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13 May 2016
Jury Finds St. Francis Man Guilty of Assault with a Dangerous Weapon and Related ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that Michael Lee Long, Jr., age 33, of St. Francis, South Dakota, was found guilty of Assault with a Dangerous Weapon, Simple Assault, Prohibited Person in Possession of a Firearm, and Using a Firearm During and Relation to a Crime of Violence following a three-day jury trial in Pierre, South Dakota. The verdict was returned on May 12, 2016.
The charges carry a mandatory minimum of 10 years up to life in custody and/or a $250,000 fine, five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Long was indicted by a federal grand jury on October 14, 2015.
The conviction stems from an incident that occurred on May 17, 2015, when Long accosted three people in parked car at a convenience store in Rosebud. As Long stood next to the open front passenger door pointing a handgun at the victim in the passenger seat, the driver of the vehicle put the car in reverse in an effort to get away. Long was knocked down by the open door and fired at the vehicle before it departed the parking lot. The driver of the vehicle was the daughter of the front-seat passenger. The daughter’s boyfriend was also in the vehicle, seated in the back seat. They were not injured. A shell casing was subsequently located in the parking lot of the store and a bullet fragment was removed from the front of the vehicle. The handgun, a Glock .40 caliber pistol, was also recovered and matched to the shell casing and bullet fragment.
Long was previously convicted of Domestic Abuse in Rosebud Sioux Tribal Court in 2011, making it illegal for him to possess a firearm. As a result of the verdict, Long will forfeit ownership of the firearm to the United States.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorneys Kirk Albertson and Meghan Dilges prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for August 1, 2016.
Long was remanded to the custody of the U.S. Marshals Service pending sentencing.
Jury Convicts Festus Man of Assaulting Deputy MarshalRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced that Wednesday afternoon, May 11, 2016, a federal jury in East St. Louis found William J. Mabie, 55, of Festus, Missouri, guilty of assault on a federal officer. Sentencing before the Honorable Richard H. Mills has been scheduled for June 9, 2016.
"There are more than 900,000 law enforcement officers serving in communities across the United States, the highest number ever recorded. Each year, nearly 60,000 assaults against law enforcement officers resulting in approximately 16,000 injuries are reported." noted Acting United States Attorney Porter. "My office will always take swift and decisive action to deter those who think they can prey on our men and women in law enforcement. This verdict was especially pleasing as it occurred during National Police Week, a time when all of us should take a moment to reflect and thank the men and women of law enforcement for the tremendous job they do of keeping us all safe."
Evidence at trial showed that on March 12, 2015, while a prisoner in the custody of the United States Marshal Service, Mabie assaulted a Deputy United States Marshal in the Federal Courthouse for the Southern District of Illinois. The case was investigated by the Federal Bureau of Investigation and prosecuted by Special Assistant United States Attorney Shane Kelbley.
Irvine Engineer Named in New Indictment Alleging Theft of Trade Secrets from Two Medical Device CompaniesRead the Press Release
SANTA ANA, California – A federal grand jury has issued a superseding indictment that charges an Irvine engineer with stealing and possessing trade secrets belonging to two former employers, both of which develop and manufacture medical devices used to treat cardiac and vascular ailments.
Wenfeng Lu, 43, of Irvine, was named in a 12-count superseding indictment returned by a grand jury on Wednesday.
The indictment alleges that Lu stole the confidential and proprietary trade secrets from two different medical device companies with research facilities in Irvine, where Lu worked from January 2009 until he was arrested in 2012.
During this time, Lu travelled to the People’s Republic of China (PRC) multiple times – sometimes soon after allegedly downloading trade secrets from an employer’s computer and emailing information to his personal email account. Lu was arrested as he prepared to board a plane to the PRC in November 2012, according to court documents. Lu appeared “to be in the process of setting up a company with other individuals in the PRC to manufacture medical devices,” an FBI agent wrote in an affidavit previously filed in this case.
“Intellectual property theft poses a grave threat to businesses and the employees who depend on those businesses for their livelihoods,” said United States Attorney Eileen M. Decker. “Moreover, when the stolen material is destined for foreign entities seeking to compete with American businesses, as it was in this case, IP theft also threatens the security of our nation. This is one of the reasons that my Office now prosecutes IP crimes out of a National Security Division.”
Lu was initially indicted in this case in December 2012. That indictment included allegations related only to one of the companies’ trade secrets. The new indictment incorporates the allegations related to four trade secrets owned by the other.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The case against Lu has been assigned to United States District Judge, who previously had scheduled a trial for June 21. Lu is scheduled to be arraigned on the superseding indictment on June 13.
Each of the 12 felony counts alleging the theft and possession of trade secrets carries a statutory maximum sentence of 10 years in federal prison and a fine of up to $5 million.
This case was investigated by the Federal Bureau of Investigation.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on May 9, 2016 and entering pleas of Not Guilty were:
- JAMES EVERETT KAMMINGA, JR., a 33-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, KAMMINGA faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the HIDTA Task Force. PACER Case Reference. 16-50
- ZACHARY JAMES LOZIER, a 32-year-old resident of Billings, appeared on charges of illegal receipt of a firearm by a person under indictment, and possession of stolen firearms. If convicted of the most serious charge contained in the indictment, LOZIER faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 15-67
Appearing before U.S. Magistrate Johnston in Great Falls on May 5, 2016 and entering pleas of Not Guilty were:
- LOIS ANN POTTER, a 57-year-old resident of Box Elder, appeared on charges of harboring a fugitive, and false statements to federal law enforcement. If convicted of the most serious charge contained in the indictment, POTTER faces 5 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the United States Marshals Service. PACER Case Reference. 16-29
Appearing before U.S. Magistrate Johnston in Great Falls on May 3, 2016 and entering pleas of Not Guilty were:
- SHELLY DAWN PYEATT a 46-year-old resident of Melrose, appeared on charges of misappropriation of postal funds, and issuance of money orders without payments. If convicted of the most serious charge contained in the indictment, PYEATT faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the United States Postal Service Office of Inspector General. PACER Case Reference. 16-13
Appearing before U.S. Magistrate Ostby in Billings on April 29, 2016 and entering pleas of Not Guilty were:
- RANDY SCOTT LAEDEKE, a 59-year-old resident of Billings, appeared on charges of wire fraud. If convicted of the charge contained in the indictment, LAEDEKE faces 20 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-33
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Indictment Charges Allentown Man with Producing Child PornographyRead the Press Release
PHILADELPHIA - Ruben Cotto, Jr., 28, of Allentown, PA, was charged yesterday by Indictment with the production and attempted production of child pornography as well as the distribution and possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life, a possible fine, up to a lifetime of supervised release, a $300 special assessment, and an additional $15,000 special assessment.
The case was investigated by the Office of the Pennsylvania Attorney General, the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced May 10, 2016, to six years in federal prison.
Jose Mejia-Fraijo, 23, from Mexico but residing in Sioux City, Iowa, received the prison term after a January 25, 2016, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Mejia-Fraijo admitted his involvement in a conspiracy that distributed at least 500 grams of actual (pure) methamphetamine from September 2015 through November 2015. Mejia-Fraijo further admitted to obtaining the methamphetamine from sources in Colorado for further distribution in Sioux City, Iowa.
Mejia-Fraijo was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Mejia-Fraijo was sentenced to 72 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system. Mejia-Fraijo is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-4088.
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Honduran Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Alex Velasquez-Avila, of Honduras, pleaded guilty to illegally reentering the United States after having been previously deported and was sentenced to time served. Velasquez-Avila was arrested on March 3, 2016.
In October of 2015, a Deportation Officer developed information which indicated that the defendant, Honduran national Alex Velasquez-Avila, was present in the United States after having been deported on one previous occasion. On February 2, 2016 the Deportation Officer recognized Velasquez-Avila as he exited the Two Guys Food Market on Union Street in Manchester, New Hampshire.
The Deportation Officer approached Velasquez-Avila and identified himself as a U.S. Immigration Officer. A brief verbal conversation was conducted in Spanish with the defendant who confirmed that his name was Alex Velasquez-Avila and that he was illegally present in the U.S. without any immigration documents. The defendant was then taken into ICE custody for being illegally present in the U.S. and transported to the ICE-ERO office in Manchester, New Hampshire for administrative processing. Subsequent fingerprint analysis identified the defendant as having been previously deported.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement, and prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Heroin Dealer Sentenced to 10 Years in PrisonRead the Press Release
NORFOLK, Va. – Christopher Salkey, 27, of Suffolk, was sentenced today to 120 months in prison for conspiracy to distribute heroin and possessing a firearm as a convicted felon.
Salkey pleaded guilty on Oct. 28, 2015. According to court documents, in the summer of 2012 up to May 2015, the defendant conspired with his father and two co-conspirators to distribute heroin in Suffolk and Portsmouth. Each week Salkey (who has a previous conviction for selling narcotics) and his father would receive a significant quantity of heroin to which they would add a cutting agent and then cap it up for distribution. During the course of the conspiracy it is estimated they distributed at least eight kilograms of heroin. On May 20, 2015, the Suffolk Police Department and federal agents from the Drug Enforcement Administration (DEA) executed a search warrant at Salkey’s residence in Suffolk where they recovered heroin and packaging material used for distribution. Additionally, agents also discovered a marijuana grow operation with 129 marijuana plants. Law enforcement later learned Salkey had hidden two firearms in the residence, which agents later recovered.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the DEA’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty 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. 2:15cr135.
Hammond Men Indicted for Participation in Drug Related Homicides and in Drug Overdose DeathRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BARON SMITH, a/k/a “Gee Gee,” age 36, and CALVIN ALEXANDER, a/k/a “Payday,” a/k/a “Cardee,” age 30, both of Hammond, have been charged in a Second Superseding Indictment with participating in the October 9, 2015 double murder of QUNADELL BEARD and ELLIOT SMITH, which took place in Tangipahoa Parish. This Second Superseding Indictment added CALVIN ALEXANDER to the murder charges that were already pending against BARON SMITH and also charges ALEXANDER with distributing heroin in February 2015, which led to the overdose death of ERIC FERRARA.
The Grand Jury charged both SMITH and ALEXANDER with first degree murder for their participation in these murders. Both were charged with violating Title 18, United States Code, Section 924(j), which relates to the illegal discharge of a firearm during the course of a drug trafficking crime resulting in death of another person. They were also charged with conspiracy to use a facility of interstate commerce to commit a murder for hire, in violating Title 18, United States Code, Section 1958. The Second Superseding Indictment also includes other violations of the federal drug laws and obstruction of justice charges. If convicted both ALEXANDER and SMITH face a mandatory life sentence. ALEXANDER could face the death penalty, however the Attorney General has not yet decided if the government will seek the death penalty in this case.
Both defendants are currently in federal custody and have been detained without bond.
U.S. Polite indicated that these are simply charges and that all defendants are presumed innocent until proven guilty in court.
