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Thursday 24 March 2016
Former Judge Sentenced to 10 Years for Accepting Bribe During His Arkansas Court of Appeals CampaignRead the Press Release
A former state circuit judge in Arkansas was sentenced today to 120 months for accepting a bribe in exchange for reducing a negligence verdict against a company in Conway, Arkansas, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and First Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas.
Michael A. Maggio, 54, of Conway, was sentenced by Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas. Maggio pleaded guilty on Jan. 9, 2015, to a one-count information charging him with bribery concerning programs receiving federal funds.
As part of his plea agreement, Maggio admitted that in 2013, he served as an elected circuit judge for the state of Arkansas, 20th Judicial District, Second Division, and presided over a civil matter in Faulkner County, Arkansas, Circuit Court, in which a jury awarded a plaintiff $5.2 million in damages against a nursing home company. Maggio admitted that, while the company’s post-trial motions for new trial or to reduce the amount of damages awarded were pending, he formally announced his candidacy for the Arkansas Court of Appeals.
Two weeks later, the owner of the nursing home company donated approximately $24,000 to Maggio’s campaign, and the following day Maggio reduced the verdict to $1 million. Before making his decision, Maggio admitted that a fundraiser for his campaign discussed the pending post-trial motions with him and told him that the company’s owner had committed money to support his campaign. As part of his plea, Maggio admitted that his decision to remit the judgment was caused by the donations and that he attempted to delete text messages between the fundraiser and himself after the media became aware of the bribes.
The FBI’s Little Rock Field Office investigated the case. Trial Attorneys Edward P. Sullivan and Charles Walsh of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas prosecuted the case.
Former Judge Sentenced to 10 Years for Accepting Bribes During His Arkansas Court of Appeals CampaignRead the Press Release
WASHINGTON – A former state circuit judge in Arkansas was sentenced today to 120 months for accepting a bribe in exchange for reducing a negligence verdict against a company in Conway, Arkansas, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and First Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas.
Michael A. Maggio, 54, of Conway, was sentenced by Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas. Maggio pleaded guilty on Jan. 9, 2015, to a one-count information charging him with bribery concerning programs receiving federal funds.
As part of his plea agreement, Maggio admitted that in 2013, he served as an elected circuit judge for the state of Arkansas, 20th Judicial District, Second Division, and presided over a civil matter in Faulkner County, Arkansas, Circuit Court, in which a jury awarded a plaintiff $5.2 million in damages against a nursing home company. Maggio admitted that, while the company’s post-trial motions for new trial or to reduce the amount of damages awarded were pending, he formally announced his candidacy for the Arkansas Court of Appeals.
Two weeks later, the owner of the nursing home company donated approximately $24,000 to Maggio’s campaign, and the following day Maggio reduced the verdict to $1 million. Before making his decision, Maggio admitted that a fundraiser for his campaign discussed the pending post-trial motions with him and told him that the company’s owner had committed money to support his campaign. As part of his plea, Maggio admitted that his decision to remit the judgment was caused by the donations and that he attempted to delete text messages between the fundraiser and himself after the media became aware of the bribes.
The FBI’s Little Rock Field Office investigated the case. Trial Attorneys Edward P. Sullivan and Charles Walsh of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas prosecuted the case.
Former CEO of Karlise In-Home Care Sentenced in Federal CourtRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The former CEO of a home health care provider that operated in the Western District of Virginia, and who previously pled guilty to a pair of federal criminal charges, was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville, announced United States Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring.
Amanda Moye Randolph, 43, of Palmyra, Virginia, pled guilty in October 2015 to one count of theft of public money and one count of falsification of records in relation to a federal investigation. Today in District Court, Randolph was sentenced to eight months in federal prison, to be followed by three years of supervised release, the first eight months of which must be served in some alternate form of incarceration. Randolph was also ordered to pay $136,574 in restitution.
“Medicaid and other social programs are in place to help those in our communities who are truly in need of assistance,” United States Attorney John P. Fishwick said today. “When individuals like Ms. Randolph steal from these important social programs, they must be held accountable. I am grateful to be able to work with the Office of the Attorney General on this case, as always, the Medicaid Fraud Unit did great work in bringing this case together.”
“We will always work to hold providers accountable for fraudulent and illegal business practices that steal from taxpayers and from vulnerable individuals who rely on these important programs for medical care. Our close relationships with state and federal partners, including the U.S Attorney’s office and the Department of Medical Assistance Services, are key to successfully pursuing these cases,” said Virginia Attorney General Mark R. Herring.
According to evidence presented at previous hearings by Assistant United States Attorney Ronald Huber, Randolph was the CEO of Karlise In-Home Care, a Medicaid home health care provider, from April 2008 to June 2014. From around December 2008 to April 2014, Randolph knowingly concealed her employment at Karlise from the United States Social Security Administration and the United States Department of Health and Human Services during the application for, and continued receipt of, disability benefits and supplement security income benefits. An accounting completed by those two agencies concluded that Randolph received $80,735 in connection with these fraudulent schemes.
In January 2013, the Medicaid Fraud Control Unit of the Virginia Office of the Attorney General initiated a criminal investigation of Karlise following a complaint that Randolph had fabricated missing documentation from patient files. In furtherance of this investigation, the Department of Medical Assistance Services [DMAS] conducted a series of on-site audits of Karlise and requested to examine specific patient files that had previously been submitted for billing. Prior to turning these files over to auditors, Randolph examined these forms, determined that they were missing required information and/or signatures and, in turn, forged this information in order to prevent DMAS auditors from discovering discrepancies in Karlise patient files.
Randolph was aware that if discrepancies were discovered by DMAS, Karlise would in turn be required to reimburse Medicaid for the incorrectly documented services.
A subsequent review by the Medicaid Fraud Control Unit for the Virginia Office of the Attorney General has concluded that Medicaid incurred a loss of $55,838 as a result of the falsified documentation in Karlise patient files.
The investigation of the case was conducted by Medicaid Fraud Control Unit for the Virginia Office of the Attorney General, the Department of Medical Assistance Services, the Department of Health and Human Services, and the Social Security Administration. Assistant United States Attorney Ronald Huber prosecuted the case for the United States.
Former Business Owner Sentenced to Prison for Criminal Employment Tax ViolationsRead the Press Release
PHOENIX – Gregory S. Ott, 65, of Prescott, Ariz., was sentenced by Senior United States District Judge Fredrick J. Martone to 12 months in prison for evading the payment of federal employment taxes he collected from numerous small business owner clients. Ott had previously pleaded guilty to evasion of payment of tax.
“The collection and payment of Federal payroll taxes is an important duty of all law-abiding business owners. In this case, the defendant willfully diverted client funds for his personal use. IRS-Criminal Investigation will continue its efforts to detect and investigate this type of tax fraud,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr.
Ott owned and operated Xpress Pay, Inc., a professional employment organization in Scottsdale that contracted with small business owners to provide payroll services including the preparation of federal employment tax returns and the payment of employment taxes owed by these small businesses to the IRS. Ott and Xpress Pay collected the taxes directly from their clients by accessing the clients’ bank accounts. Instead of making the required federal tax payments to the IRS in full, Ott transferred substantial amounts of money to his personal bank accounts and used the money to pay his own expenses. In 2010, Ott’s conduct resulted in a $568,279.00 tax loss.
In addition to the prison sentence, Ott was ordered to serve 3 years of supervised release upon his release from prison, pay a $10,000 fine, perform 150 hours of community service, and to fully cooperate with the IRS in the determination and collection of taxes, penalties, and interest due and owing.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Assistant U.S. Attorneys Monica Edelstein and Bridget Minder.
CASE NUMBER: CR-14-08133-PHX-PGR
RELEASE NUMBER: 2016-25_Ott
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Former Bloomington Parks Department office manager sentenced in fraud caseRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the sentencing of a former Bloomington Parks Department office manager for her role in an elaborate fraud and embezzlement scheme. Judith A. Seigle, 52, Gosport, Indiana, was sentenced to 24 months in federal prison by U. S. District Judge William T. Lawrence.
“The citizens of Bloomington deserve better from their paid city employees,” said Minkler. “Public officials need to serve the public, not themselves. The projects and programs of the Park’s Department exist to benefit the citizens of Bloomington, not Ms. Seigle.”
As office manager, Seigle was responsible for maintaining the books for the Parks Department and the Bloomington Community Parks and Recreation Foundation, a 501(c)(3) charitable organization that receives donations and supports Bloomington’s parks and community programs. In particular, the Foundation provides scholarships for children to participate in park programs and summer camps.
For over 13 years, until she was caught in October 2014, Seigle diverted, embezzled, and misappropriated over $430,000 in Foundation and Parks Department funds for her personal use and benefit. Seigle used Foundation credit cards to make purchases for her personal use and she caused numerous fund transfers from Foundation and Parks Department bank accounts to her personal bank and credit card accounts. Seigle concealed her scheme by creating false bank statements and, for several years, providing them every month to the Foundation’s executive director and others, with whom she had worked for almost 20 years.
"This was a collaborative effort by all agencies involved to make sure that tax dollars are used the way they were intended and hold accountable those who seek to use them for their own benefit,” said Andrew Shank, State Board of Accounts Director of Special Investigations.
According to Assistant United States Attorney Nick Linder and Senior Litigation Counsel Steve DeBrota, who prosecuted this case for the United States, Seigle must serve three years of supervised release after her sentence and make restitution of over $430,000.
The investigation was conducted by the FBI, the Bloomington Police Department, the Indiana State Board of Accounts and with assistance from the Monroe County Prosecutor’s Office.
Flint Man Indicted on Perjury Charges Following His Testimony in Federal CourtRead the Press Release
A 25-year-old Flint man was arraigned on March 18 on a two-count indictment charging him with making false declarations before a court, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by ATF Special Agent in Charge S. Robin Shoemaker.
The indictment alleges that Dion A. Polk, II, testified falsely in the federal trial of Rashad J. Jones on January 20 in Flint. Jones, a five-time felon, was on trial before U.S. District Judge Terrence G. Berg on charges of being a felon in possession of ammunition. Polk falsely testified at the trial that he, not Jones, possessed the ammunition magazine recovered by the police on June 29, 2015. Polk further falsely testified that the ammunition magazine pertained to a firearm that he owned and possessed on that same day.
Additional evidence at trial, however, revealed that the firearm was owned by another individual at the time of the charged offense, and that Polk had purchased the firearm only recently, just weeks before the start of Jones’ trial.
“Lying under oath is a serious offense because the justice system depends on truthful testimony,” McQuade said. “Witnesses who commit perjury and obstruct justice will be prosecuted and held accountable for their crimes.”
“ATF along with our state and local partners will aggressively investigate violent crimes to include those that falsify information to bring those accountable for violating the laws to justice,” said ATF Special Agent in Charge S. Robin Shoemaker.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed not guilty unless convicted at trial by a jury.
If convicted, Polk faces a maximum statutory penalty of five years in federal prison for each count.
The case is being prosecuted by the Flint Branch of the United States Attorney’s Office with the assistance of special agents from the ATF.
Financial Services Company Executive Pleads Guilty to Obstruction of JusticeRead the Press Release
CHARLOTTE, N.C. – The CEO of Preferred Merchants LLC, a financial services company based in Napa, California, pleaded guilty yesterday to engaging in an elaborate obstruction of justice scheme to conceal millions of dollars—which were subject to a freeze order and seizure warrant—from the government using a series of offshore accounts, domestic and foreign nominee accounts, a shell company and related bank and brokerage accounts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge Michael Rolin of the U.S. Secret Service’s Charlotte, North Carolina, Field Division and Special Agent in Charge Thomas J. Holloman III of the Internal Revenue Service-Criminal Investigation (IRS-CI) Charlotte Field Office made the announcement.
Jaymes Meyer, aka James Meyer, 47, of Napa, pleaded guilty yesterday before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina in Charlotte to obstruction of justice.
According to the plea agreement, in or about 2012, the U.S. Securities and Exchange Commission’s (SEC’s) Division of Enforcement commenced a securities fraud investigation concerning a Ponzi scheme centering on Rex Ventures Group LLC (RVG), a North Carolina-based company for which Preferred Merchants held millions in assets in treasury and trust accounts. As a result of its investigation, the SEC filed a civil enforcement action against RVG, after which the court entered a freeze order that appointed a receiver and froze all of RVG’s assets. Among other things, the receiver was responsible for marshaling, managing and distributing remaining RVG assets to impacted RVG investors. In addition to the freeze order, the U.S. Secret Service also obtained a seizure warrant of RVG assets held by Meyer through Preferred Merchants. Meyer admitted that in August 2012, the SEC informed him of, among other things, the investigation and the court order freezing RVG’s assets and requested that Meyer freeze any RVG assets in his possession, custody or control.
