was also driving on 17th Street. After the collision, Lloyd drove away, making a right turn onto L Street NW and driving up onto the sidewalk in front of Barcode, a bar located in the 1600 block of L Street NW. The car that he was driving struck a tree box, tree, and several pedestrians on the sidewalk before finally striking a light pole on the north side of the sidewalk.
At least 13 people were assaulted as the result of the collision; some were injured directly by the vehicle and others indirectly by flying debris. At least three people incurred significant bodily injury that required immediate hospitalization or medical treatment. After the crash, while being treated by emergency medical personnel, Lloyd stated to the Metropolitan Police Department (MPD) that he had two glasses of champagne.
The MPD officer smelled an odor of an alcoholic beverage coming from Lloyd’s mouth and observed that Lloyd’s eyes were bloodshot. At Howard University Hospital, Lloyd admitted to drinking in the club and smoking marijuana prior to going there. At the time of testing, his alcohol concentration level was 0.20 grams of alcohol per 100 milliliters of blood, which is beyond the legal limit in the District of Columbia. There was also the presence of marijuana in his blood. Lloyd has been in custody since his arrest after the crash.
The other case stemmed from a search carried out by law enforcement on Oct. 30, 2014, of Lloyd’s residence in the 6000 block of Clay Street NE. According to the government’s evidence, MPD members found significant quantities of drugs inside the residence, including bottles of liquid PCP and multiple stashes of crack cocaine. MPD members also found drug paraphernalia, suggesting the packaging and distribution of narcotics, including multiple digital scales, cutting agents, and small “zip” bags used for street-level distribution of narcotics. MPD members also found boxes of ammunition and three firearms, including two semi-automatic handguns that were found in Lloyd’s bedroom.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated each of the cases for the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the DEA and the District of Columbia Fire and Emergency Medical Services Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle and Victim/Witness Advocate Diana Lim. Finally, he commended Assistant U.S. Attorneys Katherine Earnest, Michael Romano, Thomas Saunders, and Anwar Graves who are prosecuting the cases.
Detroit man pleads guilty to role in multi-state heroin trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Craig S. Coffee, 48, of Detroit, Michigan, pled guilty to heroin trafficking today in federal court, admitting his role in a Detroit to Morgantown heroin trafficking scheme, United States Attorney William J. Ihlenfeld, II, announced.
Coffee, also known as “Mack,” was among fourteen individuals changed with heroin trafficking in three separate federal indictments returned in February 2016. The indictments disrupted a drug trafficking network in which a group of Detroit residents traveled to Morgantown and conspired to transport heroin across state lines for redistribution and sale throughout North Central West Virginia.Specifically, Coffee sold heroin in May 2015 in Monongalia County, West Virginia. He pled guilty today to “Distribution of Heroin – Aiding and Abetting.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Deputy Attorney General Sally Q. Yates Statement on the President’s Recent Clemency DecisionsRead the Press Release
Deputy Attorney General Sally Q. Yates released the following statement following President Obama’s clemency announcement today:
“Today’s announcement by the President to commute the prison sentences of another 61 individuals demonstrates his commitment to ensuring a fair and just criminal justice system. The clemency initiative that the President announced in 2014 is an important part of the Department’s overall criminal justice reform efforts. Through cooperative bipartisan efforts with Congress, the U.S. Sentencing Commission and reform advocacy groups, we hope to soon realize systemic change in the length of prison sentences for these low-level drug offenders and to provide better tools for a safe and successful reentry into the community. The Department fervently shares the President’s commitment to equal and fair justice under law and we will continue to work tirelessly to achieve this goal.”
Department of Justice Launches 10 Regional Elder Justice Task ForcesRead the Press Release
Today, the Department of Justice announced the launch of 10 regional Elder Justice Task Forces. These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents.
“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”
The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services (HHS), state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.
“The Department of Justice has a long history of holding nursing homes and long-term care providers accountable when they fail to provide their Medicare and Medicaid residents with even the most basic nursing services to which they were entitled,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “By bringing everyone to the table, we will be able to more effectively and quickly pursue nursing homes that are jeopardizing the health and well-being of their residents.”
The 10 Elder Justice Task Forces will be launched in the following Districts: Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, District of Maryland, Southern District of Ohio, Eastern District of Pennsylvania, Middle District of Tennessee and the Western District of Washington.
