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Wednesday 16 March 2016
Man Sentenced for Conspiring to Distribute HeroinRead the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Roanoke man on federal heroin charges after he pled guilty last year in the United States District Court.
Dawayne Lamar Gibson, 27, of Roanoke, Virginia, pled guilty in December 2015 to one count of conspiring to distribute a measurable quantity of heroin. Today in the United States District Court for the Western District of Virginia in Roanoke, Gibson was sentenced to 66 months in federal prison.
“The Western District of Virginia has seen heroin rip through our communities and tear lives apart,” United States Attorney John P. Fishwick Jr. said today. “Those who profit from the addiction of others, like Mr. Gibson, must be held accountable for their actions. However, we must also work to support those organizations helping treat those addicted to this deadly drug.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Roanoke City Police Department, the Virginia State Police and officials with the Roanoke HIDTA. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States
Man Pleads Guilty to Thayer Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a man who earlier robbed a bank in Tennessee pleaded guilty in federal court today to also robbing a bank in Thayer, Mo.
Bobby Laughton Yates, 26, address unknown, pleaded guilty before U.S. District Judge M. Douglas Harpool to one count of bank robbery.
By pleading guilty today, Yates admitted that he stole $2,325 from Great Southern Bank, 323 E. Walnut St., Thayer, on April 22, 2015. Yates entered the bank and asked for a deposit slip. A teller directed Yates to a kiosk to the right of the teller’s station. Yates went to the kiosk and wrote out a note on a withdrawal slip. Yates presented the slip, and a plastic bag, to the teller. The slip stated, “put ALL the Money in the BAG Dont do anything dumb.” Yates instructed the teller not to draw the attention of the bank manager. The teller noted Yates kept his hand in his left sweater pocket, where she observed a bulge that appeared to be a gun.
Yates told the teller to give him the money from all the drawers; however, the teller informed him she only had access to hers. The teller placed all the bills in her drawer, into the bag and handed it to Yates. As Yates was leaving, he ran into the door jam and dropped what appeared to be a handgun. Yates picked the item up, but part of a broken piece was left behind. The broken piece was later determined to be part of an Airsoft gun.
Yates was later arrested for robbing the Patriot Bank in Millington, Tenn., a week earlier and has pleaded guilty to both bank robberies.
Under the terms of today’s plea agreement, the government will recommend a sentence of five years in federal prison without parole and Yates must pay $2,325 in restitution to the bank.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Thayer, Mo., Police Department, the Missouri State Highway Patrol and the FBI.
Long Island Attorney Pleads Guilty to Stealing $1.3 Million from His Trust Fund ClientsRead the Press Release
CENTRAL ISLIP, NY – Earlier today, David Bodian, a Long Island attorney, pleaded guilty to wire fraud for stealing more than $1.3 million from a trust fund for which he was the trustee. Pursuant to his plea agreement with the government, Bodian has agreed that he is liable to pay restitution in the amount of $1,393,559 to the Lou Bacon Trust. When sentenced, Bodian faces up to 20 years in prison.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).
According to court filings and facts presented at the plea hearing, in approximately 2000, Bodian was appointed trustee of the Lou Bacon Trust, a trust fund that benefitted a number of individuals and charities. At the time of his appointment, the trust held more than $1 million in total assets. In approximately 2005, Bodian began looting the fund to pay for his personal expenses, including a car, high-end audio equipment, home renovations, and international vacations. From approximately 2005 to 2015, Bodian stole almost the entirety of the trust’s funds, leaving the trust with a mere $10,000 in cash. To perpetuate the scheme, Bodian lied to the beneficiaries of the trust about the amount of money in the accounts. For example, when a beneficiary asked for a copy of a trust bank statement, Bodian borrowed $150,000 from a friend to deposit in the trust’s account to inflate the trust’s assets. After providing a bank statement to the beneficiary that reflected the $150,000 Bodian had borrowed, he transferred the money back to his friend.
Today’s plea took place before United States Magistrate Judge Arlene R. Lindsay at the United States Courthouse in Central Islip, New York. The case has been assigned to United States District Judge Arthur D. Spatt.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Tyler Smith is in charge of the prosecution.
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The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit ww.StopFraud.gov.
The Defendant:
DAVID BODIAN
Age: 58
Dix Hills, New YorkE.D.N.Y. Docket No. 16-CR-091 (ADS)
Litchfield Resident Sentenced to 30 Months in Federal Prison for Multiple Fraud ConspiraciesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that RYAN GEDDES, 44, of Litchfield, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by three years of supervised release, for participating in multiple conspiracies involving a series of real estate transactions intended to shield assets from creditors.
According to court documents and statements made in court, GEDDES had accrued a series of debts as of late 2005, and was the subject of various lawsuits and collection efforts for the next several years. A bank fraud conspiracy commenced in November 2005 when GEDDES sold a lakefront home located at 27 Palmer Road in Morris to Thomas Provenzano. Lacking the funds to qualify for the $923,000 mortgage, Provenzano nonetheless obtained the loan based on an application that falsely listed his income as $20,000 per month, or $240,000 annually, and falsely listed Provenzano as having worked for several years as the Operations Manager for one of GEDDES’s construction companies. Provenzano had not worked in that capacity, and had earned substantially less. The loan application also listed GEDDES’s company as having verified Provenzano’s employment. In November 2006, Provenzano refinanced the loan, obtaining a $936,000 mortgage from a federally insured bank. The new loan application, like the prior one, falsely listed Provenzano as employed by GEDDES’s construction company, and falsely listed his monthly income as $28,000, or $336,000 annually. The application again listed GEDDES’s company as having verified Provenzano’s employment. The loan is now in default, and the 27 Palmer Road property is in foreclosure.
The first of two mail and wire fraud conspiracies commenced in December 2009 and January 2010, in a series of discussions among GEDDES, Provenzano, and others about how to defraud a title insurance company. The discussions focused on conducting a real property transfer based on a deliberately defective title search, in which liens against the property are omitted, and title insurance is obtained based on the defective title search report. Later, a fraudulent claim is lodged against the title insurer. The conspirators decided to attempt the scheme on a property controlled by GEDDES, located at 66 Donahue Road Extension in Litchfield. After Provenzano assisted in a title search, GEDDES personally reviewed the report and crossed off several liens to be omitted from the title insurance application. In March 2010 GEDDES arranged a straw transfer of the property to another individual, while continuing to reside in and pay the mortgage and expenses on the property. Title insurance was issued on the property, with five liens, totaling about $990,000, deliberately omitted from the title search report.
The second of two mail and wire fraud conspiracies commenced in May 2009 when GEDDES arranged to transfer another property of his, located in Old Forge, N.Y., to Dustin Whitten. GEDDES continued to use the property and pay the mortgage and maintenance expenses. In March 2011, GEDDES and Whitten arranged to obtain a home insurance policy on the New York property in Whitten’s name. On July 4, 2011, after a bankruptcy court meeting about seeking to compensate GEDDES’s creditors, the New York property was destroyed in a fire. In September 2011, Whitten swore out an insurance claim on the property, falsely representing himself as the owner and seeking compensation in the respective amounts of $515,038.50 for the destroyed structure and $92,974.47 for personal property allegedly lost in the fire. The claim was eventually denied by the insurance company. GEDDES has admitted that the purpose of the scheme was to shield the insurance proceeds from his creditors.
Judge Arterton ordered GEDDES to pay $703,698.70 in restitution.
On April 28, 2015, GEDDES pleaded guilty to one count of conspiracy to commit bank fraud and two counts of conspiracy to commit mail and wire fraud.
Provenzano and Whitten previously pleaded guilty. On December 1, 2014, Provenzano was sentenced to 18 month of imprisonment. On December 18, 2015, Whitten was sentenced to 12 months and one day of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorneys Henry Kopel and Michael Gustafson.
Lee's Summit Woman Charged with Embezzling $300,000 from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lee’s Summit, Mo., woman has been charged in a scheme to embezzle more than $300,000 from her employer.
Patricia Webb, 43, of Lee’s Summit, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Tuesday, March 15, 2016. Webb will have her initial court appearance today.
According to an affidavit filed in support of the federal criminal complaint, Webb was employed by Black and Veatch, a global engineering, consulting and construction company, from January 2015 until March 4, 2016. Webb earned $90,000 per year as global payroll manager.
The complaint alleges that, from July 2015 to February 2016, Webb facilitated unauthorized wire transfers and Automated Clearing House transactions (fund transfers, such as direct deposits and business-to-business payments) from the company’s payroll account to her own business bank account under the corporate name Beauty Within Me. To conceal her fraud, Webb manipulated the direct deposit information of Black and Veatch clients, who were either based overseas or deceased, to funnel company funds into her own bank account.
Webb allegedly embezzled approximately $302,183 from Black and Veatch in a series of six transfers that ranged from $8,588 to $92,862 over approximately seven months in 2015 and 2016.
During the scheme, the affidavit says, Webb made $106,529 in withdrawals and expenditures at casinos; spent $8,986 on travel-related expenses (including airfare and hotels for trips to Bangkok, Thailand, Las Vegas, Nev., and Miami, Fla.; made $14,449 in payments to multiple higher education universities; and made $61,745 in ATM withdrawals.
On March 4, 2016, an accounts manager at Commerce Bank contacted Black and Veatch’s executive management regarding payroll deposits that seemed suspicious. On the same day, Webb was confronted about the suspicious transactions and was suspended without pay.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Lebanese student charged with possessing firearmRead the Press Release
A criminal information was filed charging Hassan Ajram, 29, of Lebanon, with being an alien in possession of a firearm that traveled in interstate or foreign commerce, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Ajram, who was admitted to the U.S. on an F-1 student visa, possessed a Sig Sauer 9 mm pistol on Feb. 10, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the U.S. Border Patrol and Department of Homeland Security. The case is being handled by Assistant United States Attorney Michael J. Freeman.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Leader of Drug Trafficking Conspiracy Sentenced to More Than 11 YearsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that the leader of a drug trafficking conspiracy was sentenced to 135 months in prison. U.S. District Judge Max O. Cogburn, Jr. also ordered Laurentino Benitez, 45, of Huntersville, N.C., to serve four years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office.
