Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 17 March 2016
Dallas Businessman Admits FraudRead the Press Release
DALLAS — James Edward McIntire, 52, of Dallas, appeared this morning before U.S. Magistrate Judge Paul D. Stickney and pleaded guilty to one count of bank fraud regarding a line of credit he applied for and obtained from the bank, announced U.S. Attorney John Parker of the Northern District of Texas.
McIntire faces a maximum statutory penalty of 30 years in federal prison and a $1 million fine. Restitution is mandatory. McIntire remains on bond; a sentencing date was not set.
According to documents filed in the case, McIntire founded the business, McIntire and Associates (MA). To support ongoing operations, MA often needed to obtain loans and/or lines of credit from banks or from some other funding source. MA would often provide security for the line or line of credit by using MA’s accounts receivable as collateral for the loan.
From approximately April 2008 through May 2009, McIntire ran a scheme to deceive and fraud Opportunity Bank of Richardson, Texas, in order to fraudulently obtain approval of a $2 million line of credit from the bank, using MA’s accounts receivables as security. When MA initially applied for the line of credit, McIntire falsely represented and fraudulently inflated the total amount of MA counts receivable submitted to Opportunity Bank in order to mislead and deceive the bank about the collateral’s true value.
McIntire admits that in order to maintain access to this line of credit he fraudulently inflated the value of MA’s accounts receivables to have access to a higher line of credit than what Opportunity Bank would have extended to him had he disclosed the true value of MA’s accounts receivables. In addition to submitting a large number of false and fraudulent weekly and monthly accounts receivable schedules to Opportunity Bank, McIntire also created fictitious packing slips and invoices for MA products that were not actually shipped to the customer, which caused the dollar value of the MA accounts receivable to be falsely inflated.
McIntire failed to repay the line of credit to Opportunity Bank, causing the bank to suffer a loss of $1,997,215.
The FBI is investigating the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
# # #
Convicted Sex Offender Sentenced to 60 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A 43-year-old Irving, Texas, man, Shannon Buck, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 60 years in federal prison, following his guilty plea in January 2015 to an indictment charging one count of production of child pornography and one count of enhanced penalties for registered sex offenders, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case and information presented in court, the investigation began when a 13-year-old girl, Jane Doe, came forward and said she had been molested. Buck admitted that he used Jane Doe to engage in sexually explicit conduct, and then used his camera to record that conduct. In addition, Buck admitted that in February 2010, he pleaded guilty in the 195th District Court of Dallas County to two felony offenses of possession of child pornography, and he was sentenced to an eight-year period of deferred adjudication. Buck was on probation at the time of this offense. Four victims were identified; two were videotaped by Buck.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Irving Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Camille Sparks prosecuted.
# # #
Columbus Businessman Pleads Guilty to Wire Fraud, Money LaunderingRead the Press Release
COLUMBUS, Ohio – David H. DeMathews, 63, of Columbus, pleaded guilty in U.S. District Court to one count of wire fraud and one count of money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the plea entered into yesterday before U.S. District Judge Michael H. Watson.
DeMathews used his positions as Director of National Accounts and Executive Vice President of American Escrow and Title Services, Inc. (AETS), and President of DEMCO Advisory Corporation (DEMCO) to execute a financial fraud scheme.
DeMathews told some victims he would invest their money in the construction of multi-million dollar buildings that were supposed to generate repayment to the investors. He promised some victims he would invest their money in Starbucks franchise opportunities in Central America, hospital projects in Panama and Nicaragua, and a water treatment plant in Florida. He also used some victims’ investments to make partial repayments to other victims, in order to convince those victims that AETS and DEMCO were generating income, and to encourage those victims to make additional investments in AETS and DEMCO.
From 2009 through April 2014, DeMathews had no legitimate income of any kind. He received approximately $911,000 for the purpose of executing his scheme, and misappropriated those funds for primarily his personal use. Those personal expenditures included, but were not limited to: mortgage payments on two houses, numerous lavish big game hunting trips and other vacations to Europe and South Africa, expensive retail purchases, and effectively all of the defendant’s daily living expenses.
DeMathews also used the investors’ money to satisfy monthly restitution payment obligations ordered in the amount of approximately $3.7 million related to a federal criminal case in the Central District of California, in which he was convicted of multiple counts of loan and credit application fraud in April 2000.
He was indicted by a federal grand jury in March 2015.
Wire fraud is a crime punishable by up to 20 years in prison and money laundering in this case carries a potential maximum sentence of 10 years.
Acting U.S. Attorney Glassman commended the investigation of this case by the FBI, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
Columbia, Tennessee Man Pleads Guilty to Methamphetamine Conspiracy and to Threatening to Retaliate Against a Government WitnessRead the Press Release
Justin Harris, 43, a/k/a “Cole,” of Columbia, Tennessee, pleaded guilty today before Chief U.S. District Judge Kevin A. Sharp, to conspiracy to possess and distribute between 150 and 500 grams of methamphetamine, and to threatening to retaliate against a government witness, announced David Rivera, United States Attorney for the Middle District of Tennessee.
According to the facts contained in the plea agreement, Harris admitted to conspiring with others to obtain, possess, and distribute methamphetamine in Savannah and Columbia, Tennessee in June 2015. During the investigation, law enforcement officers obtained evidence that Harris was selling significant quantities of methamphetamine from a residence in Columbia, Tenn. During one of the drug transactions, Harris, who had begun to suspect that the government informant was working with law enforcement, confronted the informant with that suspicion. Over the next several days, Harris repeatedly threatened to kill the informant.
On June 29, 2015, a search warrant was executed at the residence in Columbia where Harris had been selling methamphetamine. During the search, agents recovered numerous rounds of ammunition, drug paraphernalia and prescription pills. Law enforcement officers also searched a truck that was parked in the driveway of the residence. Inside the truck, they recovered a loaded Smith & Wesson, MP 40, .40 caliber firearm, two digital scales, and more than 50 grams of methamphetamine. Harris admitted to owning the gun, paraphernalia, and the methamphetamine.
Harris is scheduled to be sentenced on June 20, 2016 and according to the terms of the plea agreement; he agrees to be sentenced to 168 months in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Tennessee Bureau of Investigation; and the Maury County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Ben Schrader.
Cartel Broker Sentenced to 139 Months for South Georgia Drug Trafficking RingRead the Press Release
Francisco Molina, aka “Frankie,” age 41 of Brownsville, Texas, was sentenced on March 16, 2016 to serve 139 months in federal prison by the Honorable W. Louis Sands in Albany, Georgia. Mr. Molina previously pled guilty to conspiring with a number of South Georgia residents to distribute in excess of five kilograms of cocaine and one-hundred kilograms of marijuana.
Investigation revealed that in January 2010, a package weighing over 600 pounds had been delivered to an address in Camilla, Georgia. This package originated in Texas and was labeled Agricultural Irrigation Parts. Bills of lading and receipts of wire transfer indicated that Mr. Molina shipped the 600 pound package and received money via Western Union and Money Gram as payment. In 2012, court ordered wiretaps revealed that Mr. Molina and several other sources regularly supplied cocaine and marijuana for distribution in the Mitchell County area.
The Court previously accepted guilty pleas and sentenced eighteen individuals related to Mr. Molina’s case. Two other co-defendants were convicted after a jury trial and sentenced.
The case was investigated by DEA Columbus RA, Pelham Police Department, Thomas County Vice/Narcotics Squad, and Cairo Police Department with the assistance of the Webster County Sheriff’s Office and the Georgia State Patrol. The case was prosecuted by Assistant United States Attorney Leah McEwen.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
California Man Indicted in Chicago for Attempting to Provide Material Support to Overseas TerroristsRead the Press Release
Aws Mohammed Younis Al-Jayab, 23, of Sacramento, California, was indicted today in the Northern District of Illinois for attempting to provide material support to acts of violence overseas.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division and Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Division.
Al-Jayab was also indicted earlier this year by a grand jury in Sacramento for allegedly making a false statement involving international terrorism. He pleaded not guilty to that charge, and his next court appearance will be a status hearing on May 12, 2016, at 9:00 a.m. PDT, before U.S. District Judge Morrison C. England Jr. of the Eastern District of California.
According to a criminal complaint filed in the Eastern District of California, Al-Jayab is a Palestinian born in Iraq, who came to the United States as an Iraqi refugee in October 2012. Between October 2012 and November 2013, while living in Arizona and Wisconsin, Al-Jayab communicated via social media with numerous individuals about his intention to go to Syria to fight for terrorist organizations, the complaint alleges. The complaint further alleges that on Nov. 9, 2013, he flew from Chicago to Turkey and then traveled to Syria.
According to the complaint, between November 2013 and January 2014, Al-Jayab reported on social media that he was in Syria fighting with terrorist organizations. Al-Jayab returned to the United States on Jan. 23, 2014, and settled in Sacramento.
The indictment returned in California contends that Al-Jayab gave false statements to agents from the U.S. Citizenship and Immigration Services during an interview on Oct. 6, 2014. In the interview, Al-Jayab indicated that he never supported terrorist groups and that the purpose of his trip to Turkey was to visit his grandmother. The California indictment contends that both statements were false.