According to the plea agreement, in response to this request, Meyer misled the SEC by falsely implying that Preferred Merchants did not exercise dominion or control over any RVG assets when, in fact, Meyer controlled approximately $17.4 million in RVG assets. Meyer further admitted that he wired approximately $4.8 million from an RVG trust account to a brokerage account under his control within an hour of learning about the SEC’s investigation. Over the next 10 months, Meyer used that money to purchase homes in Napa and the Turks and Caicos, to which he subsequently made $1.5 million in improvements, and withdrew approximately $195,000 in cash. He also established a Cook Islands-based trust account, formed a shell company and opened a brokerage account in the shell company’s name to further conceal the trail of RVG assets subject to the freeze order and seizure warrant.
Meyer also admitted that throughout the pending civil litigation surrounding the RVG scheme, he made fraudulent and misleading statements to the U.S. District Court for the Western District of North Carolina, the SEC and the court-appointed receiver during depositions.
In connection with his plea agreement, Meyer agreed to pay an approximately $4.8 million money judgment and to forfeit the homes that he purchased in the Turks and Caicos and Napa as proceeds of the obstruction of justice offense.
The U.S. Secret Service and the IRS-CI investigated the case.
Assistant U.S. Attorney Mark T. Odulio of the Western District of North Carolina and Trial Attorney Kevin Lowell of the Criminal Division’s Asset Forfeiture and Money Laundering Section-Bank Integrity Unit are prosecuting the case.
Federal Jury Finds Carlsbad Man Guilty of Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict today finding Mia Coy Campbell guilty of being a felon in possession of a firearm. The guilty verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division and Commander James McCormick of the Pecos Valley Drug Task Force (PVDTF).
Campbell, 32, of Carlsbad, N.M., was arrested on Oct. 8, 2015, on a criminal complaint charging him with being a felon in possession of a firearm on Sept. 24, 2015, in Eddy County, N.M. Campbell was subsequently indicted on the same charge on Nov. 5, 2015. Campbell was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of methamphetamine with intent to distribute and escape of a prisoner in custody of a correctional institution or officer.
The trial of Campbell on the indictment began on March 22, 2016 and concluded today when the jury returned a verdict finding Campbell guilty on the sole count of the indictment. The evidence at trial established that on Sept. 24, 2015, PVDTF and FBI agents went to Campbell’s residence and arrested him on an outstanding federal arrest warrant. Campbell was arrested as he was walking away from a canopy that had a partially disassembled go-cart underneath. When arrested, Campbell’s hands were dirty and greasy and it appeared as if he had been working on the go-cart. A smoldering Marlboro cigarette that was near a tool bag by the go-cart drew an officer’s attention to the tool bag where the officer found a firearm. A search of Campbell incident to arrest revealed that he had a pack of Marlboro cigarettes in his pocket containing the same type of cigarette that was smoldering on the ground near the go-cart.
Campbell has been in custody since his arrest in Oct. 2015, and will remain detained pending a sentencing hearing which has yet to be scheduled. At sentencing, Campbell faces a statutory maximum penalty of 10 years in federal prison.
The case was investigated by the Las Cruces office of the FBI and the Pecos Valley Drug Task Force with assistance from the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorneys Randy M. Castellano and John Andrew Balla of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Federal Jury Convicts Antioch Man of Child Pornography ChargesRead the Press Release
Christopher N. Bonick, 31, of Antioch, Tennessee, was found guilty by a federal jury yesterday of attempting to entice a minor to engage in sexual activity and possession of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee. The jury returned a guilty verdict following a 2-day trial before U.S. District Judge Aleta Trauger.
Evidence produced at trial showed that, in July of 2010 Bonick began communicating online with an individual he initially believed to be a 13 year old girl. On July 27, 2011, Bonick engaged in a lengthy sexually explicit chat with this person, who, unknown to him, was actually an undercover investigator in Louisiana. Bonick, who believed the individual to be 14 years old, asked her if she would be willing to engage in sexual activity with him. He also discussed having previously met a 15 year- old girl online and had traveled to have sex with her.
The evidence at trial also showed that Bonick had previously communicated with numerous minors online, had solicited child pornography from them, and had traded child pornography with other individuals via email. Bonick was in possession of dozens of images of child pornography when a search warrant was served at his home in Antioch in January 2012 at which time he admitted that he was sexually attracted to minors.
Bonick will be sentenced by Judge Aleta Trauger on July 11, 2016, at 2:00 p.m. He faces 10 years to life in prison and a fine of up to $250,000.
The case was investigated by the Metropolitan Nashville Police Department and the Louisiana Department of Justice-Cyber Crime Unit. The case was prosecuted by Assistant U.S. Attorneys Carrie Daughtrey and Henry Leventis.
El Paso Man Sentenced to 20 Years in Federal Prison for Receipt and Distribution of Child PornographyRead the Press Release
In El Paso today, 27-year-old Ignacio Gallegos was sentenced to 20 years in federal prison for receipt and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, United States District Judge Kathleen Cardone ordered that Gallegos be placed on supervised release for 10 years after completing his prison term.
On January 5, 2016, Gallegos pleaded guilty to one count of receipt and distribution of child pornography and one count of possession of material involving the sexual exploitation of children. By pleading guilty, Gallegos admitted that he received, possessed and distributed visual depictions of children engaging in sexual explicit conduct.
Gallegos has remained in federal custody since his arrest by HSI agents on May 28, 2015.
“This sentence sends a sobering message to child predators, who are under the impression they can hide in cyberspace,” said Waldemar Rodriguez, Special Agent in Charge of HSI El Paso. “HSI has the tools and training to identify, arrest and help get these individuals out of our society.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
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Denver Man Sentenced for Failure to Pay Millions in Employment TaxesRead the Press Release
DENVER – Lucilious J. Ward, age 65, of Denver, Colorado, was sentenced to serve 26 months in federal prison, followed by 3 years of supervised release by U.S. District Court Judge Lewis T. Babcock for failure to account for and pay over the employment taxes withheld from his employees’ paychecks and making a false claim against the United States, United States Attorney John Walsh and IRS Criminal Investigation Acting Special Agent in Charge Kevin J. Caramucci announced. Ward, who appeared at the hearing free on bond, was ordered to surrender to a U.S. Bureau of Prisons institution within 15 days of designation. In addition to the prison sentence, the defendant was ordered to pay $5,955,231.28 in restitution to the IRS.
Ward was charged first by indictment on October 2, 2012. He pled guilty before Judge Babcock on January 3, 2014. He was sentenced on March 23, 2016. On September 8, 2011, Special Agents with IRS Criminal Investigation executed a search warrant on Ward’s business, Global Access, LLC, dba, Global Transportation (“Global Access”), located at 5455 East 52nd Avenue, Commerce City, Colorado.
According to the facts contained in the Indictment as well as the stipulated facts contained in the plea agreement, since at least 2004, Ward has owned and operated Global Access. Global Access has provided public and private transportation services including hotel and airport shuttles, para transit services, and charter bus tours. Its largest client has been the Regional Transportation District (“RTD”), which contracted with Global Access to provide a portion of RTD’s Access-a-Ride bus services. RTD has paid Global Access more than $35,000,000 during the period 2003 through 2012, and Global Access incurred substantial costs under the RTD contract. During this time, the Internal Revenue Code required Global Access to withhold its employees' shares of Federal Insurance Contribution Act taxes ("FICA" or social security and Medicare taxes) and income taxes (collectively referred to as "employment taxes") from the salaries or wages of its employees, and to account for and pay over the withheld amounts to the IRS.
From January 2005 through the second quarter in 2011, Ward withheld employment taxes from Global Access’s employees’ paychecks. Ward knowingly and willfully failed to file with the IRS Forms 941 (employment tax forms) as required by law and failed to pay to the IRS the employment taxes that Ward had withheld from their paychecks. With the exception of the first quarter of 2008 which was paid in part and filed automatically by a payroll company Ward hired. Ward also failed to pay the required employer’s matching portion of FICA. Rather than paying the IRS the employment taxes owed by Global Access, Ward kept that money in Global Access’s bank account(s) and spent it on a variety of expenses.
At the end of 2008 Global Access’s office manager recommended to Ward that he elect to have a payroll company take care of paying the employment taxes for Global Access; however, defendant Ward declined. Furthermore, a CPA who performed various accounting functions for Global Access and Ward repeatedly told Ward about Global Access’s growing employment tax liability, he needed to pay these taxes, and about the consequences associated with not paying these taxes.
Additionally, in 2010, Ward filed with the IRS an amended personal tax return (Form 1040X) for the tax year 2007 which falsely claimed that $76,479.44 of federal income tax withholdings had been withheld from his paychecks by Global Access and paid to the IRS. At the time Ward filed this Form 1040X, he knew that he and Global Access had not paid to the IRS the $76,479.44. Ward intentionally filed this false return so that he would be assessed a refund of $76,479 to which he was not legitimately entitled.
“Businesses have a legal responsibility to collect and pay employment taxes,” said U.S. Attorney John Walsh. “In this case, the defendant failed to pay employment taxes, and as a result, he was held accountable not only by being sent to federal prison, but also by having to pay millions of dollars to the IRS, payments that could ultimately follow him for the rest of his life.”
“Business owners have a significant responsibility to collect and turn over all withholding taxes to the IRS as this can have an impact on their employees, who may see future benefits such as Social Security, Medicare or Unemployment Compensation reduced or eliminated because of their employers not complying with the law," said Kevin J. Caramucci Acting Special Agent in Charge, IRS Criminal Investigation, Denver Field Office “As this sentence demonstrates, there are real consequences for committing employment tax fraud.”
This case was investigated by IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Defendant Pleads Guilty to Extortion and Firearm ChargesRead the Press Release
Yesterday, at the federal courthouse in Brooklyn, New York, Denis Nikolla pleaded guilty to two counts of Hobbs Act extortion conspiracy, one count of threatening physical violence in furtherance of an extortion plan, and one count of brandishing a firearm. The proceeding took place before United States District Judge Eric N. Vitaliano. When sentenced, Nikolla faces up to life in prison and a mandatory minimum sentence of seven years. One of his co-defendants, Besnik Llakatura, who served as a police officer with the New York City Police Department during the charged crimes, previously pleaded guilty in this case.
The plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and William J. Bratton, Commissioner, New York Police Department.
According to prior court filings and facts presented during the plea proceeding, between May and November 2013, Nikolla, Llakatura and their co-defendant conspired and attempted to extort a Queens restaurant owner, demanding regular payments in exchange for so-called “protection.” The extortion began shortly after the victim opened a restaurant in Astoria when he was visited by the co-defendant and told that he had opened a business in “our neighborhood” and, as a result, “you have to pay us” $4,000 per month. The restaurant owner sought help from his friend Llakatura. Unbeknownst to him, Llakatura, an NYPD officer in Staten Island since 2006, was conspiring with the co-defendant in the extortion. Llakatura actively discouraged the restaurant owner from going to the police and sought to leverage his position of trust as a friend and a police officer to persuade the victim that he had no choice but to make the demanded payments, warning the victim that the co-defendant and his associates would physically harm him if he did not pay. When the victim resisted, Nikolla threatened him with physical violence and chased him at gunpoint down the street in Queens. Over the course of five months, each of the three defendants took turns collecting monthly payments from the Astoria restaurant owner, ultimately collecting $24,000 in so-called protection money.
Between April 2012 and November 2013, Nikolla and the co-defendant also conspired and attempted to extort the proceeds of two nightclubs located in Queens, New York, and used a firearm in their efforts to do so. In or about April 2012, around the time that one of the clubs was opened, Nikolla approached the owner with an extortion demand, indicating to the victim that other businesses in the area were paying him for so-called “protection.” Nikolla demanded $200 per week from the owner for each of the two nightclubs. After the owner refused to pay, Nikolla retrieved a firearm from the codefendant’s side, stuck the firearm in owner’s ribs, and informed the owner that if he wasn’t paid, Nikolla would come to the owner’s house and beat up the owner in front of the owner’s wife and children.
Finally, during 2013, Nikolla, Llakatura, and the co-defendant also conspired and attempted to extort a proprietor of two social clubs in Astoria. Nikolla, accompanied by the co-defendant, made the initial extortion demand, seeking payments of $1,000 per week from the proprietor for so-called “protection.” The proprietor refused to make the demanded payments and ceased going to his social clubs out of fear for his safety. Court-authorized wiretaps of the defendants’ telephones revealed evidence of Nikolla’s participation in this extortion conspiracy with Llakatura and the co-defendant, and their attempts to locate the victim. In one instance, Nikolla, Llakatura, and the co-defendant threatened, punched, and pulled a gun on a friend of the victim in an effort to make the friend locate the victim. The victim ultimately fled to a foreign country for a period of time to avoid the defendants’ extortionate threats.
Mr. Capers expressed his thanks to members of the Joint Organized Crime Task Force, which includes agents of the FBI and detectives of the NYPD, which led the investigation, as well as the NYPD’s Internal Affairs Division and the FBI’s Public Corruption squad for their cooperation and assistance in the investigation.