According to filed court documents and today’s sentencing hearing, from at least 2013 to about May 2015, Benitez was the leader of a drug ring responsible for trafficking large amounts of narcotics, including cocaine, heroin and marijuana, to the Charlotte area. Court records show that the drugs were sent to North Carolina from Texas and Mexico by other members of the conspiracy, usually concealed in vehicles or inside electronic goods. Once delivered to Charlotte, court records show that the drugs were redistributed locally to other members of the conspiracy. Benitez previously admitted in court documents that he was responsible for trafficking between 15 to 50 kilograms of cocaine.
According to court records, over the course of the conspiracy law enforcement seized from Benitez multiple firearms, including a shotgun, six pistols and ammunition, and over $866,820 in illegal drug proceeds. Benitez pleaded guilty in October 2015 to one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
Benitez has been in federal custody since April 2015 and will be transferred to the custody of Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Five others have been charged in connection with the drug conspiracy. They are: Henry Adams, Jr., Roberto Pineda-Alberran, Charles Potts, Jason Taylor, and Sidney Truesdale. Adams was previously sentenced to 24 months in prison and three years of supervised release after pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances. Potts, Taylor and Truesdale have also each pleaded guilty to the same charge and are currently awaiting sentencing. Pineda-Alberran has pleaded guilty to one count of money laundering conspiracy and is awaiting sentencing.
The investigation was handled by DEA. Assistant U.S. Attorney Dana Washington of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Las Vegas Couple Plead Guilty to Running Oxycodone Ring Money Laundering ChargesRead the Press Release
COLUMBUS, Ohio – Danny R. Williams, 29, and Sukita M. Williams, 43, both of Las Vegas, pleaded guilty in U.S. District Court to conspiracy to possess with intent to distribute Oxycodone and money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, David A. Grant, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) and Ohio Attorney General Mike DeWine announced the plea entered into today before U.S. District Judge Michael H. Watson.
According to court documents, since November 2012, the pair has been conspiring to import, possess and distribute Oxycodone from Las Vegas. They each personally went to physicians to obtain fraudulent prescriptions and either arranged for others to do the same or used middlemen to obtain Oxycodone. Once they obtained bulk amounts of Oxycodone, the pills were transported to Columbus, Ohio via the mail or on commercial airlines to be sold on the street to drug users.
The couple attempted to conceal their illicit proceeds by depositing money into others’ bank accounts.
Danny and Sukita Williams each pleaded guilty to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. Each crime is punishable by up to 20 years in prison.
Acting U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as Assistant United States Attorney Michael J. Hunter, who is representing the United States in this case.
Kirksville Owner of Prosthetics Company SentencedRead the Press Release
St. Louis, MO – Theodore Deininger was sentenced to 15 months imprisonment and ordered to pay $150,000 in restitution.
According to court documents, Deininger and First Choice Orthotics and Prosthetics, LLC billed Medicare for four prosthetic legs, claiming that they were new, but instead provided the patients with used ones.
Deininger, Kirksville, MO, pled guilty in December to four felony counts of health care fraud. He appeared today for sentencing before United States District Judge Catherine D. Perry.
The case was investigated by the U.S. Department of Health and Human Services-Office of Inspector General and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
Kennewick Man Sentenced to Ten Years Imprisonment for Attempted Enticement of a MinorRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Thomas E. Lafontaine, age 35, of Kennewick, Washington, was sentenced for one count of Attempted Enticement of a Minor. Senior United States District Judge Edward F. Shea sentenced Lafontaine to a ten year term of imprisonment, to be followed by twenty-five years of court supervision after he is released from federal prison. Lafontaine will also be required to register as a sex offender.
According to information disclosed during the court proceedings, in late 2014, Lafontaine responded to a personals ad. The ad had been placed by an undercover task force officer with Homeland Security Investigations working with Southeast Regional Internet Crimes Against Children, posing as a 14-year-old girl. During a series of online communications, Lafontaine, who is a registered sex offender, graphically described different sex acts that he would like to perform on the child. Eventually, Lafontaine discussed meeting the child, at a specific location, for sex.
Lafontaine drove to the meet location, and was observed as he circled the location for about thirty minutes. He later contacted the undercover officer, whom he believed to be a child, and chastised her for standing him up. Lafontaine was arrested shortly thereafter. Lafontaine’s electronic devices were searched, and evidence was discovered that he had discussions with at least three other minors aged twelve to fourteen about sexual acts he would like to perform on the minors.
At sentencing Lafontaine said he was “disgusted and ashamed” of his actions. Senior District Judge Shea stated Lafontaine posed a “genuine threat to the public.” Judge Shea indicated, “This was an extremely serious offense,” noting Lafontaine went beyond the online discussions and actually got in his car and drove to meet a child for sex.
Michael C. Ormsby stated, “The sentence handed down provides fair and just punishment for this offense, particularly given Lafontaine’s past conduct.” He further stated, “This investigation is yet another demonstration of the dedication of law enforcement officers and their willingness to ferret out those who intend to victimize children.”
“This joint federal, state and local agency investigation illustrates the lengths to which law enforcement will go to bring a child predator to justice,” said Brad Bench, Special Agent in Charge of HSI Seattle. “Now, with this federal sentence, the public can rest assured Lafontaine will spend a decade behind bars, followed by close federal monitoring for many more years.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Homeland Security Investigations and the Southeast Regional ICAC. The case was prosecuted by Alison L. Gregoire, an Assistant United States Attorney for the Eastern District of Washington.
Justice Department Files Sexual Harassment Lawsuit Against Owners and Property Managers of West Virginia Homes and ApartmentsRead the Press Release
The Justice Department announced today that it has filed a lawsuit 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, filed in the U.S. District Court for the Northern District of West Virginia, 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.
“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.”
“We always aggressively advocate for fair housing for everyone, but the allegations in this matter are especially disturbing,” said U.S. Attorney William J. Ihlenfeld II of the Northern District of West Virginia. “Making housing contingent upon performing sexual acts will not be tolerated and the landlords 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.”
“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 operated 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].
Walden Complaint
Inmate at United States Penitentiary at Canaan Charged with Assaulting Fellow InmateRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that yesterday a grand jury in Scranton indicted a federal inmate at the United States Penitentiary at Canaan for assaulting another inmate.
According to United States Attorney Peter Smith, the indictment charges Brandon Shields, age 33, formerly of Philadelphia, with assaulting another inmate with a homemade weapon on January 7, 2016.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service
Prosecution has been assigned to Assistant United States Attorney Robert J. O’Hara
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.
In this case, the maximum penalty which can be imposed under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
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.
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Illegal Alien Indicted for Failure to DepartRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton returned an indictment yesterday charging an illegal alien with failure to depart the United States.
According to United States Attorney Peter Smith, Euphrem Kios Dohou, age 48, a native and citizen of Benin, West Africa, was charged with allegedly failing to comply with facilitating his departure from the United States after a final order of removal had been issued in September 2015.
The case was investigated by the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI). Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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. In this case, Dohou faces up to ten years’ imprisonment and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature 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.
An Indictment or Information is not evidence of guilt but simply a description of the charge made by the Grand Jury and/or United States Attorney against a defendant. A charged Defendant is presumed innocent until a jury returns a unanimous finding that the United States has proven the defendant’s guilt beyond a reasonable doubt or until the defendant has pleaded guilty to the charges.
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Husband and Wife Sentenced to A Decade in Federal Prison for Possession with Intent to Distribute Oxycodone as A Part of Prescription Drug Ring ProsecutionRead the Press Release
Corinthia Watson, age 33, and her husband, Jerry Smith, age 37, of Hull, Georgia were sentenced by the Honorable C. Ashley Royal yesterday in Athens, Georgia for possession with intent to distribute prescription drugs they illegally obtained. Mr. Smith was sentenced to 70 months and Mrs. Watson was sentenced to 51 months for Possession with Intent to Distribute Oxycodone.
The investigation revealed that Mrs. Watson, a medical assistant at a medical practice in Monroe, Georgia, stole her employer’s DEA number and prescription pad. With significant assistance from others, including her husband, Mr. Smith, the couple operated a massive fraudulent prescription drug ring from September 2011 to December 2012. They sold fraudulent prescriptions for as much as $300 a piece to hundreds of individuals, resulting in the illegal distribution of over 60,000 dosage units of prescription drugs such as Oxycodone, Hydrocodone, and Alprazolam (Xanax).
When various pharmacies called the medical practice to verify prescriptions, Mrs. Watson managed to intercept the calls for several months and vouch for the fraudulent prescriptions. After several months, the investigation revealed that the scheme unraveled only when Mrs. Watson called in sick one day and her co-workers stumbled upon her fraudulent activity when a pharmacy called to verify one of her fraudulent prescriptions.
The case was investigated by the Drug Enforcement Administration Diversion Investigators and the Office of Inspector General for the Department of Health and Human Services in Atlanta, the City of Monroe Police Department, and the Northeast Georgia Region Drug Task Force. Assistant United States Attorney Danial Bennett prosecuted the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Hayden Man Sentenced for Counterfeit ManufacturingRead the Press Release
COEUR D'ALENE - Travis Lou Quiring, 41, of Hayden, Idaho, was sentenced yesterday in U.S. District Court to 24 months in prison followed by three years of supervised release for manufacturing counterfeit bills, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Quiring to pay $ 1,785.00 in restitution and forfeit all the counterfeit manufacturing material. Quiring pleaded guilty to the charge on July 28, 2015.
