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Friday 18 March 2016
Maryland Man Allegedly Paid People in the Philippines to Send Child PornographyRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Louis Francis Bradley, age 65, of Baltimore, with distribution, receipt and possession of child pornography. The criminal complaint was filed on March 15, 2016, and unsealed upon Bradley’s arrest. Bradley had his initial appearance in U.S. District Court in Baltimore before U.S. Magistrate Judge Stephanie A. Gallagher. Bradley was ordered to be detained pending a detention hearing scheduled for Monday, March 21, 2016, at 11:00 a.m.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Kevin Davis of the Baltimore Police Department.
“The disturbing affidavit alleges that the defendant contacted women in the Philippines over the internet and paid them to send images of young girls engaged in sexually explicit conduct,” said U.S. Attorney Rod J. Rosenstein.
According to the affidavit filed in support of the criminal complaint, In January 2016, the National Center for Missing and Exploited Children (NCMEC) received a Cybertipline Report submitted by a website stating that between December 30, 2015, and January 14, 2016, eight images of suspected child pornography were uploaded to a photo account associated with Bradley’s email address.
As part of the investigation, search warrants were executed for Bradley’s social media and email accounts. The results for one of Bradley’s Facebook accounts is over 29,000 pages long and the review of the results is ongoing, but law enforcement located conversations with women in the Philippines. Based on those conversations, the affidavit alleges that Bradley is paying the women, who have access to minor females, to send him images of those prepubescent females engaged in sexually explicit conduct. The affidavit alleges that Bradley also distributed child pornography to at least one woman in the Philippines.
If convicted, Bradley faces a minimum mandatory sentence of five years and up to 40 years for distribution and receipt of child pornography; and a maximum of 20 years in prison for possession of child pornography.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
Man Pleads Guilty to Attempting to Rob U.S. Postal OfficeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERT WARREN, age 74, no known residence, pled guilty as charged yesterday to an Indictment charging one count of attempting to rob a United States Postal Office and one count of interference with postal employees.
According to court records, WARREN entered the Postal Office located at 701 Loyola Avenue, New Orleans, handed a handwritten note to a teller, and demanded a quantity of money. WARREN was quickly arrested by investigators for the United States Postal Inspection Service.
WARREN faces a sentence of imprisonment of up to ten years for the attempted robbery charge and up to eight years for the interference with postal employees charge. U.S. District Judge Eldon E. Fallon scheduled sentencing for June 23, 2016.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Man Pleads Guilty to Assaulting Two Women in Back-to-Back Attacks Near Foggy Bottom Metro PlazaRead the Press Release
WASHINGTON – Mustapha Kone, 48, who has no fixed address, pled guilty today to kidnapping and other charges stemming from separate attacks against two young women near the Foggy Bottom Metro station in the fall of 2014, announced U.S. Attorney Channing D. Phillips.
Kone pled guilty in the Superior Court of the District of Columbia to charges of kidnapping, threats, and assault. He is to be sentenced on May 27, 2016 by the Honorable Florence Pan. The charges carry a statutory maximum of 30 years in prison.
According to the government’s evidence, on Oct. 19, 2014, at about 3:30 a.m., one of the victims was sitting on a bench in the above-ground plaza near the Foggy Bottom Metro station, in the 2300 block of I Street NW. The defendant – a total stranger – approached the woman and told her that he wanted her to come with him into the nearby bushes as he had something that he wanted to show her. When she declined, Kone grabbed her and tried to pull her into the bushes. She resisted, and Kone told her that if she tried to leave, he would kill her. She began to scream, and Kone let go of her. She then ran to her nearby residence and called 911 to report the assault.
Meanwhile, Kone walked further west in that same plaza, where he encountered the second victim, another total stranger. He walked up to her and told her that he wanted to have sex with her. He then knocked the woman to the ground and got on top of her. Unable to get away, she began to scream. A group of nearby Good Samaritans then came to her aid, yelling at Kone to get off of her. He did, and began to flee down New Hampshire Avenue, toward the Watergate complex. Two of the Good Samaritans gave chase, calling 911 as they pursued him.
Kone ran behind a bush or tree in front of one of the nearby apartment buildings. The two Good Samaritans stood watch, urging the 911 operator to get the police to their location quickly before Kone could flee again. While those two young men remained, keeping an eye on Kone, campus police from George Washington University arrived and arrested the defendant.
In announcing the plea, U.S. Attorney Phillips praised the work of police from the George Washington University, who initially apprehended the defendant; and of detectives from MPD’s Sexual Assault Unit, which investigated the case. He also commended the bravery and willingness to become involved of the Good Samaritans who came to the aid of the victims.
U.S. Attorney Phillips also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Colleen Kennedy and Mark Aziz, Paralegal Specialists Michelle Chambers and D’Yvonne Key, and Victim/Witness Advocate Tracey Hawkins. Finally, he commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Man Pleads Guilty in Manhattan Federal Court in Connection with Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that WILLIAM J. WELLS pled guilty in Manhattan federal court today to an Indictment charging him with securities fraud and wire fraud in connection with his scheme to defraud more than 30 investors of more than $1.5 million through a fraud scheme over the course of more than six years. WELLS was arrested on October 1, 2015, and pled guilty today before United States Magistrate Judge Henry B. Pitman.
U.S. Attorney Preet Bharara said: “As he admitted today in court, William Wells engaged in a fraudulent scheme where he lured investors through lies about his trading performance and spent their money lavishly on himself. Instead of operating a legitimate investment firm – as he said he would to his investors – Wells focused on covering up his consistent trading losses and his personal spending of investor money, going so far as to create entirely fake account statements to reassure his clients. Thanks to the outstanding work of the FBI, Wells has now been forced out of the fraud-scheme business.”
According to the Complaint, the Indictment, and other statements made in open court:
From September 2009 through his arrest, WELLS, through his investment firm Promitor Capital LLC (“Promitor Capital”), engaged in a scheme to obtain investments by falsely representing that he had achieved consistently positive returns in the U.S. equity markets, including through the successful use of options to hedge risk. In truth, WELLS’ trading was remarkably unsuccessful. Between 2009 and the time of his arrest, WELLS realized trading losses every year and, in total, trading losses in excess of $500,000. In fact, as of September 2015, Promitor Capital had less than $1,000 under management.
In connection with the scheme, WELLS made a series of false and misleading representations to investors, including: (a) that WELLS’ trading was generating consistently positive returns when, in fact, his trading was consistently unsuccessful; (b) that investors were invested in certain stocks at certain times when, in fact, none of the accounts held by Promitor or WELLS held those stocks; and (c) that WELLS had created so-called sub-accounts for clients, for which WELLS purported to execute individualized trading strategies, when, in fact, no such sub-accounts were ever funded. In addition to false and misleading representations made orally and in writing, WELLS also generated wholly fictitious account statements that he provided to his clients.
As a result of these misrepresentations, WELLS obtained more than $1.5 million in investments from more than 30 investors, many of whom were friends, colleagues, or family members. WELLS routinely converted investor funds he did not lose trading to his own use in the form of cash withdrawals and to pay personal expenses, including more than $500,000 for, among other things, credit card bills, payments for WELLS’ automobile, and for private school tuition. In addition, to hide his trading losses and to continue to fund his personal lifestyle, WELLS used new investor funds to pay back other investors in a Ponzi-like fashion. In total, WELLS distributed less than approximately $500,000 back to investors.
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WELLS, 42, formerly of Manhattan and New Jersey, now living in Valley Cottage, New York, pled guilty to one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. The defendant will be sentenced at a future date by United States District Judge Kimba M. Wood.
Mr. Bharara praised the work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission for their assistance with the investigation.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
Man Indicted on Weapons ChargesRead the Press Release
CONCORD, N.H. – Daniel E. Musso, Sr., 54, of East Kingston, New Hampshire, was indicted in the United States District Court for the District of New Hampshire for receiving and possessing grenades, reports United States Attorney Emily Gray Rice.
The indictment charges Musso with four counts of receiving and possessing an unregistered firearm, specifically, grenades.
The charges resulted from an undercover investigation by the FBI. In January, Musso allegedly met with and told an undercover FBI agent posing as an arms dealer that he wanted to acquire grenades. He and the undercover agent allegedly agreed on a price for the grenades and agreed to another meeting to complete the transaction. On January 27, the undercover agent delivered four grenades to Musso at a location in Seabrook, New Hampshire. Musso was arrested by other FBI agents as he approached his vehicle carrying a bag containing the grenades.
Musso has been in custody since he was arrested. Today, after he was arraigned on the indictment, the court ordered that Musso be detained pending trial.
A trial has been scheduled for May 3, 2016. The statutory maximum for each of the charges in the indictment is 10 years in prison. If convicted, Musso’s sentence will be determined by the court after a presentence investigation report is prepared.
This case was investigated by the FBI New Hampshire Joint Terrorism Task Force. This case is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.
An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty.
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Man Admits to Arson, Looting, Assault and Other Mayhem During Baltimore Riots and Shooting Woman over a $20 Drug Dispute Ten Weeks LaterRead the Press Release
Baltimore, Maryland –Donta Betts, age 20, of Baltimore, pleaded guilty today to making a destructive device in connection with the April 27, 2015, riots in Baltimore. Betts also pleaded guilty in an unrelated case to discharge of a firearm in furtherance of a drug trafficking crime on July 2, 2015.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“This is the sad reality confronting brave police officers who try to save lives in Baltimore,” said U.S. Attorney Rod J. Rosenstein. “Donta Betts engaged in arson, looting, assault and other mayhem during the Baltimore riots. He threw rocks at the police near Mondawmin Mall; tried to destroy police cars; stole from a pharmacy, a liquor store and a shoe store; and set off a homemade bomb. Ten weeks later, he tried to murder a woman over a $20 drug dispute, then he conspired to get her to sign a false affidavit. We caught him only because police and prosecutors spent many hours reviewing video and audio recordings. It may sound like a story arc from a TV series, but it is real life in Baltimore.”
On April 27, 2015, riots and widespread looting erupted in Baltimore. Among the affected businesses, the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore was looted and burned. According to his plea agreement, Betts participated in the looting at the CVS. Betts is captured on surveillance video entering the store through its main front entrance and removing merchandise from the store.
By 5:44 p.m., riot participants had placed an assemblage of metal propane cylinders and charcoal briquettes near the main entrance to CVS, between West North Avenue and a line of police officers that had formed across the 2500 block of Pennsylvania Avenue. In an effort to deter the line of police officers from advancing to stop the looting of the CVS, Betts set fire to a roll of toilet paper and placed it on top of the propane cylinders and charcoal briquettes. Betts then squirted lighter fluid onto the burning roll of toilet paper atop the incendiary materials. Betts’ face and full body are shown squirting lighter fluid onto the incendiary materials in still photographs, some of which were published by local and national news media. Betts then fled, and at approximately 5:58 p.m., a large flame exploded from the improvised incendiary device, resulting in flying debris of large metal fragments from the propane cylinders and blast effects felt by nearby bystanders.
During the investigation, ATF learned that in addition to making the incendiary device, the scope of Betts’ participation in the April 27th riots included: throwing objects at police in the vicinity of Mondawmin Mall; attempting to tip over MTA and police vehicles while encouraging others to join him; attempting to destroy a police cruiser by placing flammable material in the fuel filler pipe and igniting the material; and stealing from the CVS, a liquor store in Baltimore, and a shoe store at Mondawmin Mall. Betts’ involvement in the riots is documented in surveillance footage and still photographs.
In an unrelated case, on July 2, 2015, Betts shot and attempted to kill an individual who had previously purchased heroin from him. According to the plea agreement, Betts expected to be paid $40 for the heroin, but the individual only paid him about $20. On the morning of July 2, 2015, Betts saw the individual in the driver’s seat of a vehicle with a passenger in southwest Baltimore. Betts approached the vehicle with a gun in his hand and shot at the individual, intending to kill the victim in retaliation for having been cheated in the prior drug transaction. The victim managed to drive away and was treated at the Shock Trauma Center at University of Maryland Hospital for severe injuries to her left leg. Betts was arrested for the shooting on July 7, 2015 and charged in state court with attempted first degree murder and other offenses, and detained.
On July 18 and July 19, 2015, while he was detained, Betts made calls to a friend. During the call on July 19, which was recorded by the Maryland Department of Public Safety and Correctional Services, Betts provided the name of the shooting victim and asked his friend to relay that information to associates of Betts and to instruct them to obtain a signed affidavit from the victim stating that Betts did not shoot her. During the same call, Betts admitted that he did shoot the victim.
Betts and the government have agreed that if the Court accepts the plea agreement Betts will be sentenced to between 14 and 16 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 24, 2016 at 10:00 a.m. Betts remains detained.