The co-defendant is scheduled to commence trial later this month.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia Shihata and Patrick Hein are in charge of the prosecution.
The Defendant:
DENIS NIKOLLA
Age: 35
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-668 (ENV)
Council Bluffs Woman Sentenced to Prison for Drug User in Possession of a Firearm ChargeRead the Press Release
COUNCIL BLUFFS, IA – On March 24, 2016, Sarah D. Long, 35, of Council Bluffs was sentenced by Chief United States District Court Judge John A. Jarvey to 30 months in prison, announced Acting United States Attorney Kevin E. VanderSchel. Long was also sentenced to three years of supervised release to follow her prison term.
Long pleaded guilty to drug user in possession of a firearm on December 3, 2015. She admitted that on or about August 11, 2015, she was arrested by the Council Bluffs Police Department for operating a stolen vehicle. At the time of her arrest, she was found to be in possession of methamphetamine, drug paraphernalia, and a loaded 9 mm handgun.
This investigation was conducted by the Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Craigslist Fraudster Who Was on the Lam for Four Years is Sentenced to 84 Months in Federal PrisonRead the Press Release
DALLAS — Phillip Sean Anthony, 32, of Grand Prairie, Texas, was sentenced today by U.S. District Judge Ed Kinkeade to 84 months (seven years) in federal prison and ordered to pay restitution to his victims. The sentencing follows Anthony’s guilty plea in June 2015 to one count of mail fraud and one count of aggravated identity theft. The announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Anthony was indicted by a federal grand jury in Dallas in March 2011 on five counts of mail fraud and two counts of aggravated identity theft stemming from an identity theft scheme he ran from approximately mid-June 2008 to early December 2009 using Craigslist. He agreed to plead guilty to one count of mail fraud and one count of aggravated identity theft in plea papers that were filed in October 2011, but he failed to appear in court as ordered for his rearraignment on October 25, 2011.
Approximately four years later, Anthony was located in Irving, Texas, after absconding to California for three years. In February 2015, the government filed a motion for detention which was granted by U.S. Magistrate Judge Paul D. Stickney, who found that Anthony had violated the terms of his pretrial release. Judge Stickney further found that Anthony had been committing new crimes continuously since absconding in 2011 and had used more than 30 different names, which were stolen identities, had stolen more than $200,000 from his victims, and then after stealing the identities, sold them to others for additional money
According to plea documents, Anthony admitted that he placed dozens of false job postings on Craigslist for “customer service representative” and “reservation agent” positons with various airlines. He placed the ads on the local Craigslist site where the airline was based, including ads in Chicago for United Airlines; Orlando, Florida, for Air Tran Airways; and in New York City for JetBlue Airways. When contacted by prospective applicants, Anthony claimed to be a representative of the respective airline-employer. He explained the application process and then forwarded each applicant a job application that was on the respective company’s letterhead and appeared authentic.
Anthony admitted that he used the information that prospective applicants put on the applications he received, such as name, address, date of birth and Social Security number, to open accounts with various online wireless service and device providers, such as LetsTalk.com, Simplexity.com and Wirefly.com. He also purchased activated smartphones from these online retailers using these identities stolen from the job applications.
Anthony also purchased prepaid debit cards and registered them in the names of the stolen identities after loading a nominal amount of funds onto each card. He then used these debit cards to reserve hotel rooms throughout the country in the names of the stolen identities. He provided these hotel addresses as the residential address to the online phone retailer and instructed them to send the smartphones to that address. Once the phones were shipped, Anthony would call the hotel and cancel the reservation, explaining to the hotel representative that he was expecting a package and to forward it to his office in Irving. Anthony then sold the fraudulently-obtained phones for a fraction of their value.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
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Colorado Woman and Man Arrested and Charged with Production and Transportation of Child Pornography Involving an InfantRead the Press Release
DENVER –Brandi Leonard, and Richard Hennis, both of Colorado, were arrested for production of child pornography involving an infant victim, U.S. Attorney John Walsh, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge David A. Thompson, and Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department announced.
According to evidence presented in open court, as well as arguments outlined in a public filing, in the course of online chats that occurred between Leonard and Hennis spanning approximately two months, Leonard told Hennis that she had sexually abused an infant. Hennis encouraged Leonard to sexually abuse the infant again, to take pictures of or video the abuse, and to send them to him. She did. Law enforcement recovered the pictures that Leonard produced of the infant from Hennis’s phone.
Around the same time that Leonard was sexually abusing the infant, she was also corresponding by email with nannies4hire.com and care.com, which are websites that provide services including connecting child-care providers with those who need child care.
Finally, during their chats, the two defendants discuss in graphic detail kidnapping, raping, killing and dismembering a child between the ages of 4 and 8 years. Leonard twice during the chat indicated that she didn’t intend to go through with it, yet she continued to engage in such chats with Hennis.
A U.S. Magistrate Judge held a detention hearing for Leonard on March 17th 2016. Leonard was ordered released on bond conditions that included home incarceration. The government appealed the order. Senior U.S. District Court Judge Lewis T. Babcock issued an emergency stay of the release order, and ultimately U.S. District Court Judge R. Brooke Jackson ordered Leonard detained without bond pending a resolution of her case. A U.S. Magistrate Judge held a detention hearing on March 22, 2016 resulted in Hennis also being ordered held without bond.
Leonard is currently charged with one count of Production of Child Pornography, which carries a penalty of not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine. She also faces one count of Transportation of Child Pornography, which carries a penalty of not less than 5 years, and not more than 20 years in federal prison, and up to a $250,000 fine. Hennis faces one count of Production of Child Pornography, which carries a penalty of not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine. He faces one count of Advertisement of Child Pornography, which carries a penalty of not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine. He also faces one count of Transportation of Child Pornography, which carries a penalty of not less than 5 years, and not more than 20 years in federal prison, and up to a $250,000 fine.
This case was investigated by HSI and the Colorado Springs Police Department’s ICAC Unit.
The defendants are being prosecuted by Assistant U.S. Attorney Alecia Riewerts.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury. The charges contained in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Chester County Man Pleads Guilty to Telemarketing ScamRead the Press Release
PHILADELPHIA - Marc Roy Ferry, 35, of Downingtown, PA, pleaded guilty today to one count of wire fraud and two counts of money laundering in connection with a telemarketing scheme that bilked tens of thousands of senior citizens out of more than $13 million. U.S. District Court Judge Gerald A. McHugh, Jr. scheduled a sentencing hearing for June 22, 2016.
According to court documents, between 2009 and March 2014, Ferry and Ari Tietolman, charged elsewhere, and others, used Tietolman’s network of telemarketers in Canada and India to target American senior citizens with deceptive telemarketing calls. They sold worthless or non-existent services and then debited the victims’ bank accounts without their informed consent. Using the business names Fraud Watch, Patient Assistance Plus, Legal Eye and Trust One, the worthless or non-existent services these telemarketers sold included purported fraud protection and discounted legal services, as well as a discount prescription card. Tietolman and others, it is alleged, had been running the scheme since at least 2005.
During the calls, Tietolman’s telemarketers made various false representations, such as that they were calling on behalf of, or were affiliated with, the victim’s bank, or insurance company, or the United States government. In addition to misrepresenting the value of the products being marketed, Tietolman’s telemarketers also misrepresented the cost of these products, sometimes telling consumers the products were free, or less expensive than the amount that was ultimately debited from the consumers’ bank accounts. In other instances, Tietolman’s telemarketers assured consumers they would not debit the consumers’ bank accounts, and then did just that after the consumer provided their bank account information.
Tietolman allegedly attempted to conceal his involvement in the scheme by employing defendant Marc Roy Ferry and others to run “front” companies - including First Consumers, LLC - and process the fraud money. Ferry admitted that Tietolman paid him and others to form corporations in the United States. The sole purpose of these corporations was to process the fraud proceeds generated by the telemarketing scheme. Tietolman, according to court documents, instructed Ferry and others to open up numerous bank accounts in the United States in the names of the fraud companies that they had incorporated. Ferry sent Tietolman online logins and passwords so Tietolman and others could control these United States bank accounts from Canada.
Tietolman allegedly sent Ferry and others bank account information for the victims in the United States. Using computer programs and printers allegedly provided by Tietolman, Ferry and others used the victims’ bank account information to print remotely created checks (“RCCs”), in the United States. The RCCs were all made payable to the fraud companies and did not require a signature by the account holder. Because these RCCs did not require the account holder’s consent each time a check was created and submitted to the bank for payment, the account holder-victim had no opportunity to object or prevent the debit from occurring. Ferry and others deposited the RCCs in bank accounts held by the fraud companies, allegedly per Tietolman’s instructions. Tietolman, according to court documents, instructed Ferry and others to deposit the RCCs in batches of less than $10,000 to avoid federally-mandated reporting requirements. After the checks were deposited, Tietolman instructed Ferry and others to wire the majority of the funds to accounts in Canada.
Ferry faces a maximum possible sentence of 70 years in prison; three years of supervised release; a fine of $750,000 or up to double the amount involved in the money laundering; and a $300 special assessment. Ferry will also be ordered to pay restitution to the victims.
The case was investigated by the FBI, IRS Criminal Investigations, U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Federal Trade Commission, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Vineet Gauri.
Cheektowaga Woman Sentenced for Bank Robbery and Making A False Statement to the FbiRead 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 Angelina Kurtz, 20, of Cheektowaga, NY, who was convicted of bank robbery and making a false statement to the FBI, was sentenced to time served, six months of home detention with an ankle bracelet, two years supervised release, and ordered to pay $543.00 to Key Bank in restitution.
Assistant U.S. Attorney Meghan A. Tokash, who prosecuted the case, stated that Kurtz robbed the Key Bank located at 2318 Delaware Avenue in Buffalo. The defendant handed the teller a note demanding $20,000 in cash and threatening the teller that she had a .45 caliber gun with her that she would use if dye packs or alarms disrupted the robbery plot.
Kurtz also made a false statement to investigators after she was arrested.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.California Deputy Sheriff and Three Others Charged in York County Drug Trafficking ConspiracyRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg has indicted four individuals, including a former deputy sheriff, in a drug conspiracy that trafficked between Northern California and York County, Pennsylvania.
According to United States Attorney Peter Smith, Yuba County, California Deputy Sheriff Christopher Mark Heath, 37; Tyler Neil Long, 32; Ryan Jay Falsone, 27; and Ramona Marcel Long, 56, all of whom reside in the Oroville, California area, were charged in a 19-count indictment with conspiracy to manufacture and distribute marijuana, and conspiracy to launder drug proceeds. The indictment alleges that the conspiracy involved 100 kilograms and more of marijuana. The indictment also charges one or more defendants with delivering marijuana on specific days. Heath is charged with possessing a firearm in furtherance of drug trafficking.
The indictment alleges that the four defendants participated in a conspiracy that began in approximately September 2014 and continued to January 7, 2016. During this time, Heath was a deputy sheriff in Yuba County, California, assigned as a narcotics investigator. Heath has since resigned. Ramona Long was a Lead Service and Sales Associate working in the U.S. Post Office in Oroville. The defendants allegedly grew marijuana on property in Oroville, and shipped it mainly through the United States Postal Service to several locations, including post office boxes in York New Salem and Mountville, Pennsylvania, as well as to a home address in the Hanover area. Money to purchase additional marijuana was mailed from locations in and around York County to a post office box in Bangor, California.
Ramona Long, the mother of Tyler Neil Long and the mother-in-law of Christopher Mark Heath, is alleged to have used her position as a supervisor in the post office to allow packages of marijuana and drug proceeds to be shipped to and from the post office. Approximately 200 pounds of marijuana and $500,000 in drug proceeds were shipped between California and Pennsylvania in this fashion.
According to the Indictment, the conspirators also allegedly transported marijuana by motor vehicle from California to several locations, including York County. Beginning on approximately December 27, 2015, Heath, Long, and Falsone traveled from California to York County in two vehicles. Heath’s vehicle contained a quantity of marijuana. Heath also traveled with a loaded Glock firearm that he was authorized to carry in connection with his position as a deputy sheriff and a deputy sheriff’s badge. Heath, Long, and Falsone were arrested by the York County Drug Task Force and Penn Township, York County, Police.
Akeia Conner, Internal Revenue Service, Special Agent in Charge, said “Today’s indictment of four individuals operating an interstate drug organization is only achieved through the tireless efforts of all the agencies involved. The Internal Revenue Service, Criminal Investigation proudly provides the financial expertise that dismantles the laundering of the drug proceeds which fuel these conspiracies.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement on this investigation and will continue to vigorously protect the U.S. Mail against all forms of criminal misuse.”
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigations, the York County Drug Task Force, Penn Township Police, the Butte County, California Sheriff’s Department, the United States Postal Inspection Service and United States Postal Service Office of Inspector General. The United States Attorney’s Office for the Eastern District of California also provided assistance and cooperated with the investigation. Assistant U.S. Attorney Christy H. Fawcett has been assigned to prosecute the case.