According to the plea agreement, Quiring admitted that he washed and counterfeited Federal Reserve Notes by washing one-dollar bills or five-dollar bills and printing larger denomination Federal Reserve Notes on top of the washed bills. These counterfeit bills were passed to numerous merchants in North Idaho and elsewhere.
The case was investigated by United States Secret Service and Coeur d’Alene Police Department.
Harpswell Woman Sentenced to Three Months for Bank EmbezzlementRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: The United States Attorney’s Office announced that Cecile Roux, 41, of Harpswell, Maine was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to three months in prison and three years of supervised release, including three months of home confinement, for embezzlement by a bank employee. She was also ordered to pay $107,995.84 in restitution. Roux pled guilty on November 20, 2015.
According to the government’s evidence, between April 2012 and August 2015, Roux, while serving as the head bank teller at a Bank of Maine branch located in Brunswick, Maine, transferred $107,995.84 in 92 unauthorized transactions from a customer’s account into her own account.
In pronouncing sentence, Judge Torresen noted that the amount of money embezzled and the lengthy period of time over which the criminal activity occurred caused great harm to the bank, the bank customer and the public’s trust. In determining the sentence, Judge Torresen also considered Roux’s lack of criminal history, her prompt admission to wrongdoing, her level of remorse and her particular family circumstances.
The investigation was conducted by the Federal Bureau of Investigation and the Brunswick Police Department.
Franklin County Man Sentenced on Heroin Overdose Death Related ChargesRead the Press Release
A West Frankfort, Illinois man was sentenced on March 15, 2016, to federal prison on heroin overdose death related charges, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today.
Erik Scott Brown, 27, of West Frankfort, IL, was sentenced to 276 months’ imprisonment and three years’ supervised release following his imprisonment. Brown had previously pleaded guilty to two counts in a federal indictment.
Count 1 charged that on or about December 2, 2014, in Franklin County, Brown knowingly and intentionally distributed heroin to Steven Keith Scott, and that Mr. Scott died as a result of the use of the heroin which defendant Brown had distributed. Count 2 charges that on December 3, 2014, in Franklin County, Illinois, Brown knowingly and intentionally possessed with intent to distribute heroin.
The investigation in this case was conducted by the Illinois State Police, the West City Police Department, the Benton Police Department, the West Frankfort Police Department, and the Franklin County Sheriff’s Office. The Franklin County State’s Attorney Office assisted in the investigation of this case.
The case is being handled by Assistant United States Attorney George Norwood.
Former Somerset County, New Jersey, Music Teacher Admits Possessing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man today admitted possessing on his computer images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Cliff Ramsay, 30, of Raritan, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
On Feb. 25, 2015, and Feb. 27, 2015, Ramsay – at the time a music teacher at a public middle school in Hunterdon County – accessed a website known to contain images, videos, and other material containing images of child sexual abuse. A search warrant was executed at Ramsay’s home on July 28, 2015, and numerous files containing child pornography were found on his computer.
The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 6, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, with the investigation leading to today’s guilty plea. He also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson; the Hunterdon County Prosecutor’s Office, under the direction of Anthony P. Kearns III; the Raritan Police Department, under the direction of Chief Kenneth McCormick; and the Readington Police Department, under the direction of Chief Sebastian Donaruma, for their assistance with this investigation.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Joshua D. Altman Esq., Trenton
Former Morgan City Housing Authority director, employees arraigned on theft, conspiracy chargesRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that the former director of the Morgan City Housing Authority and two former employees were arraigned today on charges related to theft of half a million dollars.
Charles E. Spann, 78, of Kingsport, Tenn.; and Diana L. Pace, 64, and Sandra L. Green, 59, both of Morgan City, La.; pleaded not guilty before U.S. Magistrate Judge Carol B. Whitehurst. The fourth defendant, Tori D. Johnson, 38, of Morgan City, is scheduled to be arraigned on March 31, 2016. The grand jury returned the 15-count indictment on February 18, 2016. Count One is conspiracy to defraud the United States, and counts two through 15 are theft of government money.
According to the indictment, Spann and three other Morgan City Housing Authority employees are alleged to have received more than $500,000 in bonus payments to which they were not entitled from 2007 to 2013.
If convicted, the defendants face five years in prison for the conspiracy count and 10 years in prison for each count of theft of government money. They also face three years of supervised release and a $250,000 fine.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The U.S. Office of Housing and Urban Development, Office of Investigations, conducted the investigation. Assistant U.S. Attorneys Kelly P. Uebinger and Robert F. Moore are prosecuting the case.
Former CEO of Canadian Hazardous Waste Treatment Company Convicted of Conspiracy to Pay Kickbacks and Committing Major Fraud against the United StatesRead the Press Release
The former Chief Executive Officer of a firm that specialized in the treatment and disposal of contaminated soil was convicted in the District of New Jersey of conspiring to pay kickbacks and committing major fraud against the United States in connection with obtaining subcontracts for the treatment and disposal of contaminated soil at a New Jersey Superfund site overseen by the U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers, the Department of Justice announced today.
John Bennett, of Vancouver, British Columbia, was charged with these crimes in August 2009, extradited from Canada to the United States in November 2014 to face trial, and was convicted today after a three week trial in Newark, New Jersey. Bennett was also the founder and Chairman of the Board of Bennett Environmental Inc., a firm with offices in Vancouver and Toronto.
“John Bennett corrupted the competitive bidding process by paying kickbacks in order to win a Superfund contract. He literally stole money from the United States,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Thanks to the hard work of our law enforcement agents, antitrust prosecutors, and colleagues in Canada who secured his extradition, a jury of his peers has held him accountable for his crimes.”
Beginning in 2001, Bennett conspired with others at Bennett Environmental to pay kickbacks worth over $1 million to the project manager at Federal Creosote, a Superfund site located in Manville, New Jersey, in an effort to guarantee the award of soil treatment contracts to his company. These kickbacks included money transferred by wire to a co-conspirator’s shell company, lavish trips and entertainment expenses, and personal gifts.
In exchange for these gifts and cash payments, the project manager at Federal Creosote provided Bennett Environmental employees with “last looks” at their competitors’ confidential bids. The provision of these last looks allowed Bennett Environmental to submit its own bid at the last minute and outbid its competitors without independently determining its price, thereby guaranteeing an award to the company and undermining the competitive bid process on this federally-funded project.
According to court testimony by two cooperating witnesses who participated in the scheme with Bennett, he authorized and actively participated in the conspiracy by approving the payment of kickbacks in exchange for last looks and by approving the prices at which Bennett Environmental would bid. This testimony was supported by dozens of emails, memoranda, phone and bank records and other company documents. As a result of the payment of these kickbacks, Bennett Environmental was fraudulently awarded tens of millions of dollars in soil treatment and disposal contracts at Federal Creosote. The conspiracy continued until 2004.
Sentencing is scheduled for June 27, 2016 before Judge Susan D. Wigenton. The fraud conspiracy for which Bennett was found guilty carries a maximum penalty of five years in prison and a $250,000 criminal fine. The major fraud against the United States conviction carries a maximum of ten years in prison and a $1 million criminal fine for individuals. The maximum may be increased to twice the gain derived from the crime or twice the loss.
The investigation at Federal Creosote has resulted in the conviction of 10 individuals and three companies of charges including major fraud against the United States, tax fraud, money laundering and obstruction of justice. Criminal fines and restitution of more than $6 million also have been imposed.
The Federal Creosote investigation was conducted by the Antitrust Division’s New York Office, the EPA’s Office of Inspector General Office and the Internal Revenue Service Criminal Investigation, with the support of the Antitrust Division’s Foreign Commerce Section, the Criminal Division’s Office of International Affairs and with the assistance of the U.S Customs and Border Protection – Department of Homeland Security, and the Canadian Department of Justice – International Assistance Group and the Royal Canadian Mountain Police.
Former Bank Employees Sentenced for Executing Stolen Identity Tax Refund Fraud SchemeRead the Press Release
ATLANTA –Jeoffrey Jenkins and Vaughn Chambers have been sentenced for their roles in a two-year long tax refund fraud scheme that generated hundreds of false tax returns and sought over $2.8 million in fraudulent tax refunds. Jenkins and Chambers, both bank employees, stole personally identifying information from bank customers and used that information to open bank accounts to receive the fraudulent tax refunds.
“This case is one more unfortunate example of the growing problem of stolen-identity tax return fraud,” said U.S. Attorney John Horn. “As criminals attempt to employ more sophisticated methods, citizens need to be vigilant about protecting their personal information.”
“These unscrupulous defendants were trusted insiders who abused their positions to commit crimes and victimize members of our community and innocent taxpayers for their own personal gain. The sentences these defendants received will not replace the losses that were incurred or the harm endured by the victims. However, it does illustrate that IRS Criminal Investigation, along with our law enforcement partners, are committed to pursuing individuals who commit these types of crimes,” stated IRS Special Agent in Charge, Veronica F. Hyman-Pillot.
“The United States Secret Service will continue to collaborate with its law enforcement partners to target and arrest individuals who violate their positions of trust to illegally enrich themselves,” said Malcolm D. Wiley, Sr., Acting Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “This sentencing should serve as a reminder that criminals will bear the consequences of their actions and be sent to prison for their crimes.”
According to U.S. Attorney Horn, the charges and other information presented in Court: From at least February 2013 until at least March 2014, Jenkins and Chambers opened numerous bank accounts using stolen personally identifying information. Those bank accounts were then listed in over 2,000 fraudulent tax returns filed with the Internal Revenue Service, with the intention that any tax refund due for the fraudulent tax returns would be deposited into the fraudulently opened bank accounts. The scheme came to light primarily through a report from a Suntrust Bank investigator who told law enforcement that Chambers was associated with anomalous banking activity. When confronted by law enforcement, Chambers provided information that implicated Jenkins. And from there, tax filings and bank records unraveled the defendants’ involvement in the scheme.