The statutory maximum sentence for attempting to provide material support is 15 years in prison. An arraignment date has not yet been set.
An indictment is merely an allegation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation was led by the Sacramento Joint Terrorism Task Force, which is comprised of FBI special agents and representatives from numerous federal, state and local law enforcement agencies. The U.S. Attorney’s Office of the Eastern District of California and the U.S. Department of Justice’s National Security Division provided assistance in the investigation. The case in Chicago is being prosecuted by Assistant U.S. Attorneys Barry Jonas and Shoba Pillay of the Northern District of Illinois and Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
Al-Jayab NDIL Indictment
CEO of Parkway Car Dealerships Pleads Guilty to Conspiracy to Submit False Statements to Influence A Financial InstitutionRead the Press Release
SYRACUSE, NEW YORK – Gerald McDonald, 52, of Madrid, NY, pled guilty today in federal court in Syracuse to conspiracy to submit false statements to influence a financial institution, announced United States Attorney Richard S. Hartunian and Internal Revenue Service, Criminal Investigation Division Special Agent in Charge Toni M. Weirauch.
As part of his guilty plea, McDonald, Chief Executive Officer (CEO) and part owner of Parkway Country Polaris, Parkway Dodge Chrysler and Jeep, and Parkway Chevrolet and Oldsmobile admitted that he conspired with sales persons and sales managers to submit false information to banks on consumer bank loan applications. In order to ensure that a borrower who would not otherwise qualify for a loan would qualify, a co-conspirator sales person or co-conspirator sales manager would falsely state on the loan application that a cash down payment had been made on a vehicle. In fact, no such down-payments had been made or were overstated in the financing applications. As CEO and part owner of Parkway, McDonald knew of and approved the use of this practice.
Gerald McDonald will be sentenced on July 19, 2016 in federal court in Syracuse by Senior District Judge Norman A. Mordue. He faces a maximum sentence of five years in prison, a fine of up to $250,000, an order of restitution in the amount of $102,498 and an order of forfeiture in the amount of $102,498. 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 IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown
Buffalo Man Sentenced on Rico Charge Involving Gang ShootingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Deon Allen, also known as “Slick,” 21, of Buffalo, NY, who was convicted of committing a violent crime in aid of a racketeering enterprise, was sentenced to 120 months in prison by Senior U.S. District Judge William M. Skretny. The defendant was also ordered to pay $20,529.91 in restitution to Independent Health, Medicaid and Univera Health Care for medical bills incurred by the victims in the case.
According to Assistant U.S. Attorney Anthony M. Bruce and Assistant Erie County District Attorney Paul Parisi, who is working as a Special Assistant U.S. Attorney, Allen was a member of the Bailey Boys, a criminal gang involved in distributing cocaine and acts involving murder and robbery. In an effort to raise his standing with other members of the Bailey Boys, the defendant and others committed a drive-by shooting on July 29, 2011 at 211 Shirley Avenue in Buffalo which left three individuals wounded. Two of the victims suffered superficial wounds but a third, identified as “JM,” was shot in the shoulder and spent more than two months in the Erie County Medical Center recovering from his injuries.
Allen was arrested along with 10 other Bailey Boys Gang members. He is the first conviction in the case. The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an ongoing investigation into the activities of the Bailey Boys and other criminal gangs being conducted by the United States Attorney’s office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney Michael Flaherty, the Homicide Bureau of the Buffalo Police Department, under the command of Police Commissioner Daniel Derenda, the Federal Bureau of Investigation Safe Streets Task Force, under the Direction of Special Agent in Charge Adam S. Cohen, and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard.
Buffalo Man Indicted on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Aaron Lucas, aka B-Wise, 38, of Buffalo, NY, with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that according to the indictment, between October 25 and October 28, 2015, the defendant possessed a .22 caliber semi-automatic rifle. Lucas was convicted in 2003 of a felony charge in state court and as a result is prohibited from legally possessing a firearm.
The defendant will be arraigned on March 30, 2016 at 10:00 a.m. before U.S. Magistrate Judge Michael J. Roemer.
The indictment is the culmination of an investigation on the part of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.Buffalo Man Charged with Distribution of HeroinRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Damien Hicks-Bailey, 21, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute and distribution of heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that according to the complaint, on July 1, 2015, the defendant exchanged heroin for cash with a man at a 7-11 store in West Seneca, NY. Later that day, the man was discovered deceased at his apartment in West Seneca. A plastic baggy with a white powdery substance was discovered in the man's bedroom. The substance later tested positive for heroin. Subsequent investigation uncovered store security video which captured the interaction between the defendant and the adult male.
The defendant made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing on March 18, 2016 at 12:00 p.m.
The criminal complaint is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the West Seneca Police Department, under the direction of Chief Daniel Denz.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.Buddhist monk pleads guilty to defrauding temple of more than $263,000Read the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a Lafayette Buddhist monk pleaded guilty to wrongfully taking more than $263,000 from his own temple.
Khang Nguyen Le, 36, of Lafayette, pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of wire fraud. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Le was the president, presiding monk and resident of the temple of the Vietnamese Buddhist Association of Southwest Louisiana located on Bourque Road in Lafayette from 2010 to October of 2014. From January of 2013 until August of 2014, Le wrongfully withdrew $263,463.36 in temple funds from the temple’s bank accounts to gamble at a Lake Charles casino. Le would drive to Lake Charles and withdraw the money from temple bank accounts using automated teller machines and casino tellers. To hide his gambling activity from temple members, Le would misrepresent the temple’s financial situation at meetings and gambled in lower-populated areas of the casino to avoid being seen. Le was at no time authorized by the temple to use its money for gambling purposes.
Le faces 20 years in prison, three years of supervised release and a $250,000 fine. A sentencing date of June 27, 2016 was set.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys David C. Joseph and Myers P. Namie are prosecuting the case.
Armed Robbers Sentenced to Lengthy Federal Prison Sentences on Hobbs Act and Firearms ConvictionsRead the Press Release
DALLAS — Two Fort Worth, Texas, men who were convicted at trial last year on an array of federal charges stemming from their armed robberies of several Murphy Oil gas/convenience stores in the Dallas-Fort Worth metroplex in June 2014, were sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Maurice Lamond Davis, 28, was sentenced to 608 months in federal prison, and Andre Levon Glover, 21, was sentenced to 498 months in federal prison by U.S. District Judge Reed C. O’Connor.
Both were convicted on one count of conspiracy to interfere with commerce by robbery and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. In addition, Glover was convicted on four counts, and Davis on two counts, of interference with commerce by robbery. Davis was also convicted on one count of being a felon in possession of a firearm.
The two committed armed robberies of Murphy Oil USA stores located at: 170 N. Interstate 35E in Lancaster, Texas, on June 16, 2014; 3102 W. Wheatland Road in Dallas on June 21, 2014; 950 N. Walnut Creek Drive in Mansfield, Texas, on June 22, 2014; and 100 Walton Way in Midlothian, Texas, also on June 22, 2014. They used a sawed-off shotgun to rob these stores at gunpoint and steal thousands of dollars of cigarettes from each of the locations and nearly $10,000 in cash from one of the locations. After the last robbery, they led police on a high-speed chase before being arrested.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alvarado, Dallas, Lancaster, Mansfield, and Midlothian Police Departments investigated the case.
Assistant U.S. Attorneys John Kull and Brian McKay prosecuted the case.
# # #
Albuquerque Man Sentenced to Seven Years for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Marquis Pounds, 28, of Albuquerque, N.M., was sentenced today in federal court to 84 months in prison for being a felon in possession of firearms and ammunition. Pounds will be on supervised release for three years after completing his term of incarceration.
Pounds was arrested in June 2015, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on June 5, 2015, in Bernalillo County, N.M. According to the criminal complaint, law enforcement officers executed a search warrant on Pounds’ residence in northeast Albuquerque and seized a revolver and ammunition. Subsequent investigation revealed that revolver and ammunition had been reported stolen from a pawn shop in Los Lunas, N.M. Pounds was subsequently indicted on July 14, 2015, on the same charge.
According to court documents, Pounds was prohibited from possessing firearms or ammunition because he previously had been convicted of receiving or transferring a stolen vehicle, tampering with evidence, possession of narcotics with intent to distribute, conspiracy to possess narcotics with intent to distribute, and embezzlement.
On Dec. 17, 2015, Pounds pled guilty to the indictment and admitted that on June 5, 2015, he possessed a firearm despite the fact that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Albuquerque office of the Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department, the Raton Police Department and the Los Lunas Police Department with assistance from the 2nd Judicial District Attorney’s Office.
Assistant U.S. Attorney Presiliano A. Torrez prosecuted the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Wednesday 16 March 2016
Woman Sentenced to Prison for Defrauding the IRSRead the Press Release
SAN JUAN, P.R. – Today, March 16, 2016, defendant Mariely Malavet-Rivera was sentenced by United States District Court Judge Francisco A. Besosa to serve a term of imprisonment of 34 months and was ordered to pay restitution in the amount of $103,632.10 for defrauding the Internal Revenue Service (IRS), announced Rosa Emilia Rodríguez-Vélez, United States.