“We believe that by actively participating in the Elder Justice Task Forces announced today through joint investigations, sharing information and regular meetings; we will strengthen our efforts nationally to protect the most vulnerable of our population who reside in our nursing homes and other care facilities,” said Keesha Mitchell, President of the National Association of Medicaid Fraud Control Units and the Director of the Ohio Medicaid Fraud Control Unit.
“The HHS Office of Inspector General (OIG) continues to pursue nursing home operators who provide potentially harmful care to residents who are often unable to protect themselves,” said Chief Counsel to the Inspector General Gregory Demske of HHS. “Creating these task forces sends a message to those in charge of caring for these beneficiaries that grossly substandard care will not be tolerated.”
“The Administration for Community Living was created to help ensure that older adults and people with disabilities are able to live the lives they want, with the people they choose, fully participating in their communities,” said Becky Kurtz, Director of the Office of Long-Term Care Ombudsman Programs at the Administration for Community Living. “Our mission includes supporting their basic right to live with dignity, free from abuse. We appreciate the Department of Justice’s leadership on this important initiative and applaud its long-standing commitment to elder justice efforts.”
“Our most vulnerable citizens deserve the highest quality care and attention,” said Executive Director Kathleen Quinn of the National Adult Protective Services Association. “This initiative will help insure that long-term care facilities provide it. The Department of Justice is to be commended for this, and indeed all its efforts, to protect the millions of elder abuse victims in this country.”
The Elder Justice Task Forces reflect the department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Department of Justice Launches 10 Regional Elder Justice Task ForcesRead the Press Release
WASHINGTON – Today, the Department of Justice announced the launch of 10 regional Elder Justice Task Forces. These teams will bring together federal, state and local prosecutors, law enforcement, and agencies that provide services to the elderly, to coordinate and enhance efforts to pursue nursing homes that provide grossly substandard care to their residents.
“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”
The Elder Justice Task Forces will include representatives from the U.S. Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, the Department of Health and Human Services (HHS), state Adult Protective Services agencies, Long-Term Care Ombudsman programs and law enforcement.
“The Department of Justice has a long history of holding nursing homes and long-term care providers accountable when they fail to provide their Medicare and Medicaid residents with even the most basic nursing services to which they were entitled,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “By bringing everyone to the table, we will be able to more effectively and quickly pursue nursing homes that are jeopardizing the health and well-being of their residents.”
“The model developed in Western Washington relies on close collaboration between federal, state and local law enforcement partners to protect elderly Washingtonians,” said U.S. Attorney Annette L. Hayes. “I’m proud that this district and my law enforcement colleagues are leaders in these investigations that too often demonstrate how physical abuse and financial fraud go hand in hand.”
The 10 Elder Justice Task Forces will be launched in the following Districts: Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, District of Maryland, Southern District of Ohio, Eastern District of Pennsylvania, Middle District of Tennessee and the Western District of Washington.
“We believe that by actively participating in the Elder Justice Task Forces announced today through joint investigations, sharing information and regular meetings; we will strengthen our efforts nationally to protect the most vulnerable of our population who reside in our nursing homes and other care facilities,” said Keesha Mitchell, President of the National Association of Medicaid Fraud Control Units and the Director of the Ohio Medicaid Fraud Control Unit.
“The HHS Office of Inspector General (OIG) continues to pursue nursing home operators who provide potentially harmful care to residents who are often unable to protect themselves,” said Chief Counsel to the Inspector General Gregory Demske of HHS. “Creating these task forces sends a message to those in charge of caring for these beneficiaries that grossly substandard care will not be tolerated.”
“The Administration for Community Living was created to help ensure that older adults and people with disabilities are able to live the lives they want, with the people they choose, fully participating in their communities,” said Becky Kurtz, Director of the Office of Long-Term Care Ombudsman Programs at the Administration for Community Living. “Our mission includes supporting their basic right to live with dignity, free from abuse. We appreciate the Department of Justice’s leadership on this important initiative and applaud its long-standing commitment to elder justice efforts.”
“Our most vulnerable citizens deserve the highest quality care and attention,” said Executive Director Kathleen Quinn of the National Adult Protective Services Association. “This initiative will help insure that long-term care facilities provide it. The Department of Justice is to be commended for this, and indeed all its efforts, to protect the millions of elder abuse victims in this country.”