The investigation into arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
Federal prosecutors previously have charged four other defendants for arson crimes committed during the Baltimore riots on April 27, 2015. Trevon Green, age 23, of Baltimore, is charged with malicious destruction of property by fire, for allegedly setting fire to a food store on North Monroe Street. Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, faces federal charges for obstruction of firefighters during a civil disorder and for aiding and abetting arson. Darius Raymond Stewart, age 22, of Baltimore, is charged with malicious destruction of a commercial building for allegedly setting fire to a liquor store on West North Avenue. Raymon Carter, age 25, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Matthew J. Maddox and Sandra Wilkinson, who are prosecuting the case.
Luzerne County Man Sentenced to 151 Months in Prison for Federal Heroin Trafficking OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County man was sentenced today by United States District Court Judge Malachy E. Mannion in Scranton, to serve 151 months (12 years and 7 months) in prison for heroin trafficking.
According to United States Attorney Peter Smith, the defendant, Pedro Noriega, age 42, of Plymouth, Luzerne County, previously pleaded guilty to possession with intent to distribute heroin. He was indicted by a grand jury in August 2015.
Investigators had arranged to make a purchase of heroin from Noriega, obtained a search warrant for his residence, on West Main Street in Plymouth, and seized approximately 495 bags of suspected heroin, a quantity of raw heroin, packaging materials and drug paraphernalia from a bedroom in the residence.
In imposing the sentence, Judge Mannion noted the defendant’s previous criminal history which included multiple drug trafficking convictions.
The investigation was conducted by the Luzerne County Drug Task Force, the Bureau of Narcotics Investigations (BNI) of the Pennsylvania Office of Attorney General, and the Bureau of Alcohol, Tobacco and Firearms (ATF).
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Judge Mannion also ordered that Noriega be supervised by a probation officer for a period of three years following his release from prison.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Local Tax Preparer Sentenced to Seven Years in Prison for Filing Thousands of False Tax Returns and Stealing Identities in Multi-Million Dollar ScamRead the Press Release
Assistant U.S. Attorneys Joseph J.M. Orabona (619) 546-7951 or Alexandra Foster (619) 546-6735
NEWS RELEASE SUMMARY – March 18, 2016
SAN DIEGO – The owner of a tax preparation business in San Diego County was sentenced in federal court today to seven years in prison, admitting that she filed more than 3,500 false income tax returns with the Internal Revenue Service, that she committed tax evasion, and that she stole the identities of minors and other persons in order to obtain more than $7 million in bogus refunds.
Melissa Ann Vega, also known as Lisa Vega, was a local tax preparer and owner of L&T Works, a tax return preparation business on Miramar Road. She was sentenced on charges of conspiracy to file false, fictitious, and fraudulent claims for federal tax refunds, tax evasion and aggravated identity theft before U.S. District Court Judge Jeffrey T. Miller.
As detailed in her plea agreement, Vega conspired with others from at least December 2009 through April 2015 to submit thousands of false income tax returns to the IRS in order to fraudulently obtain tax refunds to which Vega, her co-conspirators and her clients were not entitled. In carrying out her scheme, Vega falsified her clients’ tax returns without their knowledge or consent. As part of the conspiracy, Vega claimed thousands of dollars in false education expenses and tax credits for which her clients were not qualified.
Vega told her co-conspirators and employees that they should maximize clients’ refunds by filing for a $4,000 education credit, even though the clients did not attend school for that tax year. To conceal her role in the fraud, Vega intentionally omitted her name and tax return preparer identification number on the false tax returns she prepared for her clients. In total, Vega’s fraud caused the IRS to pay more than $7 million in artificially-inflated tax refunds based solely on the false education credits. Moreover, Vega admitted that she and her co-conspirators stole the identities of other persons, including minors, and used them on the false tax returns in order to further inflate the amount of the tax refund paid by the IRS.
Vega did not shy away from personally profiting from her fraudulent scheme. In addition to charging her clients between $150 and $200 per return, Vega also admitted that she stole more than $300,000 in false tax refunds from her clients by directing their refunds into bank accounts that she controlled. Vega also admitted that she evaded her own income taxes and filed false personal tax returns in which she fraudulently claimed withholding credits, education credits, and tax credits for minor dependents that she did not support and who were not related to her. According to court documents, Vega evaded more than $156,000 in taxes due to the IRS for tax years 2009 through 2013.
Vega was arrested on gun charges on December 16, 2014. On January 28, 2015, she was released on bond and ordered not to commit any federal crimes --specifically filing false tax returns-- while out in the community. Nonetheless, Vega once again began filing false tax returns with the IRS within days of her release. Without the clients’ knowledge, Vega again fraudulently inflated or created credits and deductions to maximize her clients’ false returns. In an attempt to cover up her criminal activity, Vega agreed with Deanna Dave (charged in Criminal Case No. 15CR2715-JM) that Dave was the owner and paid-return preparer for the tax returns filed in February 2015. In truth, Vega continued as the owner of her tax preparation business and prepared the false tax returns, which she filed for her clients. The IRS uncovered her fraud, and Vega was again arrested on February 25, 2015. Dave pled guilty to providing false statements to the grand jury and is set for sentencing on April 1, 2016, before Judge Miller.
In addition to sentencing Vega, a previously convicted felon, to 7 years in prison, the Court also ordered the forfeiture of several firearms seized from Vega’s residence during the execution of a search warrant in April 2014, including a sawed-off shotgun, shotgun shells, a 9mm handgun, and 9mm ammunition. Vega’s husband, Jamie Lang, was sentenced to 30 months for possessing the unregistered sawed-off shotgun. The Court ordered Vega to pay restitution to the IRS in the total amount of $7,176,836.
Furthermore, as part of her plea agreement, Vega agreed to be permanently enjoined from ever preparing or filing federal income tax returns for anyone other than herself. A permanent injunction will be entered by the IRS to prevent Vega from acting as a tax preparer in the future.
“Tax fraud results in an increasing burden on honest taxpayers and negatively impacts honest citizens’ confidence in our tax system,” said U.S. Attorney Laura Duffy. “Identity theft not only has a long-lasting financial impact on the victims, but also has an emotional impact affecting the stability of victims and their families. Today’s seven-year sentence for Ms. Vega sends a message to tax preparers and others who engage in refund schemes and identity theft that the government will prosecute you to the fullest extent of the law and that the punishment will be severe.” With the current tax return filing season underway, U.S. Attorney Duffy reminded the public to always review a copy of any tax return prepared and filed on their behalf and to be skeptical of tax preparers that offer to obtain substantial tax refunds.
“Over the span of six years, Ms. Vega operated a massive tax refund and identity theft scheme, often using the identities of children to falsify deductions,” stated Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation. “As today’s sentence shows, the government will hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal tax refunds.”
“Today’s sentencing is a direct result of the efforts of dedicated investigators and prosecutors, and is a reminder that the U.S. Secret Service will vigorously investigate identity thieves who use the personal information of unsuspecting victims,” stated Special Agent In Charge David Murray, U.S. Secret Service.
Separately, three more defendants have entered guilty pleas admitting their roles in the tax fraud conspiracy. Earlier this year, co-conspirators Tammie Cowles, Stephen Elliott, and Justin Vega entered guilty pleas to conspiracy to file false claims for tax refunds. Co-conspirators Justin Vega and Stephen Elliott are scheduled to be sentenced before U.S. District Judge Jeffrey T. Miller on April 15, 2016, and co-conspirators Tammie Cowles is scheduled for sentencing before Judge Miller on May 6, 2016.
The public is reminded that tax-related identity theft occurs when someone uses your stolen Social Security number (or the SSN of a dependent) to file a tax return claiming a fraudulent refund. If your SSN is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these additional steps:
• Respond immediately to any IRS notice; call the number provided.
• Complete IRS Form 14039, Identity Theft Affidavit, if your e-filed return is rejected because of a duplicate filing under your SSN. Attach the completed form to your return and mail according to instructions.
• Continue to pay your taxes and file your tax return, even if you must do so by paper.
• If you previously contacted the IRS and did not have a resolution, you may contact them for specialized assistance at 1-800-908-4490.
Link: The link to IRS Form 14039 = https://www.irs.gov/pub/irs-pdf/f14039.pdf
DEFENDANT Criminal Case No. 14CR3658-JM
Melissa Ann Vega Age: 44 San Diego, CA
SUMMARY OF CHARGES THAT DEFENDANT VEGA PLEADED GUILTY TO:
Count 1 – Title 18, United States Code, Section 286 B Conspiracy to File False Claims
Maximum penalties: 10 years in prison, $250,000 fine, 3 years of supervised release.
Count 2 – Title 26, United States Code, Section 7201 – Tax Evasion
Maximum penalties: 5 years in prison, $250,000 fine, 1 year of supervised release.
Count 3 – Title 18, United States Code, Section 1028A – Aggravated Identity Theft
Maximum penalties: 2 years in prison to be served consecutive to any other term of imprisonment, $250,000 fine, 3 years of supervised release.
OTHER CO-CONSPIRATORS AND CHARGES:
Tammie Cowles Age: 41 San Diego, CA Criminal Case No. 15CR1591-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Stephen Elliott Age: 28 San Diego, CA Criminal Case No. 15CR1003-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Justin Vega Age: 26 San Diego, CA Criminal Case No. 15CR2198-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Deanna Dave Age: 49 San Diego, CA Criminal Case No. 15CR2715-JM
Pleaded Guilty to: Title 18, United States Code, Section 1623 – False Declaration before Grand Jury
Jamie Lang Age: 27 San Diego, CA Criminal Case No. 14CR3658-JM
Pleaded Guilty to: Title 26, United States Code, Section 5861(d) – Possession of Saw-Off Shotgun
Sentenced to: 30 months in prison, 3 years of supervised release, forfeiture of firearms
INVESTIGATING AGENCIES
Internal Revenue Service-Criminal Investigation
United States Secret Service
Bureau of Alcohol, Tobacco, and Firearms
Lewis County man pleads guilty to possession of stolen firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jacob Daniel Anthony, 21, of Weston, West Virginia, pled guilty today to possessing stolen firearms, United States Attorney William J. Ihlenfeld, II, announced.
In August 2015, Anthony stole a .45 caliber pistol, a 12 gauge shotgun, and a 20 gauge shotgun. He then pawned the three firearms at locations in Lewis, Upshur, and Harrison Counties.
Anthony pled guilty today to one count of “Possession of Stolen Firearms.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Weston, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Korean National Sentenced to Four Years in Prison for Crimes Ranging from Identity Theft to Illegal Firearm PossessionRead the Press Release
A Korean national who had been deported from the U.S. and then returned using falsified documents to commit additional fraud was sentenced today in U.S. District Court in Seattle to four years in prison and $49,815 in restitution, announced U.S. Attorney Annette L. Hayes. CHONG HWA LIM aka Jong Wha Rim, 64 of Federal Way, Washington, was arrested April 14, 2015 in connection with a bank fraud investigation. LIM had been deported from the U.S. in 1995 for alien smuggling and making false statements to a Border Agent. At sentencing U.S. District Judge Richard A. Jones said he had “a significant degree of concern about items found in the search of LIM’s apartment…. They raise concerns about the defendant’s true motives.”
According to records filed in the case, LIM pleaded guilty in December 2015 to Illegal Reentry after Deportation, Forgery and False Use of a Passport, being a Felon in Possession of a Firearm, Conspiracy to Commit Wire Fraud, and Aggravated Identity Theft. When law enforcement searched LIM’s Federal Way apartment in April 2015 they found high-end identity device making equipment; police equipment; counterfeit identifications, credit cards and immigration documents; hundreds of new Social Security cards; a loaded .380 Beretta handgun; an unloaded Mossberg 500 12-gauge shotgun; and a binder containing names, social security numbers, and other identifying information for taxpayers (real and fake) used by the conspirators when filing fraudulent tax returns. LIM and his coconspirators had submitted false tax returns under the names of other people and obtained more than $49,000 in fraudulent refunds. LIM also used a fake Korean passport to obtain a Washington State driver’s license in a false name.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), the Kent Police Department, Social Security Administration Office of Inspector General (SSA-OIG), Homeland Security Investigations (HSI) and the U.S. State Department Diplomatic Security Service (DSS).
The case was prosecuted by Assistant United States Attorney Rebecca Cohen and Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute fraud cases in federal court.
Jury Convicts Rochester Man of Drug and Firearms ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal jury has found Willie Harris, 46, of Rochester, NY, guilty of possession of cocaine with intent to distribute and being a felon in possession of ammunition and a firearm. The charges carry a maximum penalty of 30 years in prison and a fine of $2,000,000 or both.Assistant U.S. Attorney Charles E. Moynihan, who handled the prosecution of the case, stated that on June 10, 2014, Harris was arrested at 49 Troup Street in Rochester after agents from the Federal Bureau of Investigation and officers of the Rochester Police Department executed a search warrant in one of the apartments at that address.