Malavet-Rivera pled guilty on October 2, 2015, to twenty-four counts of wire fraud, one count of theft of public money, and one count of aggravated identity theft. These charges stemmed from a scheme utilized by Malavet-Rivera from 2010 until 2013 to submit false Federal tax returns seeking the additional child tax credit (ACTC) in order to obtain fraudulent tax refunds from the IRS via check and direct deposit. Personal identification information including individuals’ names, dates of birth, and social security numbers were utilized without the knowledge or consent of the individual in order to request and obtain the fraudulent tax refunds.
The false Federal tax returns contained defendant’s own postal address and bank account information so that the fraudulent refunds would be deposited via wire transfer to bank accounts Malavet-Rivera controlled and the physical checks would be mailed to her postal address. The defendant then used a fraudulent driver’s license or voter registration identification to cash the fraudulent refund checks through an intermediary company.
The fraudulent tax refund scheme had a total value of approximately $227,653.22.
The case was prosecuted by Assistant United States Attorney Seth A. Erbe and investigated by the Internal Revenue Service, Criminal Investigation (IRS-CI).
Woman Pleads Guilty to Defrauding Government of $80,000Read the Press Release
Memphis, TN – A woman who defrauded the government of $80,000 by utilizing her deceased boyfriend’s retirement insurance benefits for personal expenses has pleaded guilty to theft of government money. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the plea today.
According to information presented in court, Marcia Daniels, 58, of Memphis, Tennessee, continued to receive her boyfriend’s retirement insurance benefits subsequent to his death.
James Henry Johnson died on June 2, 2011. Daniels was listed as the informant on Johnson’s death certificate. At the time of his death, Johnson was receiving approximately $1,800 in Title II Retirement Insurance Benefits (RIB) via monthly checks mailed to a P.O. Box in Memphis. The checks continued to be deposited into Johnson’s First South Credit Union account after his death.
Bank tellers identified Daniels as the one who deposited Johnson’s checks. Bank records reflect that between July 1, 2011 and March 3, 2015, approximately $80,000 of Social Security Administration (SSA) checks were deposited and cash withdrawals were made from ATMs in Memphis and at several casinos in Tunica, Mississippi. The checks were endorsed with an "X" for Johnson’s signature (his signature card on file with the bank reflected X as his signature), with Marcia Daniels signed beneath the X.
On Wednesday, March 16, 2016, Daniels pled guilty before U.S. District Judge Samuel H. Mays Jr. to one count of theft of government funds.
Daniels is scheduled to be sentenced on Thursday, June 16, 2016. She faces up to 10 years imprisonment.
This case is being investigated by SSA – Office of the Inspector General.
Assistant U.S. Attorney Stephen Hall is prosecuting this case on the government’s behalf.
Winner Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Winner, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 8, 2016, by U.S. District Judge Roberto A. Lange.
Dennie Stell, age 57, was sentenced to 6 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Stell was indicted by a federal grand jury on July 14, 2015. He pled guilty on November 17, 2015.
The conviction arose from Stell’s failure to register and update his sex offender registration between September 1, 2014, and May 19, 2015. Stell was required to register due to his conviction in 1997 in Arkansas for Violation of a Minor. Even though Stell knew he was to register his new address in Winner, he failed to register and update his residential registration as required by law.
This case was investigated by the United States Marshals Service. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Stell was immediately turned over to the custody of the U.S. Marshals Service.
# # #
West Virginia property owners, managers facing federal sexual harassment lawsuitRead the Press Release
CLARKSBURG, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced that a lawsuit was filed in the Northern District of West Virginia today against Gary Walden; the Estate of Tina Walden; Walden Homes LLC, dba Walden Rentals; and 973 Chestnut Ridge Road Inc. The lawsuit alleges that female tenants in residential rental properties owned and managed by the Waldens have been subjected to egregious sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit alleges that Gary Walden engaged in egregious acts of sexual harassment against multiple female tenants at the residential rental properties that he and his wife – the late Tina Walden – owned and managed in the Morgantown, West Virginia, metropolitan area. The suit also alleges that Tina Walden failed to take appropriate steps when residents complained about the harassment. In the complaint, the United States alleges that the harassment by Gary Walden included engaging in unwanted and unwelcome sex acts with female tenants; engaging in unwanted sexual touching and groping; making unwelcome sexual comments and verbal advances; conditioning or offering tangible housing benefits to female tenants in exchange for performance of sex acts on him or his maintenance workers; entering the apartments of female tenants without permission or notice to harass them sexually; and taking adverse actions against female tenants when they refused or objected to his sexual advances or objected to continuing to grant sexual favors.
“We always aggressively advocate for fair housing for everyone, but the allegations in this matter are especially disturbing,” said Ihlenfeld II. “Making housing contingent upon performing sexual acts will not be tolerated and the landlord in this case will now have to answer for their abhorrent conduct. We'll stand with the female victims in this case and make sure that their rights are fully protected.”
“No woman should have to suffer sexual harassment in her home or live in fear of retaliation when she reports such heinous acts of discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Sexual abuse has no place in a civilized society, and the Justice Department will continue to vigorously enforce the Fair Housing Act by safeguarding the rights of tenants and holding perpetrators accountable.”
“When a woman is subjected to unwanted sexual advances in her home, it makes her a victim in the place where she should feel the safest and most secure,” said Assistant Secretary for Fair Housing and Equal Opportunity Gustavo Velasquez of the Department of Housing and Urban Development. “HUD will continue to stand with the Justice Department to protect the housing rights of women whenever those rights are violated.”
The lawsuit seeks monetary damages to compensate the victims, civil penalties and a court order barring future discrimination. The complaint is an allegation of unlawful conduct. The allegations must be proven in federal court.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment and housing discrimination at rental dwellings owned and/or oper ated by Gary and/or Tina Walden, or elsewhere, can contact the Housing Discrimination Tip Line at 1-800-896-7743 or e-mail the Justice Department at [email protected].
Virginia man sentenced to life in prison for crossing state lines to have sex with underage girlRead the Press Release
A Virginia man was sentenced to life in prison for traveling across state lines to engage in sexual conduct with an underage girl, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio
David W. Vickers, 42, of Leesburg, Virginia, was convicted last year on three counts: receiving and distributing visual depictions of minors engaged in sexually explicit conduct, enticement, and travel with intent to engage in illicit sexual conduct.
Vickers communicated online with what he believed to be a 29-year-old Ohio woman and her 13-year-old daughter. In fact, Vickers was communicating with law enforcement investigators. Vickers sent 20 child pornography videos, 11 bestiality videos and discussed how he liked to drug and tie up children. In January 2015, he travelled to Ohio for the purposes of having sex with what he believed to be a 13-year-old girl and was arrested, according to court documents.
The case is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Kevin Filiatraut following an investigation by the Ohio Internet Crimes Against Children Task Force and the United States Secret Service.
Utah Man Indicted for False Statement in Passport Application and False Use of a Social Security NumberRead the Press Release
BOISE - Jesus Ricardo Espinoza-Suarez, 43, of Layton, Utah, made an initial appearance yesterday on charges of false claim to United States citizenship, false statement in an application for passport, and false use of a social security number, U.S. Attorney Wendy J. Olson announced. Espinoza-Suarez was indicted on March 8, 2016, by a federal grand jury in Boise.
The indictment alleges that Espinoza-Suarez used a name, social security number, and date of birth which were not his own in a passport application in March 2009. The indictment further alleges that in 2014, Espinoza-Suarez falsely claimed he was a United States citizen in an application for an Idaho State driver’s license and falsely represented a social security number to be his own on an I-9 application for employment.
The charge of false claim to United States citizenship is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of false statement in application for passport is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of false use of a social security number is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
A trial is set for May 17, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case is being investigated by U.S. Department of State, Diplomatic Security Service and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations. The case is being prosecuted by a Special Assistant U.S. Attorney as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office to prosecute social security misuse and fraud.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Upper Marlboro Felon Exiled to 10 Years in Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Damien Lanier Owens, age 33, of Upper Marlboro, Maryland, today to 10 years in prison followed by eight years of supervised release for possession with intent to distribute crack cocaine, and for being a felon in possession of a gun.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Henry P. Stawinski of the Prince George’s County Police Department; Anne Arundel County Police Chief Tim Altomare; and Calvert County Sheriff Mike Evans.
According to his plea agreement, on October 29, 2013, law enforcement executed a search warrant at a residence where Owens was staying with his girlfriend, Asia Renee Holland. A 9mm semiautomatic pistol was recovered from the bedroom where Owens and Holland were found. The firearm had been reported as stolen. Owens had previously been convicted of a felony and was prohibited from possessing a firearm.
On November 4, 2014, deputies from the Calvert County Sheriff’s Office Drug Enforcement Unit and Special Operations Team, and a DEA Task Force Officer executed search warrants for a vehicle registered to Owens’ girlfriend, and for the body of Owens. The search warrants were executed while the vehicle was parked at a gas station in Dunkirk, Maryland, with Owens in the driver’s seat and Holland in the passenger seat of the vehicle.