In total, the bank accounts opened by the two men were set up to receive approximately $2.5 million in fraudulent tax refunds. Out of that amount, approximately $500,000 was actually deposited into the bank accounts by the IRS.
Jeoffrey Jenkins, 50, and Vaughn Chambers, 40, both from Atlanta, Georgia, were sentenced by U.S. District Judge Mark H. Cohen as follows:
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Jenkins was sentenced to six years, three months in prison, and was ordered to pay $570,034 in restitution.
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Chambers, who was recruited into the scheme by Jenkins, received two years in prison, and was ordered to pay $9,464 in restitution.
Both defendants were ordered to serve three years of supervised release when they complete their prison terms.
This case was investigated by the Internal Revenue Service Criminal Investigations and United States Secret Service.
Assistant United States Attorney Samir Kaushal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
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Five Norman Residents Sentenced in Counterfeit Check Fraud SchemeRead the Press Release
Oklahoma City, Oklahoma –CHRISTOPHER GLENN MARTIN, 42, JOHNATHAN LEE MADDEN, 33, JENNY LYNN MADDEN, 33, DYLAN RAY FOUNTAIN, 22, and CODY TYLER MARTIN, 23, all from Norman, Oklahoma, have been sentenced for their roles in a counterfeit check fraud scheme, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to court records, from September 2013 through June 2014, the coconspirators stole mail from mailboxes to obtain private banking information, used the stolen information to manufacture counterfeit checks, and then used those checks to purchase merchandise and gift cards at retail stores throughout the Norman and Oklahoma City area. They also used counterfeit checks to obtain cash from retail stores and local banks.
The five defendants were indicted on January 20, 2015. Christopher Martin and Johnathan Madden pled guilty to bank fraud related to their scheme to defraud banks by presenting counterfeit checks in exchange for cash. Jenny Madden, Dylan Fountain, and Cody Martin pled guilty to conspiracy for their role in negotiating counterfeit checks at retail stores. The individual defendants were sentenced by United States District Judge David Russell as follows:
- On March 15, 2016, Christopher Martin was sentenced to serve 71 months in prison, followed by 5 years of supervised release, and ordered to pay $170,794.53 in restitution.
- On December 21, 2015, Johnathan Madden was sentenced to serve 70 months in prison, followed by 5 years of supervised release, and ordered to pay $52,603.36 in restitution.
- On December 15, 2015, Dylan Fountain was sentenced to serve 33 months in prison, followed by 3 years of supervised release, and ordered to pay $114,734.75 in restitution.
- On September 2, 2015, Jenny Madden was sentenced to serve 57 months in prison, followed by 3 years of supervised release, and ordered to pay $170,794.53 in restitution.
- On December 10, 2015, Cody Martin was sentenced to serve 36 months of probation and pay $97,861.67 in restitution.
This case was the result of an investigation conducted by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Jessica L. Perry.
Federal Inmate Sentenced to 80 Months for Assaulting Fellow InmateRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge Robert Mariani sentenced Efrain Rodriguez, age 43, to 80 months’ imprisonment for assaulting a fellow inmate while incarcerated at the United States Penitentiary Canaan (USP Canaan) in Waymart, Pennsylvania.
According to United States Attorney Peter Smith, Rodriguez previously pleaded guilty to the assault, during which he slashed another inmate in the face with a razor blade fastened to a toothbrush. Following the attack, Rodriguez flushed the makeshift weapon down the toilet. The victim suffered gruesome slash wounds on both cheeks that required extensive suturing and resulted in permanent scars and disfigurement. Rodriguez had been serving a sentence at USP Canaan pursuant to a 2014 federal conviction for being a felon in possession of a firearm.
Judge Mariani found Rodriguez to be a career offender, in consideration of his extensive criminal history. His 80 months sentence is to run consecutive to his current sentence.
The case was investigated by the Federal Bureau of Investigation and officers from USP Canaan. Assistant United States Attorney Phillip J. Caraballo prosecuted the case.
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Federal Court Permanently Bars California-Based Tax Preparer from Preparing Federal Tax ReturnsRead the Press Release
The U.S. District Court for the Central District of California has permanently barred Stacy John Sanchez of Orange County, California, from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order prohibits Sanchez from acting as a federal tax return preparer and from owning, operating, or profiting from tax-return preparation businesses. Sanchez agreed to the entry of the injunction but did not admit the allegations in the civil complaint against him.
According to the complaint, Sanchez owned and operated 12 Liberty Tax Service franchise locations, primarily in the Los Angeles and Las Vegas areas. At these locations, Sanchez and his employees prepared federal income tax returns that, among other things, contained bogus Schedules C (Profit or Loss From Business), fake Form W-2 (Wage and Tax Statement) information and falsely claimed dependents, the suit alleged. These fraudulent returns improperly generated federal income tax refunds and tax credits, such as the Child Tax Credit and Earned Income Credit, for Sanchez’s clients, according to the complaint.
In addition, the complaint alleged that Sanchez and his employees prepared fraudulent income tax returns using stolen names and social security numbers and kept the bogus refunds generated by these identity theft returns. The estimated loss to the U.S. Treasury from Sanchez and his employees’ misconduct is at least $14 million, according to the complaint.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that on March 15, 2016, Montinez Wright, 27, of East St. Louis, IL, was sentenced for the Unlawful Possession of a Firearm by a Previously Convicted Felon. Wright received 21 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $150 fine and a $100 special assessment. Wright also agreed to forfeit the illegal firearm that he possessed.
The charge arose out of a traffic stop made by the Belleville Police Department on May 26, 2015. During the stop, police found a .38 caliber Smith & Wesson revolver in Wright’s possession. Further investigation revealed that Wright had previously been convicted of a felony in Madison County in 2008.
The case was investigated by the Belleville Police Department and the Federal Bureau of Investigation and was prosecuted by Special Assistant United States Attorney Shane Kelbley.
Eagle Butte Man Charged with Mailing Threatening CommunicationsRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Mailing Threatening Communication.
Gaylen Paul Sampson, a/k/a Thurman Paul Sampson, age 41, was indicted on March 8, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 9, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 17, 2015, at Hughes County, South Dakota, Sampson deposited in an authorized depository for mail matter to be sent and delivered by the U.S. Postal Service, and knowingly caused to be delivered by the U.S. Postal Service according to the direction thereon, a written communication containing a threat to injure the victim.
The charges are merely an accusation and Sampson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Sampson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
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DEA Agents Arrest Four Men on Federal Charges of Distributing Narcotics, including Pills Manufactured with a Fentanyl AnalogueRead the Press Release
LOS ANGELES – Capping a year-long investigation, special agents with the Drug Enforcement Administration have arrested four Southland men on federal narcotics and money laundering charges related to an operation in which they allegedly imported a powerful synthetic opiate from China and produced their own pills that were then distributed in bulk.
In addition to the arrests yesterday, DEA agents uncovered a working laboratory in Baldwin Park, where they found large quantities of pill presses and variously colored powders that will be tested to determine their chemical compositions.
A criminal complaint unsealed yesterday afternoon charges the four defendants with participating in a ring that imported acetyl-fentanyl, an analogue (meaning it is very similar) to the powerful painkiller fentanyl. Acetyl-fentanyl – which is sometimes called “fake heroin,” even though it is significantly more potent that heroin – is not approved for any use in the United States.
“So-called ‘designer drugs’ may seem to have a similar effect as traditional narcotics, but these back-alley laboratory concoctions are very dangerous,” said United States Attorney Eileen M. Decker. “They have caused many deaths in the United States, and this abuse led the DEA to put it on a list of the most dangerous and easily abused drugs in our country.”
As part of the investigation discussed in the affidavit in support of the criminal complaint, authorities in January seized narcotics – including acetyl-fentanyl pills, methamphetamine, Xanax, hydrocodone pills and “ecstasy” – from a man who has just purchased the drugs from members of the drug trafficking organization.
“Fentanyl and its analogues pose a serious public health risk. Even small doses absorbed through the skin or accidently inhaled can be fatal,” said DEA Acting Special Agent in Charge David Downing. “The DEA will continue to aggressively target individuals and organizations involved in the illicit manufacture and distribution of these toxic substances.”
During the execution of a search warrant last June, agents seized pill presses and 13 kilograms of acetyl-fentanyl from a manufacturing facility allegedly operated by the group.
The four men arrested today are:
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Gary Resnik, 31, of Long Beach;
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Joseph Stanley, 30, of Huntington Beach;
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Christopher Bowen, 30, of downtown Los Angeles; and
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Dylan Simpson, 25, of Fountain Valley
All four defendants made their initial court appearances yesterday afternoon in United States District Court in Los Angeles. All four were ordered detained pending detention hearings scheduled for tomorrow. The defendants are scheduled to be arraigned in this case on April 4.
The criminal complaint charges the four defendants with conspiracy to distribute narcotics, possession of fentanyl and methamphetamine with the intent to distribute, conspiracy to launder money, and money laundering. Were they to be convicted of these charges, each defendant would face a statutory maximum sentence of life in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
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Convicted Sex Offender Sentenced to 160 Months in Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — A 63-year-old Dallas man, Larry Wayne Stinnett, was sentenced this afternoon by Chief U.S. District Judge Jorge A. Solis to 160 months in federal prison following his guilty plea in September 2015 to one count of possession of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, the investigation began in April 2014 when North Texas Crime Stoppers received a tip that Stinnett had child pornography on his computer and had a Facebook account using a young girl as his profile picture. An officer with the Dallas Police Department checked Stinnett’s Facebook account and saw the child described by the tipster posted as his profile picture and other photos of Stinnett in his apartment. He also saw that dozens of young females were on Stinnett’s friends’ list. Stinnett, as a sex offender, is required to disclose online identifiers upon sex offender registration. Since he violated this requirement, he was arrested, and as he was being arrested, Stinnett told the officer, “I have a problem with children.”