Indictments are only allegations. All persons charged are presumed innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute 100 kilograms and more of marijuana is 40 years’ imprisonment, lifetime supervised release, and a $2,000,000 fine. The offense carries a mandatory minimum sentence of five years’ imprisonment. The maximum penalty upon conviction of conspiracy to commit money laundering is 20years’ imprisonment, a fine of $500,000 or twice the value of the laundered funds, whichever is greater, and three years’ supervised release. Each count of manufacture, distribution and possession with intent to manufacture and distribute carries a maximum term of imprisonment of 20 years, a $1,000,000 fine, and lifetime supervised release. The maximum penalty for the offense of possessing a firearm in furtherance of drug trafficking is life, a three-year term of supervised release, and a $250,000 fine. The mandatory minimum sentence for possessing a firearm in furtherance of drug trafficking is five years’ imprisonment to be served consecutively to any other sentence imposed.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicate of the potential sentence for a specific defendant.
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Broward County Resident Convicted for his Participation in a Stolen Identity Tax Fraud SchemeRead the Press Release
Following a three-day trial before United States District Court Judge Kenneth A. Marra, a jury convicted a Lauderhill resident for his participation in a stolen identity tax fraud scheme which occurred in Palm Beach and Broward Counties.
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.
Jean Daniel Julien, of Lauderhill, was convicted of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of theft of government money, in violation of Title 18, United States Code, Section 641.
According to evidence presented at trial, Julien received a $56,000 U.S. Treasury refund check in the name of “D.H.” Another individual opened a bank account in D.H.’s name, and the defendant deposited the refund check into this account. Julien then deposited a $55,000 starter check written on the D.H. account into a business account opened by Julien’s wife. During the next two days, most of the $55,000 was withdrawn from the account.
Julien is scheduled to be sentenced by United States District Court Judge Kenneth A. Marra on June 10, 2016. At sentencing, Julien faces up to thirty years in prison for the conspiracy charge, and up to ten years in prison for the theft of government money charge.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney William Zloch.
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.
Bois D'Arc Man Sentenced for Bank Fraud Related to $1.6 Million HomeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bois D’Arc, Mo., business owner was sentenced in federal court today for a bank fraud scheme related to the construction of his $1.6 million residence.
Michael R. Ussery, 58, of Bois D’Arc, was sentenced by U.S. District Judge M. Douglas Harpool to two years in federal prison without parole. The court also ordered Ussery to pay $1.3 million in restitution to Mid-Missouri Bank.
On Oct. 30, 2015, Ussery was convicted at trial of 12 counts of bank fraud. Ussery was the owner/operator of two businesses in 2007, USS Properties and Villa Properties, both of which purchased real estate for residential development.
During this time, Ussery also was building a $1.6 million home for himself in Bois D’Arc. Mid-Missouri Bank agreed to provide a $1.6 million construction loan to build the residence; $1.15 million was used to pay off the previous bank which had financed the construction of the residence up to that point, and the remaining $450,000 was supposed to have gone to completing the construction of the residence. When persons worked on the house, Ussery was supposed to obtain an invoice and a lien waiver from the contractors and submit these documents to Mid-Missouri Bank, which would then make a disbursement of the amount owed to Ussery’s personal bank account.
A dozen invoices and lien waivers totaling $315,417 were submitted to Mid-Missouri Bank from May 29 to June 25, 2007, purportedly from persons or companies building the residence, to draw money from the $1.6 million loan amount for construction of the residence. In fact, each invoice and lien waiver was false, faked or forged. They were either created by, or caused to be submitted by, Ussery, and contained materially false or fraudulent representations. The companies or persons who were indicated on the fraudulent invoices and lien waivers did not prepare or submit the invoices and lien waivers, did not perform the work on the property as indicated in the invoices, did not agree to waive any lien on the residence for work actually done on the property, and did not receive any payments for work done as indicated in the invoices. A handwriting expert testified that Ussery’s handwriting was on every false lien waiver document.
Along with the lien waivers and the invoices submitted, there were checks purported to have been written on Ussery’s checking account to the persons that Ussery claimed had done work on the residence. There is no record of any of these checks having been cashed by the contractors or businesses for which Ussery wrote out the checks. Representatives of these businesses testified that Ussery never provided them with the checks attached to the lien waivers, which had been attached to the disbursement forms as a record of the amount allegedly paid by Ussery to the business.
For example, Ussery admitted at trial that he signed one of the lien waivers for services provided by the Davis Cabinet Shop, a company operated by his father-in-law. The handwriting expert also concluded that Ussery wrote a $42,609 check to Davis Cabinet Shop, which was purported to be for cabinet work at the residence. This check was never cashed and the bank’s building inspector did not observe any cabinets in the house during the time of the construction of the house or later when the residence was eventually sold after foreclosure. During the trial, the person who purchased the Bois D’Arc residence at the foreclosure sale testified that Ussery approached him and asked him to testify that when he bought the property in the foreclosure sale that there was cabinet material in the house which corresponded to the Davis Cabinet Shop lien waiver. In exchange for this testimony, Ussery offered to loan him money. The new owner, however, testified at trial that when he purchased the residence, there was no cabinet material in the house, apart from scrap material in the garage, and there were no cabinets installed in the house.
Auditors at the bank visited the construction site in June and July of 2007 and saw nothing that would indicate that this amount had been spent on the construction of the residence, apart from the hanging of drywall. Mid-Missouri Bank actually deposited $315,417 into Ussery’s personal bank account based upon the fraudulent representations contained in the lien waiver and invoice documents.
Ussery wrote checks from his bank account where the loan amounts for his house were deposited to either of his two businesses. Afterwards, it appears that the money, which had been meant for building the house, was deposited instead into bank accounts relating to USS Properties or Villa Properties. This activity occurred while both businesses were under severe economic strain, which eventually led to their bankruptcy.
Ussery eventually stopped construction on the Bois D’Arc property and the bank had to foreclose on the loan. The bank took a $782,349 loss after the sale of the property with its partially finished house. The bank also paid a total of $103,257 to settle mechanic liens placed on the residence by the contractors that Ussery claimed he had paid in the false lien waivers. Ussery filed for bankruptcy relief in 2011.
Although not charged in the indictment, evidence introduced during the trial indicated that Ussery also committed similar fraudulent activity against a husband and wife who hired him to build a personal residence in Greene County, Mo. Ussery started construction of the house in 2007, but did not complete the project. The victim clients discovered that Ussery was providing false lien waivers to Great Southern Bank to obtain loan draws from the construction loan.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation, the U.S. Secret Service and the Springfield, Mo., Police Department.
Belen Man Sentenced to Five Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Darrell Ray Trammell, 66, of Belen, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 60 months in prison for his methamphetamine trafficking conviction. Trammell will be on supervised release for three years after he completes his prison sentence.
Trammell was arrested in Aug. 2014, on an indictment charging him and co-defendant Cynthia Boykin, 49, also of Belen, with participation in a conspiracy to distribute methamphetamine in Valencia County, N.M. According to the indictment, the conspiracy continued from Nov. 2013 to Jan. 2014. The indictment also charged Trammell and Boykin with distributing methamphetamine in Valencia County in Dec. 2013, and Trammell alone with distributing methamphetamine in Bernalillo County, N.M., in Jan. 2014.
On Sept. 15, 2015, Trammell pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the plea, Trammell admitted that on Jan. 8, 2014, he distributed methamphetamine to an undercover law enforcement officer in exchange for $1,700.00.
Co-defendant Boykin was arrested in March 2015. On May 20, 2015, Boykin pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. She admitted that on Dec. 12, 2013, she distributed three grams of methamphetamine to an undercover law enforcement officer. Boykin was sentenced on Sept. 24, 2015, to five months in federal prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorneys David M. Walsh and Stephen R. Kotz prosecuted the case.
Alabama Loan Company Employee Pleads Guilty to Stealing Identities Used to File False Income Tax ReturnsRead the Press Release
A Montgomery County, Alabama, resident pleaded guilty today to one count of conspiracy to commit wire fraud and one count of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. According to court documents, between January 2013 and August 2015, Wendy Huff, worked at two loan companies in Montgomery, Alabama, and had access to the means of identification of customers, including their names, social security numbers and dates of birth. Huff agreed to steal names from her employers and provide them to James Vernon Battle, identified as a co-conspirator in the indictment. The government alleges that Battle used those names to file over 335 returns claiming more than $400,000 in fraudulent refunds and that he directed the Internal Revenue Service (IRS) to issue the anticipated tax refunds in the form of prepaid debit cards and U.S. Treasury checks, which were mailed to addresses in Montgomery including Huff’s residence. Huff subsequently delivered the prepaid debit cards to Battle. The government further alleges that Battle brought several U.S. Treasury checks to Huff’s workplace where she used her position to cash them. Huff returned half of the proceeds to Battle and kept the balance for herself. Huff faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge, which will be in addition to any other term of imprisonment she receives. She also faces substantial monetary penalties and restitution. Sentencing is set for July 14. Battle’s trial is scheduled to begin during the week of April 11. Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who investigated the case and Trial Attorneys Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case. Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
24 Savannah Residents Charged with Federal Firearm, Drug Trafficking and Related OffensesRead the Press Release
SAVANNAH, GA – Federal indictments were unsealed yesterday revealing that 24 Savannah residents have been charged with federal firearms and drug-trafficking offenses. The federal indictments are the result of joint federal and state efforts to reduce violent crime and gang activities in the Savannah area. The focus of a joint ATF and Savannah-Chatham Metropolitan Police Department (SCMPD) operation was the Cann Park neighborhood, a small neighborhood near downtown Savannah that has seen a significant rise in crime. The criminal activities charged in the federal indictments all occurred in the Cann Park neighborhood.
The Savannah residents charged with federal crimes include:
Marquiel Bell, aka “Quelly,” aka “Julio,” 19,
Roemain R. Bennett, aka “Ratt,” 33,
Jesse Benton, 27,
Mario Grant, 33,
Benjamin Gordon, 43,
Jamal Hilton, aka “Jamel Hilton,” aka “Jamaal Hilton,” aka “Mel,” aka “Tommy Henderson II,” 31,
Jeremy James, 34,
Kristopher Kemp, 30,
Nicholas Kemp, 28,
Stephen Kemp, 25,
Jacqueline Mavity, 44,
Roy Mobley, aka “Grind,” 37,
Albert Morisette, 31,
Alekseyer X. Mungin, 37,
Rashaun Padgett, aka “Ray Ray,” 31,
Michael Porter, 36,
Marvin Roberts, aka “Steady,” 29,
Tony Small, 20,
Kareem Savage, aka “Rashaad Roberts,” 27,
Jamaine Wallace, 35,
Simmeon Whitfield, aka “Yon,” 26,
Xavier Whitfield, aka “Kenny,” 30,
Randy Williams, 32, and,
Travis Young, 35.
U.S. Attorney Edward Tarver said, “Citizens should be able to walk down the streets of their neighborhoods without the fear of drug activity and gang violence. The U.S. Attorney’s Office will work hand in hand with our federal and state law enforcement partners to remove dangerous criminals who traffick in guns, drugs and fear in the Savannah area. Some people are dangerous and need to go to prison. But, arresting criminals is not the only answer to Savannah’s violent crime problem. The U.S. Attorney’s Office will continue to provide its support to a number of other anti-crime initiatives, including recidivism reduction campaigns and the City’s “Step Forward” strategy. Working together, we can end the violent crime problems plaguing the great city of Savannah.”
“The overall impact of this investigation should be immediately realized by everyone living in the Cann Park community. ATF's primary mission is to reduce violent crime through effective partnerships with other Federal, state, and local law enforcement agencies, as evidenced by this investigation,” said Assistant Special Agent in Charge James Deir.
“This family-oriented community has been kept on edge for far too long due the high level of drug and gang activity,” said District Attorney Meg Heap. “We hope this recent operation will allow parents to let their children play in their own yards without fear.”
Savannah-Chatham Metropolitan Police Chief Joseph H. Lumpkin, Sr. said, “We certainly appreciate the help of the federal government and in this particular case the ATF, in building cases against these violent individuals and removing illegal guns from our street. We are confident the U.S. Attorney on the federal level and the District Attorney on the state level will pursue justice in each of these cases. We are going to continue such efforts with our local, state and federal criminal justice partners to improve public safety throughout our community.”
U.S. Attorney Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The operation was investigated by ATF and SCMPD, with assistance from the U.S. Marshals Service, the Chatham-Savannah Counter Narcotics Team (CNT) and the Chatham County Sheriff’s Office. Assistant United States Attorneys Greg Gilluly, Charlie Bourne and Jennifer Kirkland are prosecuting these cases for the United States. For any questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Wednesday 23 March 2016
Washington County Rapist Charged with Failing to Register as a Sex OffenderRead the Press Release
PITTSBURGH - A Washington County sex offender has been indicted by a federal grand jury in Pittsburgh on a charge of failing to register as a sex offender, United States Attorney David J. Hickton announced today.