Law enforcement recovered from the car: a digital scale with suspected cocaine residue; .32 grams of crack cocaine; and an unlabeled pill bottle with four oxycodone pills, recovered from Holland’s purse. A female deputy conducted a search of Holland after she became irate and screamed at and confronted law enforcement officers during the search of the vehicle. The deputy recovered two clear baggies containing a total of 31.05 grams of crack cocaine and 54.35 grams of powder cocaine from Holland’s crotch area. Owens admitted that the drugs in the car and recovered from Holland were his.
Asia Renee Holland, age 24, also of Upper Marlboro, pleaded guilty to the drug charge and is scheduled to be sentenced on April 18, 2016.
United States Attorney Rod J. Rosenstein commended the DEA, ATF, Prince George’s County Police Department, Anne Arundel County Police Department and Calvert County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Joseph R. Baldwin and Kelly O’Connell Hayes, who prosecuted the case.
Troy Felon Sentenced to 18 Months for Firearm PossessionRead the Press Release
ALBANY, NEW YORK – William J. Richardson, age 41, of Troy, New York, was sentenced today to 18 months in prison for possessing a firearm as a felon and possessing an unregistered firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
U.S. District Judge Thomas J. McAvoy also sentenced Richardson to 3 years of supervised release, to be served following Richardson’s release from prison.
On May 13, 2015, Richardson sold a sawed-off rifle, a Taurus Circuit Judge manufactured in Brazil, for $500 in a parking lot on Livingston Avenue in Albany. Richardson could not possess the firearm because he had a prior felony conviction. Additionally, the rifle as modified measured less than 26 inches, and it had not been registered in the National Firearms Registration and Transfer Record as required.
This case was investigated by the ATF, with assistance from Homeland Security Investigations and the Albany County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Three Virginia Men and One Scranton Man Charged with Armed Robbery of Econo Lodge in ScrantonRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that yesterday a grand jury indicted three Virginia residents and a Scranton man for the armed robbery of the Econo Lodge, located on Kane Street in Scranton, which occurred on February 13, 2016.
According to United States Attorney Peter Smith, the indictment charges Tracy Whiting, age 24, of Newport News, Virginia; Kwa’shon Roane, age 24, of Gloucester, Virginia; Kelvin Robinson, age 24, of Newport News, Virginia, and Rodney Whiting, age 23, of Scranton; with one count of interference with commerce by robbery and aiding and abetting, one count of conspiracy to commit interference with commerce by robbery, and one count of brandishing a firearm in furtherance of a crime of violence.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Scranton Police Department, the Pennsylvania State Police, the Lackawanna County District Attorney’s Office, Taylor Borough and Moosic Borough Police Departments.
Prosecution has been assigned to Assistant United States Attorney Robert J. O’Hara
This case was brought as 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.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the robbery charges under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The charge of brandishing a firearm carries a mandatory minimum sentence of seven years, consecutive to any other sentence.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Three Rockford Area Men Charged with ArsonRead the Press Release
ROCKFORD — Three local men were indicted yesterday by a federal grand jury in Rockford, Ill. on charges of arson.
JASON VANDUYN, 39, of Machesney Park, Ill.; and BRIAN BURD, 48, and ROBERT WARMOTH, 42, both of Rockford, were all charged with one count of arson and one count of conspiracy to commit arson.
The indictment alleges that between June 7 and 12, 2015, Vanduyn recruited Burd and Warmoth to blow up a pickup truck. According to the indictment, Vanduyn had been in a fistfight with the owner of the truck on June 7, 2015, and Vanduyn wanted to exact revenge on the owner. The indictment states that Vanduyn offered to pay Burd and Warmoth and provided them with an explosive to use. During the early morning hours of June 12, 2015, Warmoth drove Burd to an area near Theodore Street in Loves Park, Ill., where the truck was parked. Burd smashed a window on the truck and placed the explosive in the truck, the indictment charges. No one was injured in the ensuing explosion.
Each count of arson and conspiracy to commit arson carries a mandatory minimum penalty of 5 years in prison and a maximum penalty of up to 20 years in prison, in addition to a fine of up to $250,000. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Vanduyn was arrested this morning and pleaded not guilty during his arraignment today before U.S. Magistrate Judge Iain D. Johnston. Vanduyn was ordered to be held in federal custody until a detention hearing on March 21, 2016, at 9:30 a.m. Burd and Warmoth are scheduled to appear before U.S. Magistrate Judge Johnston for arraignment on March 17, 2016, at 11:30 a.m.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; Jeffery Magee, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and, Rodney Scott, Chief of the Loves Park Police Department.
The investigation was conducted under the auspices of the FBI Safe Streets Task Force, which includes representatives from the FBI, ATF, Loves Park Police Department, Winnebago County Sheriff’s Department, and Rockford Police Department.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Indictment
Talladega Man Sentenced to 55 Years for Aggravated Sexual Abuse of a ChildRead the Press Release
BIRMINGHAM – U.S. District Judge Abdul K. Kallon today sentenced a truck driver from Talladega to 55 years in prison and a lifetime term of supervised release for his aggravated sexual abuse of a child under age 12, announced U.S. Attorney Joyce White Vance and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
A federal jury convicted RICK LEE EVANS, 43, on Dec. 11, 2015, for the aggravated sexual abuse of a child.
According to evidence introduced at trial, Evans, a former U.S. Army soldier, and his then-wife, a Department of Defense employee, were living in Germany when they were asked to take temporary custody of a five-year-old child whose parents were deployed to Iraq with the U.S. Army. Trial evidence showed that from May 2007 to December 2008, while the child lived with Evans, he sexually abused the child on multiple occasions.
Assistant U.S. Attorney Jacquelyn Hutzell of the Northern District of Alabama and Trial Attorney Austin M. Berry of the DOJ Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case. U.S. Army Criminal Investigations Division and the FBI’s Birmingham, Alabama, Division investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
St. Louis County Woman Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Linda Sweazy, of St. Louis County, pled guilty to a mail fraud charge involving her embezzlement from a former employer. Sweazy appeared before United States District Judge Audrey Fleissig. Sentencing has been set for June 28, 2016.
In her plea agreement, Sweazy admitted to embezzling $215,000 from her former employer, a Clayton businessperson identified as F.S. Sweazy admitted that she embezzled from F.S. by making unauthorized, personal charges to F.S.’s credit card and using F.S.’s funds to pay the credit card bill. Sweazy also admitted to giving herself unauthorized raises, bonuses and extra paychecks and to manipulating the payroll records of F.S.’s business to cover up her malfeasance.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution is mandatory under the Mandatory Victims Restitution Act. Additionally, Sweazy agreed to a forfeiture allegation that will result in a money judgment for $215,000 against her.
The case was investigated by the FBI and the Clayton, Missouri, Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Somerset County, New Jersey, Man Who Was Found with Air Tank Filled with 26 Kilograms of Narcotics Gets 70 Months in PrisonRead the Press Release
NEWARK, N.J. – A Somerset, New Jersey, man who was pulled over in an SUV with an air tank hiding 19 kilograms of cocaine and seven kilograms of heroin that he intended to distribute in the Jersey City, New Jersey, area was sentenced today to 70 months in prison, U.S. Attorney Paul J. Fishman announced.
Richard Vasquez Rodriguez, 35, previously pleaded guilty before U.S. District Judge Kevin McNulty to a superseding information charging him with one count of distribution and possession with intent to distribute cocaine and one count of distribution and possession with intent to distribute heroin. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Jan. 16, 2014, Rodriguez was driving a 2005 Blue Chevrolet Tahoe on the New Jersey Turnpike headed towards Jersey City. Law enforcement officers pulled over Rodriguez, and he consented to a search of the vehicle.
Law enforcement found an air tank, similar to a helium tank for filling balloons, lying in the back of the Chevrolet Tahoe. Upon closer inspection, it appeared that one end of the air tank had been removed at some point and welded back together. A search of the air tank revealed that it contained approximately 19 kilograms of cocaine and seven kilograms of heroin. Rodriguez admitted that he transported the air tank with the intent to distribute the cocaine and heroin.
In addition to the prison term, Judge McNulty sentenced Rodriguez to three years of supervised release.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, and officers of the N.J. State Police, under the direction of Col. Joseph R. Fuentes, superintendent of the state police, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre, Joyce M. Malliet and Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Dennis D.S. McAlevy Esq., Union City, New Jersey
Sheffield Lake man pleads guilty to providing support to ISIL and firearms violationsRead the Press Release
A Sheffield Lake man pleaded guilty to providing material support to Islamic State of Iraq and the Levant (ISIL), as well as firearms violations.
Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
Amir Said Rahman Al-Ghazi, 39, also known as Robert C. McCollum, pleaded guilty to one count of attempting to provide material support to a designated foreign terrorist organization and two counts of being a felon in possession of firearms.
He is scheduled to be sentenced on June 23.
“This case is a stark reminder that ISIL does not present an abstract threat,” Acting U.S. Attorney Rendon said. “Through social media and other means, ISIL and groups like it seek to radicalize people of all backgrounds into its world of violence.”