Prior to executing the search warrant, Harris spoke with officers and told them he had a short-barreled “rifle” and cocaine inside his apartment. Once inside of the location, officers found four bags of cocaine, as well a digital scale commonly used to measure drugs for distribution, small ziplock bags and approximately $180.00 in United States currency. Officers also located a Mossberg 500 C slide action shotgun, the barrel of which had been sawed-off to a length of 16 and 1/8 inches. Ammunition was also found with the shotgun.
The conviction is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for June 18, 2016, at 2:00 p.m. before U.S. District Judge Elizabeth A. Wolford who presided over the trial of the case.
Jackson County Residents Charged with Methamphetamine OffensesRead the Press Release
Two Jackson County residents were indicted on March 8, 2016, for methamphetamine-related offenses, Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Kyle E. Easterly, 29, and Charles W. Yearian, a/k/a "Chucky," 29, both of Murphysboro, are charged in a two-count indictment charging conspiracy to manufacture and distribute methamphetamine and possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine. The indictment alleges that the offenses occurred between October 2015 and March 2016, in Jackson and Perry Counties. Easterly and Yearian appeared in federal court on March 17, 2016. They were ordered held without bond pending a May 9, 2016, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt.
The methamphetamine offenses carry a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and Murphysboro Police Department. The Jackson County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Henry County Man Sentenced to 204 Months for Unlawfully Possessing Assault Rifle, Attempting to Distribute Marijuana in Obion County JailRead the Press Release
Jackson, TN – A repeat offender has been collectively sentenced to 204 months in federal prison for two separate crimes. Markia D. Patton, 30, of Paris, Tennessee has been sentenced to 190 months for possession of an assault rifle while attempting to traffic marijuana. Patton received an additional sentence of 14 months for conspiring to distribute marijuana in the Obion County Jail while incarcerated on the aforementioned case. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to information presented in court, Patton unlawfully possessed with the intent to distribute more than three pounds of marijuana. He also illegally possessed a semi-automatic SKS assault rifle.
On September 24, 2012, the Henry County Metro Crime Unit responded to a 911 call involving an armed suspect behind some houses in the Wynn Street section of Paris, Tennessee. When officers arrived, they located the defendant behind the houses. Witnesses on the scene identified Patton as the armed suspect.
While searching the area, officers located a semi-automatic assault rifle wrapped in a coat lying in the weeds beside the back of one of the homes. Over 3.5 pounds of marijuana packaged for resale in four separate baggies were located close to the assault rifle. Law enforcement also searched Patton’s vehicle, finding a set of digital scales used to weigh narcotics and a box of sandwich bags, which are commonly used to package illegal narcotics for resale. The Tennessee Bureau of Investigation (TBI) Nashville Crime Laboratory found Patton’s fingerprints on the bags. The TBI Lab also confirmed Patton’s DNA was on items in a pocket of the jacket that concealed the assault rifle.
On Thursday, February 18, 2016, Patton was sentenced by Chief U.S. District Judge J. Daniel Breen to 130 months for felony possession of a firearm in furtherance of a drug trafficking crime and another 60 months for possession with intent to distribute less than 50 kilograms of marijuana.
Patton was sentenced to an additional 14 months on Friday, March 18, 2016 for conspiracy to distribute and possess with intent to distribute marijuana in the Obion County Jail. He pled guilty to the charge in February 2016.
According to court information, Patton, incarcerated on the aforementioned case at the time, conspired with his girlfriend, 25-year-old Shalyndrea Williams, and a then-correctional officer, 35-year-old Cara Bing, to smuggle and distribute marijuana inside of the jail. From February to June 2015, Patton had Williams bring marijuana into the jail. From there, Bing would retrieve the marijuana, smuggle it inside the jail, and distribute it to Patton.
TBI agents were informed that Patton was having marijuana brought into the jail. Surveillance was set up on the entrance to the women’s restroom in the lobby of the facility. In June 2015, agents discovered more than 30 grams of marijuana in the trash can of the restroom. Williams was allegedly directed by Patton to bring the drugs into the restroom.
Williams dropped off drugs and tobacco in the facility’s women’s restroom on at least six occasions for Patton. Bing was paid several hundred dollars to retrieve and deliver the smuggled drugs to Patton.
Both Williams and Bing have pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute marijuana.
Williams is scheduled to be sentenced on Thursday, April 14, 2016. Bing is scheduled to be sentenced on Tuesday, June 14, 2016. The defendants face individual sentences of up to five years and a fine of up to $250,000.
The first case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); TBI; Henry County Sheriff's Department; Henry County Metro Crime Unit; and the Paris Police Department.
The second case was investigated by TBI, Obion County Sheriff’s Department, and the 27th Judicial District Drug Task Force.
Assistant U.S. Attorney Beth C. Boswell prosecuted these cases on the government’s behalf.
Harrisburg Man Sentenced to 30 Months in Prison for Firearm OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tyler Brookin-Jones, age 24, Harrisburg, Pennsylvania, was sentenced yesterday to 30 months in federal prison by United States District Court Judge John E. Jones, III, in Harrisburg, for possession of a firearm by a convicted felon.
According to United States Attorney Peter Smith, Brookin-Jones pleaded guilty to possessing a stolen firearm in November 2015.
Brookin-Jones was indicted by a grand jury in Harrisburg in July 2015, as a result of an investigation by ATF and the Harrisburg Bureau of Police. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was part of the Violent Crime Reduction Partnership (“VCRP”), a district-wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend and prosecute individuals who commit violent crimes.
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Gun Crime Is Fed Time in SavannahRead the Press Release
Savannah, GA – Two convicted felons, both from Savannah, Georgia, were sentenced earlier this week to lengthy federal prison sentences for possessing firearms.
Alan Stanton, a/k/a “Lucky,” 31, was sentenced on March 16, 2016 by Chief U.S. District Court Judge Lisa Godbey Wood to 96 months in federal prison, to be followed by 3 years of supervised release. According to evidence presented during Stanton’s guilty plea and sentencing hearings, in May, 2015, Savannah-Chatham Metropolitan Police Department (SCMPD) officers arrested Stanton, a known member and leader of the Ghost Face Gangsters (a white supremacy gang), after Stanton pointed a pistol at a civilian during a “road rage” incident. The police timely responded to the incident and found the pistol hidden in a speaker box. As a convicted felon, Stanton was prohibited from possessing firearms. Stanton’s criminal history included over 12 convictions on drug charges, theft charges, driving charges, domestic violence charges, and multiple drug trafficking charges. Judge Wood ordered Stanton’s 96 month federal sentence to run consecutive to his 10 year state sentence. There is no parole in the federal system. Upon Stanton’s release from state and federal prisons, he will serve a period of court supervision for 5 years under the state system and 3 years under the federal system.
Laron Allen, 28, of Savannah, Georgia, was sentenced on March 16, 2016 by U.S. District Court Judge William T. Moore, Jr. to also serve 96 months in federal prison, followed by 3 years of supervised release. According to the evidence presented during Allen’s guilty plea and sentencing hearings, in January of 2015, SCMPD investigators arrested Allen, who had seven outstanding warrants for his arrest. Investigators observed Allen exit a convenience store located on Augusta Road, in Savannah, and immediately took him into custody. Investigators found Allen in possession of a loaded, stolen, .40 caliber semi-automatic pistol; an extra magazine loaded with ammunition in his pocket; and, a quantity of crack cocaine and marijuana. Allen’s criminal history dates back 14 years, with over 10 convictions on violent crime charges, obstruction of justice charges, and drug trafficking charges. Judge Moore ordered that Allen’s 96 month sentence run consecutive to his other state charges. Upon Allen’s release from state and federal prisons, he will be on a lengthy period of state and federal supervision.
U.S. Attorney Edward J. Tarver stated, “Violent gun crime incidents in Savannah have increased at an alarming rate. This United States Attorney’s Office and its federal partners will work closely with the Savannah Chatham Metropolitan Police and other local law enforcement officials to stem the surge of violent crime in Savannah. Felons and career offenders are on notice that gun crime, even possessing a pistol, a rifle, or even one bullet will land them in a federal prison. Gun crime is fed time.”
These cases were brought to federal court as part of Project Ceasefire, a joint federal, state and local firearms initiative addressing gun crime in Savannah and throughout the Southern District of Georgia. Both cases were investigated by SCMPD and the ATF. Assistant United States Attorney E. Gregory Gilluly prosecuted the cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Granite City Man Sentenced for Distribution of MethamphetamineRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced that Shawn A. Thompson, age 39, of Granite City, Illinois, was sentenced on March 17, 2016 to 151 months’ imprisonment for Distribution of Methamphetamine.
Thompson pled guilty to the federal charge on December 3, 2015. At his change of plea hearing, Thompson admitted that he and co-defendant Michael Murphy had sold a police informant an ounce of methamphetamine for $2,000 in Granite City on December 11, 2013. Thompson also admitted selling methamphetamine twice a week for the four months preceding his arrest.
Thompson’s co-defendant Michael Murphy was also convicted and sentenced to 36 months’ imprisonment in January, 2016.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. The investigation which led to the arrest and conviction of Thompson and Murphy was conducted by the Drug Enforcement Administration (DEA).
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Granite City Man Sentenced for Distribution of MethamphetamineRead the Press Release
A Granite City man was sentenced on March 17, 2016, in federal court in East St. Louis, Illinois, for Distribution of Methamphetamine he Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. James Wagner, 50, of Granite City, Illinois, was sentenced to 210 months’ imprisonment. Wagner was also sentenced to 5 years of supervised release once he released from prison. In addition, he was ordered to pay a $1000 fine and a $100 special assessment.
The United States Postal Inspection Service and Metropolitan Enforcement Group of Southwestern Illinois intercepted a package containing 213.3 grams of methamphetamine that was being sent through the United States Postal Service. The package was addressed to a friend of Wagner’s who agreed to cooperate with law enforcement and assist in the controlled delivery. Wagner was arrested after the package was delivered and he was attempting to open it. Wagner had previously pled guilty to the charge on September 25, 2015.
The case was investigated by the United States Postal Inspection Service and the Illinois State Police Metropolitan Enforcement Group of Southwestern Illinois. The case was prosecuted by Special Assistant United States Attorneys Vanessa T. Lu and Alex Boykin.
Former Manchester Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
CONCORD, N.H. – Okello Odongo, 36, of Snellville, Georgia, pleaded guilty in United States District Court for the District of New Hampshire to 19 counts of filing false tax returns and fraudulently obtaining tax refunds reports United States Attorney Emily Gray Rice.
Odongo is a former resident of Manchester, New Hampshire, where he operated a tax return preparation business called Tax Smart Solutions Co. As a tax preparer, Odongo was authorized by the IRS to file tax returns electronically for his customers. One of the forms he filed electronically was an Allocation of Refund Form that instructed the IRS to directly deposit refunds into specified bank accounts. The form allowed a refund to be allocated to two or more bank accounts.
In 2011 and 2012 Odongo filed false tax returns on behalf of some of his customers that fraudulently overstated the amounts of the tax refunds they were entitled to claim. Odongo also filed Allocation of Refund Forms that directed the IRS to electronically deposit the fraudulent portions of the refunds to bank accounts Odongo held or had access to. None of Odongo’s customers knew that he used their doctored tax returns as a vehicle to defraud the IRS.
The statutory maximum for each of the 19 charges Odongo pleaded guilty to is five years in prison. A sentencing hearing has been scheduled for June 22, 2016. The court will sentence Odongo after it has reviewed and considered a presentence investigation report prepared by the United States Probation Office.
This case was investigated by the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.
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Former Head of Offshore Brokerage Sentenced to 18 Years for Conspiracy to Commit International Stock Fraud and Money LaunderingRead the Press Release
A California man was sentenced to 216 months in prison today for two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Harold Bailey Gallison II, 58, of Valley Center, California, pleaded guilty on Dec. 10, 2015, and was sentenced by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia, who also ordered Gallison to pay $1,724,770 in restitution. Gallison was charged in an indictment unsealed on July 14, 2015, along with eight other individuals for their roles in complex international stock manipulation and money laundering schemes.
In his guilty plea, Gallison admitted that he conspired to artificially “pump” or inflate the trading volume and price of the shares of Warrior Girl Corp., quoted on the OTC market under the ticker symbol WRGL, and Everock Inc., quoted on the OTC market under the ticker symbol EVRN, by touting business activities and deceptive revenue forecasts and by engaging in coordinated trading activity to create the appearance of increasing market demand. Gallison also admitted that he and others then “dumped” or sold the shares at the inflated prices and laundered proceeds through bank accounts in the United States and overseas. Gallison facilitated the schemes through an offshore brokerage and money laundering platform that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively Moneyline), he admitted. According to the plea, through Moneyline, Gallison created nominee accounts in the names of shell companies to conceal both the true source and ownership of the securities and the flow of funds. In addition, Gallison pleaded guilty to one count of conspiring to launder the proceeds of a number of securities fraud schemes, including Warrior Girl and Everock, totaling more than $25 million.