U.S. Attorney Polite praised the work of the United States Drug Enforcement Administration with assistance from Hammond Police Department and Tangipahoa Parish Sheriff’s Office. Assistant U.S. Attorney Jonathan L. Shih is in charge of the prosecution.
Guatamalan Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Hilmar Chavez-Sanchez, of Guatemala, pleaded guilty to illegally reentering the United States after having been previously deported and was sentenced to time served. Chavez-Sanchez was arrested on March 3, 2016.
On February 15, 2016, an ICE-ERO Deportation Officer received a duty call from a New Hampshire State Police Trooper who stated that that he had stopped a vehicle for speeding on I-93. The vehicle was occupied by five individuals, three of whom refused to provide identification or answer the Trooper’s questions.
Two ICE-ERO officers traveled to the scene to provide assistance. Upon arriving, they observed the New Hampshire State Trooper in a foot pursuit of the defendant. The Trooper pursued the defendant for approximately 150 to 200 yards before apprehending him to discover that the defendant was not in possession of a valid driver license. The defendant was then transported to the Rockingham County Department of Corrections.
A search incident to arrest led to the discovery of a Guatemalan drivers’ license in the name of Hilmar Chavez-Sanchez. The ICE-ERO officers were able to determine that Chavez-Sanchez had been previously deported in 2009 and again in 2011.
Chavez-Sanchez will again be deported.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Fugitive from Justice Sentenced to Federal Prison on Meth Conspiracy, Possession of Firearm and Failure to Appear ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine, possessed a firearm in furtherance of drug trafficking and fled prosecution was sentenced May 10, 2016, to more than 13 years in federal prison.
Somsock Senlouangrat, 45, from Tacoma, Washington, received the prison term after a January 11, 2016, guilty plea to conspiracy to distribute methamphetamine, possession of a firearm in furtherance of drug trafficking and failure to appear.
At the guilty plea, Senlouangrat admitted that in September 2003, he and Daosadeth Keophounsouk were stopped by law enforcement in Monona County, Iowa. At the time, Senlouangrat and Keophounsouk were transporting approximately two pounds of methamphetamine from California to Minnesota for further distribution. Also located in the vehicle was a Smith and Wesson handgun Senlouangrat had purchased for their protection during the transport of methamphetamine. Senlouangrat further admitted to absconding from pretrial supervision sometime during November 2003 until his apprehension by the United States Marshals Service on June 19, 2015 in Tacoma, Washington.
Senlouangrat was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Senlouangrat was sentenced to 160 months’ imprisonment. A special assessment of $300 was imposed. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Senlouangrat is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-4001 and 03-4106.
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Former Makah Tribal Leader Sentenced to Prison for Embezzlement of Tribal FundsRead the Press Release
A former member of the Makah Tribal Council was sentenced today in U.S. District Court in Tacoma to six months in prison for embezzlement of tribal funds, announced U.S. Attorney Annette L. Hayes. RYLAND CHAD BOWECHOP, 38, of Bellingham, Washington pleaded guilty in February 2016, admitting that between June of 2010 and July 2014 he used a Makah tribal credit card for his personal expenses including cash advances at casinos. At sentencing U.S. District Judge Ronald B. Leighton noted that this was a serious offense committed by a Tribal leader who was supposed to be looking out for the best interest of the tribe.
“Not only did this defendant steal $30,000 from his own tribe, but he betrayed the trust of the people he was supposed to serve,” said U. S. Attorney Annette L. Hayes. “The loss of funds is significant, but can be remedied. The loss of trust has impacts that are much harder to repair.”
According to the plea agreement and other records in the case, BOWECHOP was elected to the Makah Tribal Council in 2009 after working in the Tribal Planning Department for many years. As a Councilmember, BOWECHOP was provided a credit card to pay for his Council-related travel expenses. BOWECHOP illegally used the card for personal expenses and to withdraw cash at casinos. The amount of fraudulent charges is estimated to be $30,000. BOWECHOP is required to pay $30,000 in restitution to the tribe.
The case was investigated by the FBI and the Neah Bay Department of Public Safety. The case was prosecuted by Assistant United States Attorney J. Tate London.
Former Inland Empire Insurance Agent Sentenced to Federal Prison for Submitting Fraudulent Loan Applications to Pay for PremiumsRead the Press Release
RIVERSIDE, California – An Upland man who pleaded guilty to federal bank fraud and tax charges for submitting fraudulent loan applications in a scheme that caused nearly $6 million in losses has been sentenced to one year and one day in federal prison.
Derek Richard Brewart, 53, a former licensed insurance agent and owner of Hamilton Brewart Insurance Agency (HBIA) in Upland, was sentenced Wednesday afternoon by United States District Judge Jesus G. Bernal. In addition to the prison term, Judge Bernal ordered Brewart to pay $5,926,430 in restitution to the victim, Universal Bank of West Covina. As part of the sentence, Brewart is also required to work with the Internal Revenue Service to determine the amount owed in unpaid taxes.
Brewart pleaded guilty in February 2015 to two charges – bank fraud and filing a false tax return. As part of the scheme, Brewart secured loans from Universal Bank in his clients’ names without their knowledge or authorization. HBIA brokered the sale of insurance from various carriers who wrote general liability, earthquake, malpractice, worker’s compensation and other policies. Because of the significant cost of these policies, HBIA clients sometimes sought loans so they could pay the premiums associated with the policies over a period of time.
Over the course of about four years, Brewart submitted fraudulent loan applications to Universal Bank to secure premium financing loans. The loans were submitted on behalf of HBIA clients, who did not know that Brewart was submitting the applications. The proceeds of the loans were used to pay HBIA’s expenses.
In some cases, Brewart took premium payments from clients and never obtained insurance for them.
“This defendant used his insurance expertise to engage in a scheme that violated the trust given to him as a licensed agent and cost a local bank nearly $6 million,” said United States Attorney Eileen M. Decker. “His clients trusted him to protect their assets, but he repaid them by placing their assets at risk for his own financial gain.”
When he pleaded guilty, Brewart also admitted that he filed false tax returns for tax years 2010 and 2011. As part of his guilty plea, Brewart admitted that he failed to report to the Internal Revenue Service approximately $785,922 of the income he received for the two years.
The investigation into Brewart’s fraudulent scheme and tax fraud violations was jointly conducted by the Federal Bureau of Investigation, the California Department of Insurance and IRS Criminal Investigation.
Former IRS Revenue Agent Sentenced to 30 Months in Prison for Accepting BribeRead the Press Release
A former Internal Revenue Service Revenue Agent was sentenced today in U.S. District Court in Seattle to 30 months in prison and three years of supervised release for accepting a $20,000 bribe, announced U.S. Attorney Annette L. Hayes. PAUL G. HURLEY, 43, of Seattle, was convicted in February 2016 following a three day trial. At sentencing U.S. District Judge John C. Coughenour said that in 35 years on the bench, this was his first bribery case. He called HURLEY’s crime, “a tremendous breach of public trust.”
“The American public entrusts public officials to carry out their duties in an honorable way. Revenue agents, such as this defendant, conduct taxpayer audits, demand records, conduct interviews, and have the power to assess additional federal taxes,” said U.S. Attorney Annette L. Hayes. “When that power is used to line the pockets of those public officials it is a breach of trust of the highest order.”
According to testimony at trial and records filed in the case, in the summer of 2015 HURLEY was randomly assigned to audit the corporate taxes of Have a Heart Compassion Care, Inc., a medical marijuana dispensary. In a meeting at one of the dispensary locations, HURLEY presented the owner of the dispensary with the findings of the audit. HURLEY indicated to the business owner that he had ‘saved the owner millions’ during the audit and that he lived paycheck to paycheck. HURLEY asked the business owner for $20,000. The business owner and his attorney reported the bribe request to the FBI. Working with law enforcement, the business owner met twice with HURLEY and in recorded conversations delivered cash in marked bills.
At the trial, prosecutors noted that HURLEY had written on the audit paperwork that the business owner had no money to pay on his tax bill following the audit, even as HURLEY sought $20,000 to personally benefit from his work as a public employee.
HURLEY had been a revenue agent with the IRS since 2009 and resigned from the service after the conduct was discovered.
The case was investigated by the FBI and by the Treasury Inspector General for Tax Administration (“TIGTA”).
The case was prosecuted by Assistant United States Attorneys Justin W. Arnold and Francis Franze-Nakamura.
Former IRS Revenue Agent Pleads Guilty to Aggravated Identity Theft of Taxpayer InformationRead the Press Release
ATLANTA - Creshika C. Wise, a former Internal Revenue Service (IRS) Revenue Agent who impersonated a taxpayer in order to steal over $470,000, has pleaded guilty to a charge of aggravated identity theft.
It is outrageous for an IRS employee to use her position to steal a citizen’s identity so she could steal taxpayer funds,” said U.S. Attorney John Horn. “Citizens count on the honesty and integrity of thousands of IRS employees every day to safeguard their private information, and breaches of this trust will be prosecuted and punished.”
“As our voluntary system of tax administration relies heavily upon the public’s confidence in a fair tax system, IRS employees must conduct themselves with the highest level of integrity and their conduct must be above reproach. Our message is loud and clear: the Treasury Inspector General for Tax Administration (TIGTA) will vigorously investigate and recommend criminal prosecution for any IRS employee who violates the public trust,” said to J. Russell George, Inspector General, TIGTA.
According to U.S. Attorney Horn, the charges and other information presented in court: Creshika Wise worked for the IRS from 2008 until the spring of 2016, when she resigned after her arrest in this case. While with the IRS, she served as a revenue agent. In August 2013, Wise was assigned to audit the 2011 tax return of two married taxpayers who had significantly underpaid their 2011 federal income tax. In September 2013, Wise and the taxpayers’ accountant met, and agreed that the taxpayers owed $758,846, plus interest, to the IRS. Wise came up with a plan to steal most or all of that money.
The day after she met with the accountant, Wise placed in the IRS file for the audit a fictitious IRS Form 4549, “Income Tax Examination Changes” for the taxpayers. This form is used by revenue agents to document changes to tax liability arrived at through the audits they conduct. Wise falsified the form by dramatically understating the tax due to the IRS, reducing it from $758,846 to $282,363, and also by forging the accountant’s signature.
A few days later, Wise opened up a new checking account, in the name “Creshika C. Wise sole prop d/b/a U.S. Treasury and Accounting Service.” In October, 2013, Wise emailed the taxpayer from her official IRS email account, and asked him to wire the funds the taxpayers owed the IRS to her newly opened bank account. Wise’s email provided the routing and account number for the account, which she described as belonging to “U.S. Treasury and Accounting Services.” Wise’s email did not disclose to the taxpayer that she personally, rather than the IRS, was actually the owner of the account.
The taxpayer never wired the funds as requested by Wise, as he had already mailed a check to the IRS for the full amount due. Wise received the check, and processed it for credit to the taxpayers’ account. However, Wise did not abandon her scheme.