“This case demonstrates law enforcement’s number one priority -- to keep our communities and our nation safe,” said Special Agent in Charge Anthony. “It is clear that no area is immune from the influence of ISIL and its supporters. We hope this case will serve as a strong message to others who may consider providing support to terrorists. The FBI and our Joint Terrorism Task Force partners are committed to identifying and stopping these individuals.”
Al-Ghazi, who changed his name from Robert McCollum last year, pledged his support to ISIL and Abu Bakr Al-Baghdadi via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIL. He also expressed his own desire to perpetrate an attack on the United States and had attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIL in the Middle East and took steps to create propaganda videos for ISIL, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Christos N. Georgalis following an investigation by the FBI’s Joint Terrorism Task Force.
Sex Offender “Babysitter” Sentenced to 50 Years for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old resident of Aransas Pass has been ordered to federal prison following his conviction of sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson. Daniel Benson Billman Jr., pleaded guilty to the charges Jan. 4, 2016.
Today, Senior U.S. District Judge Janis Graham Jack handed Billman a sentence of 600 months in federal prison. Billman was further ordered to serve the rest of his life on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender and must pay $8000 in restitution. In handing down the sentence, Judge Jack told Billman that if she could have given him more time, she would have done so.
At today’s hearing, the court heard an impact statement from the victim’s mother. In the statement, the victim’s mother detailed how the crime had affected her daughter and family. Additional information was also presented including the fact that Billman had 14 previous criminal convictions. Of those, five were for failing to register as a sex offender. The court also heard testimony from a Homeland Security Investigations (HSI) agent who explained that authorities discovered text messages between Billman and a woman who had an 11-year-old daughter. In the text messages, Billman requested nude photographs of the child, instructed the woman on how to take the photographs and instructed her on how to groom the child in order to entice her into having sex with Billman.
At the time of his plea, Judge Jack heard that authorities had learned of a possible sexual assault involving a seven-year-old child in August 2015. The child was soon identified, confirmed the abuse and that Billman was the man who committed the crime.
Authorities executed a search warrant at Billman’s residence and seized a cellular telephone. Forensic examination led to the discovery of three images and one video of the child involved in sexual explicit conduct. Authorities also located over 1,000 images of child pornography. The images depicted infants and toddlers involved in sexual explicit conduct. Many of the images included bondage with the use of rope and duct tape as well as bestiality.
Billman admitted he sexually-assaulted the child and took explicit photographs and video of the incident.
Billman and his girlfriend had placed an ad on craigslist offering babysitting services. The victim’s mother answered the ad and the girlfriend was supposed to care for the children. Instead, Billman sexually assaulted the seven-year-old girl in a hotel and in his girlfriend’s Ford Explorer. He also recorded the crime.
Billman was arrested on the federal charges in October 2015 and has been in custody since that time where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by HSI and the Aransas Pass Police Department with the assistance of the Corpus Christi Police Department - Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Scranton Man Sentenced to 59 Months for Robbing PNC BankRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Scranton man was sentenced to 59 months’ imprisonment by United States District Court Judge James Munley for committing a bank robbery on July 14, 2015.
According to United States Attorney Peter Smith, Chester Williams, age 32, previously pleaded guilty to robbing the West Scranton branch of PNC bank on South Main Avenue, during which he stole $540. In the course of the bank robbery, Williams passed a threatening note to a bank teller, and used cocoa butter to conceal his face. Judge Munley ordered Williams to make restitution to PNC bank in the amount of $540.
The case was investigated by the Federal Bureau of Investigation and the Scranton Police Department. Assistant United States Attorney Phillip J. Caraballo and former Assistant United States Attorney Peter Hobart prosecuted the case.
This case was brought as 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.
# # #
Schaumburg Real Estate Executive Guilty of Evading More Than $550,000 in Personal Income TaxesRead the Press Release
CHICAGO — The owner of a Schaumburg real estate appraisal company pleaded guilty in federal court today to willfully failing to pay more than $550,000 in personal income taxes.
WILLIAM DADDONO, the owner of Advanced Appraisal Group, admitted in a plea agreement that from 2005 to 2010 he failed to pay taxes on more than $1.92 million in personal income. Daddono attempted to conceal the earnings by having the money deposited in a corporate account held in the name of a defunct business that he previously owned.
Daddono, 59, of Palatine, pleaded guilty to one count of willfully attempting to evade and defeat the payment of federal income tax. The conviction carries a maximum sentence of three years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
U.S. District Judge Sharon Johnson Coleman scheduled a sentencing hearing for June 10, 2016.
According to the plea agreement, Daddono owned and operated AAG and later American Appraisal Consultants, both of which were based in Schaumburg and provided real estate appraisal services. Daddono caused the companies to issue checks to Real Property Valuations, a defunct Illinois business that Daddono previously owned. To conceal the scheme, Daddono instructed employees of AAG and AAC to record the checks as corporate expenses.
As the sole signatory on a bank account held in the name of Real Property Valuations, Daddono was able to deposit the checks and then withdraw the money for personal use, according to the plea agreement. Daddono failed to report the amounts paid to him by AAG and AAC as income on his individual federal tax returns.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Sheri Mecklenburg.
Rogers Man Sentenced to 40 Months in Federal Prison for Child Pornography OffenseRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Trent Douglas Ferrell, age 30, of Rogers, Arkansas, was sentenced today to 40 months in prison followed by 10 years of supervised release and was ordered to pay a $4,700.00 fine on one count of Knowingly Accessing The Internet With The Intent To View Material That Contains An Image Of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing in the United States District Court in Fayetteville.
According to court records, in August of 2014, the Northwest Arkansas Internet Crimes Against Children Task Force and Homeland Security Investigations identified a specific computer that contained a number of suspected child pornography images available for download and determined that the computer was located at Ferrell’s residence in Benton County. On September 18, 2014, law enforcement executed a search warrant at Ferrell’s residence and Ferrell admitted to using file sharing software to download images depicting child pornography onto his computers. A subsequent forensic examination of Ferrell’s hard drives yielded over 30 still images and over 160 video images depicting child pornography. Ferrell was indicted by a federal grand jury on September 16, 2015 and pleaded guilty to the charge on December 4, 2015.
This case was investigated by the Northwest Arkansas Internet Crimes Against Children Task Force and Homeland Security Investigations. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 11, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Christopher Bald Eagle, age 61, was sentenced to 2 years of probation, to include 100 hours of community service, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Bald Eagle was indicted for the charge on October 20, 2015, and pleaded guilty on December 4, 2015.
The conviction stems from Bald Eagle failing to register as a convicted sex offender between August 12, 2015, and September 27, 2015.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
# # #
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Odell Thomas Goodshield, Jr., age 56, was indicted on February 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 8, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum of 5 years up to life of supervised release, and a $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that between January 6, 2016, and January 28, 2016, Goodshield, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender in Pennington County and elsewhere. On June 14, 1999, Goodshield was sentenced to 188 months in federal custody for Aggravated Sexual Abuse of a Minor, and as a result of this conviction, he is required to register as a sex offender.
The charge is merely an accusation and Goodshield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Goodshield was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
###
Pocatello Man Pleads Guilty to Distribution of Methamphetamine and Illegal Possession of FirearmsRead the Press Release
POCATELLO – Christopher Keeling, 30, of Pocatello, Idaho, pleaded guilty today in United States District Court to conspiracy to distribute methamphetamine and possession of firearms by a convicted felon, U.S. Attorney Wendy J. Olson announced. Keeling was indicted by a federal grand jury on August 25, 2015.
According to the plea agreement, on various occasions between October 2014, and June 9, 2015, Keeling distributed in excess of fifty grams of actual methamphetamine to a confidential informant and undercover officer in Pocatello and Idaho Falls, Idaho. On June 9, 2015, law enforcement served a search warrant on the defendant’s residence in Pocatello, Idaho. Prior to that date, the defendant had been convicted of felony possession of a controlled substance. During the search warrant, officers found the defendant to be in possession of several handguns and shotguns.
The charge of conspiracy to distribute methamphetamine is punishable by ten years to life in prison, at least five years of supervised release, and a fine of up to $1,000,000. The charge of possession of a firearm by a convicted felon is punishable by up to ten years in prison, three years of supervised release, and a fine of up to $250,000.
Keeling is scheduled to be sentenced on May 23, 2016, before Senior U.S. District Judge Edward J. Lodge in Pocatello.
The case was investigated by the Idaho State Police, Pocatello Police Department, Bonneville County Sheriff’s Office, the Bureau of Alcohol, Tobacco and Firearms, and the Drug Enforcement Administration.
Phenix City Man Convicted of Federal Gun and Drug CrimesRead the Press Release
Montgomery, Ala— Today, a federal jury convicted Antonio Darset King, Sr., 46 years old of Phenix City, Alabama, on federal gun and drug charges, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Evidence at trial established that on February 23, 2014, Russell County Sheriff’s Office investigators executed a search warrant at King’s Phenix City residence. There, they recovered a firearm, more than 5 grams of cocaine, and approximately $3,000 dollars in cash. Testimony from law enforcement agents established that King intended to distribute the cocaine recovered by investigators. Further, testimony established that King possessed the firearm in question for the purpose of protecting his drug trafficking trade. Because King had previously been convicted of felony offenses, King was prohibited from possessing a firearm by federal law.