The FBI’s Washington Field Office is investigating the case. Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kosta S. Stojilkovic of the Eastern District of Virginia are prosecuting the case. The Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs also provided significant assistance.
Former Head of Offshore Brokerage Sentenced for Conspiracy to Commit International Stock Fraud and Money LaunderingRead the Press Release
ALEXANDRIA, Va. – Harold Bailey Gallison II, 58, of Valley Center, California, was sentenced today to 18 years in prison for two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market. Gallison was also ordered to forfeit more than $1.7 million.
Gallison pleaded guilty on Dec. 10, 2015. According to court documents, Gallison admitted that he conspired to artificially “pump” or inflate the trading volume and price of the shares of Warrior Girl Corp., quoted on the OTC market under the ticker symbol WRGL, and Everock Inc., quoted on the OTC market under the ticker symbol EVRN, by touting business activities and deceptive revenue forecasts and by engaging in coordinated trading activity to create the appearance of increasing market demand. Gallison also admitted that he and others then “dumped” or sold the shares at the inflated prices and laundered proceeds through bank accounts in the United States and overseas. Gallison facilitated the schemes through an offshore brokerage and money laundering platform that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively Moneyline), he admitted. According to the plea, through Moneyline, Gallison created nominee accounts in the names of shell companies to conceal both the true source and ownership of the securities and the flow of funds. In addition, Gallison pleaded guilty to one count of conspiring to launder the proceeds of a number of securities fraud schemes, including Warrior Girl and Everock, totaling more than $25 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Kosta Stojilkovic, Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorneys James P. Gillis and G. Zachary Terwilliger assisted in the prosecution. The FBI’s Washington Field Office investigated the case, while the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs provided significant assistance.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-178.
Former Executive of Defense Contractor Sentenced to 63 Months in Prison for $30 Million Fraud SchemeRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – March 18, 2016
SAN DIEGO – Alex Wisidagama, a former executive of a Singapore-based defense contracting firm Glenn Defense Marine Asia, was sentenced to 63 months in prison today for his participation in a fraud scheme that over-billed the U.S. Navy by more than $34 million for ship husbanding services.
Wisidagama, 42, of Singapore, the former global manager for government contracts of Glenn Defense Marine Asia (GDMA), was sentenced today by U.S. District Judge Janis L. Sammartino. In addition to imposing the prison term, Judge Sammartino ordered Wisidagama to pay $34.8 million in restitution to the Navy.
In March 2014, Wisidagama pleaded guilty to one count of conspiracy to submit false claims for payment. He is the third defendant to be sentenced in a massive fraud and corruption scheme involving GDMA, which provided port services to U.S. Navy ships in the Asia-Pacific region.
According to admissions made as part of his plea agreement, Wisidagama and his cousin, GDMA CEO Leonard Glenn Francis, 51, of Malaysia, perpetrated a scheme to defraud the U.S. Navy on ship husbanding contracts by, among other things, over-billing for the sale of goods, fuel and port tariffs. Records show that GDMA’s contracts with the U.S. Navy allowed it to sell certain categories of supplies for which GDMA was the lowest bidder. To make it appear that GDMA’s prices were competitive, Wisidagama and others created false price quotations purporting to be from third-party vendors and submitted them to the U.S. Navy, he admitted. Because the contracts forbade GDMA from making up the price of fuel that it supplied to U.S. Navy ships, Wisidagama admitted that he and his conspirators created false invoices purporting to show that GDMA paid more to purchase fuel than was actually the case, which allowed GDMA to build undisclosed markups into the prices at which it supplied fuel to the U.S. Navy. According to the plea, GDMA inflated the cost of port tariff expenses that it passed on to GDMA, despite the fact that the contracts did not allow GDMA to mark up these items.
Wisidagama admitted that in October 2011, GDMA charged the U.S. Navy $2,739,351.49 to service the USS Mustin during a port visit to Thailand, $1,593,766.75 of the charges were fraudulent. Wisidagama admitted that the scheme caused more $34 million in total losses to the U.S. Navy.
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Malaki, Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; and on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; the others await sentencing.
NCIS, DCIS and the Defense Contract Audit Agency are conducting the ongoing investigation. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline or call (800) 424-9098.
DEFENDANT Case Number: 13cr4043-JLS
Alex Wisidagama 42 Singapore
SUMMARY OF CHARGES
Conspiracy to Defraud the United States in violation of 18 USC 286
Maximum of 10 years in prison; a maximum $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Former Executive of Defense Contractor Sentenced to 63 Months in Prison for $30 Million Fraud SchemeRead the Press Release
A former executive of a Singapore-based defense contracting firm was sentenced to 63 months in prison today for his participation in a fraud scheme that over-billed the U.S. Navy by more than $34 million for ship husbanding services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Special Agent in Charge Chris D. Hendrickson of the Defense Criminal Investigative Service’s (DCIS) Western Field Office and Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
Alex Wisidagama, 42, of Singapore, the former global manager for government contracts of Glenn Defense Marine Asia (GDMA), was sentenced today by U.S. District Judge Janis L. Sammartino of the Southern District of California. In addition to imposing the prison term, Judge Sammartino ordered Wisidagama to pay $34.8 million in restitution to the Navy. In March 2014, Wisidagama pleaded guilty to one count of conspiracy to submit false claims for payment. He is the third defendant to be sentenced in a massive fraud and corruption scheme involving GDMA, which provided port services to U.S. Navy ships in the Asia-Pacific region.
According to admissions made as part of his plea agreement, Wisidagama and his cousin, GDMA CEO Leonard Glenn Francis, 51, of Malaysia, perpetrated a scheme to defraud the U.S. Navy on ship husbanding contracts by, among other things, over-billing for the sale of goods, fuel and port tariffs. Records show that GDMA’s contracts with the U.S. Navy allowed it to sell certain categories of supplies for which GDMA was the lowest bidder. To make it appear that GDMA’s prices were competitive, Wisidagama and others created false price quotations purporting to be from third-party vendors and submitted them to the U.S. Navy, he admitted. Because the contracts forbade GDMA from making up the price of fuel that it supplied to U.S. Navy ships, Wisidagama admitted that he and his conspirators created false invoices purporting to show that GDMA paid more to purchase fuel than was actually the case, which allowed GDMA to build undisclosed markups into the prices at which it supplied fuel to the U.S. Navy. According to the plea, GDMA inflated the cost of port tariff expenses that it passed on to GDMA, despite the fact that the contracts did not allow GDMA to mark up these items.
Wisidagama admitted that in October 2011, GDMA charged the U.S. Navy $2,739,351.49 to service the USS Mustin during a port visit to Thailand, $1,593,766.75 of the charges were fraudulent. Wisidagama admitted that the scheme caused more $34 million in total losses to the U.S. Navy.
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Malaki, Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense (DoD) civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; and on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; the others await sentencing.
NCIS, DCIS and the Defense Contract Audit Agency are conducting the ongoing investigation. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline or call (800) 424-9098.
Former Correctional Officer Sentenced for Sexually Assaulting A Federal InmateRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Samuel A. Hart, a former Correctional Officer of Escambia County Detention Center, was sentenced today before the Honorable District Court Judge Kristi Dubose for sexually assaulting a federal inmate.
Hart, who has no other criminal history, appeared before the Court today for his sentencing hearing. The defense argued that Hart has a low chance of recidivism due to his lack of criminal history. The United States argued that Hart abused his position of trust by engaging in sexual conduct with an inmate in his custody. This conduct, according to the United States, should not occur regardless of one’s circumstances. Hart had only been on the job for eighteen (18) days before he committed this crime. While engaging in his official duties, he decided to engage in sexual intercourse with an inmate during transport. Additionally, he had the federal inmate perform oral sex on him. Hart was terminated from employment as a Correctional Officer.
After hearing the arguments from both sides, the Court sentenced Hart to a split sentence, which consists of five (5) months in custody and five (5) months home confinement. He is required to pay the cost for the electronic monitoring during his home confinement. Moreover, the court sentenced Hart to a five (5) year term of supervised release, during which he will be subjected to several terms and conditions as imposed by the court. He is also required to pay $100 special assessment. As a result of this conviction, Hart is also required to register as a sex offender.
This case was investigated by the United States Marshal Service and prosecuted by Assistant United States Attorneys Suntrease Williams-Maynard and George May.
Former CPA Sentenced to Prison for Fraudulently Conducting ERISA AuditsRead the Press Release
PHOENIX, – On March 16, 2016, Michael Edelen, 64, of Phoenix, Ariz., was sentenced by U.S. District Judge Humetewa to 24 months in prison, followed by 3 years of supervised release, and was ordered to pay $459,308 in restitution to 45 victims. In October of 2015, Edelen had previously pleaded guilty to conspiring to make false statements in audit documents required by ERISA pension plans and conspiring to commit mail and wire fraud.
Michael Edelen, operating as Retirement Plan Auditors, Ltd., and several other entities, performed audits of retirement plans covered by ERISA as a CPA licensed in several states. After he lost his licenses, he continued to perform the audits and to sign audit reports required by ERISA to be signed by a CPA. During 2011 and 2012, Edelen conducted audits for 45 companies and submitted reports to the U.S. Secretary of Labor falsely claiming the retirement plans were audited by a CPA. He collected $459,308 from the victim companies, all of which believed Edelen was a licensed CPA.
“Our office will continue to prosecute those who conspire to falsely represent clients in any type of financial transactions,” said Acting U.S. Attorney Elizabeth A. Strange. “I want to thank our partner agencies for their commitment to investigating these types of public trust crimes.”
“CPAs represent the first line of defense for plan participants. We are grateful to the USAO Arizona in joining with us in our resolve to keep that line strong and remove unqualified practitioners who threaten the integrity of our system,” said Ian Dingwall, Chief Accountant for the Department of Labor, Employee Benefits Security Administration.
“The US Postal Inspection Service will continue to partner with fellow law enforcement agencies to bring those to justice who use our nation’s mail system to commit fraud,” said Postal Inspector in Charge Keith Fixel. “The US Postal Inspection Service remains dedicated to our mission to protect the US Postal Service, secure the nation’s mail system, and ensure public trust in the mail.”
Charlotte Anne Viterbo, also formerly a CPA, separately had pleaded guilty to a federal fraud charge for her role in the offenses, and she was sentenced by U.S. District Judge Snow on Jan. 11, 2016, to 3 years of probation, and was ordered to pay $24,000 in restitution. Both Edelen and Viterbo agreed as part of their plea agreements to refrain from future professional involvement with ERISA plans and to refrain from seeking reinstatement of their CPA licenses.
The investigation in this case was conducted by the U.S. Department of Labor and the U.S. Postal Inspection Service. The prosecution was handled by Peter Sexton and Monica Klapper, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-15-1318-PHX-DJH; CR-15-1320-PHX-GMS
RELEASE NUMBER: 2016-022_ Edelen et al
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Fairfax Woman Sentenced for Embezzling $653,000 from Virginia State SenatorRead the Press Release
ALEXANDRIA, Va. – Linda Diane Wallis, aka Lynn Wallis Miller, 51, of Fairfax, was sentenced today to 56 months in prison for her role in three fraud schemes totaling over $1.4 million in losses, including embezzling $653,000 from Virginia State Senator Richard Saslaw’s campaign fund. Wallis was also ordered to pay restitution in the amount of $1,429,599.
“Those who abuse a position of public and private trust by engaging in sophisticated fraud schemes will be held accountable for their actions,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This prosecution should serve as a deterrent to anyone contemplating similar theft for their own benefit.”
Wallis pleaded guilty on Oct. 15, 2015. According to court documents, Wallis participated in three separate fraud schemes from in or around January 2013 through in or around February 2014. In the first scheme, Wallis, along with a co-conspirator, D.M., created two fraudulent companies, the first known as Federal Legal Associates, and the second was The Straile Group. Through various methods including fraudulent wire transfers and checks, Wallis caused approximately $368,400 in loss to Company A.
The second scheme involved the embezzlement of approximately $653,000 from the campaign account of Senator Saslaw. From June 2013 to September 2014, Wallis served as the treasurer of the Saslaw for State Senate campaign. During that time, Wallis issued or caused to be issued, approximately 73 fraudulent checks from the Saslaw for State Senate campaign bank account, which totaled approximately $653,000. Wallis made the checks payable to the aforementioned Federal Legal Associates, The Straile Group, and herself. All of the checks were issued without knowledge or permission of Senator Saslaw or his campaign staff, and were deposited into accounts she independently controlled or that were jointly controlled with co-conspirator D.M.