Wise knew she had altered the IRS’s records to reflect a tax due of $282,363, rather than the agreed upon $758,846. She also knew that when the IRS processed the check, the system would generate a refund check for any excess – here, over $470,000 – and mail it to the taxpayers’ address of record. Wise turned her attention to getting the large check she knew would be coming to the taxpayers, and preparing to negotiate it herself.
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On 10/21/2013, Wise opened a new UPS mailbox in her own name at a UPS Store location. Soon afterward, Wise caused the taxpayers’ address to be changed in the IRS computer system from their correct address to that of Wise’s newly opened UPS mailbox, causing IRS correspondence to the taxpayers to be misdirected.
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On 12/2/2013, impersonating the taxpayers, Wise filled out an online application for a new joint checking account in their names with a local bank. On 12/10/13, Wise faxed the signature card, which she had created by forging the signatures of the taxpayers and using the husband’s social security number, to the bank.
- On 12/20/2013, Wise called the bank to inquire whether the account was ready to be used. This call was recorded and preserved by the bank. In the call, Wise identified herself by name as one of the taxpayers, the wife, and provided the taxpayer’s correct social security number to confirm that identity. Posing as the taxpayer, Wise said that it was important the account be opened quickly, because she was expecting a large check from the IRS.
Wise’s scheme to take most or all of the money owed by the taxpayers to the IRS was unsuccessful, in that neither the taxpayers nor the IRS suffered any monetary loss.
Sentencing for Creshika C. Wise, 31, of Fairburn, Georgia, is scheduled for August 3, 2016, at 2:00 p.m. before U.S. District Judge Amy Totenberg.
This case is being investigated by the Treasury Inspector General for Tax Administration.
Assistant United States Attorney Alana R. Black is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Former Federal Customs Official Sentenced to over 3 Years in Federal Prison in Scheme to Pay Bribes to Obtain Benefits for ImmigrantsRead the Press Release
LOS ANGELES – A former official with U.S. Customs and Border Protection (CBP), who went on to operate an immigration consulting service, has been sentenced to 37 months in federal prison for participating in a scheme to pay bribes to other government employees to obtain “Green Cards” and citizenship for immigrants.
George Wu, 63, of Pico Rivera, who worked as a CBP officer until early 2012, and then operated Great Eastern Immigration Services, was sentenced late yesterday by United States District Judge Michael W. Fitzgerald.
Wu was found guilty in August 2015 of paying bribes in an effort to obtain citizenship and legal permanent resident status for several immigrants. A federal jury convicted Wu of conspiracy and five counts of bribery of a public official.
Wu, another immigration consultant named Michael Bui, and others solicited money from immigrants in exchange for help in obtaining benefits from U.S. Citizenship and Immigration Services (USCIS) that included lawful permanent residence and citizenship. Some of the money paid by the immigrants was used to pay bribes to public officials in exchange for granting immigration benefits.
“This defendant attempted to corrupt our nation’s immigration system by offering bribes in exchange for benefits,” said United States Attorney Eileen M. Decker. “It is critical to our national security that our nation’s immigration system functions properly and free from corruption such as this defendant’s.”
During the trial, prosecutors presented evidence that Wu received and paid bribe money on behalf of immigrants. The overall conspiracy involved at least seven immigrants, one of whom was allowed to pass an English proficiency exam even though she could not speak English.
In the first case, an attorney who also works as an immigration consultant paid Wu $15,000, and Wu subsequently paid Bui $10,000, a portion of which was intended for bribery payments, to secure assistance with a citizenship application. In the second case, Wu paid the attorney a total of $15,000, again a portion of which was intended for bribes, for assistance in securing legal permanent resident status – commonly called a Green Card – for an immigrant. And in the third case, Wu paid a total of $3,000 to an official with USCIS – an official who was acting in an undercover capacity as part of the investigation – for help in obtaining a Green Card for an immigrant.
Bui pleaded guilty in May 2015 to conspiracy and bribery, and he was sentenced yesterday afternoon by Judge Fitzgerald to serve one year and one day in prison.
The case against Wu and Bui was part of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Office of Professional Responsibility and the Federal Bureau of Investigation. The investigation into corruption involving government officials and immigration consultants has resulted in charges against 11 defendants. Seven of those defendants – including Wu and Bui – have now been convicted, including:
• Attorney Kwang Man “John” Lee, who pleaded guilty in March to three counts of bribery and admitted, among other things, paying tens of thousands of bribes to a Senior Immigrations Services Officer with USCIS and arranging sham marriages to secure Green Cards for clients;
• James Dominguez, a former special agent with U.S. Immigration and Customs Enforcement (ICE), who pleaded guilty to making false statements to ICE investigators when he lied about accessing immigration files and providing information to an immigration lawyer; and
• Paul Lovingood, a former official with USCIS, who pleaded guilty to accepting an illegal gratuity from an immigration lawyer after adjudicating a petition for lawful permanent residence filed on behalf of one of the attorney’s clients.
Former Executive Director of Contractors Association Sentenced to 42 Months in Jail for Mail Fraud and Tax OffensesRead the Press Release
HONOLULU -- Raymond Fujii, 68, a resident of Kailua, Hawaii, was sentenced today by Chief U.S. District Judge J. Michael Seabright to 42 months in federal prison for engaging in a mail fraud scheme involving the embezzlement of $1,483,800, and failing to report that income on his federal tax returns. In addition to the 42 month term of imprisonment, Fujii was ordered to pay $1,234,713 in restitution to the victim organization and the Internal Revenue Service. Fujii pled guilty to mail fraud and filing a false federal income tax return on January 27, 2016.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced to the court, from 1997 through 2014, Fujii used his position to embezzle money from the Painting and Decorating Contractors Association of Hawaii ("PDCA"), and the Painting Industry of Hawaii Trade Promotion and Charity Fund ("TP&C"), a trust fund that promotes the local painting industry. Fujii, who was executive director of the former and administrator of the latter, organized and directed board meetings, and prepared minutes of meetings and financial statements for both organizations. Fujii also was an authorized signatory on the bank accounts for both entities.
During court proceedings, Fujii admitted writing checks to a company that he owned, either forging or fraudulently obtaining the signatures of directors on the checks, and then depositing the money in his personal account. Fujii obtained a total of $1,483,800, but failed to report the money on his federal or State of Hawaii income tax returns. The failure to report the income resulted in tax losses to the federal and state governments of $315,829 and $135,565, respectively. Following the discovery of the offense, Fujii sold his personal residence and used the funds to repay $564,915 to the PDCA.
During today’s sentencing proceedings, Chief Judge Seabright noted that Fujii’s conduct was a "naked betrayal" of the painting association’s trust, and that Fujii had obtained the money tax-free by not reporting it on his income tax returns.
The case was investigated by the Internal Revenue Service, Criminal Investigation, and the Department of Labor Office of Management Labor Standards, and was prosecuted by Assistant U.S. Attorney Larry Tong.
Former DMV Employee Pleads Guilty to Conspiring to Commit BriberyRead the Press Release
SACRAMENTO, Calif. — Andrew Kimura, 31, of Sacramento, pleaded guilty today to two counts of conspiracy to commit bribery, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Kimura was an employee of the California Department of Motor Vehicles, working in Sacramento as a Licensing-Registration Examiner. He processed applications for Class A and Class B commercial driver’s licenses (CDLs) and Class C noncommercial driver’s licenses.
According to the plea agreement, between April 2013 and July 2015, Kimura received money from various brokers in order to provide CDLs for individuals who had not taken or passed the necessary DMV examinations. Kimura then accessed the DMV’s database to alter records indicating those individuals had passed certain tests. As a result, the individuals were able to obtain CDLs without having taken or passed the requisite written or behind-the-wheel driving tests. Additionally, Kimura also altered DMV records to provide for renewal of various CDLs in exchange for money from brokers.
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California DMV. Assistant United States Attorney Todd A. Pickles and Rosanne Rust are prosecuting the case.
Emma Klem, another DMV employee, and Kulwinder Dosanjh Singh, a broker, previously pleaded guilty to conspiracy to commit bribery as part of the same investigation in United States v. Klem, 2:15-cr-139 GEB, and United States v. Kulwinder Dosanjh, 2:15-cr-146 GEB, respectively. No sentencing date has been set for them.
Co-defendants Robert Turchin, Mangal Gil, and Pavitar Dosangh Singh are awaiting trial. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Kimura is scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on August 12, 2016. Kimura faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will 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.
Former Comptroller Sentenced to 18 Months in Prison for Embezzlement and Signing a False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – LeANN MARIE GOODE, of Edmond, Oklahoma, was sentenced today to 18 months in prison for embezzlement and signing a false federal income tax return, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
During 2012 and 2013, GOODE was employed as Accountant/Comptroller at Market Source, Inc., located in Oklahoma City. On October 14, 2015, she pled guilty to using interstate wire communications to defraud Market Source. In particular, she admitted that she paid personal expenses out of Market Source’s account at InterBank (formerly known as Union Bank) and disguised her embezzlement by treating those payments as business-related expenses. At the October 2015 hearing, GOODE also pled guilty to signing a false tax return. She admitted that on January 31, 2014, she signed a personal federal tax return for the 2013 calendar year that she knew was false because it reported only $65,774 in total income, substantially less than the income she actually received.
At today’s sentencing, U.S. District Judge Timothy D. DeGiusti ordered that GOODE be incarcerated for 18 months. She must also pay restitution in the total amount of $236,923.45, as follows:
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Market Source: $139,701.45
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Ohio Casualty: $50,000.00
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Internal Revenue Service: $47,222.00
After completing her sentence, GOODE will serve three years of supervised release. She must perform 104 hours of community service during the first year of supervised release.
This case was the result of an investigation by Internal Revenue Service—Criminal Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Kerry A. Kelly.
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Former Air Force Member Arrested, Charged with Assaulting and Sexually Abusing His Spouse While Both Were Stationed AbroadRead the Press Release
SACRAMENTO, Calif. — Christopher Mroz, 23, of Sacramento, was arrested today at his residence, charged with aggravated sexual abuse, and assault resulting in serious bodily injury, Acting United States Attorney Phillip A. Talbert announced.
Mroz is scheduled to be arraigned today at 2:00 p.m. before U.S. Magistrate Judge Kendall J. Newman. On Thursday, a federal grand jury returned a two-count indictment against Mroz.
According to court documents, Mroz was a member of the Air Force stationed in Lakenheath, England in 2012 through 2014. Although he was discharged in 2014, he remained on base with his wife, who was an active duty member of the Air Force. The indictment alleges that during the course of their time in England, Mroz forcibly raped his wife and, on another occasion, broke her arm. Mroz is subject to prosecution for these alleged offenses based on the Military Extraterritorial Jurisdiction Act of 2000.
This case is the product of an investigation by the Air Force Office of Special Investigations and the FBI. Assistant United States Attorneys Jill Thomas and Michele Beckwith are prosecuting the case.
If convicted, Mroz faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Financial Advisor Pleads Guilty to Money LaunderingRead the Press Release
NEWPORT NEWS, Va. – Jeffrey A. Martinovich, 50, formerly of Newport News, pleaded guilty today to charges of money laundering.