The one-count indictment returned yesterday named Clayton Mitchell, 31, of Washington, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, from Oct. 23, 2015 to Feb. 16, 2016, Mitchell, who had been convicted of the felony sex offense of rape in 2010, failed, as required, to register and update a registration under the Sex Offender Registration and Notification Act.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Virginia Man Pleads Guilty to Assaulting A Flight Attendant on Jacksonville FlightRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Joseph Michael Sharkey (36, Reston, VA) has pleaded guilty to assault or intimidation of a flight attendant. He faces a maximum penalty of 20 years in federal prison. After pleading guilty yesterday, Sharkey was ordered to remain in custody pending a sentencing hearing, which has yet to be scheduled.
According to court documents, on January 31, 2016, Sharkey was a passenger on Jet Blue Flight 715 from Reagan National Airport in Washington, DC to Jacksonville International Airport (JIA). During the final 20 minutes of the flight, Sharkey attempted to place another passenger in a headlock. A flight attendant assisted that passenger and ordered Sharkey to take a seat. Sharkey at first complied but then kneed the flight attendant in the groin and stated that he was going to exit the airplane through an exit door. With the help of volunteers, the flight attendants subdued Sharkey and placed him in flex cuffs for the remainder of the flight. The airplane landed safely at JIA and Sharkey was removed from the flight by airport police.
This case was investigated by the Jacksonville Aviation Authority Police Department and the Jacksonville Office of the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Dale Campion.
U.S. Marshals Service National Operation Nets More Than 8,000 FugitivesRead the Press Release
Operation Violence Reduction12 Nabs Most Dangerous Criminals
Today, Deputy Attorney General Sally Q. Yates and U.S. Marshals Service Deputy Director David Harlow announced that for the second consecutive year, the U.S. Marshals Service has conducted a high-impact national fugitive apprehension initiative focusing on the country’s most violent offenders. This six-week initiative, called Operation Violence Reduction12 (Operation VR12), resulted in the arrest of 8,075 gang members, sex offenders and other violent criminals.
“Through Operation VR-12, over 8,000 violent fugitives who preyed on our communities were tracked down, arrested and put behind bars,” said Deputy Attorney General Yates. “Thanks to the strategic and focused efforts of the U.S. Marshals Service and their law enforcement partners, our nation’s streets are now rid of over 500 accused murderers, 600 gang members and nearly 1,000 sex offenders. Fugitives initiated gun battles, forced barricaded standoffs, assaulted officers and did everything they could to evade arrest – but our Deputy Marshals, together with their law enforcement partners, stood firm and succeeded in capturing the bad guys.”
“We applied a strategically focused approach to locate and apprehend the nation’s most dangerous fugitives,” said Deputy Director Harlow. “By removing these violent offenders from the streets, the communities they preyed upon can immediately feel more secure. Operation VR12 was about using our expertise and law enforcement partnerships to significantly impact our communities by focusing on the worst of the worst violent criminals.”
While Operation VR12 was conducted nationwide in all 94 federal judicial districts, U.S. Marshals focused special attention on 12 selected locations experiencing upticks in violent crime: Baltimore; Brooklyn, New York; Camden, New Jersey; Chicago; Compton, California; Fresno, California; Gary, Indiana; Milwaukee; New Orleans; Oakland, California; Savannah, Georgia; and Washington, D.C.
In order to have the greatest impact on violent crime, Operation VR12 focused on fugitives who had three or more prior felony arrests for crimes such as murder, attempted murder, robbery, aggravated assault, arson, abduction/kidnapping, weapon offenses, sexual assault, child molestation and narcotics. Operation VR12 investigators increased their focus on fugitives accused of sex crimes and on the recovery of missing children.
Between Feb. 1 and March 11, the U.S. Marshals Service used its multi-jurisdictional investigative authority and fugitive task force network to arrest 648 gang members and others wanted on charges including 559 for homicide; and 946 for sexual offenses. In addition, investigators seized 463 firearms, $390,360 in currency and more than 71 kilograms of illegal narcotics. Also during the operation, investigators recovered 17 children who had been abducted and reported missing.
Notable arrests:
Blake Edwards Fitzgerald and Brittany Nicole Harper were the focus of a multi-state investigation that received national media attention. Dubbed a modern-day Bonnie and Clyde, Fitzgerald and Harper were wanted in Missouri, Georgia, Alabama and Florida for multiple charges including kidnapping, armed robbery, burglary and firearms violations. After leading authorities on a multi-day, cat-and-mouse chase and two high-speed pursuits, the duo was located in Pensacola, Florida, on Feb. 5. Fitzgerald was mortally wounded in an exchange of gunfire with officers, while Harper sustained non-life threating gunshot wounds.
Sabino Avila, a documented member of the Two Sixer street gang, was wanted by the Chicago Police Department for home invasion and rape. On Feb. 9, Avila allegedly forced entry into the home of a 54-year-old woman, tied her up and sexually assaulted her. Local authorities asked U.S. Marshals for assistance in locating and apprehending the suspect. He was arrested without incident in Chicago on Feb. 14.
Carl Cooper was wanted by the Baltimore City Police Department for allegedly shooting two elderly siblings in front of a busy shopping center. He was named “Public Enemy #1” by Police Commissioner Kevin Davis. Operation VR12 investigators arrested Cooper in Fayetteville, North Carolina, on March 4.
“Fugitives have a propensity to commit violent criminal acts posing danger to communities and plaguing neighborhoods where we live and work.” said Deputy Director Harlow. “Working with our federal, state and local partners, enforcement initiatives like Operation VR12 severely cripple these criminal activities.”
The concept behind interagency law enforcement operations such as Operation VR12 evolved largely from regional and district task forces. Since the 1980s, the U.S. Marshals Service has combined their resources and expertise with local, state and federal agencies to find and apprehend dangerous fugitives. Operation VR12 continued this tradition.
For more information about Operation VR12, including photographs and B-roll footage, visit www.usmarshals.gov.
Two men charged with using firearms to rob Cleveland bankRead the Press Release
A federal grand jury indicted James J. Stites-Bray, 23, and Darnell E. Cosper, Jr., 18, both of Cleveland, for the armed robbery of a bank, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on November 16, 2015, Stites-Bray and Cosper entered the Fifth Third Bank located at 972 East 185 Street in Cleveland, and robbed the bank of $5,983. Both men carried a handgun, which they brandished and used in furtherance of the bank robbery, accordign to the indictment.
Additionally, the indictment further alleges that on November 25, 2016, Stites-Bray was arrested with a .380 caliber pistol, which he could not legally possess due to a prior felony conviction.
The Federal Bureau of Investigation conducted the investigation in conjunction with the Cleveland Division of Police, the Lakewood Police Department and the RTA Police Department. The case is being prosecuted by Assistant United States Attorney Kevin R. Filiatraut.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two drug dealers plead guilty to distributing pain pillsRead the Press Release
CHARLESTON, W.Va. – Two men pleaded guilty today to federal drug crimes, announced Acting United States Attorney Carol Casto. Willie Keaton Goodson III, 22, of Ronceverte, entered his guilty plea to distribution of oxymorphone. In a separate prosecution, David Pfost, 31, of Beckley, pleaded guilty to distributing oxycodone.
Goodson admitted that on October 22, 2015, he distributed oxymorphone pills at his Ronceverte residence to a confidential informant working with law enforcement. During the course of the investigation, authorities seized large quantities of oxymorphone, oxycodone, and heroin. Goodson also agreed to the forfeiture of approximately $103,000 seized by law enforcement. Goodson further admitted that he made the money from selling drugs. The forfeiture proceeding is pending in Greenbrier County Circuit Court. Goodson faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 30, 2016.
In a separate drug prosecution, Pfost admitted that on February 11, 2015, he distributed oxycodone to a confidential informant working with law enforcement. The drug deal took place on Washington Street in Beckley. Pfost faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 30, 2016.
The investigation of Goodson was conducted by the Greenbrier Valley Drug and Violent Crime Task Force. The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation of Pfost. The plea hearings were held before United States District Judge Irene C. Berger.
The Goodson case was prosecuted as part of the Greenbrier Valley Heroin and Pill Initiative. Both of these prosecutions were brought as part of 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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Two Charged with Smuggling Illegal AliensRead the Press Release
McALLEN, Texas – Federal agents executed a search warrant and two arrest warrants in Mission yesterday in an alien smuggling investigation, announced U.S. Attorney Kenneth Magidson.
On Tuesday, March 22, 2016, federal agents executed a search warrant at a residence on the 6800 block of Bagley Drive in Mission. During the search, agents arrested Jose Antonio Landin-Ortiz, 26, and Jose Alfredo Ortiz-Vega, 45, both Mexican citizens illegally residing in Mission. They are set to make initial appearances before a U.S. Magistrate judge this morning.
According to the complaint, on March 4, 2016, Border Patrol agents at the Falfurrias checkpoint found two illegal aliens hidden within the air dam of a tractor trailer that was approaching the primary inspection area. They were arrested for being in the United States unlawfully. At that time, they identified Ortiz and Landin as the individuals involved in their smuggling. Ortiz allegedly provided the illegal aliens with a cell phone to use to communicate with him. The complaint further alleges that Ortiz also took them to a truck stop and instructed both to climb into the air dam on the tractor trailer. Landin helped Ortiz with the smuggling arrangements and the aliens stayed at Landin’s house while they were waiting to be smuggled north, according to the allegations.
If convicted, both Landin and Ortiz face up to 10 years imprisonment and possible $250,000 maximum fine.
The arrests are the result of a joint investigation between Homeland Security Investigations and Border Patrol. Hidalgo County Precinct Four deputy constables assisted in the search of the residence and arrests. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Three Sentenced in Food Stamp Fraud Scheme that Defrauded the U.S. of over $1 MillionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TAYSIR MUHAMMAD, a/k/a “Tommy,” age 46, of Kenner; EUGENE TUMBS, a/k/a “Mr. G,” age 68, of New Orleans; and his daughter KATHY TUMBS, 45, also of New Orleans, were sentenced today after previously pleading guilty to a food stamp fraud scheme that defrauded the United States government of over $1,000,000 in food stamp benefits.
U.S. District Judge Sarah S. Vance sentenced MUHAMMAD to 34 months imprisonment, followed by three years of supervised release. EUGENE and KATHY TUMBS were each placed on five years of probation. The defendants were also ordered to pay a total amount of restitution of $1,080,575.40 to the U.S. Department of Agriculture.
KATHY TUMBS previously pled guilty to one count of food stamp fraud and one count of conspiracy to structure transactions. EUGENE TUMBS previously pled guilty to one count of food stamp fraud, one count of wire fraud, and one count of conspiracy to structure transactions. MUHAMMAD previously pled guilty to conspiracy to commit food stamp fraud and wire fraud, food stamp fraud, wire fraud, conspiracy to structure transactions, and conspiracy to commit money laundering.
According to court documents, the defendants operated a corner store at the intersection of Frenchmen and North Derbigny Streets in New Orleans. The store, called the Frenchmen Meat Market, participated in Supplemental Nutrition Assistance Program (“SNAP”), which is operated by the U.S. Department of Agriculture. The SNAP program provides food stamps to individuals who can then present those food stamps in exchange for eligible food products at participating vendors using the electronic benefits transfer (“EBT”) system to complete the transaction. The defendants, however, permitted customers to use food stamps for ineligible products and for cash. In exchange for this service, the defendants would charge customers a fee that was derived from the fraudulent food stamp transaction. The defendants would then transfer funds from the store’s bank account into separate bank accounts by structuring transactions to willfully avoid currency transaction reporting requirements. Using this scheme, from April 2012 through May 2014, the defendants defrauded the government of over $1,000,000 in food stamp benefits.
U.S. Attorney Polite praised the work of the Department of Agriculture’s Office of Inspector General and the Bureau of Alcohol, Tobacco, Firearms and Explosives, in coordination with the Orleans Parish District Attorney’s Office and the Louisiana Office of Alcohol and Tobacco Control in investigating this matter. Assistant United States Attorney Matthew Payne was in charge of the prosecution.
Three Defendants Sentenced Involving Heroin Distribution that Killed Local TeenRead the Press Release
St. Louis, MO – Steven Robinson was sentenced to 144 months imprisonment today. Kyle Turner and Hali Wilson were each sentenced earlier this month to 84 months in prison. Additionally, each defendant was ordered to pay $8,150 restitution to the family of the deceased victim.
According to court documents, Turner and Wilson purchased the heroin from Robinson, and then dealt the drug to a St. Charles teen. The victim’s mother discovered his body the following morning. The medical examiner later determined that the victim had died of acute heroin intoxication.