A search warrant was executed at his home and a forensic preview performed on one of his computers revealed two identified images of child exploitation. The computer and other media were seized and taken to the North Texas Regional Forensic Lab for analysis, which revealed more than 200 images of child pornography on the equipment. Stinnett admitted he’d been collecting child pornography for approximately six to seven years.
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 Dallas Police Department and the FBI investigated the case. Assistant U.S. Attorney Camille Sparks prosecuted.
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Conspirator Sentenced to Seven Years in Prison for Owings Mills Jewelry Store Heist that Included a Carjacking and KidnappingRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Peter Aleksandrov Magnis, age 28, of Hydes, Maryland, today to seven years in prison, followed by three years of supervised release, for a robbery conspiracy in connection with the robbery of a jewelry store, including a carjacking and kidnapping.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Magnis was part of a conspiracy to rob an Owings Mills jewelry store. Specifically, in the fall of 2012, Stanislav “Steven” Yelizarov devised a plan to commit an armed robbery of a jewelry store, known to be owned and operated by members of the Russian community of Northwest Baltimore. S. Yelizarov recruited Magnis, Grigory Zilberman, Aleksy Sosonko, Igor Yasinov, his brother Marat Yelizarov, Sorhib Omonov, and others to participate in the robbery. Prior to the robbery, the conspirators gathered intelligence, including conducting surveillance and attaching a GPS device to the car of an employee of the jewelry store in order to learn the employee’s travel routine and habits. Zilberman also exploited his friendship with the employee to obtain information about the operation of the jewelry store and the habits of the employee.
According to Magnis’ plea agreement and court documents, on January 15, 2013, Zilberman enticed the employee to visit his home, in order to alert the other co-conspirators of the employee’s whereabouts. While the employee was at Zilberman’s home, the conspirators met at S. Yelizarov’s residence to prepare for the kidnapping and robbery, including preparing the firearms and donning masks and gloves. Early in the morning on January 16, 2013, M. Yelizarov and Omonov followed the employee from Zilberman’s home and notified the other conspirators of the employee’s location so they could then follow the employee. S. Yelizarov, Sosonko, Yasinov, and Magnis driving in a rental car obtained by Yasinov, used a law enforcement-type light bar and a loudspeaker to impersonate a police officer and pull over the employee. Brandishing firearms which were supplied by S. Yelizarov, the conspirators removed the employee from his car, bound and blindfolded the employee, put him into the trunk of his own car, and drove him to a predetermined location.
According to the plea agreement and court documents, once at the location, the co-conspirators continued to brandish firearms and threatened to kill the employee’s family if he did not comply with their demands or if he reported the incident to police. The employee complied and at approximately 3:52 a.m., S. Yelizarov and Sosonko drove the employee’s vehicle from the remote location to the jewelry store, while Yasinov and Magnis stayed with the employee, holding him bound and blindfolded at gunpoint. M. Yelizarov and Omonov were stationed near the jewelry store to act as “look-outs.” S. Yelizarov and Sosonko entered the store and stole jewelry, stones, and watches, valued at about $500,000, then drove back to the remote location. The employee was placed back into the trunk of his car and driven to another location, where he was left. The employee was able to kick his way out of the trunk through the back seat of his car.the trunk through the back seat of his car.
On January 18, 2013, S. Yelizarov sold a portion of the stolen jewelry for approximately $29,000 to an FBI informant. On January 19, 2013, S. Yelizarov traveled to Brooklyn, New York to sell some of the jewelry and stones taken during the robbery, receiving over $100,000. On January 21, 2013, he returned to Maryland and divided the cash proceeds among the members of the conspiracy and others.
On November 19, 2014, during the search of Magnis’ residence and the adjacent property, a bag of guns was found buried on the adjacent property within 20 feet of Magnis’ property. Inside the bag were six firearms (all rifles and shotguns), each individually wrapped in clear plastic wrap. Two of the firearms were sawed off shotguns, and one of these had an obliterated serial number. Both of those guns were stolen during an armed home invasion of a residence in Reisterstown, Maryland, on July 22, 2012. S. Yelizarov, M. Yelizarov, Sosonko and Zilberman admitted to committing that robbery.
In addition, in January and May 2013 Magnis purchased three handguns. One of those handguns was seized during a car stop and search of Yasinov in September 2013. Yasinov was prohibited from purchasing or possessing firearms due to a previous felony conviction.
Stanislav Yelizarov, age 26, and Marat Yelizarov, age 27, both of Pikesville; Grigoriy (Greg) Zilberman, age 25, and Aleksey Sosonko, age 35, both of Owings Mills, Maryland; Peter Aleksandrov Magnis, age 28, of Hydes, Maryland; and Igor Yasinov, age 26, and Sorhib Omonov, age 27, both of Baltimore, previously pleaded guilty to their roles in the robbery conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow and Aaron S. J. Zelinsky, who are prosecuting the case.
Con Ed Contractor Pleads Guilty to Bribery and Tax Evasion ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Rodolfo Quiambao, the President and Chief Executive Officer of the engineering and design firm Rudell & Associates, Inc. (Rudell), pleaded guilty to two counts of federal programs bribery in connection with his scheme to pay bribes and kickbacks to supervisors at Consolidated Edison of New York (Con Ed) in exchange for receiving lucrative contracts and other benefits from the public utility services provider. Quiambao also pleaded guilty to two counts of tax evasion. As part of his plea agreement, Quiambao agreed to pay a total of over $5 million in forfeiture and restitution. When sentenced, he faces up to 30 years in prison. Today’s plea proceeding took place before United States District Judge Allyne R. Ross.
The plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Custom Enforcement (ICE), Homeland Security Investigations (HSI), in New York; Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), New York; and Michael Nestor, Inspector General, The Port Authority of New York and New Jersey, Office of the Inspector General.
According to court filings and facts presented during the plea proceeding, starting in approximately 2000, Quiambao, whose company specializes in electrical design, surreptitiously and regularly gave Con Ed supervisors hundreds of thousands of dollars in cash and checks in exchange for securing work, including lucrative “sole source” contracts, for his company. The defendant also engaged in tax evasion by first concealing and then deducting the bribe payments he paid to the Con Ed supervisors as business deductions on his companies’ tax returns.
Quiambao’s guilty plea is the latest conviction in the government’s investigation of bribery and kickback schemes involving employees and contractors of Con Ed. Since 2008, thirteen Con Ed supervisors and employees and three Con Ed contractors have been convicted.
In announcing the guilty plea, U.S. Attorney Capers extending his grateful appreciation to the participating law enforcement agencies.
The government’s case is being prosecuted by the Office’s Public Integrity Section. Assistant United States Attorneys Lan Nguyen, Tali Farhadian, and Claire S. Kedeshian are in charge of the prosecution.
The Defendant:
RODOLFO QUIAMBAO
Age: 71
Queens, New YorkE.D.N.Y. Docket No. 15-CR-0515
Comer Man Sentenced to Serve 97 Months in Federal Prison for Possession of Child PornographyRead the Press Release
Brad Tyler Suddeth, age 33, of Comer, Georgia was sentenced yesterday to serve 97 months in prison for possession of child pornography. The sentence was handed down in Athens by the Honorable C. Ashley Royal, United States District Court Judge for the Middle District of Georgia.
Mr. Suddeth pleaded guilty to possession of child pornography in November 2015. He was found to possess over 600 images of prepubescent children on his two iPhones. In addition, Suddeth admitted to engaging in inappropriate communications with female children as young as eight years old in Georgia and Illinois.
Acting United States Attorney G.F. “Pete” Peterman, III stated: “It is unfortunate that some individuals continue to prey on innocent children for their perverse gratification. Hopefully, individuals such as Mr. Suddeth will realize that yesterday’s sentence of almost 8 years imprisonment, without parole, is the harsh consequence for their actions.”
The case was investigated by the Georgia Bureau of Investigation Child Exploitation and Computer Crimes Unit. Assistant United States Attorney Danial Bennett prosecuted the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Colorado Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Colorado man convicted of Possession with Intent to Distribute a Controlled Substance and Aiding and Abetting was sentenced on March 7, 2016, by U.S. District Judge Roberto A. Lange.
Brandon Jeraye Trejo, age 23, was sentenced to 48 months in custody, 3 years of supervised release, a $1,000 fine, a $100 special assessment to the Federal Crime Victims Fund, and forfeiture of $14,902 in cash.
Trejo was indicted by a federal grand jury on December 9, 2014. He pled guilty on December 14, 2015.
The conviction arose from a November 14, 2014, incident when a South Dakota Highway Patrol Trooper stopped a vehicle in which Trejo was a passenger. As part of the traffic stop, the vehicle was searched and a duffel bag was found. Inside the duffel bag the trooper found arrest and bond papers for Trejo, as well as a vacuum-sealed bag that contained a package sealed with black tape. When the trooper opened the package, he observed that it contained several Ziploc bags. The Ziploc bags held 14.562 ounces of methamphetamine. Also, $11,802 was found in another passenger’s purse and $3,100 was found in a package of diapers in the vehicle.
This case was investigated by the South Dakota Highway Patrol, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Trejo was immediately turned over to the custody of the U.S. Marshals Service.
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Colorado Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Colorado man convicted of two counts of Possession with Intent to Distribute a Controlled Substance was sentenced on March 7, 2016, by U.S. District Judge Roberto A. Lange.