According to court documents, Martinovich was the head of MICG, a broker-dealer located in Newport News. In 2013, Martinovich was convicted after a jury trial of federal charges related to his fraudulent inflation of assets in the Venture fund – a hedge fund he managed and administered. After these charges were brought, Martinovich engaged in a scheme to use the assets of a different hedge fund (the Partners fund) he managed to pay for his criminal legal defense, including payments to expert witnesses, a jury selection consultant, and other litigation expenses. Martinovich falsely represented to his attorney, and took other steps to conceal, the origin of these funds used for his defense. Further, Martinovich declined to make distributions to investors in the Partners fund, choosing instead to use the balance of the fund to pay for expenses related to his offense.
According to court documents, following the defendant’s convictions on May 6, 2013, it came to light that the defendant had wrongfully diverted over $700,000 from the Partners Fund and instructed an employee to conceal his theft through false bookkeeping entries.
According to court documents, on Sept. 30, 2013, Martinovich was sentenced to 140 months in prison for his fraudulent manipulation of the assets in the Venture Fund. His appeal of his convictions was denied by the U.S. Court of Appeals for the Fourth Circuit, and the case has been remanded for resentencing.
Martinovich was indicted on charges stemming from his use of the Partners fund monies by a federal grand jury on July 15, 2015. Martinovich faces a maximum penalty of 20 years in prison sentenced on September 29. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (ISR-CI), made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys Brian J. Samuels and V. Kathleen Dougherty 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 about this case and Martinovich’s prior conviction may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr50 and 4:12cr101.
Felon in Possession of A Firearm Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Willie James Henry, Jr., 40, of Mobile, was sentenced this morning in federal court on the charge of felon in possession of a firearm. Henry, whose previous conviction was for murder, pled guilty to the charge in January of 2016. Court documents identified three guns found in Henry’s apartment, one of which was an assault weapon described as an SKS rifle.
The case prosecutor pointed out to the judge that Henry tested positive for illegal use of several narcotics during his time on bond. United States District Court Judge Kristi K. Dubose imposed a sentence of 18 months, which will be followed by a three-year term of supervised release. As conditions of his supervision, Henry will be subject to testing and treatment for drug abuse. Judge Dubose also ordered that Henry pay $100 in special mandatory assessments, and she then revoked his conditions of release and remanded him to the marshal’s custody to begin serving his sentence.
The case was investigated by the Mobile Police Department and the Federal Bureau of Investigation. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorneys Gina Vann and Gloria Bedwell.
El Departamento de Justicia Resulve una Denuncia Relacionada con la Inmigración Contra Netjet ServicesRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con NetJets Services Inc. (NetJets), una empresa con sede en Columbus, Ohio, que brinda servicios privados de aviación. El acuerdo resuelve las alegaciones de que NetJets había vulnerado la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a inmigrantes con autorización para trabajar.
La investigación del Departamento de Justicia encontró que NetJets requirió, de forma ilícita, que todo empleado nuevo que no fuera ciudadano de los EE. UU. presentase documentos específicos para demostrar su elegibilidad para trabajar, pero no solicitaron lo mismo de individuos que estaban en una posición igual y que sí eran ciudadanos de los EE. UU. Más aún, la investigación encontró que empleados actuales eran son residentes permanentes legales fueron sometidos a una reverificación innecesaria de su elegibilidad para trabajar tras ser contratados, por motivos de su estatus migratorio y que empleados que se habían convertido en ciudadanos estadounidenses naturalizados tras ser contratados tuvieron que presentar documentos diferentes y adicionales a los que se necesitan para establecer su estatus de ciudadanía. La disposición antidiscriminatoria de la INA prohíbe que los empleadores discriminen por motivos de estatus de ciudadanía, estatus migratorio o nacionalidad de origen al verificar la autorización para trabajar del empleado.
En virtud del acuerdo de resolución, NetJets deberá pagar 41.480 $ en sanciones civiles, capacitar a su personal de recursos humanos en cuanto a la disposición antidiscriminatoria de la INA y someterse a la supervisión del Departamento de Justicia durante un período de dos años.
“Es la responsabilidad de cada empleador asegurar que su personal de recursos humanos entienda e implemente las prácticas de contratación correctas para evitar que se vulneren las leyes antidiscriminatorias,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal, Vanita Gupta, Directora de la División de Derechos Civiles del Departamento de Justicia. “La División de Derechos Civiles aplaude a NetJets por su colaboración durante la investigación y su compromiso con la implementación de medidas correctivas.”
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés) es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión las prácticas documentales injustas; las represalias y la intimidación. El caso lo gestionó el Abogado Litigante Pablo A. Godoy de la OSC de la División de Derechos Civiles.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias federales, llame a la línea directa de la OSC para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario en línea gratuito en www.justice.gov/crt/about/osc/webinars.php; mande un correo electrónico a [email protected] o visite la página web de la OSC en www.justice.gov/crt/about/osc.
Los aspirantes o empleados que creen haber sido víctimas de requisitos documentales diferentes por motivos de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen; o discriminación por motivos de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación deben comunicarse con la línea directa de la OSC para trabajadores referenciada para pedir ayuda.
Netjets Settlement Agreement
District Court Enters Permanent Injunction Against Michigan Sandwich Manufacturer and its Owner to Prevent Distribution of Adulterated SandwichesRead the Press Release
The U.S. District Court for the Eastern District of Michigan entered a permanent injunction against Scotty’s Incorporated (Scotty’s), of Detroit, Michigan, and its co-owner and manager, Sandra J. Jackson, to prevent the distribution of adulterated ready-to-eat sandwiches, the Department of Justice announced today.
The department filed a complaint on Nov. 21, 2014, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, Scotty’s, which does business as Bruce Enterprises and Bruce’s Fresh Products, prepares and distributes ready-to-eat (RTE) sandwiches, including RTE tuna salad sandwiches. According to the complaint, the company’s sandwiches have been prepared, packed or held under insanitary conditions and the company failed to follow the Hazard Analysis and Critical Control Point (HACCP) regulations for their tuna processing. The complaint alleged that the company’s RTE sandwiches are primarily sold to local police departments and retail customers, such as convenience stores and gas stations, in Michigan and Ohio.
The permanent injunction followed a March 28, decision by the district court that Scotty’s had violated the Federal Food, Drug and Cosmetic Act (FDCA), including a finding that the company’s sandwiches were adulterated.
“The American public needs to have the confidence that food in the marketplace is safe to eat,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division. “Insanitary conditions at food processing facilities can pose well-known risks to consumers, but those risks can be effectively mitigated if companies preparing food take proper precautions.”
The district court’s March 28 decision concluded that FDA documented multiple violations of current good manufacturing practices at the company, including: mold-covered ceiling tiles in the walk-in cooler where defendants stored sandwiches; employees touching non-food contact surfaces, including those near the trash, before handling food products without washing their hands; and placing plastic bakery racks holding bread buns directly on the floor and in an alley near the trash and then moving the racks to a production table without being cleaned.
The district court also found that defendants did not have a HACCP plan in place. Federal regulations require processors of fish and fishery products, such as the company here, to conduct or have conducted for it a hazard analysis to determine whether there are food safety hazards that are reasonably likely to occur for each kind of fish and fishery product processed and to identify the preventive measures that the processor can take to control these hazards. Whenever such an analysis reveals one or more food safety hazards that are likely to occur, a processor is required to have and implement a written HACCP plan.
Under the permanent injunction, defendants cannot receive, prepare, process, pack, hold and distribute RTE sandwiches until they take a number of remedial steps. These steps include, among other things, submitting a written sanitation program covering all of their operations to ensure that they comply with the FDCA. Defendants must also submit a written HACCP plan for each type of seafood received, prepared, packed, held, or distributed by them for which food safety hazards are identified. In addition, defendants must submit employee training programs on all foodborne hazards, including the sanitation control program and a plan to destroy all finished and in-process RTE sandwiches in their custody, control or possession. Defendants must also wait until FDA notifies them that the defendants appear to be in compliance with specific remedial actions set forth above, the FDCA and its implementing regulations.
The government is represented by Trial Attorney Ann Entwistle, of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel Jennifer Kang, of the U.S. Department of Health and Human Services’ Office of General Counsel-Food and Drug Division and Assistant U.S. Attorney Peter Caplan of the Eastern District of Michigan.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of Michigan, visit its website at https://www.justice.gov/usao-edmi.
Corporate Hijacker Sentenced in $1.4 Million ID Theft SchemeRead the Press Release
ALEXANDRIA, Va. – Myrick Clift Beasley, 56, of Las Vegas, was sentenced today to 60 months in prison for mail fraud in connection with a scheme to obtain goods and services on credit using the stolen identities of legitimate, inactive businesses.
“Beasley used his considerable business acumen to develop a scheme to defraud some of the nation's largest retailers and service providers," said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. "This was a complex, sophisticated fraud that required a high level of expertise to unravel. I want to thank our investigators and prosecutors for their outstanding work on this case.”
“The FBI works relentlessly to identify and disrupt complex fraud schemes such as this one,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “As a result of a thorough criminal investigation, FBI agents and analysts identified this financial predator and brought him to justice. I want to thank the dedicated FBI personnel, federal prosecutors, and our law enforcement partners for their tireless efforts to ensure that corporate and personal identities are protected and identity thieves are held accountable under the law.”
According to court documents, from 2010 through 2015, Beasley assumed the identity of at least 148 legitimate businesses nationwide, and used those stolen identities to obtain, on credit, at least $1.4 million in goods and services from various victims. Beasley admitted that, as part of the scheme, he would identify inactive, legitimate businesses that had previously been located in office buildings where virtual office providers were also located. Beasley admitted that we would assume the inactive businesses’ identities by renting virtual office space in the buildings in the names of the legitimate businesses, creating internet domain names and email addresses in the identified businesses’ names, obtaining phone numbers previously identified with the businesses when available, and, at times, supplementing state corporate filings and commercial credit records with fraudulent information designed to further the scheme. Beasley admitted that he concealed his true identity throughout the fraud by using false names and paying for the costs of operating his scheme with prepaid debit cards. Once he would assume a business’s identity, Beasley admitted that he would then order goods and services — particularly, smart phones, computers, and other electronics — from retailers on credit and have the items shipped to the virtual office location, which would then, at his direction, re-ship the items to rented mailboxes elsewhere in the country. Beasley admitted he would then retrieve the items from the rented mailboxes and sell them.
Beasley has a history of using his skills to commit fraud. He was convicted for mail fraud in 1989 and again in 1999.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Special Assistant U.S. Attorney Christopher R. Fenton and Assistant U.S. Attorney Paul J. Nathanson 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. 1:15-CR-353.
Copley man sentenced to prison for tax violationsRead the Press Release
A Copley man was sentenced to more than two years in prison for conspiring to defraud the United States and related crimes, said Acting U.S. Attorney Carole Rendon, and Kathy Enstrom, Special Agent in Charge of the Internal Revenue Service – Criminal Investigations.