Robinson, St. Louis, Missouri; Turner, O’Fallon, Missouri; and Hali Wilson, also of O’Fallon, Missouri; each pled guilty in December to one felony count of distribution of heroin. Robinson appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the St. Charles County Regional Drug Task Force and the Drug Enforcement Administration.
Thirty-two people indicted for $2 million food stamp fraud conspiracy in YoungstownRead the Press Release
A federal grand jury indicted 32 people for their roles in a $2 million food-stamp fraud conspiracy, said Acting U.S. Attorney Carole S. Rendon.
Count 1 of the indictment alleges that beginning in or around June 2010 and continuing to October 2014, the following individuals knowingly conspired to defraud the U.S. Department of Agriculture, Food and Nutrition Service, specifically the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. The objects of the conspiracy was to defraud SNAP by converting illegally obtained SNAP benefits into money that the defendants, their co-conspirators, and designees could use for any purpose and to enrich the defendants. Indicted are:
George Rafidi
Age: 61
Warren, OH
Charles R. Thomas
Age: 45
Youngstown, OH
Vincent E. Poyssick, Sr.
Age: 67
Youngstown, OH
Alecia D. Gayles
Age: 33
Youngstown, OH
Sophia L. Hendrix
Age: 37
Campbell, OH
Tashauna J. Grissett
Age: 27
Youngstown, OH
Donna S. Hendrix
Age: 42
Youngstown, OH
Katrina M. Haskins
Age: 32
Youngstown, OH
Deidra Wilson
Age: 29
Youngstown, OH
Faydra Spikes-Hill
Age: 36
Austintown, OH
Jennifer A. Lee
Age: 29
Youngstown, OH
Cheryle O’Neal
Age: 23
Warren, OH
Torrie L. Crump
Age: 40
Youngstown, OH
Yoletta S. Alvarado
Age: 39
Youngstown, OH
Tracey M. Eley
Age: 53
Youngstown, OH
Latise Mahinparvar
Age: 27
Youngstown, OH
Allison Harris
Age: 28
Youngstown, OH
Brittany N. Littlejohn
Age: 26
Youngstown, OH
Tshombe P. Miller
Age: 32
Youngstown, OH
Monique D. Sutton
Age: 32
Youngstown, OH
Lisa West
Age: 33
Youngstown, OH
Telisha Stanford
Age: 34
Youngstown, OH
Joann Averette
Age: 55
Youngstown, OH
Floyayeshia Robinson
Age: 25
Youngstown, OH
Herman L. Taylor, Jr.
Age: 46
Campbell, OH
Earlene Williams
Age: 41
Youngstown, OH
Doreen Mayberry
Age: 49
Youngstown, OH
Jessica Dickerson
Age: 28
Youngstown
Tiffany Williams
Age: 39
Boardman, OH
Harriett Randolph
Age: 49
Youngstown, OH
Jamalia Abrams
Age: 25
Unknown, OH
Tearra Dates
Age: 32
Boardman, OH
On or about March 18, 2010, George Rafidi filed articles of incorporation for Ghazy, LLC, doing business as Breaden Market, a convenience store located in Youngstown. On March 31, 2010, Rafidi completed and submitted a SNAP application for stores, for Breaden Market to the USDA Food and Nutrition Service. Breaden Market then began operating in or about April 2010, according to the indictment.
It was part of the conspiracy that SNAP beneficiaries went to Breaden Market and obtained cash and prohibited items, such as alcohol and tobacco, in exchange for their SNAP benefits. Rafidi fraudulently redeemed SNAP benefits and caused money to be deposited into Breaden Market’s bank accounts, according to the indictment.
During the course of the conspiracy, Rafidi and Breaden Market submitted claims for more than $2 million in fraudulently obtained SNAP benefits, according to the indictment.
Count 2 of the indictment alleges the above-named defendants knowingly acquired USDA FNS SNAP benefits through the use of Electronic Benefit Transfer cards in exchange for U.S. currency and other ineligible items.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the U.S. Department of Agriculture, Office of the Inspector General. The matter is being prosecuted by Assistant United States Attorneys David M. Toepfer and Benedict Gullo.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Texas Man Sentenced for Obstructing Federal Hate Crime InvestigationRead the Press Release
Carlos Garcia, 29, was sentenced to 48 months in prison for making false statements in connection to the March 8, 2012, assault of a gay African-American man in Corpus Christi, Texas, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Garcia pleaded guilty in January 2016, to one count of false statements to law enforcement. The sentence was imposed yesterday by U.S. District Judge Hayden Head of the Southern District of Texas. Garcia will also serve three years of supervised release following completion of the prison term.
During his plea hearing, Garcia admitted that he made false statements to the FBI regarding the assault of a gay African-American man. Garcia denied being present during the assault, when in fact he participated in a portion of the assault.
Garcia is the third and last person to plead guilty in connection to the hate crime. Co-defendants Jimmy Garza Jr. and Ramiro Serrata Jr. were previously sentenced for their roles in the assault, each receiving 15 year sentences for their conduct.
During their pleas, Garza and Serrata admitted that they engaged in a protracted assault of a gay, African-American man because of his race and sexual orientation. Garza and Serrata admitted that they punched and kicked the man and assaulted him with various weapons, including a frying pan, a mug, a sock filled with batteries, a broom and a belt. Garza also poured bleach onto the victim’s face and into his eyes, and Garza struck the victim in the head with a handgun.
“This defendant lied about the facts of this terrible crime that violated our society’s most basic standards of human decency and dignity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to aggressively prosecute anyone who tries to obstruct justice by lying to law enforcement or covering up criminal activity.”
“Individuals who participate in hate crimes will continue to be the focus of federal criminal investigations in this district and this case illustrates that point,” said U.S. Attorney Magidson. “We simply will not tolerate the actions of anyone associated with these types of crimes, whether an active participant or one that seeks to hinder our efforts by lying, misleading or otherwise providing false information to law enforcement. This office will continue to ensure everyone is ultimately held accountable for their actions in federal court.”
This case was investigated by the FBI’s Corpus Christi Resident Agency with assistance from the Corpus Christi Police Department. It is being prosecuted by Trial Attorneys Jared Fishman and Nicholas Durham of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Ruben Perez of the Southern District of Texas.
Surinamese Man Found Guilty in Manhattan Federal Court of Conspiring to Import CocaineRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDMUND QUINCY MUNTSLAG, a citizen of Suriname, was found guilty yesterday in Manhattan federal court of conspiring to import cocaine into the United States. The four-day jury trial was held before U.S. District Judge Shira A. Scheindlin.
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury found, Edmund Muntslag conspired to create a drug route for hundreds of kilograms of cocaine from his home country of Suriname to the streets of New York City. Thanks to the outstanding work of the Drug Enforcement Administration, Muntslag and his co-defendant, Dino Bouterse, will no longer be plotting to smuggle cocaine into the United States, but rather answering for their crimes in a federal prison.”
According to the allegations contained in the Indictment, other documents publicly filed in Manhattan federal court, and the evidence introduced at trial:
In 2013, MUNSTLAG, along with co-defendant Dino Bouterse, the son of the President of Suriname who declared himself the head of that country’s Counterterrorism Unit, conspired to sell hundreds of kilograms of cocaine to a purported Mexican cartel for importation to the U.S. In furtherance of this conspiracy, Bouterse supplied to individuals that he and MUNTSLAG believed to be representatives of the cartel, but who in fact were confidential sources working at the direction and under the supervision of the Drug Enforcement Administration (“DEA”), with genuine Surinamese passports bearing false identification information.
Approximately three weeks later, MUNTSLAG received $60,000 in cash as a payment to allow a 10-kilogram “test load” of cocaine to pass through the airport in Paramaribo, Suriname, where it was to be loaded onto a commercial airline flight concealed inside luggage. Thereafter, MUNTSLAG worked with corrupt airport employees in Suriname to send the 10-kilogram test load to Port-of-Spain, Trinidad and Tobago, from where MUNTSLAG and Bouterse believed it would be further transported and sold by the purported cartel in New York, New York. MUNTSLAG and Bouterse expected to receive proceeds from the sale of the cocaine in New York, and also expected to send additional, 100-kilogram cocaine shipments to the purported cartel using a similar method upon the successful completion of the test load.
The cocaine was seized by Trinidadian law enforcement officers, in coordination with agents of the DEA, in Port-of-Spain on July 27, 2013. MUNTSLAG was arrested in Port-of-Spain on August 29, 2013, and Bouterse was arrested in Panama City, Panama, on August 29, 2013.
* * *
MUNTSLAG, 32, of Suriname, was convicted of conspiring to import five kilograms or more of cocaine into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. MUNTSLAG is scheduled to be sentenced on June 28, 2016, at 4:30 p.m.
On August 29, 2014, Bouterse, 43, also of Suriname, pled guilty to attempting to provide material support to Hezbollah, a Foreign Terrorist Organization; using and carrying a firearm or during and in relation to a drug-trafficking crime; and conspiring to import five kilograms or more of cocaine into the United States. On March 10, 2015, Bouterse was sentenced principally to a term of 195 months in prison.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA. Mr. Bharara also thanked the DEA’s Miami Field Division, Panama City Country Office, Port-of-Spain Country Office, and Bogota Country Office; the Government of Trinidad and Tobago; and the U.S. Department of Justice’s Office of International Affairs.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard and Andrew DeFilippis are in charge of the prosecution.
Superseding Indictment Charges Owner of Trucking Business with FraudRead the Press Release
PHILADELPHIA - A superseding indictment was filed today charging Volodymyr Kurylo, a/k/a “Volodya” a/k/a “Vova,” 35, of Richboro, PA, and Vitalii Vitiuk, 28, of Philadelphia, PA, with one count of conspiracy to defraud the United States and one count of conspiracy to produce an identification document without lawful authority, announced United States Attorney Zane David Memeger.
Volodymyr Kurylo operated VN Trucking, which, among other things, provided truck driver training. Vitalii Vitiuk worked for Kurylo. PennDOT requires that applicants for a Pennsylvania Commercial Driver’s License (CDL) provide proof of residency. According to the indictment, between June 2014 and September 2015, the defendants conspired to provide false residency documents to VN Trucking students who resided outside of Pennsylvania. For example, it is alleged that Kurylo obtained genuine utility bills and then had those bills falsified to indicate that the bill was in the student’s name and that the student resided at the Pennsylvania address. Kurylo also allegedly fabricated a false lease document for two CDL students who did not reside in Pennsylvania.
It is further alleged that between February 2015 and December 2015, Kurylo operated VN Trucking in violation of a January 2015 Federal Motor Carrier Safety Administration order that VN Trucking cease operations. Kurylo, it is alleged, continued to dispatch trucks and drivers to transport property using VN trucks, conducting the business of VN Trucking at its offices in Bensalem, Pennsylvania, and by using other motor carriers to conceal the operations of VN Trucking.
If convicted, defendant Kurylo faces a maximum sentence of 20 years in prison and defendant Vitiuk faces a maximum sentence of 15 years in prison.
The case was investigated by the U.S. Department of Transportation, Office of Inspector General and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Frank A. Labor III and Michael T. Donovan.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Spartanburg Woman Pleads Guilty to Treasury Check ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Brandy D. Page, age 38, of Spartanburg, pled guilty today in federal court in Anderson, to conspiracy to pass Treasury checks of the United States bearing falsely made or forged endorsements, a violation of Title 18, United States Code, Section 371. United States District Timothy M. Cain, of Anderson accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Page obtained Treasury checks by filing false tax returns and from other sources. She then would create a fraudulent power of attorney form giving her authority to cash the check that falsely purported to be executed by the payee listed on the Treasury check. Law enforcement estimates that Page cashed over $200,000 in Treasury checks in this manner before her scheme was discovered.
Law enforcement discovered the scheme in March 2014 when the Greer Police Department received a complaint from a Georgia man that someone had stolen and cashed his Treasury check in the Greer Wal-Mart. The driver’s license number and date of birth written on the check came back to Page. The Internal Revenue Service assisted local authorities and uncovered the breadth of Page’s scheme.
Mr. Nettles stated the maximum penalty Page can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Greer Police Department and the Internal Revenue Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
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Respironics to Pay $34.8 Million for Allegedly Causing False Claims to Medicare, Medicaid and Tricare Related to the Sale of Masks Designed to Treat Sleep ApneaRead the Press Release
Respironics Inc., based in Murrysville, Pennsylvania, has agreed to pay $34.8 million to resolve alleged False Claims Act violations for paying kickbacks in the form of free call center services to durable medical equipment (DME) suppliers that bought its masks for patients with sleep apnea, the Department of Justice announced today.
“The payment of illegal remuneration in any form to induce patient referrals threatens public confidence in the health care system,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Americans deserve to know that when they are prescribed a device to treat a serious health care problem, the supplier’s judgment has not been compromised by illegal payments from equipment manufacturers.