In April 2014, a federal grand jury indicted King on one count of possession of a firearm by a convicted felon. In October of 2014, that grand jury added one count of possession of cocaine with intent to distribute it and one count of possession of a firearm in furtherance of a drug-trafficking offense. At trial, a jury found King guilty of all three counts.
A sentencing hearing for King is yet to be scheduled. King faces 15 years to life imprisonment for being previously convicted of felonies and in possession by a firearm; up to 30 years imprisonment for the drug possession count; and 5 years to life for the firearm possession in furtherance of a drug trafficking count. The sentence for possession of a firearm in furtherance of a drug trafficking crime will be added to any sentence imposed on the drug count. Additionally, King faces a maximum fine of $750,000 on the three counts combined.
“My office is committed to taking illegal gun toters and violent drug dealers off the streets,” stated U.S. Attorney Beck. “We will continue to work with our law enforcement partners to do all that is necessary to keep our streets safe.”
“Antonio King is one of Russell County’s most dangerous criminals, ever,” stated Russell County Sheriff Heath Taylor. “I am thankful to U.S. Attorney Beck, and his Assistant U.S. Attorney Todd Brown for a great job in prosecuting the Antonio King case on our behalf. This firearm and drug case was a result of a search warrant on King’s property, which was directly related to a capital murder case which occurred here in Russell County. King has been arrested and is awaiting trial for that capital murder. I believe that the citizens will rest easier now, knowing that King will be locked up for a long time.”
“This focused investigation will have a lasting impact on reducing firearms related violence from the streets of the Phenix City area,” stated Steve Gerido, ATF Special Agent in Charge. “The collaborative efforts of ATF and our partners continue to identify and investigate violent criminals who lessen the quality of life in our neighborhoods”
This case was investigated by the Russell County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Todd A. Brown prosecuted the case.
Penn Yan Man Indicted on Multiple Drug and Gun 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 grand jury has returned a 13 count superseding indictment charging James E. Sandford, III, 28, of Penn Yan, NY, with narcotics conspiracy, distribution of controlled substances within 1,000 feet of a school, distribution of controlled substances to persons under age 21, possession of various controlled substances with intent to distribute them, possession of a firearm in furtherance of a drug trafficking crime, possession of a stolen firearm, possession of a firearm by a felon, and witness tampering. The drug charges carry a maximum penalty of life in prison and a $2,000,000 fine.Assistant U.S. Attorney Jennifer Noto, who is handling the case, stated that according to the superseding indictment, the defendant distributed synthetic cannabinoids (designer drugs) between July 2014 and March 24, 2015, in the Penn Yan area. During that time period, Sanford distributed synthetic controlled substances and controlled substance analogues, which are designed to mimic the effects of controlled substances, to individuals under the age of 21 and also within 1000 feet of St. Michael’s School, a private elementary school in Penn Yan.
The superseding indictment further states that on February 22, 2015, the defendant traded synthetic cannabinoids with a minor in exchange for a stolen Savage .410 double barrel shotgun. At the time, the defendant had two prior felony convictions preventing him from legally possessing a gun.
The defendant was initially arraigned on a criminal complaint in the Western District of New York on June 4, 2015. Subsequent to his arrest on the federal charges, Sanford attempted to intimidate and threaten a suspected witness against him by shouting to that individual: “I’m not going to be in jail long. I will see you on the outside you snitch,” with the intent to influence, delay or prevent the testimony of that suspected witness in the prosecution of defendant.
Sanford will be arraigned on Tuesday, March 22, 2016 before U.S. Magistrate Judge Marian W. Payson. He is being detained pending trial in this matter.
The superseding indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the Penn Yan Police Department, under the direction of Chief Mark Hulse, the Yates County Sheriff’s Department, under the direction of Ronald Spike, and the Yates County District Attorney’s Office, under the direction of Valerie Gardner.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Oxycodone trafficking indictment returnedRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury has returned an indictment charging Suhip E. Ebrahim, 26, of Bridgeport, West Virginia, and Ronnell A. Williams, 41, of Wheeling, West Virginia, with oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Ebrahim and Williams allegedly conspired to possess and sell oxycodone throughout 2015 and 2016 in Ohio County, West Virginia. Specifically, Williams is alleged to have sold oxycodone on multiple occasions in February 2016. Ebrahim was arrested in Wheeling earlier this month after he was discovered to be in possession of a large quantity of oxycodone pills. Following his arrest, a federal judge ordered that Ebrahim be detained pending trial.
Both defendants are charged with one count of “Conspiracy to Distribute Oxycodone.” Ebrahim is further charged with one count of “Possession with Intent to Distribute Oxycodone.” Williams is further charged with three counts of “Distribution of Oxycodone.” The defendants each face up to 20 years in prison and a fine of up to $1,000,000 on each of the aforementioned counts. 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. Attorneys Robert McWilliams and Jarod Douglas are prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, the Marshall County Drug and Violent Crime Task Force, and the Greater Harrison County Drug and Violent Crime Task Force, all HIDTA-funded initiatives, are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Oregon Man Charged with Using Fictitious Financial Instruments and Failing to File Income Tax ReturnsRead the Press Release
A federal grand jury sitting in Portland, Oregon, returned a superseding indictment yesterday afternoon charging a Hillsboro, Oregon man with 13 counts of making, presenting and transmitting fictitious financial instruments and six counts of willfully failing to file income tax returns, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
According to the superseding indictment, beginning in or about February 2008 and continuing through at least June 2015, Winston Shrout knowingly devised and participated in a scheme to defraud financial institutions and the United States out of monies by making, presenting and transmitting fictitious financial instruments, which he variously called, among other things, “International Bills of Exchange” and “Non-Negotiable Bills of Exchange.” Shrout claimed that these fictitious financial instruments had monetary value when he knew they were in fact worthless. It is alleged that during the course of his scheme, Shrout produced and issued more than 300 fictitious financial instruments, purported to be worth more than $100 trillion, on his own behalf and for credit to third parties. The superseding indictment further alleges that Shrout promoted and marketed the use of fictitious financial instruments as a way to pay off debts, including federal income taxes, through seminars and private client consultations. Shrout is alleged to have sold recordings of his seminars, templates for fictitious financial instruments, and other materials through his website.
In addition, the superseding indictment alleges that Shrout received income for the years 2009 through 2014 from various sources, including presentations at seminars, licensing fees associated with the sale of products in his name and his business, Winston Shrout Solutions in Commerce, and annual pension payments. It is alleged that Shrout willfully failed to file income tax returns with the Internal Revenue Service (IRS) for those years to report his income, despite being required to do so.
If convicted, Shrout faces a statutory maximum sentence of 25 years in prison on each count of making, presenting and transmitting a fictitious financial instrument and one year in prison for each count of willful failure to file income tax returns.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Stuart A. Wexler and Ryan R. Raybould of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Ohio Man Sentenced for Illegally Possessing a Firearm and MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Van Wert, Ohio, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on March 1, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Donald E. Lewis, age 52, was sentenced to 30 months of imprisonment, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Lewis was charged on September 15, 2015, and pleaded guilty on November 20, 2015.
The conviction stems from Lewis, a previously convicted felon, knowingly possessing a Colt, .45 caliber pistol and methamphetamine while driving near the Fort Meade Recreational Area.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Department of Interior, Bureau of Land Management. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Lewis was immediately turned over to the custody of the U.S. Marshals Service.
# # #
Ohio Man Pleads Guilty to Attempting to Provide Material Support to ISIL and Possessing Firearms as a FelonRead the Press Release
A Sheffield Lake, Ohio, man pleaded guilty today to attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, as well as firearms violations.
Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.
Amir Said Rahman Al-Ghazi, 39, also known as Robert C. McCollum, pleaded guilty to one count of attempting to provide material support to ISIL and two counts of possessing firearms as a felon.
Al-Ghazi, who changed his name from Robert McCollum last year, pledged his support to ISIL and Abu Bakr Al-Baghdadi via social media in 2014. From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIL. He also expressed his own desire to perpetrate an attack on the United States and attempted to purchase an AK-47 assault rifle. Al-Ghazi has communicated with individuals he believed to be members of ISIL in the Middle East and took steps to create propaganda videos for ISIL, according to court documents.
He is scheduled to be sentenced on June 23, 2016.
This case was investigated by the FBI. The case was prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Christos N. Georgalis of the Northern District of Ohio, with assistance from the National Security Division’s Counterterrorism Section.
North Carolina Man Sentenced to Prison for Bankruptcy and Tax FraudRead the Press Release
A Burlington, North Carolina, man was sentenced today to 24 months in prison for bankruptcy fraud and tax fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of the Justice’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
“The department, working with our partners within the IRS, is committed to identifying and prosecuting individuals who lie to or mislead the IRS in an effort to obstruct tax administration and evade the assessment or collection of tax due,” said Acting Assistant Attorney General Ciraolo. “Our system of voluntary compliance only works if individuals like Mr. Blackwell, who abuse the system and cheat their fellow citizens, are held accountable for their criminal conduct.”