Lawrence Tipton, 48, was sentenced to 25 months in prison and ordered to pay more than $500,000 in restitution to the Internal Revenue Service.
Ebony Brown, 41, of Stone Mountain, Georgia, was sentenced to more than four years in prison and ordered to pay nearly $440,000 in restitution.
12-count federal indictment was unsealed today charging Lawrence E. Tipton, 48, Angela G. Tipton, 46, both of Copley, and Ebony Brown, 41, of Stone Mountain, Georgia, with conspiracy to defraud the United States of America, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Lawrence and Angela Tipton, 46, also of Copley, conspired to evade the payment of assessed taxes between 2003 and 2014. Their conduct involved failing to report income, creating various business entities to hide their income and assets from the Internal Revenue Service, according to the indictment.
Brown conspired to distribute cocaine she acquired in Texas and Florida and sold in Ohio, according to court documents.
Angela Tipton was sentenced to four months of home confinement and ordered to pay more than $500,000 in restitution.
The investigation preceding the indictment was conducted by the Internal Revenue Service and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Robert E. Bulford and Samuel A. Yannucci.
Conspirators Sentenced to Prison for the Robbery of an Owings Mills Jewelry Store Including Kidnapping and Brandishing a GunRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Aleksey Sosonko, age 35, of Owings Mills, Maryland, today to 14 years in prison, followed by five years of supervised release, for conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence, in connection with the robbery of a jewelry store, including a home invasion robbery, carjacking and kidnapping.
On May 12, 2016, Judge Motz sentenced co-conspirator Marat Yelizarov, age 27, of Pikesville, Maryland, to 18 years in prison, followed by five years of supervised release, for the same charges. Judge Motz also entered an order requiring Sosonko and Yelizarov to pay restitution of $500,000.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to their plea agreements, Sosonko and Yelizarov were part of a conspiracy, led by Marat Yelizarov’s brother, Stanislav “Steven” Yelizarov, to rob an Owings Mills jewelry store. In the course of the conspiracy, Sosonko and M. Yelizarove participated in an armed home invasion robbery designed to obtain firearms for use in the later robbery of the jewelry store.
Specifically, on July 22, 2012, S. Yelizarov, Sosonko, M.Yelizarov, and Grigory Zilberman robbed a home in Reisterstown, Maryland. Zilberman had been a guest in the home on a number of occasions and knew that the residents of the home owned firearms. After conducting surveillance of the home for several days prior to the robbery, at 2:30 a.m. on July 22, 2012, the conspirators, dressed all in black and wearing ski masks and latex gloves, entered the home through the garage door. S. Yelizarov was armed with a handgun when they entered the residence. The other three men grabbed long guns as they entered the home and carried them with them. A resident of the home was asleep when the four robbers entered his bedroom and woke him up, pointing guns at him and shining flashlights in his eyes. S. Yelizarov beat the resident when he tried to resist while M. Yelizarov tied up the resident with a belt and a cord. The robbers ransacked the home for about an hour, looking for firearms and other valuables. After the robbers left, the resident was able to free himself and call police. The resident was taken to the hospital for treatment of his injuries. Among the items stolen from the house were 10 long guns (rifles and shotguns), a crossbow, a laptop computer, and jewelry. Numerous electronic devices including computers and televisions were destroyed during the robbery. The value of the items stolen was approximately $10,000.
S. Yelizarov also devised a plan to commit the jewelry store robbery and recruited Sosonko, M. Yelizarov, Zilberman, Igor Yasinov, Peter Magnis, Sorhib Omonov and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.
According to their plea agreements, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. While the employee was at Zilberman’s home, the other conspirators met at Yelizarov’s residence to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Early in the morning on January 16, 2013, M. Yelizarov and Omonov followed the employee from Zilberman’s home and notified the other conspirators of the employee’s location so they could follow the employee. S. Yelizarov, Sosonko, Yasinov, and Magnis used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms which were supplied by S. Yelizarov, the conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location. Once at the location, Sosonko, Yasinov, Magnis, and S. Yelizarov continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., Sosonko and S. Yelizarov drove the employee’s vehicle from the remote location to the jewelry store. Yasinov and Magnis stayed with the employee. M. Yelizarov and Omonov were stationed near the jewelry store to act as look-outs. S. Yelizarov and Sosonko entered the jewelry store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was then placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.
On January 18, 2013, S. Yelizarov sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, S. Yelizarov traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, he returned to Maryland and divided the cash proceeds among the members of the conspiracy and others. S. Yelizarov determined how much each participant received based on his perception of the risk and the conduct of each participant.
On January 25, 2013, S. Yelizarov was arrested in Buffalo, New York, on charges of federal misuse of a passport. From January 25 through February 2, 2013, S. Yelizarov placed calls directing M. Yelizarov, Sosonko, and others, to remove from his residence and dispose of evidence related to the jewelry store robbery, including cash from the sale of the jewelry, firearms used during the conspiracy, the law enforcement light bar, the GPS device, a laptop computer, and other evidence of the crimes.
Stanislav “Steven” Yelizarov, age 26, of Pikesville, Maryland, was sentenced to 30 years in prison, after he pleaded guilty to a robbery conspiracy, kidnapping, and brandishing a firearm in relation to a crime of violence. Peter Aleksandrov Magnis, age 28, of Hydes, Maryland, and Sorhib Omonov, age 27, of Baltimore, also pleaded guilty and were sentenced to seven years in prison and four years in prison, respectively. Judge Motz also entered an order requiring all of the sentenced defendants to pay restitution of $500,000. Grigoriy (Greg) Zilberman, age 25, of Owings Mills, Maryland; and Igor Yasinov, age 26, of Baltimore, previously pleaded guilty and are scheduled to be sentenced on May 20, 2016 at 10:30 and 11:00 a.m., respectively.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Conn. Resident Sentenced for Traveling to R.I. to Engage in Sexual Activity with a MinorRead the Press Release
PROVIDENCE, R.I. – Joshua T. Robinson, 36, of Colchester, Conn., was sentenced in U.S. District Court in Providence, R.I., on Thursday to 46 months in federal prison, followed by 10 years supervised release, for traveling interstate to engage in illicit sexual activity with a girl he believed to be 14 years-old.
Robinson’s sentence, imposed by U.S. District Court Judge John J. McConnell, Jr., is announced by United States Attorney Peter F. Neronha and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
Robinson, arrested on September 4, 2015, by members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force, pleaded guilty on February 18, 2016, to travel with intent to engage in illicit sexual conduct.
At the time of his guilty plea, Robinson admitted to the court that beginning in late August 2015, he engaged in a series of increasingly sexually explicit emails with a person he believed to be a 14 year- old girl living in Rhode Island. Robinson admitted to the court that he arranged with the young teenager to meet her in Rhode Island where he would engage in sexual activity with her in exchange for a new iPhone. However, the person purporting in the emails to be the 14 year-old girl was, in fact, members of the Rhode Island State Police ICAC Task Force.
According to court documents, on September 4, 2015, Robinson’s first attempt to travel to Rhode Island to meet with the teenager was interrupted when a tire on his vehicle went flat. After having the tire repaired, he set out a second time to meet the young teenager. Robinson was arrested inside a retail store in Cranston, R.I., where he was to have met with the girl, purchase an iPhone for her and then travel to another location to engage in sexual activity.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Collierville Businessman Pleads Guilty to Obtaining Fraudulent Work Visa PermitsRead the Press Release
Memphis, TN – A Collierville businessman has pleaded guilty in federal court to a one count information charging him with conspiracy to fraudulently obtain work visa permits. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.
According to the information presented in court, Ramesh Basa, age 51, of Collierville, Tennessee owned and operated Comspark International, a Memphis based corporation working in the area of software development and information technology. Starting sometime in 2009, Basa began obtaining fraudulent H1B visas. An H1B Visa is a visa that allows a foreign national with a special skill to lawfully enter and work in the United States. Part of the application packet is a document commonly referred to as an "End Client Letter." The End Client Letter sets out the nature of the employment offer, the potential employee’s name and a number of other facts.
The information states that Basa, and others working for him, created false End Client Letters in order to obtain H1B Visas. These fraudulent visas allowed the foreign national beneficiaries to be present, and legally work in the United States. Basa and his company then hired them out to other companies. Basa profited in several ways from the scheme, including the fact that he got a percentage of the salary of every individual hired out.
Basa faces a sentence of up to five years imprisonment, a fine of not more than $250,000 and a period of up to three years of supervised release. Pursuant to a plea agreement he will also forfeit property worth $500,000. Basa is scheduled to be sentenced by Judge Sheryl Lipman on August 12, 2016.
This case was investigated by the Diplomatic Security Service of the Department of State, Immigration and Customs Enforcement of the Department of Homeland Security and the Department of Labor. The government’s case is being prosecuted by Assistant U.S. Attorney Fred Godwin.
Chicago Restaurateur Charged with Failing to Pay Taxes on Cash Receipts from Nine of His EateriesRead the Press Release
CHICAGO — The owner of several Chinese restaurants in the Chicago area intentionally withheld state taxes by underreporting the receipts paid in cash, according to federal criminal charges filed today.
HU XIAOJUN, also known as “Tony Hu,” 48, of Chicago, is charged in a criminal information with one count of wire fraud and one count of money laundering. An arraignment in U.S. District Court in Chicago has not yet been scheduled.
Hu owns and operates several restaurants in Chicago and the suburbs, including the eateries Lao Sze Chuan and Lao You Ju. The charges allege that from January 2010 to September 2014, Hu intentionally withheld sales taxes from the Illinois Department of Revenue for receipts that customers paid in cash. Although Hu collected or caused to be collected all of the daily receipts, he and others discarded most of the bills from the cash sales, according to the information.
A new total without most of the cash purchases was then calculated, and Hu fraudulently reported it to the State, according to the information. Hu deposited the unreported cash into his personal bank account – and caused others to do the same – and used the money to pay personal expenses, the information states.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
The two counts in the information are punishable by a combined maximum sentence of 30 years in prison and a fine of up to $500,000 or twice the gross gain or gross loss resulting from that offense, whichever is greater.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys William Ridgway and Joel Hammerman.
Information
Chelsea Man Sentenced to 17 Years for Child Exploitation OffensesRead the Press Release
BOSTON – A Chelsea man was sentenced yesterday in U.S. District Court in Boston for sexually exploiting a child.
Elmer Reyes, 32, was sentenced in by U.S. District Judge George A. O’Toole, Jr. to 210 months in prison after pleading guilty in January 2016 producing and possessing child pornography. Reyes was previously convicted in Suffolk County Superior Court of eight counts of aggravated rape of a child with force, three counts of indecent assault and battery on a child under 14, one count of assault and battery, and one count of posing a child in a state of nudity. Reyes was sentenced in December 2015 to 13 years in state prison. The federal and state sentences will be served concurrently.