Nathan Van Weeda, age 44, was sentenced to 51 months in custody, 3 years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and forfeiture of $1,327 in cash, a stun gun, two cell phones, and an iPod Touch.
Weeda was indicted by a federal grand jury on October 15, 2014. He pled guilty on December 7, 2015.
The conviction arose from an October 1, 2014, incident when a South Dakota Highway Patrol Trooper stopped a vehicle for speeding. Weeda was the driver. When the trooper made contact with Weeda, he smelled the odor of burnt marijuana coming from within the vehicle and saw a marijuana pipe in plain view on the console area. The trooper advised Weeda that he would just issue him a warning. While Weeda was talking to the trooper, Weeda appeared to be overly nervous for someone being issued only a warning ticket. The trooper learned that Weeda did not have a driver’s license and told Weeda he would be cited for No Valid Driver License.
Weeda admitted the marijuana pipe in the vehicle belonged to him, but said it was legal in Colorado. He denied having any marijuana in the car. The trooper searched the vehicle and found various drug paraphernalia, which included seven baggies of methamphetamine totaling 6.8 ounces. When Weeda was arrested, the trooper located $1,327 in cash in Weeda’s front pocket. Before he left for jail, Weeda turned over a plastic bag that contained methamphetamine from the inside pocket of his jeans.
This case was investigated by the South Dakota Highway Patrol. Assistant U.S. Attorney Jay Miller prosecuted the case.
Weeda was immediately turned over to the custody of the U.S. Marshals Service.
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Clay County Man Sentenced on Gun Related ChargesRead the Press Release
A Clay County, Illinois, man was sentenced on March 15, 2016, to federal prison on gun related charges, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today.
Jeremy S. Johnson, 40, of Flora, IL, was sentenced to 87 months’ imprisonment and three years’ supervised release following his imprisonment. Johnson had previously pleaded guilty to one count in a federal indictment.
Count 1 charged that on December 2014, to January 12, 2015, in Clay County, Johnson, who having previously been convicted by a court of a felony, did knowingly possess, in and affecting interstate and foreign commerce, (1) a New England Firearms .17 caliber rifle; (2) a Glock .40 caliber pistol; and (3) a Hi-Point .40 caliber pistol.
The investigation in this case was conducted by the Flora Police Department, the Clay County Sheriff’s Office, the Southeastern Illinois Drug Task Force, the Richland County Sheriff’s Office, and the Illinois State Police.
The case is being handled by Assistant United States Attorney George Norwood.
Chubbuck Man Sentenced for Wire Fraud and Theft of Government FundsRead the Press Release
POCATELLO - Travis John Attanasio, 54, of Chubbuck, Idaho, was sentenced today in United States District Court to 18 months in prison followed by three years of supervised release, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Attanasio to pay $259,563 in restitution. He pleaded guilty to the charges on December 1, 2015.
According to court proceedings, Attanasio admitted that between June 29, 2012, and October 30, 2014, he defrauded a disabled veteran and the federal government of $259,563.12. Attanasio volunteered to serve as the fiduciary for the veteran, and instead of conserving the victim’s funds and monthly benefits from the Veterans Affairs, he spent them at various retail and online vendors. The purchases included gold and silver coins, guns, and a trailer. In addition, Attanasio requested and received a portion of the victim’s conserved Social Security funds that he subsequently spent. During the time Attanasio received and spent the funds, he knew that the victim was a disabled veteran living in a state veteran’s home.
The case was jointly investigated by the U.S. Department of Veterans Affairs Office of Inspector General and the Social Security Administration Office of Inspector General with help from the Pocatello Police Department. The case was 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 fraud.
Chicago Man Sentenced to 15 Years in Federal Prison for Possessing Thousands of Photos and Videos of Child PornographyRead the Press Release
CHICAGO — A Chicago man who traded more than 5,000 photos and 600 videos of children being sexually exploited has been sentenced to 15 years in federal prison.
Using the email account [email protected], DEVIN JONES traded the images and videos with others via the Internet. Many of the photos and videos depicted real children, including toddlers, being sexually abused. The images included portrayals of sadistic and masochistic conduct and other depictions of violence.
Jones, 27, of Chicago, pleaded guilty last year to one count of possession of child pornography. U.S. District Judge Edmond E. Chang sentenced Jones on Monday to 15 years in prison.
“Defendant’s crime is a damaging, exploitative and violent one,” Assistant U.S. Attorney Yasmin N. Best argued in the government’s sentencing memorandum. “Each time defendant viewed and distributed an image of a sexually abused child, he exploited that child.”
Jones admitted in a plea agreement that on Feb. 20, 2013, he received files on his laptop containing images of child pornography, including what appeared to be prepubescent females exposing their private areas. Later that day, Jones replied to the sender with several other photographs and a video depicting children engaged in sexually explicit conduct.
In addition to trading the pornographic images, Jones admitted in the plea agreement that from 2007 to 2013, he engaged in inappropriate and often sexual contact with approximately six minor children between the ages of five and nine years old.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Cook County Sheriff Thomas J. Dart; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Chesapeake Man Sentenced for Armed Robberies Involving 14 VictimsRead the Press Release
NORFOLK, Va. – Raymond Wyche, 47, of Chesapeake, was sentenced today to the maximum possible penalty, 51 months in prison, for his role in eight armed robberies in Virginia Beach and Chesapeake.
Wyche pleaded guilty on Dec. 3, 2015. The date and location of the eight armed robberies are listed in the table below.
Date
Location
Feb. 11, 2014
7-Eleven, 6673 Indian River Road, Virginia Beach
March 19, 2014
Wilco-Hess, 6048 Indian River Road, Virginia Beach
March 25, 2014
7-Eleven, 201 S. Witchduck Road, Virginia Beach
April 25, 2014
Exxon, 841 S. Military Highway, Virginia Beach
June 6, 2014
BP, 4900 Princess Anne Road, Virginia Beach
June 25, 2014
Exxon, 1102 S. Military Highway, Chesapeake
June 29, 2014
7-Eleven, 5444 Virginia Beach Boulevard, Virginia Beach
July 16, 2014
Gulf, 6029 Indian River Road, Virginia Beach
According to court documents, on March 19, 2014, Wyche entered the Wilco-Hess gas station located on Indian River Road in Virginia Beach, brandishing what looked like a real firearm at two employees and demanded that they give him all the money in the cash registers. The employees complied and gave him the money in the cash registers which totaled approximately $376.
On June 25, 2014, Wyche entered an Exxon gas station in Chesapeake and brandished what looked like a real firearm at the employee and demanded that she give him all the money in the cash registers. The employee complied and gave the defendant the money in the cash registers which totaled approximately $275.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Michael F. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Mark S. Davis.
This case was investigated by ATF’s Washington Field Division with assistance from the Chesapeake and Virginia Beach Police Departments. Assistant U.S. Attorney William D. Muhr and Special Assistant U.S. Attorney John F. Butler prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-97.
Career Offender from Valencia County Sentenced to 12 Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Ricky Gallegos, 41, of Jarales, N.M., was sentenced today in federal court in Albuquerque, N.M., to 12 years in prison followed by five years of supervised release for his methamphetamine trafficking conviction. The sentence was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
Gallegos was arrested in Jan. 2015, on a criminal complaint charging him with possessing methamphetamine with intent to distribute on Jan. 20, 2015, in Bernalillo County, N.M. According to the criminal complaint, Gallegos fled from DEA agents after they observed him participate in a drug transaction. After a brief pursuit, the agents apprehended Gallegos who was in possession of 1.20 kilograms (2.6 pounds) of methamphetamine which he attempted to conceal by burying the drugs under his vehicle.
Gallegos was indicted on the same charge on Feb. 10, 2015. On April 16, 2015, Gallegos pled guilty to the indictment and admitted that on Jan. 20, 2015, he was in possession of 1.2 kilograms of methamphetamine. Gallegos acknowledged that while he was attempting to flee from the officers, he crashed his vehicle into a dirt pile. He further acknowledged that before the officers apprehended him, he buried the methamphetamine and his wallet in the wreckage.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Shaheen P. Torgoley is prosecuting 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.
Canadian Man Detained on Money Laundering Charges Stemming from Conspiracy to Smuggle Narwhal TusksRead the Press Release
Gregory R. Logan was held in custody today, pending his trial on money laundering charges related to a conspiracy to smuggle narwhal tusks from Canada, through Maine, to customers in the continental United States announced Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. Logan, 58, of St. John, New Brunswick, was extradited to the United States on March 11, 2016, to face trial in the U.S. District Court for the District of Maine in Bangor. Judge John A. Woodcock Jr. ruled today that Logan must remain in custody until his trial which is currently scheduled for May 3, 2016.
Logan, a retired member of the Royal Canadian Mounted Police, was indicted in November 2012 and charged with conspiracy, smuggling and money laundering. Logan was arrested in Canada, based on a request from the United States, in December 2013. Logan pleaded guilty to a related wildlife smuggling crime in Canada and the terms of his extradition limit the case against him in the United States to conspiracy to launder money and money laundering. To prove those counts at trial, the United States must show that Logan committed “specified unlawful activities” or “SUAs,” and that he “laundered” the illegal proceeds of those SUAs. As alleged in the indictment, Logan’s SUAs were smuggling narwhal tusks into the United States and then selling them to collectors. Logan then laundered the proceeds by having the money transferred out of the United States in order to further the smuggling conspiracy.
Also charged in the original indictment were Jay G. Conrad of Lakeland, Tennessee, and Andrew J. Zarauskas of Union, New Jersey. Zarauskas was convicted after a jury trial in Bangor and sentenced to 33 months in prison. Conrad has pleaded guilty and is awaiting sentencing.