The third scheme involved misuse of funds from a charitable organization, of which Wallis was Executive Director, and co-conspirator D.M., co-founded. The Community College Consortium on Autism and Intellectual Disabilities (CCCAID) claimed to provide assistance to community colleges for program development and implementation and information on the availability of resources for sustainability of programs. Wallis and D.M. marketed CCCAID as a non-profit entity, but they never applied for non-profit status for the organization. In April 2010, Wallis established CCCAID’s bank account, and between April 2010 and April 2013, community colleges located around the country contributed approximately $293,000 to CCCAID. Additionally, a Bulgarian businessman associated with co-conspirator D.M. donated $500,000 to CCCAID. The funds contributed to CCCAID were to be used to further the mission of the organization and not to enrich Wallis or co-conspirator D.M. Despite these restrictions, from April 2010 to August 2014, Wallis authorized approximately $482,000 in transfers from CCCAID’s account to other bank accounts Wallis and co-conspirator D.M. controlled. A significant percentage of the $482,000 CCCAID was used to pay Wallis’ and co-conspirator D.M.’s personal expenses, such as mortgage payments, expenses related to food and restaurants, merchandise purchases, and a vacation.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Uzo Asonye prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-285.
Fairbanks Man indicted by Federal Grand Jury for being a felon in possession of firearmsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man has been indicted by a federal grand jury in Anchorage for possessing firearms as a convicted felon.
J Cobb Whitmore, 37, of Fairbanks, Alaska, was charged in a one count indictment.
The indictment alleges that Whitmore B a two-time felon B illegally possessed two firearms on November 19, 2015. Whitmore was convicted of felony assault in 2000 and, again, in 2015 by the State of Alaska’s Fourth Judicial District, Superior Court, based in Fairbanks.
Assistant U.S. Attorney Andrea Hattan, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both, for the charged offense. 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.
The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service, both branches of the Department of Justice, and the Alaska State Troopers conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
El Salvador Man Sentenced to Prison for Assault of Border Patrol AgentRead the Press Release
TUCSON, Ariz. –Wilmer Noe Velasquez-Mejia, 35, from El Salvador, was sentenced yesterday by U.S. District Judge James A. Soto to serve 13 months in prison for assault of a federal officer. Velasquez-Mejia had previously pleaded guilty to this offense.
On Aug. 26, 2015, while illegally in the United States after having been deported on previous occasions, Velasquez-Mejia was attempting to break into occupied vehicles stopped at an intersection near Three Points, Ariz. The victim, a United States Border Patrol agent, responded to the intersection to assist. Upon seeing the Border Patrol agent, Velasquez-Mejia ran away and ignored his instructions to stop. The victim pursued Velasquez-Mejia, who repeatedly resisted and struggled with the victim and continued to run from him. At one point during the struggle Velasquez-Mejia charged at the victim and gestured as if he had a firearm concealed under his clothing, repeatedly challenging the victim to kill him. Velasquez-Mejia then jumped into a nearby car through an open window. The driver was able to force Velasquez-Mejia out of the car, at which point the victim was finally able to arrest Velasquez-Mejia.
The investigation in this case was conducted by the United States Border Patrol. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-15-1712-TUC-JAS
RELEASE NUMBER: 2016-021_Velasquez-Mejia
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Drug Dealers Sentenced for Role in Cairo Cocaine and Crack Cocaine OperationRead the Press Release
Eddie Lee Perry, age 43, of Cairo, Georgia, Joseph Davenport, age 52, of Thomasville, Georgia, and Brandon Perry, age 22, of Cairo, Georgia were sentenced March 17, 2016 by the Honorable W. Louis Sands in Albany, Georgia. Mr. Eddie Perry was sentenced to serve 240 months in federal prison. Based on his multiple prior cocaine convictions, Mr. Davenport has been sentenced to mandatory life imprisonment. Mr. Brandon Perry received 18 months and credit for time served. Chad Ragin was not sentenced today.
Evidence presented at trial in August 2015 showed that during 2013, Eddie Lee Perry, Joseph Davenport, and Chad Ragin were part of a criminal organization that distributed cocaine and crack cocaine in Cairo, Georgia. Mr. Ragin acted as a courier of drugs and money between Mr. Perry and Roger Ross, of the Miami, Florida area. Mr. Davenport “cooked” the powder cocaine, converting it into crack cocaine. The organization was responsible for trafficking/distributing kilogram quantities of cocaine.
Roger Ross was sentenced in October 2015 to 30 years imprisonment, followed by a term of supervised release of 8 years.
Brandon Perry entered a guilty plea on November 17, 2015.
The case was investigated by the Thomas County Vice/Narcotics Squad, the Thomasville Police Department, the Grady County Sheriff’s Office, the Cairo Police Department, the Pelham Police Department, the Georgia State Board of Pardons and Paroles District Office and the U.S. Drug Enforcement Administration. Assistant United States Attorney Leah E. McEwen prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
District Man Sentenced to 22 Years in Prison for Sexual Abuse of 13-Year-Old DaughterRead the Press Release
WASHINGTON – A 34-year-old man from Washington, D.C. was sentenced today to 22 years in prison on a charge of first-degree child sexual abuse with aggravating circumstances for sexually abusing his 13-year-old daughter, U.S. Attorney Channing D. Phillips announced.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in November 2015 in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for a prison sentence between 9 ½ and 23 years. The Honorable Jennifer Anderson accepted the plea today and sentenced the defendant accordingly. Following completion of his prison term, the man will be placed on 10 years of supervised release. He also must register as a sex offender for 10 years upon his release.
According to the government’s evidence, the abuse occurred between July 19 and July 27, 2014 in Southeast Washington. The defendant, who is the victim’s father, was watching television with her in the defendant’s room. The defendant removed the victim’s pants and underwear, and sexually assaulted her. Afterwards, he apologized to the victim, promising that he wouldn’t sexually abuse her again.
The defendant, who left the Washington, D.C. area, was arrested by the U.S. Marshals Service in New York City on Sept. 10, 2015. He admitted having had sex with the victim. He also wrote the victim an apology letter, asking her to forgive him.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Youth Investigations Division and of the Deputy U.S. Marshals based in New York. He also commended the efforts of staff from the U.S. Attorney’s Office, including Child Forensic Interview Specialists Tracy Owusu and Karen Giannakoulias; Victim/Witness Advocate Lezlie Richardson; Paralegal Specialist Joyce Arthur, and Assistant U.S. Attorney John L. Hill, who prosecuted the case.
District Man Sentenced to 16 Years in Prison for Stabbing His Ex-GirlfriendRead the Press Release
WASHINGTON – Donta Winslow, 33 of Washington, D.C., was sentenced today to 16 years in prison for stabbing his ex-girlfriend last summer while they were in her car in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Winslow pled guilty in November 2015, in the Superior Court of the District of Columbia, to one count of assault with intent to kill while armed. The plea, which was contingent upon the Court’s approval, called for a prison sentence within the range of 13 to 16 years. The Honorable Michael Ryan accepted the plea today and sentenced Winslow accordingly. After his prison term, Winslow will be placed on five years of supervised release.
According to the government’s evidence, Winslow was previously in a romantic relationship with the victim. She had ended the romantic relationship, however. In the late morning of Aug. 14, 2015, Winslow approached and then got into the victim’s car. At one point, near the intersection of 46th and Meade Streets NE, Winslow forced the victim to pull the car onto a curb. The victim was in the driver’s seat, and Winslow was in the passenger seat.
Winslow took out a knife and stabbed the victim multiple times in the body, including in the back of her neck, back, and chest. The victim was curled down, facing forward in the seat, when Winslow stabbed her. A witness approached the car and confronted Winslow, causing him to get out of the car and run away.
When officers from the Metropolitan Police Department (MPD) responded to the scene, they found the victim motionless on her side. She was transported to the hospital via ambulance. She had approximately 11 stab wounds to her body, and two collapsed lungs. She was admitted to the hospital for almost two months. She has severe spinal cord damage from the stabbing that initially left her paralyzed. Through extensive physical therapy, she has regained some of her motor skills, but remains significantly impaired.
Winslow fled the scene and was apprehended in Washington, D.C., shortly after the incident. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Erica Vample and Joyce Arthur, and Victim/Witness Advocate Meshall Thomas. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
District Man Pleads Guilty to Assaulting His Step-DaughterRead the Press Release
WASHINGTON – A 42-year-old man, formerly of Washington, D.C., pled guilty today to one count of assault with intent to commit first-degree sexual abuse of his 13-year-old stepdaughter, U.S. Attorney Channing D. Phillips announced.
The man, who is not identified here to protect the privacy of the victim, pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a seven-year prison sentence. The Honorable Michael Ryan set a hearing for May 20, 2016 to determine whether the plea and sentence will be accepted.
According to the government’s evidence, sometime between May and October of 2015, the victim and her younger sibling would spend weekends at the defendant’s home in Northwest Washington On one occasion during that time-frame, the defendant told the victim to remove all of her clothes. At that time, he had a belt in his hand and threatened to beat the girl if she did not comply. Out of fear, she complied, whereupon the man sexually assaulted her. The man was arrested on Feb. 6, 2016, after the abuse came to light, and has been in custody ever since.
In announcing the plea, U.S. Attorney Phillips praised the work of detectives from the Metropolitan Police Department’s Youth Investigations Division, which investigated the case; and of personnel from Safe Shores, who forensically interviewed the victim and her younger sibling. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key; Child Forensic Interview Specialist Karen Giannakoulias, and Victim/Witness Advocate Tracey Hawkins. Finally, he commended Assistant U.S. Attorneys Jessica Brooks and Peter V. Taylor, who investigated and prosecuted this case.
Crystal Falls Businessman Sentenced for Distribution of Child PornographyRead the Press Release
MARQUETTE, MICHIGAN — Stephen John Plowe, 62, of Menasha, Wisconsin was sentenced to 120 months in federal prison for distribution of child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered Plowe to serve five years of court supervision following his release from prison, to pay a $100 special assessment, and to pay $12,000 to victims of his crime. Plowe will also be required to register as a sexual offender.
On December 14, 2015, Plowe pleaded guilty to a federal felony charge of distributing child pornography. Plowe’s activities came to light through three separate undercover investigations in which officers, posing as 13 to 14 year-old girls, conversed with him using Yahoo! Internet Messenger. In these online conversations, Plowe engaged in explicit sexual talk and sent child pornographic images to the undercover officers. The investigation revealed that Plowe was using a computer located at Plowe Furniture in Crystal Falls, Michigan. Investigators, armed with a federal search warrant, seized the computer and the contents of Plowe’s Yahoo! accounts. A forensic examination of the computer and Plowe’s Yahoo! accounts revealed Plowe’s possession of approximately 1,100 images and 118 videos containing child pornography. Plowe admitted engaging in online conversations with underage females, receiving nude images from them, and sending child pornography videos and images for approximately eight years.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
Immigration and Customs Enforcement, Homeland Security Investigations, the Federal Bureau of Investigation, the Somervell County, Texas Sheriff Department, the Bay County, Florida Sheriff Department, and the Macomb County, Michigan Sheriff Department investigated the case. The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.
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Coachella Valley Doctor Pleads Guilty in Multi-Million Dollar Scheme that Duped Insurance Companies into Paying for Cosmetic SurgeriesRead the Press Release
SANTA ANA, California – A Rancho Mirage cosmetic surgeon pleaded guilty this morning in a scheme to defraud health insurance companies by submitting bills for more than $3.4 million for procedures that he claimed were “medically necessary” – but in fact were cosmetic procedures such as “tummy tucks,” “nose jobs” and breast augmentations.
Dr. David M. Morrow, 71, of Rancho Mirage, a cosmetic surgeon and dermatologist who was the owner of the Morrow Institute (TMI) in Rancho Mirage, pleaded guilty today to one count of conspiracy to commit mail fraud.
In a plea agreement filed in United States District Court, Morrow admitted that he participated in a scheme to obtain money from insurance companies by false or fraudulent pretenses, which included submitting altered documents to the insurance companies. Morrow admitted that cosmetic surgeries were billed to insurance companies under the pretense that the procedures were “medically necessary” so that insurers would pay for them.
“Insurance companies provide a valuable service by providing financial support in a time of medical need – they are not designed to dispense cash to unscrupulous medical providers,” said United States Attorney Eileen M. Decker. “Medical professionals who defraud an insurance provider hurt every person who is forced to pay higher premiums.”
Morrow also pleaded guilty today to one count of filing a false tax return for 2008. Today, Morrow admitted that he failed to report to more than $100,000 of income on his 2008 tax return and more than $1.5 million on his 2009 tax return.