“The fraudulent use of bankruptcy and other court proceedings to steal from taxpayers is of grave concern, and the U.S. Attorney’s Office remains vigilant in the effort to hold accountable those who would defraud the government,” said U.S. Attorney Rand.
According to court documents, Faiger Blackwell, 59, owned several businesses, including a funeral home, in North Carolina. In 2007, Blackwell filed for bankruptcy for himself and his funeral home after accumulating more than $300,000 in outstanding federal taxes and more than $1 million in other debts. During the bankruptcy proceedings, Blackwell concealed rental income from the bankruptcy court and instead used the money to pay for business and personal expenses. In July 2009, after the Internal Revenue Service (IRS) levied one of Blackwell’s business bank accounts, he set up another company that was created for banking purposes only and corresponding bank accounts in order to divert funds and circumvent the levy. Blackwell concealed these funds from the bankruptcy court, the IRS, and other creditors and used them to pay for business and personal expenses, including a cruise. Blackwell pleaded guilty in November 2015 to one count of concealment of assets from a bankruptcy estate and one count of impeding the due administration of the internal revenue laws.
In addition to the prison term, Chief U.S. District Court Judge William L. Osteen Jr. for the Middle District of North Carolina ordered Blackwell to serve three years of supervised release following his prison term and also ordered him to pay $404,619.29 in restitution.
“Today’s sentencing of Mr. Blackwell for bankruptcy fraud sends a clear signal for those who may be considering similar actions,” said Special Agent in Charge Thomas J. Holloman III of IRS-Criminal Investigation, Charlotte Field Office. “The bankruptcy system is based on a debtor making a full disclosure of all assets and liabilities. When individuals use this system to evade their debt obligations to the government and their creditors, they are engaging in criminal activity. IRS-Criminal Investigation is proud to work with our law enforcement partners by lending its expertise in these complex financial investigations.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Frank Chut of the Middle District of North Carolina and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found on the division’s website.
North Carolina Man Sentenced to Prison for Bankruptcy and Tax FraudRead the Press Release
WASHINGTON – A Burlington, North Carolina, man was sentenced today to 24 months in prison for bankruptcy fraud and tax fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Department of the Justice’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
“The department, working with our partners within the IRS, is committed to identifying and prosecuting individuals who lie to or mislead the IRS in an effort to obstruct tax administration and evade the assessment or collection of tax due,” said Acting Assistant Attorney General Ciraolo. “Our system of voluntary compliance only works if individuals like Mr. Blackwell, who abuse the system and cheat their fellow citizens, are held accountable for their criminal conduct.”
“The fraudulent use of bankruptcy and other court proceedings to steal from taxpayers is of grave concern, and the U.S. Attorney’s Office remains vigilant in the effort to hold accountable those who would defraud the government,” said U.S. Attorney Rand.
According to court documents, Faiger Blackwell, 59, owned several businesses, including a funeral home, in North Carolina. In 2007, Blackwell filed for bankruptcy for himself and his funeral home after accumulating more than $300,000 in outstanding federal taxes and more than $1 million in other debts. During the bankruptcy proceedings, Blackwell concealed rental income from the bankruptcy court and instead used the money to pay for business and personal expenses. In July 2009, after the Internal Revenue Service (IRS) levied one of Blackwell’s business bank accounts, he set up another company that was created for banking purposes only and corresponding bank accounts in order to divert funds and circumvent the levy. Blackwell concealed these funds from the bankruptcy court, the IRS, and other creditors and used them to pay for business and personal expenses, including a cruise. Blackwell pleaded guilty in November 2015 to one count of concealment of assets from a bankruptcy estate and one count of impeding the due administration of the internal revenue laws.
In addition to the prison term, Chief U.S. District Court Judge William L. Osteen Jr. for the Middle District of North Carolina ordered Blackwell to serve three years of supervised release following his prison term and also ordered him to pay $404,619.29 in restitution.
“Today’s sentencing of Mr. Blackwell for bankruptcy fraud sends a clear signal for those who may be considering similar actions,” said Special Agent in Charge Thomas J. Holloman III of IRS-Criminal Investigation, Charlotte Field Office. “The bankruptcy system is based on a debtor making a full disclosure of all assets and liabilities. When individuals use this system to evade their debt obligations to the government and their creditors, they are engaging in criminal activity. IRS-Criminal Investigation is proud to work with our law enforcement partners by lending its expertise in these complex financial investigations.”
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Frank Chut of the Middle District of North Carolina and Trial Attorney Nathan Brooks of the Tax Division, who prosecuted the case.
More information about the Tax Division and its enforcement efforts can be found on the division’s website.
# # #
New Orleans Musician “Big Freedia” Pleads Guilty to Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FREDDIE ROSS, JR., age 38, of New Orleans, who performs under the stage name BIG FREEDIA, pled guilty today to theft of government funds.
According to court documents, the United States Department of Housing and Urban Development, a department of the United States, provided federal funds to local public housing authorities to assist low income citizens with private market rental payments, including utility payments, through a tenant-based voucher program known as the Housing Choice Voucher Program, or “Section 8” Program. The Section 8 program was created to subsidize the rents of the very poor, the elderly, and the disabled by allowing families to choose privately owned rental housing and subsidizing the majority of the fair market rent. Program participants paid part of their rents—an amount equal to thirty percent of the household's income—and the federal government directly pays the landlords the remainder. The eligibility for Section 8 benefits and the amount of the voucher subsidy were determined by, among other things, the household income of the applicant and the number of people in the household. In New Orleans, this amounted to not more than $21,700 per year.
ROSS first applied for Section 8 benefits in March 2009. He listed his monthly income as between $100 and $1,000, and he disclosed no additional assets on his application. As a result of these representations, ROSS was accepted into the program and began receiving approximately $521 per month for his rental of a residence in New Orleans.
Thereafter, ROSS submitted recertification documents to HANO on a yearly basis through 2014. HANO relied on ROSS’s representations in the documents to determine whether he continued to qualify for Section 8 benefits. In his yearly recertification forms, ROSS falsely listed his annual income to be as follows: $0 (2011), $14,400 (2012), $12,000, plus a one-time $2,000 gift from his father (2013), and $12,000 (2014). ROSS also listed his assets to be as follows: $0 (2011), $100 (2012), $165 (2013), $250 (2014).
In fact, ROSS derived considerable income through his entertainment and music businesses, including payments for performing concerts, starring in television programs, royalties, and the sale of merchandise bearing his likeness. ROSS failed to disclose this income to HANO, as well as the existence of multiple bank accounts under his name and the name of his several corporate entities. ROSS’s statements about the amount of his assets constituted material misrepresentations upon which HANO representatives relied to determine his eligibility to receive Section 8 benefits. ROSS’s true income, had he reported it accurately, would have disqualified him from receiving Section 8 benefits in each year between 2010 and 2014. In total, as a result of the false representations ROSS made to HANO, he fraudulently received the benefit of Section 8 funds to rent the residences in New Orleans totaling approximately $34,849.00 between about January 2010 and November 2014.
ROSS faces a maximum term of imprisonment of not more than ten years in prison, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Lance M. Africk set sentencing for June 16, 2016.
U.S. Attorney Polite praised the work of the United States Department of Housing and Urban Development – Office of the Inspector General and the Federal Bureau of Investigation, with assistance from the Housing Authority of New Orleans in investigating this matter. U.S. Attorney Polite also praised the work of Assistant United States Attorneys Jordan Ginsberg, Maria Carboni, and Forensic Analyst Josephine Beninati, CPA, CFE, who was responsible for identifying the true sources and amount of ROSS’s income.
Navajo Woman Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Sheiva Dee Joe, 30, an enrolled member of the Navajo Nation who resides in Yahtahey, N.M., pleaded guilty this morning to an indictment charging her with involuntary manslaughter. Under the terms of her plea agreement, Joe will be sentenced to 18 months in federal prison followed by a term of supervised release to be determined by the court.
Joe was arrested on July 15, 2015, on an indictment charging her with killing a man on Nov. 18, 2014, while driving under the influence of alcohol on the Navajo Indian Reservation in McKinley County, N.M.
During today’s hearing, Joe pled guilty to the indictment and admitted killing the victim by driving recklessly while under the influence of alcohol. Joe admitted that because of her intoxication, she was incapable of exercising clear judgment and a steady hand in operating a vehicle, and that she operated the vehicle without using due caution and with a reckless disregard that imperiled the lives of others.
Joe remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Mt. Vernon, Illinois, Man Sentenced on Robbery and Gun Related ChargesRead the Press Release
A Mt. Vernon, Illinois, man was sentenced on March 15, 2016, to federal prison on robbery and gun related charges, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today.
David D. Weatherall, 26, of Mt. Vernon, IL, was sentenced to 385 months’ imprisonment, three years’ supervised release following his imprisonment, and ordered to pay $1,837 in restitution. Weatherall had previously pleaded guilty to four counts in a federal indictment.