The Elder Justice Task Forces reflect the Department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the Department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the Department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Dangers of Butane Hash Oil Labs Cited as Five are ChargedRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha today announced the filing of federal criminal charges against five individuals for their alleged roles in the operation of butane hash oil (BHO) labs in Rhode Island. At a news conference to announce results of several joint federal, state and local law enforcement investigations into the operation of four BHO labs, United States Attorney Peter Neronha led a host of federal, state and local law enforcement leaders to emphasize the public safety threat and potential for catastrophic results due to the emerging presence of illicit BHO labs.
BHO labs are highly dangerous facilities used to extract tetrahydrocannabinol (THC), a Schedule I controlled substance found in marijuana plants, through the use of butane. In the past year, illicit BHO labs were discovered by law enforcement in South Kingstown, Westerly, Providence, and West Warwick.
United States Attorney Peter F. Neronha today announced federal criminal charges in four cases against five individuals all of whom, it is alleged, were involved in the operation of BHO labs. There is no relation between the defendants or the cases, other than allegations that the four labs were involved in the manufacture of hash oil from marijuana using butane.
United States Attorney Peter F. Neronha commented, “This activity poses an enormous threat to human life. Where BHO manufacturing is going on, no one is safe: not those involved in the illegal operation themselves; not those who happen to be living or visiting nearby; not first responders. The demand for BHO, whether for purported medical purposes or otherwise, cannot justify its production, given the magnitude of risk. Second, those who continue to engage in the production of BHO, notwithstanding what ought to be abundantly clear by now, will be the strong focus of our collective law enforcement efforts.”
“DEA is committed to locating, investigating and dismantling butane honey oil labs, which create a real potential for fires, explosions, injuries and deaths, and to investigate those traffickers who manufacture and distribute BHO,” said Special Agent in Charge of DEA in New England Michael J. Ferguson. “The federal charges announced today represent law enforcement’s efforts to combat this emerging deadly threat, and fulfill our obligation to improve public safety and health. These investigations demonstrate the strength of collaborative law enforcement efforts in Rhode Island to aggressively pursue anyone who manufactures and dispenses these dangerous drugs.”
“BHO operations pose a very serious threat to public safety. ATF is committed to assisting our law enforcement and public safety partners in identifying and arresting those responsible for such egregious acts” - Daniel J. Kumor, ATF Special Agent in Charge / Boston Field Division.
“Unregulated production of BHO in our communities is a significant public safety problem, putting families, neighbors, and the general public at risk. It is dangerous and can be deadly, as it was with the BHO lab explosion last year in South Kingstown. The increased production and use of BHO is yet another example of how our existing marijuana laws and regulatory structure has led to dangerous unintended consequences. We need to get a handle on this problem now, before more lives are lost, by giving law enforcement the tools they need to investigate and shut down these death labs,” said Attorney General Peter F. Kilmartin who has filed legislation that would prohibit medical marijuana patients and caregivers from extracting THC from marijuana using a flammable liquid, the method used in making BHO. The legislation would allow compassion centers to extract THC using a flammable liquid only within rules and regulations to be promulgated by the Rhode Island Department of Health.
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police and Commissioner of the Department of Public Safety said, “Butane hash oil labs pose a significant threat not only to the public but to every first responder called upon to respond to any emergency where these BHO labs are being operated. The Rhode Island State Police and the Rhode Island Fire Marshal’s Office will continue to work closely with federal and local law enforcement agencies, and federal and state prosecutors, to identify these labs and to hold those who run these labs and endanger our neighborhoods accountable.”
“The Providence Fire Department faced a totally engulfed building fire on Kinsley Avenue, which put the lives of numerous firefighters in danger when they fought this fire. At one point while on the scene of the fire, the exterior wall collapsed and a roof beam catapulted through the wall nearly striking apparatus and firefighters. These defendants caused our firefighters great danger and put the public at risk for which we are grateful no one was injured. This is an example of what the Providence firefighters face when answering a fire alarm. It could have turned tragic for so many,” said Providence Public Safety Commissioner Steven M. Paré. “Our firefighters, ATF, and the arson investigators did an outstanding job investigating this fire. I hope this will deter others from similar behavior that is so dangerous and risky for our public safety officers.”