“Today’s guilty plea by Dr. Morrow is an important victory for America’s taxpayers who play by the rules and have no tolerance for those who make up their own rules,” stated Anthony J. Orlando, the Acting Special Agent in Charge of IRS Criminal Investigation in Los Angeles. “This investigation and subsequent conviction serve to remind the public that there is no such thing as free money and there are no awards or incentives for creativity when it comes to medical billing and tax fraud.”
Morrow, his wife, and TMI were charged in this case last fall when a federal grand jury returned a 27-count indictment that outlined a scheme in which patients were lured to the Coachella Valley surgery center with promises that cosmetic procedures would be paid for by their union or PPO health insurance plans. The victim health insurance companies included Anthem Blue Cross, Blue Cross/Blue Shield of California, Blue Cross/Blue Shield of Massachusetts, Regional Employer/Employee Partnership for Benefits, formerly known as Riverside Employer/Employee Partnership (REEP), and Cigna.
Morrow pleaded guilty today to a conspiracy count in the indictment that outlined how insured patients were lured to TMI with promises that they could receive free or discounted cosmetic surgeries that would be paid largely or completely by their insurance plans. Morrow and his wife told patients that they could receive the free or discounted cosmetic procedures if they first underwent multiple procedures that could be billed to insurance, according to the indictment.
To trick insurance companies into paying for the cosmetic procedures, Morrow and others at TMI completely fabricated diagnoses – such as a “hernia” – in the patients’ official medical records. According to the indictment, they also fabricated test results and symptoms on medical records to cover up the actual medical procedures being performed – tummy tucks were fraudulently billed as hernia repair or abdominal reconstruction surgeries, rhinoplasties (“nose jobs”) were fraudulently billed as deviated septum repair surgeries, and breast lifts and augmentations were fraudulently billed as “tuberous breast deformity.” A document filed as part of Morrow’s plea agreement shows that TMI billed insurance as much as $150,750 for a single cosmetic procedure.
Morrow altered existing medical records after the fact to conceal that cosmetic surgery had actually been performed. Morrow admitted in the plea agreement and in court today that on one patient’s medical record sent to an insurance company, he covered up the original text of “Abdominoplasty” (tummy tuck) written in the procedure section and handwrote “umbilical & ventral hernias” on top of it.
“Dr. Morrow enriched himself by cheating policy holders and victim companies whose employees and ability to continue operating were placed in jeopardy as a result of this fraud,” said David Bowdich, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI devotes many resources to combating health care fraud and seeking justice for victims who can suffer a variety of consequences beyond financial loss.”
As a result of today’s guilty pleas, Morrow faces a statutory maximum sentence of 20 years of in federal prison for the conspiracy count and three years of imprisonment for filing the false tax return. Morrow is scheduled to be sentenced by United States District Judge Josephine L. Staton on September 23.
Morrow has also agreed to pay full restitution to the victims.
Charges against Morrow’s wife, Linda Morrow, 63, are currently pending.
This investigation into Morrow and TMI was conducted by the Federal Bureau of Investigation, IRS Criminal Investigation, and the California Department of Insurance.
Charleston Man Sentenced for Investment FraudRead the Press Release
Contact Person: Rhett DeHart (843) 727-4381
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Vance White, age 49, was sentenced in federal court in Charleston, South Carolina, for Wire Fraud, a violation of 18 U.S.C. § 1343. Senior United States District Judge Weston Houck sentenced White to 36 months imprisonment and 3 years supervised release. The Court also ordered White to pay $629,000 in restitution to the victims.
Evidence presented at his guilty plea hearing established that Vance White was a mortgage originator in Charleston County, S.C. From May 2010 through March 2015, White devised a scheme to defraud investors. It was part of the scheme to defraud that White falsely represented to investors that he had clients who were attempting to purchase residential properties but who could not qualify for traditional bank loans. White persuaded numerous investors to loan money to these clients. The terms of these fictitious loans were a ten percent annual interest rate with the loans being repaid in full in three years. White falsely represented to the investors that each of these loans was secured by mortgages on residential properties, and he fabricated the loan documentation for each loan to make it appear that the loans were secured by residential properties with sufficient equity.
In reality, the loans promoted by White were completely fictitious. There were no borrowers for the loans, nor any collateral to secure the loans. Instead of providing the loan proceeds to actual borrowers, White stole the loan proceeds for his personal use, and he used a small portion of the loan proceeds to make the fraudulent interest payments to the investors in order to prolong the fraud. During the course of the scheme to defraud, White fraudulently obtained more than $800,000 from ten investors for approximately twenty fictitious loans as described above.
The case was investigated by agents of the Federal Bureau of Investigation (FBI). Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.
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Canistota Woman Convicted of Tax FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that Veronica Fairchild, age 42, of Canistota, South Dakota, and Okoboji, Iowa, who was found guilty of four counts of tax fraud as a result of a federal jury trial in Sioux Falls, South Dakota, lost her appeal of the conviction. The Eighth Circuit Court of Appeals affirmed the conviction of the District Court.
Fairchild was sentenced to 33 months in custody and ordered to pay over $214,000 in restitution to the U.S. Department of Treasury, Internal Revenue Service, for unpaid taxes.
Fairchild was indicted by a federal grand jury on July 9, 2013. The investigation stemmed from Fairchild’s late filing of her 2005 through 2008 income tax returns in 2010. Bank records revealed she had failed to claim over $850,000 in income over the four-year period of time. Fairchild claimed the unreported income she received from performing private shows as an exotic dancer was a gift.
A jury trial commenced on June 24, 2014, and completed on June 26, 2014, with the jury convicting Fairchild on all four counts of the Indictment.
On appeal, Fairchild challenged the evidence supporting her conviction, the jury instructions regarding the source of income, and the length of her sentence. The Eighth Circuit Court of Appeals affirmed the conviction and held that the evidence was sufficient to support the jury’s finding that Fairchild knowingly and willfully underreported her income as an exotic dancer. The Court also held that the jury instructions were proper and that the length of her sentence was reasonable.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Cahokia Woman Sentenced to 24 Months for Disposing of Firearm to FelonRead the Press Release
A Cahokia woman, who pled guilty to Disposing of a Firearm to a Felon, was sentenced to 24 months in federal prison on March 17, 2016, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Kamia D. McLemore, 27, of Cahokia, Illinois, received a 24-month sentence for Disposing of a Firearm to Felon. Following release from imprisonment, McLemore will serve a one-year term of supervised release. McLemore was also fined $100, and was ordered to pay a $100 special assessment. McLemore pleaded guilty to the charges on November 24, 2015.
The charges arose from an incident in which members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATF) learned of a suspicious purchase by McLemore of a Romanian WASR-10, 7.62 x 39mm semi-automatic rifle in November, 2013. Further investigation revealed that she had also purchased a Masterpiece Arms, MPA10T, .45 caliber semi-automatic pistol in September, 2013. When agents interviewed McLemore, she told them that she had taken the guns to her boyfriend’s house, also in Cahokia. Agents learned that the boyfriend was a previously-convicted felon. McLemore took the agents to the boyfriend’s house (where she also resided three nights a week) and allowed agents to seize the guns, two bayonets, and a laser scope. Investigation also revealed that she had made inquiries about buying a 75-round drum magazine that would fit the rifle, but she later decided not to buy the magazine.
The case was investigated by members of BATF and members of the Cahokia Police Department. The case was prosecuted by Assistant United States Attorney Stephen Clark.
Buffalo Man Charged with Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Duke Jimenez, 33, of Buffalo, NY, was arrested and charged by criminal complaint with production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, in September 2015, Buffalo Police learned that Jimenez sexually abused a four year old girl (Victim 1) he had been babysitting since 2012. In addition, the defendant took pictures of the girl with his cellular telephone. Jimenez was arrested by Buffalo Police on multiple charges.
In October 2015, Buffalo Police interviewed Victim 1’s older brother who told officers the defendant would take the girl into an upstairs bedroom alone and close the door. The brother also told officers he heard screaming and crying from the bedroom. He also observed that when his sister came out of the bedroom, she was crying and sad.
In November 2015, Buffalo Police interviewed Victim l's aunt, who was the girlfriend of the defendant. She stated that she and Jimenez have been babysitting Victim 1 since she was six-months-old and that based on her work schedule, the defendant was alone with Victim 1 approximately 100 times. The aunt also told officers about several suspicious incidents including a time that she stopped at home unannounced and saw Jimenez standing at the top of the stairs. The aunt asked where Victim 1 was and the defendant said she was in the bathroom. However, the aunt observed Victim 1exit the bedroom.
On March 10, 2016, Buffalo Police obtained a search warrant for the cell phone. A subsequent review revealed that the phone contained an SD memory card. A review of the card revealed 14 images of child pornography depicting Victim 1.
Jimenez made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer. The defendant is detained pending a detention hearing on March 24, 2016 at 11:00 a.m.
The criminal complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
Bookkeeper for Online Pharmacy Sentenced to Five Years in Prison for Money LaunderingRead the Press Release
The former bookkeeper for an online pharmacy that illegally distributed hundreds of thousands of narcotic drugs across the country was sentenced today in U.S. District Court in Seattle to five years in prison, three years of supervised release, and 200 hours of community service for conspiracy to distribute controlled substances and conspiracy to commit money laundering, announced U.S. Attorney Annette L. Hayes. THOMAS BROOKE, 54, of Cooper City, Florida was the bookkeeper for Discount Pharmacy. At the sentencing hearing U.S. District Judge Richard A. Jones said BROOKE was a “central cog in this operation… Thousands of people continued their addiction because of what you were involved in.”
The internet pharmacy distributed drugs to some 200 customers in Washington State between 2009 and 2012. The pharmacy shipped hundreds of thousands of pills of hydrocodone, phentermine, alprazolam (Xanax) and codeine (Tylenol 4) to people across the country who did not have valid prescriptions for the narcotics. The conspiracy brought in more than $9 million in revenue from the sale of pills during the three year scheme. The pharmacy operated four internet sites through which they solicited customers and allowed customers in Washington State to order drugs. According to the indictment, the conspiracy would continue to refill prescriptions even if no valid prescription existed. In some instances the conspirators simply looked for a physician in the same geographic area as the customer, with a similar sounding name and filled the prescription using the physician’s DEA number without the physician’s knowledge. The pharmacy charged as much as ten times the usual price for the medications.
The conspirators laundered the proceeds of their sales through a brick-and-mortar pharmacy in Florida called Discount Pharmacy of Pines. BROOKE was a key figure in funneling the flow of money through the illegal business and to the conspirators. In June 2012, the DEA seized the conspiracy’s websites, computers, and drug inventory. Even after that seizure BROOKE set up different bank accounts and continued to structure deposits to avoid currency reporting requirements.
Earlier this month Ali Lovins, 44, of Cooper City, Florida was sentenced to three years in prison. Lovins is a registered nurse and was the office manager for Discount Pharmacy. LOVINS pleaded guilty in April 2015 to four felony counts: conspiracy to distribute controlled substances by means of the internet; conspiracy to distribute controlled substances; conspiracy to launder money; and conspiracy to introduce misbranded drugs into interstate commerce.
All but one of the defendants who were indicted in May 2014 has pleaded guilty and is awaiting sentencing:
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The originator of the scheme, JUAN GALLINAL, 48, of Pembroke Pines, Florida is a former police officer from Virginia. He is scheduled for sentencing in October 2016.
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JORDAN TRUXELL, 26, of Davie, Florida served as the registered agent for Discount Pharmacy dba frontierpharmacies.com. He is scheduled for sentencing in May 6, 2016.
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CRAIG GREER, 43, of Hollywood, Florida, a former police officer, worked to promote the internet pharmacy scheme. He is scheduled for sentencing on April 8, 2016.
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KEVIN KOGAN, 48, of Cedar Park, Texas, set up the websites and servers for the online pharmacy, and attempted to hide the conspiracies databases from investigators. He is scheduled for sentencing April 8, 2016.
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JERRY DELMAN, 83, of Miami, Florida, a pharmacist who ostensibly oversaw the prescriptions going out the door to customers is being evaluated for a medical condition that could impact his ability to participate in a trial.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the Portland Tactical Diversion Squad which is comprised of the Drug Enforcement Administration (DEA) and the Portland Police Bureau. Substantial investigative assistance was provided by the Food and Drug and Administration (FDA) – Florida, and DEA Miami Field Division.
The case is being prosecuted by Assistant United States Attorneys Mike Lang, Francis Franze-Nakamura and Brian Werner.
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Area Chiropractor Sentenced to Prison for Health Care FraudRead the Press Release
WASHINGTON – Lewis J. Levine, 59, a chiropractor who practiced in Southeast Washington, was sentenced today to five months of incarceration, to be followed by two years of supervised release, including a curfew and five months of electronic monitoring, for his role in a scheme involving fraudulent claims to the District of Columbia Medicaid program.