Count 1 charged that on December 8, 2014, in Jefferson County, Weatherall while aiding and abetting another person, did unlawfully obstruct, delay and affect, and attempt to obstruct, delay and affect, commerce by robbery, in that Weatherall and another person did unlawfully take and obtain personal property consisting of United States Currency and cigarettes, belonging to Huck’s Convenient Food Store, 540 Fairfield Road, Mt. Vernon, Illinois, by means of actual and threatened force, violence and fear of injury, and by brandishing a firearm.
Count 2 charges that on December 8, 2014, in Jefferson County, Weatherall did knowingly aid and abet another person, who did knowingly brandish a firearm, during and in relation to a crime of violence as charged in Count 1.
Count 3 charges that on December 9, 2014, in Marion County, Weatherall did unlawfully obstruct, delay and affect, and attempt to obstruct, delay and affect, commerce by robbery, in that Weatherall did unlawfully take and obtain personal property consisting of United States Currency and Hennessy Liquor, belonging to Biggies Cafe and General Store, 3858 State Route 161, Centralia, Illinois, by means of actual and threatened force, violence and fear of injury, and by brandishing a firearm.
Count 4 charged that on December 9, 2014, in Marion County, Weatherall did knowingly brandish a firearm during and in relation to a crime of violence as charged in Count 3.
The investigation in this case was conducted by the Mt. Vernon Police Department, the Jefferson County Sheriff’s Office, the Marion County Sheriff’s Office, and the Centralia Police Department.
The case is being handled by Assistant United States Attorney George Norwood.
Monroe Resident Sentenced to 18 Years in Prison for Transporting Child PornographyRead the Press Release
CHARLOTTE, N.C. – On Tuesday, March 15, 2016, U.S. District Judge Max O. Cogburn, Jr. sentenced Gerald Lynn Weir, Jr., 45, of Monroe, N.C., to 216 months in prison on transportation of child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Weir was also ordered to serve a lifetime of supervised release and was ordered to register as a sex offender.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Sheriff Eddie Cathey of the Union County Sheriff’s Office.
According to filed documents and statements made in court, on or about November 29 2013, law enforcement became aware that an individual, later identified as Weir, was using an e-mail address to send and receive child pornography. In December 2013, law enforcement executed a federal search warrant for Weir’s email account. A review of Weir’s email account revealed at least 66 emails related to child exploitation, including 42 videos and 136 images of children being sexually abused. Weir pleaded guilty to transportation of child pornography in October 2015.
Weir has been in federal custody since June 2015, and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by HSI assisted by the Union County Sheriff’s Office. Assistant U.S. Attorney Cortney S. Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mission Man Indicted for Assaulting an Officer, Strangulation and Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting, Opposing, Resisting, and Impeding a Federal Officer, Assault by Strangulation and Suffocation, and Child Abuse.
Patrick Medearis, age 32, was indicted on January 21, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 8, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction for assaulting an officer is up to 20 years in custody and/or a $250,000 fine. The maximum penalty upon conviction of strangulation is 10 years in custody and/or a $250,000 fine. The maximum penalty upon conviction of child abuse is up to 15 years in custody and/or a $250,000 fine. Each count also carries the possibility of 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
It is alleged that on October 31, 2015, Patrick Medearis unlawfully assaulted an intimate dating partner by strangling and suffocating the victim. The alleged incident occurred in the presence of a child who had not attained the age of seven. An arrest warrant was issued based on this incident. It is alleged that on November 28, 2015, Medearis attempted to assault a law enforcement officer with a knife, while the officer was attempting to serve the arrest warrant.
The charges are merely accusations and Medearis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Medearis was remanded to the custody of the U.S. Marshals Service pending trial. Trial is set to begin on March 29, 2016.
###
Mescalero Apache Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Alvino L. Saenz, 49, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to a methamphetamine trafficking charge.
Saenz was one of 34 individuals charged in December 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Saenz was arrested on Dec. 11, 2015, on an indictment charging him with distributing methamphetamine in Otero County, N.M., on July 14, 2015. During today’s proceedings, Saenz entered a guilty plea to the indictment and admitted that on July 14, 2015, he sold .85 grams of pure methamphetamine to an individual who, unbeknownst to him, was an undercover law enforcement agent.
At sentencing, Saenz faces a maximum of 20 years in federal prison followed by not less than three years of supervised release. Saenz remains in custody pending a sentencing hearing which has yet to be scheduled.
Saenz is the fifth of the 18 federal defendants to enter a guilty plea. The following federal defendants have previously pled guilty and are awaiting sentencing:
-
On March 9, 2016, Robin Lee Lovelace, 56, of Alamogordo, N.M., pled guilty to methamphetamine trafficking charges.Under the terms of her plea agreement, Lovelace will be sentenced to 12 years in federal prison followed by a term of supervised release to be determined by the court.
-
On March 3, 2016, Tandee Sheree Bettag, 38, of Alamogordo, pled guilty to methamphetamine trafficking charges.At sentencing, Bettag faces a maximum of 20 years in federal prison.
-
On Feb. 17, 2016, Jerilyn Lee Munoz, 27, of Artesia, N.M., pled guilty to a money laundering conspiracy charge.At sentencing, Munoz faces a statutory maximum penalty of 20 years in prison followed by not more than three years of supervised release.
-
Wallace Rice, 23, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty to a methamphetamine distribution charge on Feb. 5, 2016. At sentencing, Rice faces a statutory maximum penalty of 20 years in federal prison followed by not less than three years of supervised release.
The remaining 13 federal defendants have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Alta Braham is prosecuting the tribal cases.
-
Memphis Man Pleads Guilty to Distributing Child PornographyRead the Press Release
Memphis, TN – A Memphis man has pleaded guilty to distributing multiple images and videos of child pornography. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the plea today.
According to information presented in court, Julius Ford, 26, of Memphis, sent images and videos of children engaged in sexual conduct to others.
On September 4, 2014, Homeland Security Investigations (HSI) agents in Memphis received an investigative lead about an individual in the Memphis area using a flagged email account to send and receive emails containing child exploitation material. The investigation revealed that the IP address and login activity associated with the email account was registered to Ford at a residence in the Frayser area of Memphis.
On September 22, a covert investigator with the Memphis Child Exploitation Task Force contacted the flagged email account, which resulted in a series of emails sent from the account to the covert investigator. The emails contained child exploitation material, including videos depicting prepubescent children engaged in sexual acts with other minors and adults.
Law enforcement executed a search warrant at Ford’s residence on February 2, 2015. Agents seized a hard drive, two laptops, an iPhone, and a thumb drive. Forensic analysis of these devices revealed approximately 1807 images and 277 videos of child pornography. Ford later admitted to being the user of the mail account and that he had used the account to trade child pornography. The defendant also admitted to sending emails from the account containing videos of child pornography to the covert investigator.
On Wednesday, March 16, 2016, Ford pled guilty before U.S. District Judge John T. Fowlkes Jr. to one count of distribution of child pornography.
Ford is scheduled to be sentenced on Thursday, July 7, 2016. He faces a minimum sentence of five years and a maximum of 20 years imprisonment.
This case is being investigated by the Memphis Child Exploitation Task Force. The collective is comprised of federal and local law enforcement agencies, including the Federal Bureau of Investigation; HSI; Shelby County Sheriff’s Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the U.S. Secret Service.
Assistant U.S. Attorney Kasey Weiland is prosecuting this case on the government’s behalf.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Manchester Man Pleads Guilty to Attempted Possession with Intent to Distribute CrackRead the Press Release
CONCORD, N.H. – Juan A. Pichardo Mendez, 35, of Manchester, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to attempted possession of crack cocaine with the intent to distribute, reports United States Attorney Emily Gray Rice.
On August 1, 2014, Pichardo Mendez attempted to take possession of a package shipped from the Dominican Republic that had crack cocaine concealed in the flaps of the box. The box had been intercepted by Customs and Border Protection Agents in Puerto Rico when it passed through a Federal Express terminal at an airport. It was addressed to a fictitious person at a residential address in Manchester.
The Customs and Border Protection Agents sent the box on to Homeland Security Investigation agents in Manchester. On August 1, 2014, a Homeland Security Special Agent posing as a Federal Express employee delivered the box to the Manchester address, where it was accepted by a third party who lived at the premises. At that point, other Homeland Security agents interviewed the person who accepted the box. He admitted accepting the box for Pichardo Mendez, who was waiting to hear when the box arrived. In the agents’ presence, he sent a message to Pichardo Mendez that the box had arrived. Pichardo Mendez arrived at the premises shortly after he received the message, but before he retrieved the package he learned investigators were there and he left the area. Further investigation revealed evidence indicating that Pichardo Mendez had tracked the package from the time it was shipped from the Dominican Republic.
The statutory maximum sentence for the charges in this case is 20 years in prison and a maximum fine of $1,000,000. The court will sentence Pichardo Mendez after it has had the opportunity to review a presentence investigation report prepared by the United States Probation & Pretrial Services Office. The court ordered that Pichardo Mendez be detained pending a sentencing hearing on June 29, 2016.
This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Debra M. Walsh and Mark S. Zuckerman.