Investigations and Federal Criminal Charges
214 Hemlock Road
South Kingstown
According to a federal indictment returned on Tuesday, it is alleged that on July 31, 2015, explosions and fire in and around a BHO lab caused significant property damage to a single family residence in South Kingstown, and seriously injured two individuals. The injuries suffered by one of the individuals contributed to his death three months later.
It is alleged in the indictment that Dillon Kantlehner, 26, of Providence, and a second person who later died from injuries sustained as a result of the explosions and fire, used the kitchen area to operate a BHO lab. Investigators seized more than 500 grams of BHO and over 9,000 grams of marijuana from the home, as well as 72 butane canisters, some empty and some full.
The indictment charges Kantlehner with endangering human life while illegally manufacturing a controlled substance. A federal warrant has been issued for the arrest of Dillon Kantlehner.
498 Kinsley Avenue
Providence
On March 9, 2015, a massive fire destroyed an 85,900 square foot warehouse on Kinsley Avenue in Providence. As alleged in a federal indictment returned on Tuesday, Christopher White, 50, of Warwick, and Graeme Marshall, 50, of Cranston, leased the warehouse from which they operated a business that sold equipment and supplies for marijuana cultivation. It is alleged in the indictment that White and Marshall used a portion of the warehouse to operate a butane hash oil manufacturing laboratory. It is alleged in the indictment that over a period of approximately two years, White and Marshall manufactured over 1,000 grams of BHO at the Kinsley Avenue warehouse, which they sold for between $15 and $30 per gram.
It is alleged in the indictment that the fire began in the room where the BHO laboratory was located.
A 22-count federal indictment charges Christopher White and Graeme Marshall with nine counts of endangering human life while illegally manufacturing a controlled substance, one count of conspiracy, seven counts of distribution of a controlled substance and five counts of money laundering. White and Marshall appeared today for arraignment before U.S. District Court Magistrate Judge Patricia A. Sullivan. A not guilty plea was entered. The defendants were released on unsecured bond.
15 Apache Drive, Apt. B
Westerly
In the early morning hours of November 27, 2015, in the wake of a fire in a multi-unit apartment building on Apache Drive in Westerly, investigators discovered a BHO lab. It is alleged that one of the residents of the apartment had been conducting a butane hash oil manufacturing operation.
A criminal information filed in this matter charges Scott Slagel, 41, with endangering human life while illegally manufacturing a controlled substance. Slagel is scheduled to be arraigned in U.S. District Court on April 5, 2016.
656 Providence Street, Apt. 301
West Warwick
On July 16, 2015, West Warwick Police and federal law enforcement agents executed a Rhode Island state court authorized search warrant inside a building on Providence Street, which houses residential and commercial units. In an apartment leased by Tyler Crespo, 21, law enforcement allegedly discovered a full-scale butane hash oil manufacturing laboratory. Investigators also seized over 6,000 grams of butane hash oil and nearly $14,000 in cash.
A federal indictment returned on Tuesday charges Tyler Crespo with one count of endangering human life while illegally manufacturing a controlled substance and one count of manufacture of a controlled substance. A federal warrant has been issued for the arrest of Tyler Crespo.
An indictment and criminal information are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant United States Attorneys Sandra R. Hebert, Paul F. Daly, Jr., and Richard B. Myrus.
The various matters were investigated by a combination of law enforcement agents and officers from the DEA, ATF, Rhode Island State Police and Rhode Island State Fire Marshal’s Office, The Providence Police Department and the Providence Fire Marshal’s Office, the Westerly, South Kingstown and West Warwick Police Departments, and by prosecutors from the United States Attorney’s Office with the assistance of prosecutors from the Rhode Island Department of the Attorney General.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Cybersecurity Roundtables at ISU and Drake University: Business Leaders Hear from Subject Matter ExpertsRead the Press Release
CEDAR RAPIDS, IA – Today the United States Attorneys for the Northern and Southern Districts of Iowa co-hosted with Iowa State University (ISU) and Drake University intellectual property and cybersecurity roundtables on both campuses. Two prominent subject matter experts from the Department of Justice (DOJ) provided their assessments of the cyber threats confronting American business interests and national security.