The sentencing was announced by U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Levine, of Laurel, Md., pled guilty in September 2014 to a federal charge of health care fraud. He was sentenced by the Honorable Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia. As part of his plea agreement, Levine must pay $50,260 in restitution to the D.C. Medicaid program and an identical amount in a forfeiture money judgment.
The fraud involved D.C. Medicaid payments for home care services to be performed by personal care aides, working for home care agencies. The aides assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth. In order to be covered for such benefits, the beneficiaries must get prescriptions from physicians or advanced practice registered nurses. D.C. Medicaid only reimburses for care services if a physician determines after a physical examination that the beneficiary has functional limitations impairing activities of daily living. The prescriptions, also known as “intakes,” propose the frequency and duration of the services to be provided. The prescriptions are translated later into plans of care, also to be signed by the physician.
In the District of Columbia, a typical prescription, or “intake,” calls for eight hours of personal care services per day for five days per week, or eight hours per day for seven days per week. Over the six-month time span authorized by such a prescription, D.C. Medicaid could pay between $16,952 and $23,732 for personal care services provided to one beneficiary.
According to a statement of offense, signed by the government as well as the defendant, Levine was licensed as a chiropractor in the District of Columbia, not as a physician. He worked at the Anacostia Neck & Back Pain Center in Southeast Washington. He was not authorized to prescribe personal care services, and he was not enrolled as a provider in D.C. Medicaid.
According to the statement of offense, Levine and others carried out their scheme to defraud the D.C. Medicaid program from approximately November 2012 through February 2014. Personal care aides, working for at least eight home care agencies, brought numerous beneficiaries to Levine, and he wrote prescriptions and plans of care, listing himself as the “ordering physician,” after brief examinations; sometimes, however, he never even met the beneficiary.
Levine initially was paid $75 for each D.C. Medicaid beneficiary brought to his office by a personal care aide, but he later increased the size of the cash payments to $150. Levine’s prescriptions, or “intakes,” typically included a diagnosis such as “chronic severe back pain” and called for services for eight hours a day, seven days a week, for six months.
During the course of the fraud scheme, Levine signed hundreds of prescriptions and plans of care, and in exchange collected at least $50,260 in cash payments from D.C. Medicaid beneficiaries and personal care aides. Home care agencies used Levine’s prescriptions and plans of care to support and justify their claims for payment to Medicaid – even though the paperwork was invalid on its face because it was not prescribed or signed by a physician as required.
This investigation was conducted by the FBI’s Washington Field Office. This case was prosecuted by Assistant U.S. Attorney Ted Radway, with assistance from Assistant U.S. Attorney Thomas Swanton and former Special Assistant U.S. Attorney Dangkhoa Nguyen.
The FBI has set up a hotline number to report suspected incidents of Medicaid fraud: 855-281-1242. People can also provide information by e-mail to [email protected].
In addition to the FBI, numerous agencies are participating in broader investigations into Medicaid fraud, including the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; the Social Security Administration, Office of Inspector General, and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office.
HHS-OIG also has a hotline that can be reached at 800-HHS-TIPS or by visiting their website link at http://oig.hhs.gov/fraud/report-fraud/index.asp
Anne Arundel County Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Sergei William Noack, age 23, of West River, Maryland, pleaded guilty today possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Wes Adams.
According to his plea agreement, on May 8, 2015, an Anne Arundel County Police Department investigator received two Cybertips from the National Center for Missing and Exploited Children that had been received from an internet service provider. The tips involved an individual, later determined to be Noack, who had: uploaded to his computer an image depicting two prepubescent male minors engaging in sexually explicit conduct; and, sent a photo of a prepubescent minor to another individual and stated via chat that he was having sexual contact with the minor.
That same day, a search warrant was executed at Noack’s residence. Investigators seized his desktop computer, two external hard drives, and his cell phone. Noack spoke with law enforcement voluntarily and advised that he had thousands of images of child pornography on his computer, which he searched for and collected from the internet. Noack admitted that he likes images and videos depicting bondage. He stated that he meets people online in websites and chat rooms, then moves to applications that conceal the identity of the user to trade child pornography files with those people.
A preliminary forensic examination of the seized items revealed images and videos of children engaged is sexually explicit conduct on the desktop computer and external hard drive. There were at least eight videos and 90 images of child pornography on the media, including numerous files that portray sadistic or masochistic conduct or other depictions of violence. One of the videos was surreptitiously recorded by Noack and depicted a minor prepubescent male using the bathroom in Noack’s home. Noack also stated that approximately two to three years earlier he was alone with a prepubescent minor who was visiting his home and that he touched the back and stomach of the prepubescent minor. The minor was interviewed in 2015 and stated that Noack would give him a cookie to take off his shirt and then touched him on his bare chest and stomach. The minor stated that Noack attempted to put his hands under the minor’s pants, towards his genitals, but the minor moved away. In 2012, Noack sent frequent text messages to the minor, often declaring his love for the minor.
As part of his plea agreement, Noack must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Noack and the government have agreed that if the Court accepts the plea agreement Noack will be sentenced to at least five years in prison followed by at least 25 years of supervised release. U.S. District Judge George L. Russell III has scheduled sentencing for June 17, 2016 at 2:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Anne Arundel County Police Department and Anne Arundel County Police Department for their work in the investigation and recognized Anne Arundel County Assistant State’s Attorney Anastasia Prigge, who handled the state prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
Thursday 17 March 2016
Woman Sentenced to Probation for Embezzling from Former EmployerRead the Press Release
PITTSBURGH - A former resident of Beaver County, Pennsylvania, has been sentenced in federal court to five years of probation on her conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Maria P. Makozy, 48, of Fort St. Lucie, Florida.
According to the information presented to the court, Makozy embezzled from her former employer, Keymax Settlement Services, to pay for personal credit card expenses using company checks.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The U.S. Attorney Hickton commended the United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation for the successful prosecution of Maria P. Makozy.
West Mifflin Man Sentenced to 6 Years in Prison for Distributing Child PornographyRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 72 months imprisonment, followed by 15 years supervised release, on a charge of distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Paul Robert Fike, age 37, of West Mifflin, Pennsylvania.
According to information presented to the court, the court was advised that on or about June 11, 2014, Fike distributed images containing material depicting the sexual exploitation of minors.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, the Indiana County District Attorney’s Office, the Allegheny County Police Department, and the West Mifflin Police Department for conducting the investigation leading to the successful prosecution of Fike.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Washington Pa. Man Charged with Trafficking Heroin and FentanylRead the Press Release
PITTSBURGH – Quenten Vaden, of Washington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of trafficking in heroin and fentanyl, United States Attorney David J. Hickton announced today.
The two-count indictment returned on March 8 charged Vaden, 32, with possessing with intent to distribute and distributing heroin and fentanyl, in February 2016.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Ross E. Lenhardt and Katherine A. King, of the Violent Crime section of the U.S. Attorney’s Office, are prosecuting this case on behalf of the government.
Special Agents and Task Force Officers from the Drug Enforcement Administration, the Washington County Drug Task Force, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, the Washington County District Attorney’s Office, and numerous local police departments including the Canonsburg Police Department, the Donora Police Department, the Monessen Police Department, and the Charleroi Police Department, as well as the Washington County Coroner’s Office, and the Allegheny County Medical Examiner’s Office, 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.
Wappingers Falls Man Sentenced to 12 Years in Prison for Distribution of Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Angel M. Melendez, Special Agent-in-Charge of the New York Office of U.S. Immigration and Customs Enforcement’s (“ICE”), Homeland Security Investigations (“HSI”), announced that MATTHEW GOLDFARB was sentenced in White Plains federal court today to 12 years in prison for distribution of child pornography. GOLDFARB pled guilty to one count of distributing child pornography in June 2015 before United States District Judge Cathy Seibel, who imposed today’s sentence.
U.S. Attorney Bharara stated: “By distributing child pornography, Matthew Goldfarb further victimized the children depicted in those horrifying images and videos, and helped sustain and perpetuate the market for such vile materials. Today’s sentence serves as a reminder that law enforcement will do all we can to protect children from predators who make and distribute child pornography.”
Special Agent-in-Charge Melendez stated: “Today's sentencing removes a dangerous and disturbed sexual predator like Mr. Goldfarb from our community, making it safer for all those that live in it, especially our children. We are committed to protecting the most vulnerable in our society through outreach efforts to educate our communities as well as enforcement.”
According to the Complaint, the Information, other documents in the public record, and statements made in open court:
Between July and November 2014, GOLDFARB distributed child pornography over the Internet through the use of peer-to-peer file-sharing software. A forensic examination of GOLDFARB’s laptop computer, which was seized by HSI agents during the execution of a search warrant at GOLDFARB’s residence, revealed 455 images and 748 videos containing child pornography. The images and videos included depictions of adults performing sex acts with prepubescent children, and many of the videos were over an hour in length. On June 24, 2015, GOLDFARB pled guilty to distribution of child pornography before Judge Seibel, and was released on home detention prior to sentencing.
In August 2015, while on release, GOLDFARB resumed trading child pornography over the Internet. GOLDFARB posted the following statement on the photo-sharing website iMGSRC.RU: “Trade young boys and girls. Send to receive. No empty emails.” GOLDFARB created a new Gmail account, and used it to trade child pornography with other individuals. GOLDFARB used a Kindle tablet, which he hid between the box springs in his bed, to access the Internet and trade child pornography. In one email exchange with another individual interested in trading child pornography, GOLDFARB wrote, “I got arrested for porn so I am not supposed to use the internet. I use a tablet bc I can hide it.”
On October 30, 2015, HSI agents executed a second search warrant at GOLDFARB’s residence, and also executed a search warrant on his newly created Gmail account. They discovered that GOLDFARB’s Gmail account contained an additional 540 images and 102 videos containing child pornography that GOLDFARB had sent and/or received between August and October 2015. That same day, GOLDFARB was arrested and ordered detained until sentencing.
GOLDFARB’s emails also revealed that, in addition to trading child pornography, GOLDFARB had engaged in a series of exchanges in which he discussed ideas for kidnapping young boys and raping them. In one email, GOLDFARB wrote: “[Y]ou can’t get one near houses during the day. Find a path that has trees on both sides and you are good. If you find someone walking alone at night tackle him, knock him out, tie up hands, throw into car drive away.” GOLDFARB also expressed his intention to use his time in prison to come up with ideas for committing such crimes against children, writing that, “It’s going to give me ideas on how to lock my boy up anyways.”
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In addition to the prison sentence, GOLDFARB, 24, of Wappingers Falls, New York, was sentenced to lifetime supervision after his release. GOLDFARB was also ordered to pay a total of $24,000 in restitution to victims of his crime.
Mr. Bharara praised the outstanding efforts of HSI.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney George Turner is in charge of the prosecution.
Ukrainian Woman Pleads Guilty to Conspiracy to Commit Marriage FraudRead the Press Release
SYRACUSE, NEW YORK – Natalia Polkowski, 29, of the Ukraine, pled guilty today in federal court in Syracuse to conspiracy to commit marriage fraud, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations (HSI), Syracuse, New York.
As part of her guilty plea, Natalia Polkowski (nee Medvid), a Ukranian national, admitted that she entered into a sham marriage to John Polkowski of Binghamton, New York, on December 23, 2008, for the purpose of obtaining permanent residency in the United States. Polkowski further admitted that she never intended to establish a life with her husband, but rather entered into the bogus marriage to enable her to remain in the United States. John Polkowski pled guilty to conspiracy to commit marriage fraud on April 22, 2014. At that time, he admitted that he was promised $10,000 for entering into the fraudulent marriage.
Natalia Polkowski will be sentenced on July 21, 2016 in federal court in Binghamton by Senior District Judge Thomas J. McAvoy. She faces a maximum sentence of up to five years in prison and a fine of up to $250,000. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case was investigated by Homeland Security Investigations ("HSI"), and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown
Two Indian Nationals Indicted for Smuggling Foreign Nationals into the United States via Commercial FlightsRead the Press Release
NEWARK, N.J. – Two Indian nationals were indicted by a federal grand jury today for allegedly smuggling foreign nationals into the United States via commercial airline flights, U.S. Attorney Paul J. Fishman announced.
Nileshkumar Patel, 41, and Harsad Mehta, 66, both of India, are each charged by indictment with one count of conspiracy to bring in and harbor aliens and one count of money laundering conspiracy. In addition, Patel is charged with six counts and Mehta is charged with four counts of smuggling foreign nationals into the United States for private financial gain. Patel and Mehta were arrested on Oct. 21, 2015 upon their arrival at Newark Liberty International and both remain detained pending the outcome of the charges.
According to the indictment:
Homeland Security Investigations (HSI) received information that a smuggling operation run by Patel and Mehta was attempting to find methods to illegally smuggle foreign nationals from India into the United States. The investigation revealed that the smuggling operation recruited Indian nationals and others to pay fees in exchange for passage to the United States.