In 2007, Reyes, who was a long-time, trusted friend of the victim’s family, began abusing the victim. Thereafter, he volunteered to drive the victim to school and regularly sexually assaulted her while alone with her. He also photographed the sexual abuse. On one occasion in October 2014, following the child’s late arrival at school and traumatized appearance, school officials questioned the victim who disclosed the sexual abuse. The school immediately alerted law enforcement.
United States Attorney Carmen M. Ortiz; Suffolk County District Attorney Daniel F. Conley; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Chelsea Police Chief Brian Kyes, made the announcement. The case was prosecuted by Assistant U.S. Attorneys David G. Tobin of Ortiz’s Major Crimes Unit.
Carrizozo Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Patricia Kay Portillo, 54, of Carrizozo, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge.
Portillo was one of 34 individuals charged in December 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Portillo was arrested in Dec. 2015, on an indictment charging her with conspiracy and distributing methamphetamine in Otero County, N.M., on Aug. 23, 2015, possession of methamphetamine with intent to distribute on Oct. 6, 2015, and the use of a communication facility in the commission of a drug trafficking crime on Sept. 4, 2015. During today’s proceedings, Portillo entered a guilty plea to possession of methamphetamine with intent to distribute and admitted that on Oct. 6, 2015, she had 41 grams of pure methamphetamine concealed on her person which she planned to distribute to others.
At sentencing, Portillo faces a maximum of 20 years in federal prison followed by not less than three years of supervised release. Portillo remains in custody pending a sentencing hearing which has yet to be scheduled.
Portillo is the 11th of the 18 federal defendants to enter a guilty plea. The remaining seven federal defendants have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Alta Braham is prosecuting the tribal cases.
Canadian Man Convicted and Sentenced on Alien ChargeRead 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 Leszek Budzyna, 50, of Mississauga, Ontario, Canada, pleaded guilty to encouraging and inducing an alien to illegally enter the United States for financial gain, before U.S. Magistrate Judge Jeremiah J. McCarthy. The defendant was sentenced to time served.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on March 1, 2016, the defendant attempted to facilitate the entry of two aliens into the United States via the Peace Bridge. Budzyna was driving a tractor trailer and, when questioned during primary inspection, stated that he was traveling alone. During an x-ray examination of the tractor trailer and subsequent inspection, U.S. Customs and Border Protection Officers identified two aliens concealed in the passenger compartment of the truck. The defendant intended to drive the two aliens into the United States in return for $10,000. Budzyna knew that the two aliens could not lawfully enter the United States.
The plea and sentencing are the culmination of an investigation by officers of the United States Customs and Border Protection, under the direction of Acting Director of Field Operations Rose Hilmey.
Business Owner Pleads Guilty to Impeding the IRS Related to an Employment Tax SchemeRead the Press Release
A business owner pled guilty for his participation in an employment tax scheme with the intent of impeding the functions of the Internal Revenue Service (IRS).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Marvin Castrillo, 37, of Miramar, pled guilty to one count of conspiracy to impede the functions of the IRS, in violation of Title 18, United States Code, Section 371. As part of his plea agreement, Castrillo agreed to pay restitution to the IRS in the total amount of $523,172.
According to court documents, Castrillo was a principal owner of Dezca Enterprises, Inc. (Dezca), a Florida corporation primarily involved in the construction industry. Castrillo conspired with the owners of shell corporations to cash Dezca corporate checks so that the defendant could use the proceeds to pay Dezca employees’ wages in cash. Castrillo’s scheme created the appearance that Dezca subcontracted construction projects with bona fide subcontractors, when in reality the defendant just used these shell corporations as a way to cash checks and pay his employees’ wages in cash, thereby impairing the IRS’ ability to determine Dezca’s correct employment tax liabilities.
Specifically, Castrillo wrote Dezca corporate checks totaling approximately $3,570,366 to at least seven different shell companies. The owners of these shell companies cashed the checks, and provided the proceeds, minus a fee, back to the defendant. Castrillo paid the wages of Dezca employees with these proceeds, and therefore, willfully evaded quarterly federal employment taxes from 2007 through 2010 in the amount of $523,172.
Castrillo is scheduled to be sentenced on July 14, 2016 at 9:45 a.m. before United States District Judge Federico A. Moreno. At sentencing, Castrillo faces a maximum statutory sentence of five years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Kevin J. Larsen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Business Owner Indicted for Failing to Establish an Effective Anti-Money Laundering ProgramRead the Press Release
ATLANTA – A federal grand jury has indicted Daniel Barrs for willfully failing to follow anti-money laundering requirements under the Bank Secrecy Act as well as conspiracy to commit money laundering for his role in operating a money transmitting business that processed hundreds of millions of dollars’ worth of financial transactions for entities located around the world.
“Our country requires financial institutions to guard against money laundering, terrorist financing, and financial fraud,” said U. S. Attorney John Horn. “Individuals in the financial services industry who willfully avoid complying with the Bank Secrecy Act are not only engaging in highly risky behavior that facilitates dangerous activities, they also risk criminal prosecution.”
“This indictment is a culmination of many months of intense investigative efforts and document review and the matter now moves into federal court. The federal Bank Secrecy Act is in place for very good reason and the FBI will continue to provide investigative resources toward its enforcement,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This joint effort continues to demonstrate our efforts to ensure that the financial services industry will not be used to launder money and will be operated in a fair and honest manner to promote the public interest,” stated Veronica Hyman-Pillot Special Agent in Charge, IRS Criminal Investigation. “Among the goals of this effort are: protecting the integrity and stability of the international financial system, cutting off the resources available to criminals, and making it more difficult for those engaged in crime to profit from their criminal activities.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: Barrs ran a money transmitting business located in the Atlanta area named “Global Transaction Services” (GTS) along with several interrelated entities that transmitted hundreds of millions of dollars’ worth of wires on behalf of customers located around the world, many of whom Barrs knew were not able to obtain access to U.S. banking on their own and were sending or receiving wires from countries that posed money laundering concerns. GTS was marketed as a company that could minimize the costs associated with transactions from entities located in one country and customers in other countries. The Bank Secrecy Act requires money transmitters like GTS to guard against money laundering and illegal activity by developing, implementing, and maintaining an effective anti-money laundering program. Money transmitters that identify certain types of suspicious financial transactions are also typically required to file a “Suspicious Activity Report” (SAR) with the U.S. Department of Treasury, Financial Crimes Enforcement Network.
The indictment alleges that Barrs took steps that ensured that GTS did not have an effective anti-money laundering program even though he knew it was critical that the company maintained one. Barrs hired individuals with no experience with the BSA - such as his teenage grandson - to be the compliance officers, failed to train GTS employees to comply with the BSA, and ignored warnings from independent examiners that GTS’s compliance program was inefficient. He also took various steps to help GTS obtain bank accounts even though domestic financial institutions repeatedly closed GTS accounts.
At one point, Barrs became a controlling owner over a community bank based in Braselton, Georgia, so that GTS could process millions of dollars’ worth of international wires, even though federal regulators opposed his efforts. At one other point, Barrs created a shell consulting company so that GTS could obtain a bank account under false pretenses.
As a result of Barrs’ willful failure to develop, implement, and maintain an effective anti-money laundering program, GTS failed to have sufficient procedures in place to guard against money laundering. Notably, from 2009 through the end of December 2014, GTS failed to file a single SAR.
The indictment lists various examples of the types of transactions that GTS processed while Barrs ran the company, none of which resulted in the timely filing of a SAR. For example, GTS transmitted wires totaling over $700,000 for two entities even though publicly available press releases from the U.S. Department of Justice and Federal Bureau of Investigation stated that the entities had been charged with running a large-scale offshore asset protection, securities fraud, and money laundering scheme. GTS transmitted wires totaling over $900,000 for another entity even though a publicly available press release from the U.S. Department of Justice stated that an individual under indictment for operating a Ponzi scheme had used the entity to commit the offense.
In another example, GTS transmitted wires totaling over $1.5 million for a Cyprus-based company that had a limited public profile, with no website or business listings, and that was listed on various publicly available websites as being associated with potential fraudulent credit card charges.
In yet another example, GTS transmitted wires totaling over $2 million on behalf of a Belize-based company that was publicly listed in various websites as being associated with illegal spamming activity and internet fraud.
A substantial portion of GTS’ business also came from processing transactions related to the Iraqi dinar. The indictment alleges that Barrs knew that regulators had concerns regarding the sale of the Iraqi dinar and whether it was part of a scam. GTS facilitated the transfer of hundreds of thousands of dollars between an Iraqi dinar exchanger and an individual in Japan who was purchased dinar in bulk for sale to his/her own customer base in Japan. The Japan reseller submitted dozens of wires that listed the remittance reference as “purpose to buy antique books.” At one point, the Chief Operating Officer of the Iraqi dinar exchanger forwarded a “Confirmation/Statement of Remittance” to GTS that indicated that the Japan reseller was transmitting money “to buy antique books.” However, GTS failed to file a SAR on any of these transactions.
Daniel Barrs, 67, of the United Kingdom, was charged with one count of willful failure to maintain an effective anti-money laundering program and one count of money laundering conspiracy.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation and Federal Bureau of Investigation.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Buffalo Man Indicted on Charges of Production and Possession of Child PornogrphyRead 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 a federal grand jury has returned an eight count superseding indictment charging Daniel G. Sasiadek, 61, of Buffalo, NY, with production of child pornography and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the superseding indictment, during the execution of a search warrant at the defendant’s Wheelock Street residence in Buffalo in July, 2015, numerous computer devices were seized. Further analysis revealed that Sasiadek produced and possessed child pornography.
The defendant has been in custody since his arrest in July 2015. He was arraigned on the superseding indictment today before U.S. Magistrate Judge Hugh B. Scott and continues to be held.
The indictment is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
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.
Bergen County, New Jersey, Woman Admits Check Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted her role in conspiring to deposit more than $1 million in fraudulent checks into different bank accounts, U.S. Attorney Paul J. Fishman announced.
Chunhua Jin, 45, of Ridgefield, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with one count of bank fraud conspiracy.
According to documents filed in this case and statements made in court:
From July 2014 to April 2015, Jin and others opened accounts at banks, such as Bank of America, in the names of fake businesses. The conspirators then made small deposits and withdrawals over several weeks to make the accounts appear legitimate. Jin or a conspirator would eventually deposit a fake check for a large dollar amount into the account. The victim banks typically credited some or all of the deposit amount on the fake check for immediate withdrawal. The conspirators then withdrew as much money as possible from the account before the bank realized that the check was fraudulent and blocked further withdrawals. Jin and others made ATM cash withdrawals, submitted cash withdrawal slips and make debit card purchases on merchandise. Jin admitted that the scheme resulted in a loss to the banks of at least $1.7 million.