The goal of the roundtables was to provide informative briefings and discussion as to the nature of the cyber threat posed to businesses today and to provide information concerning the law enforcement response to actual or potential cyber breaches in the future. By hosting these roundtables, the United States Attorneys and the FBI hope to open and strengthen the lines of communication between the private sector and government that would be vital to an effective response to potential threat or attack.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “Today’s program provided high level FBI and DOJ briefings on the cybercrime dynamics that Iowa based companies face in 2016 and beyond. Combatting cybersecurity threats is a top priority for the Department of Justice. To effectively fight cybercrime it is important to build awareness and plan in advance of an event. Collaboration between federal government agencies and the private sector is vital to success.”
“We are pleased to be part of this very timely and important discussion,” stated Southern District of Iowa Acting U.S. Attorney Kevin VanderSchel. “The risks to individual companies and industries are profound due to the ongoing attempts to steal trade secrets, especially through computer intrusion, and we want Iowa businesses to know that the FBI and the Department of Justice stand ready to assist.”
The ISU roundtable was designed to target businesses involved in agriculture, ag bioscience, biotech and bio renewables and addressed such matters as intellectual property/trade secrets theft and cyber security issues. The Drake University roundtable focused on financial services companies, banks, and manufacturing/tech related companies addressing intellectual property and cybersecurity issues.
Assistant Attorney General (AAG) for National Security, John P. Carlin, spoke to Iowa’s business leaders attending the ISU roundtable about current threats and what his division is doing to identify, prevent, and prosecute suspected criminal activity. Carlin serves as the Department of Justice’s top national security attorney overseeing nearly 400 employees responsible for protecting the country against international and domestic terrorism, espionage, cyber, and other national security threats.
Joining AAG Carlin during the keynote address was FBI Deputy Assistant Director of the Cyber Crime Division, Eric Sporre. Spore offered the FBI’s threat assessment. Sporre is responsible for managing all operations sections in the FBI Cyber Division.
The media attending the ISU roundtable joined Carlin, Sporre, and both U.S. Attorneys in a tour of the Bio-Renewables Complex, which serves as home for the university's top-ranked department of agricultural and Biosystems engineering (ABE).
Follow us on Twitter @USAO_NDIA.
Cullman County Man Indicted for Producing Child Pornography Involving Multiple VictimsRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Cullman County man, on charges related to the production of child pornography involving four minor victims, announced U.S. Attorney Joyce White Vance and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
GREGORY JEROME LEE, 53, was indicted on four counts of production of child pornography, one count of conspiracy to advertise child pornography and one count of conspiracy to distribute and receive child pornography.
According to the indictment, from September 1996 through December 2004, Lee used, persuaded, coerced and enticed minors to engage in sexually explicit conduct in order to produce images of that conduct. Between September 1996 and August 2007, Lee conspired with other individuals to distribute and receive child pornography through a variety of means, including the Internet.
The U.S. Postal Inspection Service is investigating the case. Assistant U.S. Attorney Jacquelyn Hutzell and Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty. Members of the public who may have information related to this matter should call the USPIS Birmingham Office at (205) 326-2909.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clarksville Man Pleads Guilty to Bank EmbezzlementRead the Press Release
Eric Williams, 32, of Clarksville, Tenn., pleaded guilty yesterday in U.S. District Court, to one count of bank embezzlement, announced David Rivera, United States Attorney for the Middle District of Tennessee.
According to court documents, Williams was employed by First Tennessee Bank as a Financial Services Representative and later as a Credit Analyst, at a Nashville branch. His duties included meeting with customers who were seeking to open new accounts. Williams admitted that from 2013 to 2015, he embezzled more than $27,000 from customer accounts. He carried out this scheme by targeting elderly customers and without their knowledge, used their information to open bank accounts and apply for ATM cards, changing the mailing address to the bank branch instead of the customer’s home. When Williams received the ATM cards, he used them to withdraw money from the accounts.
Williams faces up to 30 years in prison and a fine of up to $1 million; forfeiture of criminal proceeds; and will be ordered to pay restitution in the amount of $27,387. Williams will be sentenced by U.S. District Judge Aleta Trauger on June 24, 2016.