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute are also false claims under the False Claims Act.
The United States alleged that Respironics violated the Anti-Kickback Statute and the False Claims Act by providing free services to DME suppliers to induce them to purchase Respironics masks that treat sleep apnea. Respironics allegedly provided DME companies with call center services to meet their patients’ resupply needs at no charge as long as the patients were using masks that Respironics manufactured; otherwise, the DME companies would have to pay a monthly fee based on the number of patients who used masks manufactured by a competitor of Respironics. The government alleged that the conduct began in April 2012 and continued until November 2015.
“This office has made a substantial commitment to combating fraud,” said U.S. Attorney Bill Nettles of the District of South Carolina. “Our commitment has made this district one of the leaders on behalf of whistleblowers. We hope that those who commit fraud will recognize that it is our goal to make the consequences more than just the cost of doing business.”
Respironics will pay roughly $34.14 million to the federal government and roughly $660,000 to various state governments based on their participation in the Medicaid program.
The settlement resolves a lawsuit originally brought by Dr. Gibran Ameer, who has worked for different DME companies, under the qui tam provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Under the civil settlement announced today, Dr. Ameer will receive $5.38 million out of the federal share of the recovery.
“Medical equipment manufacturers that boost profits by providing kickbacks to suppliers will be held accountable for their improper conduct,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to investigate such business arrangements, which threaten the integrity of federal health care programs.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of South Carolina, and HHS Office of Counsel to the Inspector General and Office of Investigations and the National Association of Medicaid Fraud Control Units.
The lawsuit is captioned United States et al. ex rel. Dr. Gibran Ameer v. Philips Electronics North America, et al., Case No. 2:14-cv-2077-PMD (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Respironics to Pay $34.8 Million for Allegedly Causing False Claims to Medicare, Medicaid and Tricare Related to the Sale of Masks Designed to Treat Sleep ApneaRead the Press Release
Contact Person: Public Affairs (202) 514-2007
WASHINGTON – Respironics Inc., based in Murrysville, Pennsylvania, has agreed to pay $34.8 million to resolve alleged False Claims Act violations for paying kickbacks in the form of free call center services to durable medical equipment (DME) suppliers that bought its masks for patients with sleep apnea, the Department of Justice announced today.
“The payment of illegal remuneration in any form to induce patient referrals threatens public confidence in the health care system,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Americans deserve to know that when they are prescribed a device to treat a serious health care problem, the supplier’s judgment has not been compromised by illegal payments from equipment manufacturers.”
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute are also false claims under the False Claims Act.
The United States alleged that Respironics violated the Anti-Kickback Statute and the False Claims Act by providing free services to DME suppliers to induce them to purchase Respironics masks that treat sleep apnea. Respironics allegedly provided DME companies with call center services to meet their patients’ resupply needs at no charge as long as the patients were using masks that Respironics manufactured; otherwise, the DME companies would have to pay a monthly fee based on the number of patients who used masks manufactured by a competitor of Respironics. The government alleged that the conduct began in April 2012 and continued until November 2015.
“This office has made a substantial commitment to combating fraud,” said U.S. Attorney Bill Nettles of the District of South Carolina. “Our commitment has made this district one of the leaders on behalf of whistleblowers. We hope that those who commit fraud will recognize that it is our goal to make the consequences more than just the cost of doing business.”
Respironics will pay roughly $34.14 million to the federal government and roughly $660,000 to various state governments based on their participation in the Medicaid program.
The settlement resolves a lawsuit originally brought by Dr. Gibran Ameer, who has worked for different DME companies, under the qui tam provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Under the civil settlement announced today, Dr. Ameer will receive $5.38 million out of the federal share of the recovery.
“Medical equipment manufacturers that boost profits by providing kickbacks to suppliers will be held accountable for their improper conduct,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to investigate such business arrangements, which threaten the integrity of federal health care programs.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of South Carolina, and HHS Office of Counsel to the Inspector General and Office of Investigations and the National Association of Medicaid Fraud Control Units.
The lawsuit is captioned United States et al. ex rel. Dr. Gibran Ameer v. Philips Electronics North America, et al., Case No. 2:14-cv-2077-PMD (D.S.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Project Safe Childhood - Massachusetts Man Sentenced for Aiding and Abetting the Transportation of an Individual for ProstitutionRead the Press Release
CONCORD, NEW HAMPSHIRE: Hansel German, 25, of Boston, Massachusetts, was sentenced in the United States District Court for the District of New Hampshire on Monday, March 21, 2016 on one count of aiding and abetting the transportation of an individual in interstate commerce for prostitution, and one count of possessing heroin with the intent to distribute it, announced U.S. Attorney Emily Gray Rice. The Court imposed a sentence of 8 years’ imprisonment, to be followed by an extended period of supervised release.
In February of 2014, Homeland Security Investigations, Manchester, New Hampshire, and the Salem, New Hampshire Police Department, with the assistance of the Boston Police Department, rescued a fifteen-year-old female who was engaging in prostitution from a Salem hotel room. Upon further investigation, authorities identified multiple individuals – including German – who were involved in the scheme to transport the female from Boston, Massachusetts to Salem, New Hampshire for prostitution.
The case was investigated by Homeland Security Investigations (Manchester, NH) and the Salem Police Department, in conjunction with the police departments of Boston, Massachusetts and Manchester, New Hampshire, as well as the New Hampshire Internet Crimes Against Children Task Force (NH ICAC). This case is being prosecuted by Assistant United States Attorneys Nick Abramson and Helen Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Project Safe Childhood - Goffstown Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Richard Sullivan, 23, of Goffstown, New Hampshire, pled guilty on Tuesday in United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
A joint investigation by the police departments of Goffstown, Bedford, and Hampton, New Hampshire, in conjunction with Homeland Security Investigations Manchester (HSI) and the New Hampshire Crimes Against Children Task Force (NH ICAC), led to the seizure of electronic devices from Sullivan’s Goffstown residence, several of which were found to contain images of child pornography.
Sullivan is scheduled for sentencing in June 2016. The statutory maximum prison term for the crime charged is 10 years, a term of at least 5 years of supervised release, and a fine of up to $250,000. The court will sentence Sullivan after it has had an opportunity to review a presentence report prepared by the United States Probation & Pretrial Services Office.
The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Portland Man Sentenced to over 12 Years on Armed Bank Robbery and Gun ChargesRead the Press Release
Contact: Jamie Guerrette
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Francis J. Ready, 59, of Portland, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 147 months in prison and five years of supervised release for armed bank robbery and using a firearm during the commission of a crime of violence.The charges arose out of the armed bank robberies of TD Bank in Portland on October 3, 2015 and of Bangor Savings Bank (“BSB”) in Portland on October 12, 2015. In both instances, the defendant used a firearm to rob the banks. He absconded with $2,846 from TD Bank and with $14,189 from BSB. Following the BSB robbery, he was apprehended by a Portland Police officer in a nearby parking area and found to be in possession of a silver Harrington and Richardson revolver.
The investigation was conducted by the Portland Police Department and the Southern Maine Gang Task Force comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, and Lewiston Police Departments.Perry County Couple Convicted of Fraud SchemeRead the Press Release
LONDON — A Perry County couple who owned several trucking companies has been convicted of defrauding and extorting their customers.
On March 18, 2016, a federal jury in London rendered a guilty verdict convicting 49 year-old Elliott Campbell and his wife, Melinda, age 39, of charges related to wire fraud and extortion. Elliott Campbell was convicted of six counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit extortion. Melinda Campbell was found guilty of five counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit extortion. The jury rendered its verdict after two days of deliberation, following three days of trial.
The evidence at trial established that, from 2010 until 2012, the Campbells operated trucking companies and contracted with shipping brokers throughout the country to transport cargo freight. According to the evidence, the Campbells induced shipping brokers to enter into contracts with special conditions, which stipulated that payment would occur after delivery. Once the pair obtained the cargo freight, however, they failed to fulfill the specified conditions of delivery and then held the cargo hostage, by demanding payment prior to delivery. In response to complaints from shipping brokers, the Campbells created new companies and used false names, in order to continue their fraudulent scheme.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard Marshall, Special Agent in Charge, Federal Bureau of Investigation; and Thomas J. Ullom, Regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General, jointly announced the conviction.
The Campbells are scheduled to be sentenced on June 14, 2016. They face a maximum of 20 years on each wire fraud count, and for the extortion offense. They face a maximum of five years for the wire fraud conspiracy. However, any sentence would be imposed only after the Court has considered the U.S. Sentencing Guidelines and the applicable statutes.
Pasco Man Sentenced to Prison for Cross BurningRead the Press Release
Tampa, FL – U.S. Attorney A. Lee Bentley, III announced today that Pascual Carlos Pietri, 53, of Port Richey, Florida, was sentenced to 37 months in prison by U.S. District Judge Susan C. Bucklew of the Middle District of Florida for his role in a 2012 cross burning. He pleaded guilty on June 30, 2015, to one count of conspiring with others to threaten, intimidate and interfere with an interracial couple’s enjoyment of their housing rights.
“Cross burning remains a vicious symbol of hatred,” said U.S. Attorney Bentley. “All American families have the right to live where they choose, undisturbed by such racist threats. This prosecution sends a clear message that we will not tolerate hate crimes in our community.”
“Those who violently threaten others because of racial differences tear at the very fabric of our diverse American society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The laws that protect our society leave no place for hate crimes.”
According to court documents, on Oct. 31, 2012, Pietri was living with another individual on Seward Drive in Port Richey in a predominantly white community. After an interracial couple moved next door, Pietri heard other neighbors make racial slurs and derogatory statements about African-Americans in general, and specifically the African-American neighbor.
On Halloween night, Pietri attended a party at a neighbor’s house, where several Seward Drive residents decided to burn a cross in the African-American man’s yard to intimidate him. Using wood and tools from the host of the Halloween party, Pietri’s co-conspirators constructed a wooden cross and obtained gasoline to pour on the cross. Pietri and a co-conspirator then carried the cross to the victims’ front yard, leaned it against their mailbox and set the cross on fire. Pietri and the co-conspirators burned the cross in the victims’ yard in an effort to intimidate the interracial couple.
This case was investigated by the FBI. It was prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Simon A. Gaugush of the Middle District of Florida, and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.
Pasco County, Florida, Man Sentenced to Prison for Cross BurningRead the Press Release
The Justice Department announced that Pascual Carlos Pietri, 53, of Port Richey, Florida, was sentenced to 37 months in prison by U.S. District Judge Susan C. Bucklew of the Middle District of Florida for his role in a 2012 cross burning. He pleaded guilty on June 30, 2015, to one count of conspiring with others to threaten, intimidate and interfere with an interracial couple’s enjoyment of their housing rights.
“Those who violently threaten others because of racial differences tear at the very fabric of our diverse American society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The laws that protect our society leave no place for hate crimes.”
“Cross burning remains a vicious symbol of hatred,” said U.S. Attorney A. Lee Bentley III. “All American families have the right to live where they choose, undisturbed by such racist threats. This prosecution sends a clear message that we will not tolerate hate crimes in our community.”
According to court documents, on Oct. 31, 2012, Pietri was living with another individual on Seward Drive in Port Richey in a predominantly white community. After an interracial couple moved next door, Pietri heard other neighbors make racial slurs and derogatory statements about African-Americans in general, and specifically the African-American neighbor.
On Halloween night, Pietri attended a party at a neighbor’s house, where several Seward Drive residents decided to burn a cross in the African-American man’s yard to intimidate him. Using wood and tools from the host of the Halloween party, Pietri’s co-conspirators constructed a wooden cross and obtained gasoline to pour on the cross. Pietri and a co-conspirator then carried the cross to the victims’ front yard, leaned it against their mailbox and set the cross on fire. Pietri and the co-conspirators burned the cross in the victims’ yard in an effort to intimidate the interracial couple.
This case was investigated by the FBI. It was prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Simon A. Gaugush of the Middle District of Florida, and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.
Partner at New York Accounting Firm Sentenced in Manhattan Federal Court for Multimillion-Dollar Accounting Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MARC WIESELTHIER, a certified public accountant and former partner at a New York accounting firm (the “Firm”), was sentenced today to 27 months in prison for participating in a scheme to obtain millions of dollars in loans by making false statements and providing false and fraudulent documents to two commercial banks based in New York (the “Banks”) concerning the financial condition of a Florida-based cosmetics company (the “Company”) that was a client of WIESELTHIER. WIESELTHIER pled guilty on November 18, 2015, before U.S. Magistrate Judge Debra Freeman. Today’s sentence was imposed by U.S. District Judge Lewis A. Kaplan.
Manhattan U.S. Attorney Preet Bharara said: “Outside auditors are responsible for ensuring their clients’ financial statements are accurate. Marc Wieselthier, a partner at a New York accounting firm, admitted to falsely certifying a company’s financial statements, knowing that it would deceive two New York banks into making multimillion-dollar loans.”