The charge to which Jin pleaded guilty carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for Aug. 24, 2016.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; investigators from the Middlesex County Prosecutor=s Office, under the direction of Prosecutor Andrew C. Carey; and investigators from the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Peter Weiner Esq., Union City, New Jersey
Baltimore Real Estate Agent Pleads Guilty in $736,000 Mortgage Fraud Scheme Involving Baltimore City PropertiesRead the Press Release
Baltimore, Maryland – Michael Gerard Camphor, age 60, of Baltimore, pleaded guilty today to charges arising from the fraudulent purchase of four properties in Baltimore, using fraudulent loan documentation and straw purchasers, resulting in losses of over $736,000.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to Camphor’s plea agreement and other court documents, since 2002, co-conspirator Andreas Tamaris purchased, renovated, and then resold distressed row houses in Baltimore City, primarily in the Highlandtown neighborhood. Camphor had worked as a real estate agent for a company and also operated a real estate consulting business called Ron Gerard LLC, a/k/a Ron Gerard & Associates.
From approximately February 2008 to July 2009, Camphor and his co-conspirators, including Cecil Chester, found buyers for Tamaris’ properties and for other property owners. They sought potential buyers who were inexperienced with residential real estate transactions. Camphor and his co-conspirators advised these “straw purchasers,” who lacked the funds needed to pay the down payment and closing costs that they didn’t need to contribute these funds to buy the properties. Because the straw purchasers also lacked the earnings to keep up the mortgage payments, the conspirators typically advised that they would place tenants in the properties whose rent payments would cover the monthly mortgage payments after the transactions closed. The conspirators promised to collect the rent and make the mortgage payments.
Camphor and his co-conspirators set the purchase price for the properties to exceed their actual fair market value, thereby generating excess proceeds from the transactions from which they could profit. The conspirators provided false information about the straw purchasers’ employment, income and financial assets to the mortgage loan brokers to enable the straw purchasers to qualify for home mortgage loans. The conspirators falsely indicated to the mortgage loan brokers that the straw purchasers each intended to use the property as their primary residence following the purchase. Tamaris and other individuals supplied the funds needed for the down payment and closing costs on each of the transactions, and were in turn reimbursed from the loan proceeds at settlement.
One of the conspirators brought the straw purchaser to the closing and then caused the straw purchaser to falsely sign certifications in the closing documents affirming that the property was to be used as the primary residence, and that no portion of the down payment and closing costs were borrowed. Following the settlement on each transaction in which they participated, Camphor and his co-conspirators received substantial payments drawn from the proceeds of the loan.
Few, if any, payments were made towards the mortgages.
Camphor was integrally involved in the fraud scheme by which four of the properties handled by the conspirators were sold and financed: 126 S. Curley Street; 1720 W. Pratt Street; 322 S. Robinson Street; and 8020 Gough Street, all located in Baltimore. All four properties went into foreclosure, resulting in a loss of at least $736,748.46.
Camphor has agreed to forfeit property retained or obtained as a result of the fraudulent conspiracy, including 1619 W. Baltimore Street; 2040 Linden Avenue, Unit A, and 1610 N. Smallwood Street, all located in Baltimore.
Camphor faces a maximum sentence of 30 years in prison and a $250,000 fine for conspiring to commit wire and mail fraud, and for wire fraud. U.S. District Judge James K. Bredar has scheduled sentencing for August 26, 2016 at 11:30 a.m.
Cecil Sylvester Chester, age 69, of Mitchellville, Maryland previously pleaded guilty to the same charges and is scheduled to be sentenced on October 4, 2016 at 10:00 a.m.
In a related proceeding, co-conspirator Andreas E. Tamaris, age 45, of Bel Air, Maryland, previously pleaded guilty to one count of conspiracy to commit mail and wire fraud. Alexander Sivels, II, age 32, of Baltimore, previously pleaded guilty to wire fraud involving the fraudulent purchase of at least nine properties in Baltimore. Both Tamaris and Sivels are scheduled to be sentenced on September 27, 2016.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available at http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI, HUD OIG - Office of Investigations and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
Armed Heroin Trafficker Sentenced to 7 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MELVIN CASTRO, also known as “Humacoa,” 23, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment, followed by five years of supervised release, for trafficking heroin and selling firearms.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
The investigation revealed that CASTRO controlled the distribution of heroin in the Park Street, Babcock Street and Zion Street area of Hartford. On 12 occasions, CASTRO sold a total of 2,704 bags of heroin to an individual working with law enforcement. Wiretaps also captured numerous conversations in which CASTRO orchestrated hundreds of additional sales of heroin. In addition, the Task Force orchestrated the purchase of six firearms from CASTRO during the investigation.
CASTRO has been detained since his arrest on June 15, 2015. On February 3, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 100 grams or more of heroin.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Arizona Man Pleads Guilty to Heroin Trafficking Charge Arising Out of Four-Pound Heroin Seizure in New MexicoRead the Press Release
ALBUQUERQUE –Sergio Marin Ambriz, 21, of Phoenix, Ariz., pled guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge arising out of a DEA seizure of more than four pounds of heroin in Jan. 2016.
Ambriz was arrested on Jan. 20, 2016, and was charged in a criminal complaint with a heroin trafficking offense after the DEA seized approximately 1.90 kilograms (4.18 pounds) of heroin from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The heroin was contained in three bundles that were concealed inside a pair of jeans in Ambriz’s luggage.
Ambriz was subsequently indicted on Feb. 9, 2016, and charged with possession of heroin with intent to distribute on Jan. 20, 2016, in Bernalillo County, N.M.
During today’s proceedings, Ambriz pled guilty to a felony information charging him with possession of heroin with intent to distribute. In entering the guilty plea, Ambriz admitted transporting heroin from Phoenix, Ariz., to New Mexico on a Greyhound bus by concealing the heroin in his luggage. Ambriz further admitted that he had intended to deliver the heroin to Tulsa, Okla.
Ambriz remains in federal custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a statutory maximum penalty of 20 years in prison.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, Bernalillo County Commissioner Maggie Hart Stebbins, Albuquerque City Councilor Diane Gibson, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Another Member of Methamphetamine Conspiracy Pleads guiltyRead the Press Release
ABINGDON, VIRGINIA – Another member of a conspiracy that distributed methamphetamine in and around Virginia and Kentucky pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon, John P. Fishwick Jr. announced.
Robert Holman, 34, pled guilty yesterday to one count of conspiring to possess with the intent to distribute and to distribute methamphetamine.
“Methamphetamine is highly addictive and often leads to other crimes, such as property crime, violence and domestic abuse,” United States Attorney John P. Fishwick Jr. said today. “We are proud to work with our partners on the local, state and federal levels to fight the scourge of trafficking throughout our region.”
The investigation of the case was conducted by the Bell County, Kentucky Sheriff’s Office, the Middlesborough, Kentucky Police Department, the Lee County Virginia Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives Bristol and Atlanta Field Divisions. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Anoka Hennepin Drug Task Force Makes Largest Seizure of Methamphetamine in Minnesota HistoryRead the Press Release
United States Attorney Andrew M. Luger today announced a federal criminal complaint charging DOLORES LUDMILLA CASTILLO, 40, and FRANCISCO SILVESTRE-MARTINEZ, 27, possessing with intent to distribute more than 140 pounds of methamphetamine. The defendants made initial appearances on May 11, 2016, in U.S. District Court in Minneapolis, Minn.
“This is what successful collaborative law enforcement efforts can do,” said Anoka County Sheriff James Stuart. “I am very proud of the team that worked so hard to make this operation a success. Let this be a clear message to those who would try to poison our communities in the name of evil greed; we will continue in this hunt and we will find you.”
“DEA takes the trafficking of methamphetamine in Minnesota very seriously,” said Assistant Special Agent in Charge Kent Bailey. “Working with our local law enforcement partners on the Anoka Hennepin Drug Task Force, we are taking dangerous drugs off the streets. The seizure of more than 140 pounds of methamphetamine announced today is but one example of the work we do every day to keep Minnesotans safe.”
According to the criminal complaint and documents filed in court, since September 2015, the DEA and the Anoka Hennepin Drug Task Force (AHDTF) have been conducting an investigation into the drug activity of a Nicholas Nelson, who was believed to be involved in the sale multi-ounce to multi-pound quantities of methamphetamine.
According to the criminal complaint and documents filed in court, in March and April 2016, authorities conducted a number of undercover purchases of methamphetamine from Nelson. During the course of the investigation, law enforcement came to believe that a particular home in Brooklyn Center, Minn., was being used a storage facility for methamphetamine.
According to the criminal complaint and documents filed in court, on May 9, 2016, officers seized approximately 140 pounds of methamphetamine from home in Brooklyn Center. Some of the methamphetamine had been divided into quart-sized bags in one pound increments. Officers also recovered documents indicating that CASTILLO and SILVESTRE-MARTINEZ were the primary residents of the home.
According to the criminal complaint and documents filed in court, on May 10, 2016, CASTILLO and SILVESTRE-MARTINEZ were arrested at a home in Maplewood, Minn., with approximately two pounds of methamphetamine. Officers also found $130,000 in cash.
This case is the result of an investigation conducted by the United States Drug Enforcement Administration and the Anoka Hennepin Drug Task Force.
This case is being prosecuted by Assistant United States Attorney David P. Steinkamp.
Defendant Information:
DOLORES LUDMILLA CASTILLO, 40
Maplewood, Minn.
Charges:
- Possession with intent to distribute methamphetamine, 1 count
FRANCISCO SILVESTRE-MARTINEZ, 27
Maplewood, Minn.
Charges:
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Possession with intent to distribute methamphetamine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
12 May 2016
Windsor Mill Woman Indicted for Allegedly Injecting Non-Medical Grade Silicone into the Bodies of Victim CustomersRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Kendra Westmoreland, age 54, of Windsor Mill, Maryland, on charges of receiving and delivering an adulterated or misbranded device, in connection with her alleged receipt and use of Polydimethylsiloxane which she misrepresented as medical grade silicone. The indictment was returned on May 11, 2016.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Mark McCormack of the U.S. Food & Drug Administration, Office of Criminal Investigations’ Metro Washington Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to the indictment, from October 2000 through October 4, 2015, Westmoreland received polydimethylsiloxane, a silicon-based organic polymer, from China that she injected directly into the bodies of victim customers for money or some other payment. When used in this fashion, liquid silicone is a medical device subject to the regulation of the Food and Drug Administration (FDA). Polydimethylsiloxane is not approved, exclusively or as a component, for body-contouring. Polydimethylsiloxane is used in the manufacture of shampoos (to make hair shiny and slippery), food (as an antifoaming agent), caulking, lubricants, kinetic sand, and heat-resistant tiles.
The indictment alleges that Westmoreland intentionally defrauded and misled individuals by representing polydimethylsiloxane as “medical grade” silicone and approved for injecting directly into the human body. As a result of her representations, victim customers came to her residence in Windsor Mill to have polydimethylsiloxane injected directly into their buttocks and other places on their bodies, for larger and fuller buttocks or to shape other areas of their bodies. Westmoreland also traveled to Miami, Florida, and other locations, for the same purpose. According to the indictment, Westmoreland stored the polydimethylsiloxone in a plastic container that was not properly labeled for medical use, nor was Westmoreland a licensed medical practitioner or under the supervision of a licensed medical practitioner.