The case was investigated by the Federal Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Charlotte Man Sentenced to More Than 13 Years for Carjacking A Family at Gun PointRead the Press Release
CHARLOTTE, N.C. – Xavier Shiheen Mills, 23, of Charlotte, was sentenced today to 161 months in prison for carjacking a family at gunpoint, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Mills to serve three years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD).
According to court documents and today’s sentencing hearing, on or about January 7, 2015, Mills carjacked a woman, her teenage son, and her other two young children, ages three and four, at a gas station located in Charlotte. According to court records, the family had stopped at the gas station to refill their car, when Mills approached the female victim who was standing by the gas pump, pointed a firearm at her and demanded the car keys, which were inside the vehicle. Court records show that Mills got inside the car to look for the keys, pointed the gun at the male victim seating in the passenger seat, and hit him in the head with the firearm. According to court records, once the male victim was out of the car, Mills fired his gun and the bullet entered a nearby parked unoccupied vehicle, passing through a child’s car seat and driver’s headrest. At that time, the male victim reached into the car, retrieved the keys and gave them to Mills. The male victim was able to pull the two young children out of the car before Mills drove off with the stolen vehicle.
Court records show that Mills was captured on surveillance video and was identified by an individual who knew him and recognized the red backpack Mills was carrying at the time of the carjacking. Law enforcement recovered the stolen vehicle a few days later. Court records indicate that inside the stolen vehicle, law enforcement found Mills’ backpack, ammunition and the firearm he had used to carry out the carjacking. In November 2015, Mills pleaded guilty to one count of carjacking and one count of possession of firearm in furtherance of a crime of violence.
“Mills turned a family’s quick stop at a gas station into a nightmare, terrorizing them and carelessly putting their lives, and the lives of other bystanders, in danger. Thankfully, no loss of life occurred. Mills is headed to federal prison but this family will continue to feel the effects of this harrowing experience for a long time. We are grateful to them for their cooperation in the investigation and prosecution,” said U.S. Attorney Rose.
“This case is another example of ATF’s commitment to ensure the public’s safety by removing violent criminals from our communities. This result could not have happened without the outstanding partnership between ATF and the Charlotte Mecklenburg Police Department,” said Special Agent in Charge Hyman.
Mills will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The prosecution for the government was handled by Special Assistant U.S. Attorney Rebecca McNerney and Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte.
California Wholesale Executive Pleads Guilty for Role in $9 Million Bank Fraud SchemeRead the Press Release
A California man who was a vice president of a wholesale equipment company pleaded to fraud charges today in connection with a bank fraud scheme that resulted in more than $9 million in losses to a California bank.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Acting Special Agent in Charge Anthony Orlando of the Internal Revenue Service-Criminal Investigation (IRS-CI) Los Angeles Field Office and Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Christy Goldsmith Romero made the announcement.
Chung Yu Yeung, aka Louis Yeung, 39, of San Dimas, California, pleaded guilty before U.S. District Judge Christina A. Snyder of the Central District of California to one count of conspiracy to commit bank fraud and four counts of bank fraud. Sentencing was set for June 20, 2016, before Judge Snyder.
According to admissions made in connection with his guilty plea, from 2007 to 2012, Yeung was the vice president of Eastern Tools and Equipment Inc. (Eastern Tools), a wholesale equipment company based in Ontario, California, that sold portable generators to retailers across the country. Yeung admitted that beginning in 2007, he and his co-conspirators defrauded East West Bank, based in Pasadena, California, in connection with a line of credit for Eastern Tools by making and causing to be made material misrepresentations to the bank about Eastern Tools’ accounts receivable and its financial statements. The conspirators created numerous shell corporations to act as purported suppliers and retailers doing business with Eastern Tools, when, in reality, these shell corporations were entirely under the control of Yeung and existed for the sole purpose of creating the illusion of such business, he admitted. Yeung admitted that the fictitious companies allowed him and other conspirators to falsely inflate Eastern Tools’ accounts receivable and financial statements in representations to East West Bank.
To further the scheme, Yeung and other conspirators opened and caused to be opened post office boxes, phone accounts and email accounts purportedly associated with the shell retail companies, and provided information about these items to East West Bank auditors to promote the illusion that these shell customers were independent entities, according to admissions made in connection with Yeung’s plea.
Eastern Tools defaulted on the promissory note after East West Bank discovered the fraud, causing more than $9 million in losses to the bank, Yeung admitted.