According to the allegations contained in the information to which WIESELTHIER pled guilty, other documents filed in Manhattan federal court, and statements made in court proceedings:
WIESELTHIER was a licensed certified public accountant at the Firm. From 2009 through at least November 2015, WIESELTHIER was a partner at the Firm. The Company and its chief executive officer (“CEO”) were clients of WIESELTHIER, who performed, among other things, year-end audits of financial statements for the Company.
From 2007 through 2014, the Company, through its officers and WIESLTHIER, fraudulently induced the Banks into lending the Company millions of dollars by repeatedly making, and causing to be made, materially false and misleading statements about the Company’s financial condition. Specifically, the Company falsely inflated its sales and accounts receivable on “borrowing base certificates” and in financial statements audited by WIESELTHIER, which were provided to the Banks pursuant to loan agreements between the Banks and the Company. The Company used those falsely inflated sales and accounts receivable to mislead the Banks about the Company’s true financial performance in order to secure and draw down millions of dollars in revolving loans from the Banks that the Company would not otherwise have been entitled to receive.
As part of the scheme, on an annual basis, WIESELTHIER knowingly issued unqualified audit reports known as “clean opinions” falsely certifying that the Company’s financial statements fairly, and in all material respects, reflected the true financial condition of the Company and were in conformity with generally accepted accounting principles (“GAAP”). In truth and in fact, at the time that WIESELTHIER issued those “clean opinions,” WIESELTHIER knew that the Company’s financial statements overstated the Company’s accounts receivable and understood that the Banks would rely upon those false financial statements in loaning money to the Company. WIESELTHIER hid his accounting work for the Company from his own partners and associates at the Firm in an apparent effort to conceal the fraud.
In March 2014, the Company defaulted on the loans at issue. At that time, the Company’s outstanding balance on the loans was more than $4.8 million.
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In addition to his prison term, WIESELTHIER, 57, of Plainview, New York, was sentenced to three years of supervised release, and ordered to pay forfeiture of $166,000 and restitution of $4,888,460.35.
Three other defendants in this matter, Thomas Thompson, the sales manager of the Company, Jay Sosonko, the CFO of the Company, and Emanuel Cohen, the CEO of the Company, previously pled guilty for their roles in the fraudulent scheme, and are scheduled to be sentenced on March 24, 2016, April 14, 2016, and June 1, 2016, respectively.
Mr. Bharara praised the investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Edward A. Imperatore is in charge of the prosecution.
Parolee Detained on Firearm, MDMA Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – A West Warwick resident, currently on parole after having been convicted and sentenced in Rhode Island state court in October 2008 on felony assault, robbery and firearm charges, was ordered detained in federal custody today for allegedly possessing and trafficking the synthetic drug MDMA, and for being a felon in possession of firearms.
Devon Mello, 26, of West Warwick, arrested earlier today by members of the ATF Task Force, with the assistance of the West Warwick Police Department and the DEA, was ordered detained in federal custody following his initial appearance before U.S. District Court Magistrate Judge Lincoln D. Almond on a criminal complaint charging him with three counts of distribution of methylenedioxymethamphetamine (MDMA), one count of possession with the intent to distribute MDMA, and two counts of being a felon in possession of a firearm.
Mello’s arrest and criminal complaint are announced by United States Attorney Peter F. Neronha, Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF, and West Warwick Police Chief Colonel Richard G. Silva.
According to court documents, on February 26, 2016, an ATF special agent acting in an undercover capacity, allegedly met with Mello in a parking lot near his residence to discuss interest in committing armed robberies. Mello allegedly informed the agent that he not only was in possession of a firearm on his person, but that he had access to other firearms, including an AR-15 assault rifle and a shotgun. Prior to leaving Mello’s company, the agent allegedly purchased from Mello 2.7 grams of MDMA in exchange for $80.
On March 1, 2016, after having exchange numerous text messages with Mello during the two previous days, the undercover agent allegedly met with Mello in a parking lot near Mello’s residence to discuss the purchase of firearms. Prior to the end of the meeting, the undercover agent allegedly purchased 9.8 grams of MDMA from Mello for $270. Mello allegedly instructed the agent to stay in touch with him to learn about the status of obtaining firearms.
On March 4, 2016, as allegedly instructed by Mello in a text message the day before, the agent met with Mello in a parking lot near Mello’s residence during which time Mello allegedly provided the agent with a shotgun and ammunition in exchange for $400. They allegedly met again on March 10, 2016, in a parking lot near Mello’s home, to allegedly discuss the purchase of additional firearms. Prior to the end of that meeting, the agent allegedly purchased from Mello 8.35 grams of MDMA in exchange for $225.
Earlier today, Mello was detained by ATF agents as ATF agents, members of the ATF Task Force, and West Warwick Police conducted a federal court authorized search of Mello’s residence. The search resulted in the seizure of approximately 28 grams of MDMA, a 9mm firearm, $270 in cash and various items used in the packaging and distribution of MDMA and other drugs.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
According to court documents, on October 16, 2008, Mello was convicted in Rhode Island state court on first degree robbery and conspiracy charges, and was sentenced to 15 years - 10 years to serve and the remainder suspended - and 5 years of probation. On the same date, Mello was convicted on two counts of felony assault and two counts of discharge of a firearm during a crime of violence, and was sentenced to a concurrent sentence of 20 years of incarceration - 15 years to serve and 5 years suspended - and 5 years of probation. Mello has been on parole since the fall of 2015.
At the time of his arrest, Mello, who was subject to home confinement, was wearing a GPS electronic monitoring ankle bracelet.
The case in federal court is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The ATF Task Force consists of agents and officers from Providence, Cranston and Central Falls Police Departments, Providence Fire Department Arson Squad, and the Rhode Island Department of Correction's Special Investigations Unit.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI Devon Mello Complaint & Affidavit
Pair Pleads Guilty in Connection to Thefts from Appomattox Gun StoreRead the Press Release
LYNCHBURG, VIRGINIA – Two months after a federally licensed firearms dealer in Appomattox, Virginia was burglarized and 56 guns were stolen, two of the men who took part in the break-in, have pled guilty in Federal court to related charges, United States Attorney John P. Fishwick Jr. announced today.
In separate hearings today in the United States District Court for the Western District of Virginia in Lynchburg, Dequan Montez Kelso, 22, and Kwamane Jarrae McCoy, 22, both of Appomattox, Virginia, each pled guilty to one count of being a previously convicted felon illegally in possession of a firearm.
“Keeping illegal guns out of the hands of prohibited users is a priority of the United States Attorney’s Office,” United States Attorney John P. Fishwick Jr. said today. “In order to keep our communities safe, we must continue to work with our partners in law enforcement to find these guns and get them off the streets. I am grateful to the ATF for putting up a $10,000 reward in this case and am hopeful it will lead to the recovery of some of these firearms.”
“Today's guilty pleas are due in large part to the teamwork of Appomattox County deputies, commanded by Sherriff Barry Letterman, the Virginia State Police including their dive team, the Western District of Virginia U.S Attorney's Office, the ATF Roanoke Field Office agents and our state and local partners,” said ATF Washington Field Division Special Agent in Charge Michael Boxler. “The ATF Washington Field Division remains committed to investigating thefts from firearms dealers and working with the firearms industry to prevent them.”
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, in January 2016, TNT Outfitters in Appomattox, Virginia was burglarized by four, masked individuals in the middle of the night. These individuals stole 56 firearms. Following a thorough investigation by the ATF, Virginia State Police and the Appomattox County Sheriff’s Office, McCoy and Kelso were identified as being involved in the burglary and were soon located and found to be in possession of some of the stolen firearms. They were subsequently arrested and today admitted their involvement in the incident.
Many of the stolen firearms, including a Glock 17, HiPoint C9, Smith and Wesson M&P 9 Pro, Remington Model 700 Shotgun and a Ruger Mini 14 .223 Rifle remain missing. The Bureau of Alcohol, Tobacco, Firearms and Explosives have offered a $10,000 reward to anyone with knowledge of the whereabouts of these missing firearms. Anyone with information can contact the ATF at 1-800-283-4867.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police and the Appomattox Sheriff’s Office. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Notice of Court ProceedingsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles stated that United States District Judge Joseph F. Anderson will hold a hearing in the case of United States v. HW Group, Case No. 3:16-po-2.
WHEN: Thursday, March 24, 2016, at 2 pm WHERE: Matthew J. Perry, Jr., Courthouse
901 Richland Street, Courtroom V
Columbia, SC 29201#####
New York Man Indicted in $17 Million Microcap Stock Manipulation SchemeRead the Press Release
NEWARK, N.J. – A federal grand jury today indicted the owner of a registered broker-dealer in New York for orchestrating a stock market manipulation scheme that artificially inflated the stock price of two publicly traded companies, U.S. Attorney Paul J. Fishman announced.
Guy Gentile, 39, of Putnam Valley, New York, is charged by indictment with one count of conspiracy to commit securities fraud and one count of securities fraud.
According to the indictment:
From April 2007 through June 2008, Gentile and others allegedly engaged in an extensive “pump-and-dump” stock manipulation scheme to fraudulently inflate the prices of shares of certain companies in order to later sell those shares at artificially inflated prices. Gentile was the founder and owner of a registered broker-dealer based in New York. The scheme involved two public companies: Raven Gold Corporation (RVNG) and Kentucky USA Energy Inc. (KYUS).
Gentile and his conspirators first obtained control over large blocks of the free trading shares of the two target companies. They allegedly “pumped” the price of those shares by engaging in manipulative trading of the stocks and disseminating misleading promotional materials touting the stocks and encouraging others to purchase them. After pumping the stocks, Gentile and his conspirators “dumped” them, selling large volumes of the stock to investors. The companies’ stock prices then dropped, causing the victims of the scheme to suffer losses. The alleged stock manipulation scheme generated approximately $17.2 million in gross trading proceeds.
The conspiracy count with which Gentile is charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine.
The charges and allegations in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The U.S. Securities and Exchange Commission (SEC) is filing a civil complaint against Gentile today.
On May 27 and 28, 2015, Itamar Cohen, 53, and Michael Taxon, 52, stock promoters from Ontario, Canada, each pleaded guilty before U.S. District Judge Jose L. Linares to one-count informations charging them with conspiracy to commit securities fraud for their involvement in the scheme.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s indictment. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Andrew Calamari, for its assistance in this matter.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Joseph Tacopina Esq. and Chad Siegel Esq., New York
New York Entrepreneur Admits Defrauding Investors in Scheme That Allegedly Caused More Than $3 Million in LossesRead the Press Release
NEWARK, N.J. - A New York man today admitted executing a more than two-year scheme in which he defrauded multiple victims who believed they were investing in businesses that offered a popular fitness training program, U.S. Attorney Paul J. Fishman announced.
Joshua Bryce Newman, 36, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
Newman was a self-styled entrepreneur who engaged in a variety of business ventures, including venture capital work, a film production company, and, more recently, in businesses offering a popular fitness training program. By 2011 and 2012, Newman found himself with mounting legal and financial troubles largely as a result of judgments and liens filed against him and his film production company, Cyan Pictures, relating to their failed film project that was meant to produce and distribute a film about the New York Yankees entitled “Keeper of the Pinstripes.”
From 2012, Newman made material misrepresentations to solicit investments and loans purportedly for various fitness business ventures he was working on, when his true intent was to use the money for his own purposes, including repaying others who had invested in one of his prior projects.
Newman often supplied his victims with doctored or bogus documentation in order to obtain the investment capital and loans. He then lulled his victims into believing that their investment money was safe or that he was in a position to repay their loans by making further misrepresentations and supplying them with additional phony documents. The false documents he used included doctored operating agreements, false statements of ownership percentages held by various individuals, and bogus Schedule K-1s purporting to show the amount of annual partnership gains or losses reported to the IRS.
Newman also misrepresented to his potential partners, purported investors, and lenders in one of his business ventures that he had raised millions of dollars in funding for the project, when he knew that no such funds had been raised.
When investors raised concerns about their investments, Newman typically gave them false assurances and agreed to return the funds. In reality, he often had no funds to return, and so he would make various excuses, including that he had sent wires that had been delayed in the banking system, when no such wire had been sent. He often stalled for time by giving his victims checks drawn on accounts with insufficient funds to cover the amount of the checks.
On at least one occasion, Newman sent a picture of the purported wire transfer order for $165,000 to an investor who had threatened legal action and told the investor that the funds were on the way, even though Newman knew that no such funds had been or would be furnished to the investor.
The information filed today alleges that Newman defrauded approximately 30 victims of approximately $3.1 million.
The wire fraud count to which Newman pleaded guilty carries a maximum potential sentence of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 19, 2016.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Paul A. Murphy, Chief of the U.S. Attorney’s Office’s Economic Crimes Unit.
Defense counsel: Priya Chaudhry Esq., New York; Eric Kanefsky Esq., Newark