According to the indictment, starting in 2000, Logan smuggled at least 250 narwhal tusks worth more than $2 million by transporting them across the border in false compartments in his vehicle. Conrad and Zarauskas, and others, bought the narwhal tusks from Logan, knowing the tusks had been illegally imported into the United States and sold or attempted to sell the tusks after their illegal importation. Logan retired from the Royal Canadian Mounted Police in 2003.
Narwhals are medium-sized toothed whales that are native to the Arctic. Given the threats to their population, narwhals are protected domestically by the Marine Mammal Protection Act and internationally by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) – an international treaty to which more than 170 countries, including the United States and Canada, are parties. It is illegal to import narwhals, or their parts, into the United States without a permit and any such importation must be declared to U.S. Customs and Border Protection and the U.S. Fish and Wildlife Service.
“As this case shows, wildlife trafficking can involve millions in illegal transactions, compounding the damage it does to the wealth and diversity of life on our planet,” said Assistant Attorney General Cruden. “By pursuing the criminal financial transactions that flow from trafficking, we are making a less attractive and more costly enterprise. We are extremely grateful to Canadian law enforcement authorities and all of our international partners who are side by side with us in the fight against such trade.”
“Modern wildlife crime investigations often track money as much as they track animals,” said Deputy Chief Ed Grace of Law Enforcement for the U.S. Fish and Wildlife Service. “This case shows the breadth of the illegal wildlife trade, normally associated with elephant ivory and rhino horn. Even species of the deep polar waters are not safe until we extinguish the market for protected animals and with it, the livelihood of criminal profiteers who benefit from their exploitation.”
“There is a global commitment to erase profits from trade in protected marine mammals,” said Assistant Administrator Eileen Sobeck of the National Oceanic and Atmospheric Administration Fisheries. “We're grateful for the cooperation that has led to justice being served and will continue to work with our international, federal and state law enforcement partners to ensure marine resources are protected now and into the future.”
The charges against Logan are merely allegations and he is presumed innocent unless and until proven guilty in a court of law. Money laundering is a felony punishable by a maximum sentence of 20 years in prison and fines of up to $500,000.
The case was investigated by special agents of the National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Fish & Wildlife Service, Office of Law Enforcement; and Wildlife Officers from Environment and Climate Change Canada. The case is being prosecuted by Senior Trial Attorney James B. Nelson and Trial Attorney Lauren D. Steele of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division. The Justice Department’s Office of International Affairs provided substantial assistance.
Camden County, New Jersey, Woman Admits Defrauding FEMA Relating to Major DisastersRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman today admitted her role in defrauding the Federal Emergency Management Agency following Super Storm Sandy, U.S. Attorney Paul J. Fishman announced.
Andrea Knoerzer 53, of Voorhees, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging her with one count of disaster benefits fraud.
According to documents filed in this case and statements made in court:
When a natural disaster or federal emergency occurs in the United States, federal agencies, such as FEMA, provide relief and assistance to affected individuals and entities. FEMA provides financial assistance by, among other things, helping affected individuals repair their property.
Due to FEMA’s vast size and the typically large number of victims resulting from a disaster, FEMA frequently has been targeted in disaster fraud schemes by individuals or groups seeking money to which they were not entitled. These individuals accomplished their schemes by submitting fraudulent applications to FEMA for among other things, repairs and rental assistance.
In October 2012, the various counties of southern New Jersey, including Cape May County, suffered significant damage due to wind, rain, and flooding as a result of Hurricane Sandy. On Oct. 30, 2012, President Obama signed a Presidential Disaster Declaration for the State of New Jersey pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistant Act, enabling eligible individuals to seek financial assistance from FEMA when displaced by the storms.
Knoerzer admitted that she applied for FEMA benefits on Nov. 1, 2012. She claimed that her house in Ocean City was her primary residence, that the storm damaged it, and that it was unfit for occupancy. She also claimed that the storm damaged her 2001 Volvo station wagon. In reality, Knoerzer’s primary residence was in Voorhees and her Volvo was not in Ocean City. After FEMA awarded her temporary rental assistance, Knoerzer admitted that she submitted fraudulent documents to FEMA to secure continued disaster assistance through FEMA’s rental assistance program. Knoerzer received $13,373 from FEMA’s emergency rental assistance funds and $7,500 for transportation assistance to which she was not entitled.
The charge to which Knoerzer pleaded guilty carries a maximum potential penalty of 30 years in prison and a fine of $250,000. Sentencing is scheduled for June 23, 2016.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Gregory Null, for investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden in the criminal case.
Defense counsel: A. Charles Peruto Esq., Philadelphia
Camden County, New Jersey, Man Charged with Defrauding City of Trenton and Others of $5.6 Million in Payroll Tax SchemeRead the Press Release
TRENTON, N.J. – The owner and president of a Camden County, New Jersey, payroll processing company was charged today with defrauding more than 50 clients – including the City of Trenton – out of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
John Scholtz, 67, of Winslow, New Jersey, was charged by complaint with wire fraud, fraud against a local government receiving federal funds, and money laundering. He is scheduled to appear in court later today before U.S. Magistrate Judge Douglas E. Arpert.
According to the complaint:
Scholtz owned and operated Innovative Payroll Services LLC (IPS), a company that provided payroll services to clients in New Jersey and elsewhere. His clients included municipalities, educational institutions, and various small- to medium-sized, privately held companies. Each payroll period, IPS provided its clients with a payroll summary setting forth the payroll taxes owed for that period. IPS clients then deposited the specified payroll taxes into an IPS bank account, where IPS held the funds until they were remitted to the taxing authorities.
Starting at least in June 2015, Scholtz allegedly withdrew funds from that IPS account and used them to pay for his own expenses, including as a deposit on a $1.8 million house in Florida, credit card payments, investments in other businesses, and payments for cars, boats and airplanes.
Over time, this ongoing misappropriation of funds caused many IPS clients to be in delinquent status with the IRS and state and local taxing authorities. As clients’ tax deposit funds came in, IPS used such funds to pay other clients’ taxes owed for prior pay periods, as well as penalties and interest. As a result of the scheme, more than 50 IPS clients sustained over $5.6 million in losses based on federal tax deposits that IPS failed to make, as well as associated penalties and interest. The City of Trenton was an IPS client from July 2009 to January 2016 and is one of the IPS clients whose tax deposit funds were misappropriated by Scholtz.
The count of wire fraud with which Scholtz is charged carries a maximum potential penalty of 20 years in prison; the count of fraud against a local government receiving federal funds and the count of money laundering each carry a maximum penalty of 10 years in prison. All three charges also carry a fine of $250,000 or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the Mercer County Prosecutor’s Office, under the direction of Acting Prosecutor Angelo Onofri, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Lisa Mathewson Esq. of Philadelphia and Brian Reilly Esq., Assistant Federal Public Defender
Attorney General Loretta E. Lynch Statement on President Obama’s Nomination of Chief Judge Merrick Garland to the Supreme CourtRead the Press Release
Attorney General Loretta E. Lynch released the following statement regarding the President’s nomination of Chief Judge Merrick Garland to the Supreme Court:
“I commend President Obama on his nomination of Chief Judge Merrick Garland as an associate justice on the Supreme Court. In all of his prior work – from his time at the Department of Justice, where he prosecuted terrorists like Ted Kaczynski and Timothy McVeigh, to his 19-year service on the United States Court of Appeals for the District of Columbia Circuit – Judge Garland has earned a reputation for fairness and the respect of colleagues across the ideological spectrum. His impeccable credentials, steadfast fidelity to the law and firm devotion to the public interest make him an outstanding choice to sit on our nation's highest court, where I am certain he will serve with integrity and wisdom. I strongly support the President's choice and I urge Congress to approve Judge Garland’s nomination and fill this important position without delay.”
Athens-Area Real Estate Scam Artist Pleads GuiltyRead the Press Release
George F. Peterman, III, Acting United States Attorney for the Middle District of Georgia, announced that Jackie Williams, age 42, from Bishop, Georgia, pleaded guilty to Wire Fraud today before the Honorable C. Ashley Royal, United States District Judge. As part of her guilty plea, Ms. Williams admitted to orchestrating a real estate fraud which victimized several people in the Athens, Georgia area. Ms. Williams now faces a sentence of up to 20 years in prison and a $250,000.00 fine.
“Ms. Williams stole hard-earned money from people who trusted her,” said Acting U.S. Attorney George F. Peterman, III. “Her scheme harmed victims across numerous counties, and I commend the tenacious efforts of our law enforcement partners to bring her to justice.”
In pleading guilty, Ms. Williams admitted to defrauding investors from 2012-2014; specifically, she induced people to invest in a purported real estate business, claiming that she bought distressed homes and sold them for a substantial profit. However, in numerous cases Ms. Williams never purchased the home that she told her victims she had used their money to buy, and she created falsified documents, such as fake purchase contracts and mortgage preapproval letters, to perpetuate her fraud. In fact, Ms. Williams used her investors’ money for her own personal gain, and/or to pay off portions of the money she had borrowed from previous investors. As part of her guilty plea, Ms. Williams admitted that she owes $563,097.01 in restitution to eight victims.
J. Britt Johnson, Special Agent in Charge FBI Atlanta Field Office, stated: "The FBI is pleased with the role it played in bringing this case forward for federal prosecution. Today's guilty plea will begin the process of holding the defendant responsible for her greed-based criminal conduct and will hopefully provide some solace and relief to her victims."
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the Sheriff’s Offices for Barrow, Madison and Oconee County. Assistant United States Attorney Peter Leary is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Armed Methamphetamine Trafficker Sentenced to 20 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. handed down a 20-year prison sentence today to Joseph Michael Osborne on drug conspiracy and firearms offenses, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Osborne, 38, of Charlotte, to serve five years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD).