If convicted, Westmoreland faces a maximum sentence of three years in prison. An initial appearance is expected to be scheduled soon in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended FDA Office of Criminal Investigations and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case
United States Attorney Barbara McQuade Commemorates 10th Anniversary of Project Safe ChildhoodRead the Press Release
More than 350 students and parents attended a community forum on Child Exploitation, Prevention and Enforcement hosted by Southgate Anderson High School this morning, announced United States Attorney Barbara L. McQuade.
The event was held to commemorate the tenth anniversary of Project Safe Childhood, a Department of Justice nationwide initiative launched in 2006 to combat child sexual exploitation.
The event consisted of presentations from experienced prosecutors about the dangers of online activity, including how online predators extort children for sexually explicit images and videos. This criminal activity, commonly called sextortion, has become a growing concern across the country. U.S. Attorney McQuade and her assistant prosecutors highlighted some sextortion prosecutions, while former Wayne County Sheriff’s Deputy Erin Diamond described the latest technology and the dangers lurking online. The panel also provided parents and students with an opportunity to ask questions regarding their online activity.
"I have been astonished by the number of online predators who are extorting teens, McQuade said. "We need to tell teens that they should never be too ashamed to tell their parents or another adult that they have been the victim of sextortion. Reporting sextortion to police is the only way to stop a predator from exploiting you, and may also help rescue other victims."
The event provided an opportunity for the public to become more aware of the United States Attorney’s Offices aggressive approach to raising awareness and educating the public on ways to prevent the future sexual exploitation of children.
U.S. Attorney McQuade expressed thanks to Southgate Anderson High School Superintendent Leslie Hainrihar and Assistant Principal Dave Pinkowski for hosting the event and to the students and parents who attended and to the team of dedicated prosecutors and law enforcement who successfully put together the event.
U.S. Postal Service Mail Carrier Sentenced for Narcotics ConspiracyRead the Press Release
Memphis, TN – A U.S. Postal Service mail carrier has been sentenced for conspiring to distribute oxycodone and marijuana through the mail. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to the information presented in court, Frederick Burton, 52, of Memphis, had been employed as a mail carrier since 2001. Between late 2013 and the spring of 2014, Burton arranged with the leaders of a drug trafficking organization to have express mail packages containing controlled substances mailed to addresses on his mail route. In exchange for cash, Burton would divert those packages to members of the drug trafficking organization. Law enforcement investigators captured surveillance on over two dozen instances which showed Burton diverting packages to persons off of his assigned postal route. A conservative estimate revealed that Burton distributed over 800 kilograms of marijuana and oxycodone.
In February 2016, Burton pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone, and one count of conspiracy to possess with intent to distribute and to distribute marijuana.
On Wednesday, May 11, 2016, Burton was sentenced by U.S. District Judge Sheryl Lipman to five years imprisonment. In sentencing Burton, Judge Lipman noted the abuse of a position of public trust, considering Burton’s long career with the Postal Service. Burton is currently on leave without pay from the Postal Service.
This case was investigated by the Drug Enforcement Administration, U.S. Postal Inspectors, and the U.S. Postal Service Office of the Inspector General.
Assistant U.S. Attorney Reagan Taylor prosecuted this case on the government’s behalf.
U.S. Attorney Announces Winners of the First Annual “Do the Write Thing Challenge" in AshevilleRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced the two essay contest winners of the First Annual “Do the Write Thing Challenge” (DtWT) during an awards ceremony held this evening at The Crest Center in Asheville. This is the first year Buncombe County Schools and Asheville City Schools have participated in the writing challenge.
The “Do the Write Thing Challenge” is a program of the National Campaign to Stop Violence. Each year, participating 6th, 7th and 8th grade students are challenged to examine and write about the impact of youth violence in their lives, to come up with solutions and ways to address and change the culture of violence, and to make a personal commitment to stand against violence.
A total of 341 essays from both school districts were submitted for consideration. The essays of twelve students were selected and the finalists were honored at this evening’s ceremony. Rontae Harper, a 6th grader with Asheville City Schools and Jordan Gillespie a 7th grader with Buncombe County Schools, were announced as this year’s winners of the DtWT Challenge.
As DtWT National Ambassadors, Rontae and Jordan, their parents/guardians and the teachers who submitted their essays will be invited to participate in the “Do the Write Thing Challenge National Recognition Week” in Washington, D.C. During this all-expense-paid trip, the students will have an opportunity to meet their elected representatives, visit national monuments and have their works placed in the Library of Congress.
Speaking at today’s event, U.S. Attorney Rose congratulated the two winners and the finalists for their accomplishments. She also thanked all the participants of the writing contest, noting that all the students who submitted essays have taken an important first step against violence.
“One of the priorities of the Department of Justice is to reduce violent crime. Those of us in law enforcement, whether state, local or federal, acknowledge that prevention is crucial in reducing violent crime in our neighborhoods. Community involvement and community commitment are critical and the voices and ideas of our youth in these preventive efforts must be encouraged. ‘Do the Write Thing’ does just that and the U.S. Attorney’s Office is thrilled to be a partner in this program.” said U.S. Attorney Rose who chairs the DtWT committee.
U.S. Attorney Rose also thanked and recognized the Asheville City Schools, the Buncombe City Schools, the Asheville Police Department, the Buncombe County Sheriff’s Office, the Asheville Housing Authority and the community organization Changing Together for partnering with the U.S. Attorney’s Office to form the committee.
For more information on the National “Do the Write Thing Challenge” program please visit http://www.dtwt.org.
Two New Haven Men Charged with Federal Carjacking OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on April 7, 2016, a federal grand jury in New Haven returned an indictment charging ELBERT LLORRENS, 23, and KYLE VALENTINE, 24, both of New Haven, with federal carjacking offenses.
The indictment alleges that, on January 1, 2016, LLORRENS and VALENTINE used a firearm and threats of violence to steal a 2015 Volkswagon Passat from two victims in Meriden. The indictment further alleges that, on January 5, 2016, LLORRENS used a firearm and threats of violence to steal a 2006 Chevy Cobalt from a victim in New Haven.
The indictment charges LLORRENS with two counts, and VALENTINE with one count, of taking a motor vehicle from a person by force and violence or by intimidation, an offense that carries a maximum term of imprisonment of 15 years.
The indictment was unsealed yesterday when LLORRENS and VALENTINE, who had been in state custody, appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and pleaded not guilty to the charges. The defendants were ordered detained pending trial.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the East Haven, Meriden, Milford and New Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Two Georgian Brothers Indicted for Attempted Extortion and Embezzlement of Suboxone ClinicRead the Press Release
BOSTON – Two brothers were arrested today and charged in connection with attempting to extort the co-owner of a suboxone clinic in Quincy and embezzling money from the clinic.
David Tkhilaishvili, 36, and Jambulat Tkhilaishvili, 46, both of Taunton, were indicted on one count of conspiring to extort and one count of attempted extortion. David Tkhilaishvili was also indicted on two counts of embezzlement. Both men were arrested this morning and will appear this afternoon in U.S. District Court in Boston.
According to the indictment, in 2014, the brothers approached the co-owner of a Quincy suboxone clinic and asked him to invest in a new suboxone clinic. The Tkhilaishvili brothers claimed to have many years of experience in running medical clinics, including suboxone clinics. To convince the victim to invest, the Tkhilaishvilis allegedly promised to repay the victim 50% of his investment in the clinic within five years if the business failed, with 5% interest per year, in the event that the victim did not recover his investment in the clinic. In December 2014, the victim agreed to invest in the clinic and, because of the size of his investment, insisted upon significant contractual protections including that he would have full decision making authority over matters involving the clinic. The Tkhilaishvili brothers agreed, however, shortly thereafter, they began to demand that the victim surrender his ownership interest and threatened him and his family with physical injury. One of the brothers allegedly told the victim that he had made nine people and their families, who had a problem with him in the past, disappear. On multiple occasions, both brothers threatened to physically harm the victim and his family and to burn down the clinic if the victim did not comply with their demands. In addition, one of the brothers embezzled approximately $3,500 from the clinic.
The charge of conspiracy to extort and attempted extortion provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of embezzlement provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Laura J. Kaplan of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Buffalo Men Indicted on Heroin and Cocaine ChargesRead 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 a federal grand jury has returned a 12-count superseding indictment charging Manuel Freire, a/k/a Barney, 34, and Jose Feliciano-Miranda, a/k/a Palomo, 35, both of Buffalo, NY, with conspiracy to possess with intent to distribute, and to distribute one kilogram or more of heroin and five kilograms or more of cocaine, possession with intent to distribute, and distribution of heroin, possession with intent to distribute, and distribution of cocaine, maintaining a drug-involved premises, and possession of a firearm in furtherance of drug trafficking crimes. The charges carry a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that according to the indictment and previously filed complaints, law enforcement officers executed a search warrant at Freire’s bakery at 247 Niagara Street in Buffalo on April 1, 2016. Hidden inside a mixer were approximately 400 grams heroin and 600 grams of cocaine.
Officers also executed a search warrant at Feliciano-Miranda’s residence and recovered a quantity of heroin and a loaded Glock firearm. A search of Feliciano-Miranda’s vehicle revealed a sophisticated hydraulic “trap” or hidden compartment that had been built into the cargo area.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and are being detained.The indictment is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. hunt, New York Field Division, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard, the Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, and the U.S. Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski. The task force includes representatives of the Amherst Police Department, the Buffalo Police Department the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, the Town of Tonawanda Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations.
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.Three dealers sentenced to Federal prison for drug crimesRead the Press Release
CHARLESTON, W.Va. – Three men were sentenced today to federal prison for drug crimes, announced Acting United States Attorney Carol Casto.
Terrance Dewayne Hayes, 30, of Welch, was sentenced to a year and four months in federal prison for distribution of heroin. Hayes previously pleaded guilty in February 2016, admitting that he distributed heroin to a confidential informant in Havaco in McDowell County on June 15, 2015.
Keith Joseph Alfred, 43, of Princeton, was sentenced to eight months in federal prison for distribution of hydromorphone. Alfred pled guilty in January 2016, admitting that he distributed hydromorphone pills to a confidential informant in Bluewell in Mercer County on October 22, 2013.
Stephen Wayne Steele, 42, of Bluefield, was sentenced to six months in federal prison for distribution of hydromorphone. Steele previously pleaded guilty in February 2016. He admitted that on April 7, 2015, he distributed hydromorphone pills to a confidential informant in Green Valley in Mercer County.
All of the defendants were sentenced to three years of supervised release to be completed after their prison terms.
These cases were investigated by the Southern Regional Drug and Violent Crime Task Force. Assistant United States Attorney John File handled the prosecutions. Senior United States District Judge David A. Faber imposed the sentences.
These cases were brought as part of the Bluefield Pill Initiative, an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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