SIGTARP, IRS-CI and the FBI investigated the case. Senior Litigation Counsel David A. Bybee of the Criminal Division’s Fraud Section is prosecuting the case.
California Man Sentenced to Seven Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jacob Spurlin aka John Ray Monroe, age 32, of Turlock, California, was sentenced this week to 84 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, on February 27, 2015, while investigators with the 18th East Judicial Drug Task Force and Homeland Security Investigations were conducting screening of multiple packages utilizing a canine at the FedEx store located in Hot Springs, the canine alerted on a package being sent from California to Michelle Ratliff. After obtaining a search warrant for the package, investigators opened the package and located four candles that had been hollowed out and filled with vacuumed sealed bags of methamphetamine. Michelle Ratliff had called FedEx earlier that day and advised that she would be picking up her package on her lunch break. She later arrived, showed her identification, and picked up the package. When she left the store, she entered the passenger side of a black Cadillac Escalade driven by Jacob Spurlin. As they attempted to leave the parking lot of FedEx, officers stopped the Escalade, arrested both subjects and took them into custody. A review of text messages from Ratliff’s phone revealed that Spurlin had been communicating with her about picking up the package which contained 256 grams of methamphetamine. On April 16, 2015, Spurlin was arrested on a federal warrant out of the Western District of Arkansas and interviewed by agents with Homeland Security Investigations. Spurlin admitted to being involved in drug trafficking in the Hot Springs area and explained his role in receiving packages from out of state for further distribution. Spurlin was indicted by a federal grand jury in April, 2015 and pleaded guilty in August, 2015.
The co-defendant Michelle Ratliff also pleaded guilty to Conspiracy to Distribute Methamphetamine in August, 2015, and is awaiting sentencing.
This case was investigated by the 18th Judicial District East Drug Task Force and Homeland Security Investigations. Assistant United States Attorney David Harris prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
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Buffalo Man Sentenced for Distributing Designer Drug to MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Peter Anthony Vargas, III, 23, of Buffalo, NY, who was convicted of distributing the designer drug 5-MeO-DiPT, more commonly known as “Foxy Methoxy” or “Foxy,” to a person under 21 years of age, was sentenced to 24 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that late on October 18, 2013, the defendant sold a substance represented to be “Foxy Methoxy” to an intermediary at a commercial haunted house located behind the McKinley Mall in Blasdell, NY. The intermediary then immediately provided the substance to a 17-year-old minor.
Later that night, the minor began to feel dizzy and paranoid and experienced hallucinations. The following day, the minor was admitted to a local hospital in an unresponsive state and was placed on a ventilator to assist breathing. The minor subsequently recovered and was discharged from the hospital.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Bronx Man Pleads Guilty to June 18, 2015, Upper West Side MurderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that STEPHEN ADAMS, 28, of the Bronx, pled guilty before U.S. Magistrate Judge James C. Francis IV to shooting and killing Bubacarr Camera on June 18, 2015, during an armed robbery of a small business on the Upper West Side of Manhattan, and a June 16, 2015, armed robbery of another small business in Harlem.
U.S. Attorney Preet Bharara stated: “In the course of robbing a small business, Stephen Adams murdered an innocent shopkeeper, Bubacarr Camera, who had recently come to this country to pursue a better life. I want to thank the ATF, the NYPD, and the U.S. Marshals for their outstanding investigative work on this case.”
According to the allegations in the Indictment to which STEPHEN ADAMS pled guilty and other documents in the public record:
On June 18, 2015, STEPHEN ADAMS and two other men, Zubearu Bettis and Michael Adams, shot and killed Bubacarr Camera in the course of a robbery of a store located at 906 Amsterdam Avenue on the Upper West Side of Manhattan.
Two days before that murder, on June 16, 2015, Zubearu Bettis and STEPHEN ADAMS robbed another shopkeeper at a store located at 2251 7th Avenue, in Manhattan. During that robbery, Bettis brandished and discharged a firearm, while ADAMS physically accosted the victim.
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The charges to which STEPHEN ADAMS pled guilty carry a maximum of life in prison, and a mandatory minimum of 10 years in prison. The maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Jared Lenow and Max Nicholas are in charge of the prosecution.