Beginning in April 2014, an undercover law enforcement officer posing as a smuggler began meeting with Patel and Mehta in Bangkok, Thailand. Patel and Mehta stated that they were involved in the smuggling business and had multiple Indian nationals that they were intending to smuggle into the United States. Mehta and Patel agreed to transport the Indian nationals from India to Thailand, at which point the undercover law enforcement officer would presumably use his contacts to smuggle the Indian nationals into the United States via commercial airline flights.
Patel and Mehta agreed to wire a $10,000 down payment for each individual to be smuggled into the United States and to pay a balance of tens of thousands of dollars for each individual once the foreign nationals arrived in the United States.
In total, Patel and Mehta arranged for six Indian nationals to be brought to Thailand for smuggling into the United States via Newark Liberty International Airport on three occasions.
The conspiracy to bring in and harbor aliens charge carries a maximum potential sentence of 10 years in prison. The money laundering conspiracy charge carries a maximum potential penalty of 20 years in prison. Each substantive charge of alien smuggling carries a maximum potential penalty of five years in prison and a mandatory minimum of three years in prison.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S Attorney’s Office National Security Unit in Newark.
Defense counsel:
Patel: Peter Carter Esq., Assistant Federal Public Defender, Newark
Mehta: Mark Berman Esq., River Edge, New Jersey
Texas Woman Sentenced to 20 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Brownsville, Texas woman and a Joplin, Mo., man were sentenced in federal court today for their roles in a conspiracy to distribute methamphetamine in the Joplin area.
Miriam DeLeon, 35, of Brownsville, and Juan Leonardo Simmons, 32, of Joplin, were sentenced in separate appearances before U.S. District Judge M. Douglas Harpool. DeLeon was sentenced to 20 years in federal prison without parole. Simmons was sentenced to six years and three months in federal prison without parole.
According to court documents, DeLeon was identified as the leader of a drug-trafficking organization and as a major source of supply in the Joplin area as the result of a year-long, multi-agency investigation into an international organization based in Matamoras, Mexico, with members across the United States, including Texas, Oklahoma and Missouri.
On Feb. 18, 2015, DeLeon pleaded guilty to participating in a conspiracy to distribute methamphetamine and to aiding and abetting others to distribute methamphetamine.
DeLeon was arrested on July 31, 2014, after visiting the Jasper County courthouse for a hearing for her brother and co-defendant, Jose Luis DeLeon, Jr., 36, of Joplin, who was being held on state charges at that time. In the courthouse parking lot, she handed another person a bag of dog food that was later found to contain 470 grams of methamphetamine. According to court documents, Miriam DeLeon was bringing the methamphetamine to her brother, who planned to distribute inside the Jasper County jail.
Miriam DeLeon had also been stopped in August 2008 by the Texas Department of Public Safety for a traffic violation in Wharton, Texas. The traffic stop resulted in the seizure of $122,300 that was discovered hidden in the vehicle.
Simmons pleaded guilty on April 15, 2015, to his role in the drug-trafficking conspiracy and to illegally possessing a firearm. Simmons was arrested in April 2013, when a Joplin police officer stopped him while driving a Dodge truck. Officers found methamphetamine, multiple glass smoking pipes and straws with residue during a search of the vehicle. They also seized an AMT .380-caliber handgun. Simmons was arrested again in July 2013 at The Downstream Casino in Quapaw, Okla., for possessing methamphetamine. Law enforcement officers seized a baggie of methamphetamine, a loaded Kel-Tec 9mm pistol, a drug ledger and $1,160 from his hotel room.
A confidential source told investigators that he traveled to Houston, Texas, with Simmons and another person to pick up a kilogram of methamphetamine for Jose DeLeon, which was put into a spare tire mounted to the vehicle they were driving for the return trip to Joplin.
Co-defendant Eric Allen Meyer, 32, of Joplin, was sentenced on Nov. 12, 2015, to 15 years in federal prison without parole. Meyer pleaded guilty to his role in the drug-trafficking conspiracy and to illegally possessing a firearm.
Jose DeLeon has pleaded guilty to his role in the conspiracy and to being a felon in possession of a firearm and awaits sentencing. A confidential source told law enforcement investigators that Jose DeLeon sold multiple pounds of methamphetamine each week and had received at least two shipments of firearms in exchange for methamphetamine, each approximately 15 firearms.
This case is being prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and Cindy Hyde. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the FBI, the Jasper County Drug Task Force, the Joplin, Mo., Police Department, the Missouri State Highway Patrol, the Kansas Bureau of Investigations, IRS-Criminal Investigations, the Bureau of Indian Affairs and the Newton County, Mo., Prosecuting Attorney.
Tax Preparer, Who Also Admitted Stealing Section 8 Housing Assistance Benefits, is Sentenced to 36 Months in Federal PrisonRead the Press Release
DALLAS — Sherene Warren, who operated a tax preparation business in Duncanville, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to serve a total of 36 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Warren pleaded guilty in December 2015 to one count of aiding and assisting in the preparation of a false tax return and to one count of theft of government money. Judge O’Connor sentenced her to 36 months in federal prison on each count, to run concurrently. As part of her plea agreement, Warren agreed to pay $101,344.60 in restitution to the Social Security Administration (SSA). Additional restitution of $3,955,585.84 to the Internal Revenue Service (IRS) and $28,786.00 to the U.S. Department of Housing and Urban Development (HUD) was also ordered. She must surrender to the Bureau of Prisons on June 8, 2016.
According to the factual resume filed in her case, Warren was the owner and manager of the tax preparation business Fast Tax Services that was located on N. Cedar Ridge Drive in Duncanville and then later on W. Wheatland Road in Duncanville. Warren falsified, according to the factual resume, line items on clients’ tax returns to obtain larger refunds. She also admitted receiving approximately $121,701 in 2010, $218,517 in 2011 and $360,491 in 2012 in fees/bonuses for preparing the tax returns. Warren further admitted that she did not disclose any Fast Tax Services’ income on her 2010 tax returns, and that she did not file a tax return in 2011 or 2012.
Also, according to the factual resume, Warren submitted false and fraudulent information about her income and employment to the Dallas Housing Authority in connection with receipt of Section 8 housing benefits, admitting that she stole approximately $28,786 in housing assistance to which she was not entitled. Each year Warren submitted false and fraudulent documents to the Dallas Housing Authority showing she had no income, when, as she well knew, she received substantial income from the operation of Fast Tax Service.
IRS Criminal Investigation, the SSA Office of Inspector General and the HUD Office of Inspector General investigated the case.
Assistant U.S. Attorney Nicholas Bunch was in charge of the prosecution.
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Son of Former U.S. Mint Employee Returns “1974-D Aluminum Penny” to MintRead the Press Release
Assistant U. S. Attorneys Joseph Price (619) 546-7642 and Joseph Purcell (619) 546-7643
NEWS RELEASE SUMMARY – March 17, 2016
SAN DIEGO – The son of a late United States Mint official has returned a rare and valuable 1974-D aluminum one-cent piece to the United States Mint, bringing an end to a lawsuit over the ownership of the piece.
Randall Lawrence, the son of the late Mint official Harry Lawrence, and Michael McConnell, the owner of the La Jolla Coin Shop, had brought a lawsuit against the United States to establish ownership rights of the penny.
Harry Lawrence had been a Deputy Director of the United States Mint at Denver until his retirement in 1980. He died later that year. In 2014, Harry Lawrence’s son, Randall Lawrence, gave multiple news interviews during which he claimed that among the property he inherited from his father was what appeared to be a 1974 aluminum penny bearing a “D” (for Denver) mintmark. Mr. Lawrence, who had recently moved from Colorado to San Diego, had met with Michael McConnell, the owner of the La Jolla Coin Shop, and they reached an agreement to exhibit the piece at coin shows and to offer it for public sale through a well-known auction house. Mr. Lawrence and Mr. McConnell claimed that there were estimates that the piece might fetch upwards of $2 million at auction.
Upon learning that the piece existed and that Mr. Lawrence and Mr. McConnell planned to sell it, the United States Mint contacted Mr. Lawrence and Mr. McConnell to demand its return. Mr. Lawrence and Mr. McConnell responded to the United States’ demand that the piece be returned by filing a lawsuit against the United Sates in United States District Court for the Southern District of California seeking a judicial declaration that they were the owners of the piece. The United States contended in litigation that it be declared the rightful owner of the piece because there was never any authorization for an aluminum one-cent piece to be struck at the Denver Mint, that the piece was clandestinely struck and unlawfully removed from the Denver Mint, that federal employees are not permitted to remove federal property without proper authorization, and that the piece always has been and remained federal property.
Mr. Lawrence and Mr. McConnell have now returned the 1974-D aluminum one-cent piece to the United States. By the terms of an agreement to end the litigation that they brought against the United States, Mr. Lawrence and Mr. McConnell have voluntarily relinquished all claims of ownership, legal title, or dominion over the 1974-D aluminum one-cent piece to the United States. The piece was transferred to the custody and control of the United States Mint for its use and display as it may determine.
“This result ends the litigation successfully and returns the subject piece to its rightful owner, the United States Mint. It also vindicates the Government’s position that items made at United States Mint facilities but not lawfully issued, or otherwise lawfully disposed of, remain Government property and are not souvenirs that government employees can merely remove and pass down to their heirs,” said U.S. Attorney Duffy.
“The Mint is very pleased with the agreement, and we are very grateful to the U.S. Attorney’s Office in San Diego for its work and efforts in reaching this resolution. We look forward to displaying the coin appropriately as an important Mint heritage asset,” said Rhett Jeppson, United States Mint Principal Deputy Director. “This agreement is not only good for the integrity of the coin collecting hobby but for the integrity of the government property and rule of law.”
The case was handled by Assistant United States Attorneys Joseph P. Price, Jr. and Joseph J. Purcell. Randall Lawrence and Michael McConnell v. United States Department of the Treasury; United States Bureau of the Mint; and the United States of America, District Court Case No. 14-cv-00594-WQH (MDD).
Six Alleged Members of Drug Trafficking Organization IndictedRead the Press Release
Galloway Township Man Arrested Today
CAMDEN, N.J. – Federal, state and local law enforcement authorities today arrested an Atlantic County, New Jersey, man in connection with a ring that allegedly trafficked heroin, powder cocaine and crack cocaine in the Atlantic City area, U.S. Attorney Paul J. Fishman announced.
TeJohn Cooper, 43, of Galloway Township, New Jersey, was arrested this morning following a pre-dawn raid by agents and officers of the FBI, Atlantic City and Ventnor police departments. He is charged in a superseding indictment with drug-trafficking conspiracy and using a telephone facility to further a drug-trafficking crime. Cooper is scheduled to have his initial court appearance today before U.S. Magistrate Judge Joel Schneider in Camden federal court.
Five other defendants charged in the initial indictment also were charged in the superseding indictment. The lead defendant, Toye Tutis, has been charged with two counts of possessing firearms and ammunition after previously having been convicted of a felony. Jazmin Vega, originally charged only with money laundering conspiracy, now also has been charged with drug-trafficking conspiracy. All six defendants were charged with one or more counts of using a telephone facility to further a drug-trafficking crime.
DEFENDANTS
Name
Age
Residence
Toye A. Tutis
42
Pleasantville, New Jersey
Ivan Joel Cuellar-Naranjo
28
Los Angeles, California
Tozine N. Tiller
40
Absecon, New Jersey
Kabaka Atiba
43
Atlantic City
TeJohn Cooper
43
Galloway Township
Jazmin S. Vega
40
Pleasantville
According to documents filed in this case and statements made in court:
The defendants are allegedly members of a drug-trafficking organization that dealt in large quantities of heroin, powder cocaine, and crack cocaine in and around Atlantic City. They are charged with conspiracy to distribute more than five kilograms of cocaine, more than 280 grams of crack cocaine, and more than one kilogram of heroin.
Six other defendants previously pleaded guilty to participating in the conspiracy:
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Ronald Douglas Byrd, 51, of Pleasantville; sentencing to be scheduled;
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Kareem Taylor, 41, of Atlantic City; sentencing scheduled for June 2, 2016;
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Talib Tiller, 43, of Mays Landing, sentencing scheduled for March 18, 2016;
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John Wellman, 41, of Somers Point, sentencing scheduled for June 2, 2016;
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Phillip Horton, 50, of Los Angeles, California, sentencing scheduled for June 2, 2016; and
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Francisco Alberto Rascon-Muracami, 22, of Obregon, Mexico, sentenced on Oct. 30, 2015, to 70 months in prison and five years of supervised release.
The conspiracy count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The money laundering conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The telephone facilitation counts each carry a maximum potential penalty of four years in prison and a $250,000 fine. The felon-in-possession counts each carry a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Andrew Campi; the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s charges.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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