According to court proceedings and filed court documents, beginning in at least 2014 continuing through April 2015, Osborne was part of a drug conspiracy involving the distribution of methamphetamine in and around Mecklenburg County. According to court records, Osborne sold methamphetamine to an undercover officer. On April 2, 2015, law enforcement executed a search warrant at Osborne’s residence and seized 254 grams of 98.1% pure methamphetamine, five handguns, one of which was stolen, an AR-15 assault-style firearm, and $35,733 in cash. Osborne pleaded guilty in October 2015 to conspiracy to distribute methamphetamine and possession of firearms in furtherance of drug trafficking.
Osborne is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Rose thanked HSI and CMPD for their investigative efforts. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Arizona Man Sentenced to 70 Months for Federal Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Ricardo Salcido, 29, of Avondale, Ariz., was sentenced today in federal court in Las Cruces, N.M., to 70 months in federal prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Salcido and his co-defendant Jonathan Benitez-Tirado, 22, of Phoenix, Ariz., were arrested on Oct. 9, 2014, on a criminal complaint charging them with conspiracy and possession of methamphetamine with intent to distribute on Sept. 10, 2014, in Luna County, N.M. According to the criminal complaint, Homeland Security Investigations (HSI) agents initiated surveillance of a vehicle driven by Salcido after receiving information that he was helping Benitez-Tirado transport 3.5 pounds of methamphetamine to Deming, N.M. During a traffic stop, HSI agents discovered three bags of crystal methamphetamine weighing approximately 1.34 kilograms (three pounds) under the spare tire of the vehicle driven by Salcido.
On April 9, 2015, Salcido pleaded guilty to a felony information charging him with conspiracy to possess methamphetamine with intent to distribute. In entering the guilty plea, Salcido admitted that from Sept. 3 to 10, 2014, he conspired with Benitez-Tirado to transport approximately 1.34 kilograms of methamphetamine to a pre-arranged location and distribute the methamphetamine to another individual.
Benitez-Tirado also pled guilty to the same charges on April 9, 2015. At sentencing, Benitez-Tirado faces a maximum of 20 years in federal prison followed by not less than three years of supervised release. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Deming and Phoenix offices of HSI and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Alleged Heroin Dealer Charged with Distributing Fatal DoseRead the Press Release
SYRACUSE, NEW YORK – Anthony Vita, 36, of Syracuse, New York was arrested yesterday in Virginia Beach, Virginia on a complaint filed in United States District Court for the Northern District of New York (Syracuse) charging him with distributing a controlled substance (heroin) resulting in the death of another person, announced United States Attorney Richard S. Hartunian
The victim, a twenty-four year old resident of Camillus, New York, was five months pregnant when she died of a heroin and fentanyl overdose on November 7, 2015 at her home, as alleged in the complaint. The complaint further alleges that Investigators recovered a text message exchange between Vita and the victim on the night of her death that included arrangements for them to meet so he could sell her heroin and a hypodermic needle.
Following his court appearance in Norfolk, Virginia, Vita was ordered to remain in custody pending his appearance in federal court in Syracuse, New York sometime next week.
The charge filed against Anthony Vita carries a mandatory minimum sentence of 20 years in prison, and a maximum sentence of life imprisonment, a fine of up to $1,000,000.00, and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by United States Drug Enforcement Administration (DEA) and the Town of Camillus (New York) Police Department and is being prosecuted by Assistant U.S. Attorney Carla Freedman.
Alabama Man Sentenced to 55 Years for Aggravated Sexual Abuse of a ChildRead the Press Release
An Alabama man was sentenced today to 660 months in prison and a lifetime term of supervised release for his aggravated sexual abuse of a child under the age of 12, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Joyce White Vance of the Northern District of Alabama.
Rick Lee Evans, 43, a truck driver from Talladega, Alabama, was convicted by a federal jury on Dec. 11, 2015, of one count of aggravated sexual abuse of a child under 12.
According to the evidence introduced at trial, Evans, a former U.S. Army soldier, and his then-wife, a Department of Defense employee, were residing 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.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jacquelyn Hutzell of the Northern District of Alabama 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.
Tuesday 15 March 2016
Woonsocket Resident Sentenced to 15 Years in Prison on Drug & Firearm ChargesRead the Press Release
PROVIDENCE, R.I. - Miguel Colon, 55, of Woonsocket, was sentenced today to 15 years in federal prison for trafficking heroin and cocaine, and for carrying a firearm in furtherance of his drug trafficking activities. At the time of his arrest in April 2015, law enforcement seized three kilograms of cocaine and a loaded firearm found stashed inside a hidden compartment inside Colon’s vehicle and nearly 900 grams of heroin hidden inside a self-storage unit rented by Colon.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Colon to serve 5 years supervised release upon completion of his prison term. Colon pleaded guilty on October 28, 2015, to possession with the intent to distribute 100 grams or more of heroin, possession with the intent to distribute 500 grams or more of cocaine, being a felon in possession of a firearm and carrying a firearm during a drug trafficking crime.
Colon’s sentence is announced by United States Attorney Peter F. Neronha; Woonsocket Acting Police Chief Captain Michael R. Lemoine; Providence Police Chief Colonel Hugh T. Clements, Jr.; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division.
According to court documents and information presented to the court, Woonsocket and Providence Police Detectives, independent of one another, developed information that approximately once a month Miguel Colon traveled by vehicle to Texas and/or Florida to obtain large quantities of cocaine and/or heroin which he transported back to Rhode Island. In late April 2015, law enforcement developed information that Colon was on a drug run to Texas and Florida, and that he was scheduled to arrive in Rhode Island with the drugs on April 27.
In the early morning hours of April 27, local, state and federal law enforcement, posted along Route 95 in unmarked vehicles, spotted Colon’s vehicle and followed it until it came to a stop in the parking lot of a motel in North Attleboro, Mass. Law enforcement quickly surrounded the vehicle and removed Colon. A Rhode Island State Police K-9 indicated the presence of narcotics inside the vehicle. With the assistance of North Attleboro and Massachusetts State Police, a court authorized search of the vehicle resulted in the discovery of three kilos of cocaine, approximately one pound of marijuana and a loaded semi-automatic firearm stashed inside a sophisticated hydraulically-controlled hidden compartment. Also located in the vehicle were keys to self-storage units at a Woonsocket storage facility.
A Rhode Island court authorized search of two storage units rented by Colon at the Woonsocket storage facility resulted in the seizure of approximately 900 grams of heroin, and various items used in the packaging and distribution of drugs.
A court authorized search of Colon’s residence resulted in the seizure of drug ledgers which contained entries of amounts of money listed next to names, some of which were the names of individuals known to Woonsocket Police as drug dealers in the City of Woonsocket. Law enforcement also seized live ammunition, several small seedling sized marijuana plants and a State of Rhode Island marijuana caregiver card issued to Colon.
Colon has been detained in federal custody since his arrest.
The case was prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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United States Resolves Civil Suit Against Westbury-Based Mortgage LenderRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, David A. Montoya, Inspector General for the Department of Housing and Urban Development, and Frederick W. Gibson, Acting Inspector General for the Federal Deposit Insurance Corporation today announced the settlement of claims against Continental Mortgage Bankers d/b/a Financial Equities and its president, Walter Stashin, in United States v. Rainy Day Holdings, LLC. et al., Civil Action No. CV-15-5576. The case is pending in federal court in Central Islip before United States District Judge Joseph F. Bianco.
Continental and Stashin participated in a federal program sponsored by the United States Department of Housing and Urban Development (HUD) that allowed the lenders to make mortgage loans that are insured by the Federal Housing Administration (FHA) in the event of default. The complaint alleged that for at least eight loans, Continental and Stashin funneled payments on borrowers’ loans through a purported charitable organization, the Rainy Day Foundation, in order to avoid defaults and delinquencies that could trigger governmental investigation. The funneled payments artificially suppressed Continental’s comparative delinquency and default rates, as compiled and computed by the FHA. In the settlement, Continental and Stashin admitted to making the payments and that the payments altered the company’s delinquency and default rates. Continental and Stashin agreed to pay three hundred thousand dollars ($300,000) in settlement of the United States’ claims.
“The resolution of this matter, including the defendants’ admissions to wrongdoing, both help to restore the integrity of the FHA mortgage insurance program as well as to serve as a warning to others who would abuse federal mortgage programs,” stated United States Attorney Capers. “We will continue to vigorously pursue those who engage in such activity. We thank the HUD Office of the Inspector General, HUD Office of Program Enforcement, and the FDIC Office of the Inspector General for their outstanding work and support in investigating this matter.”
HUD Inspector General Montoya stated, “This settlement brings to a close Continental Mortgage Bankers’ deceptive practices while a participant in the FHA Direct Endorsement Lender Program. Their attempts to profit at the expense of unsuspecting investors and the public posed a risk to our mortgage insurance pool. The HUD Office of Inspector General will continue to work with our partners at the U.S. Attorney’s Office to expose and pursue those who abuse HUD’s programs.”
FDIC Acting Inspector General Gibson said “The FDIC OIG is pleased to have supported the Department of Justice and the Department of Housing and Urban Development in bringing about today’s settlement. By leveraging our resources, we can broaden the government's efforts to pursue damages resulting from misconduct that has harmed the nation's financial institutions and its mortgage markets. The civil penalties imposed today should send a strong message to others that fraudulent practices like those perpetrated by Mr. Stashin and his firm will not be tolerated.”
The United States’ case in this matter is being litigated by Assistant United States Attorneys Edward Newman, John Vagelatos, and Robert Schumacher.
Two North Carolina Residents Sentenced to Prison for Tax FraudRead the Press Release
Two Charlotte, North Carolina, area residents have been sentenced to prison for their involvement in a fraudulent trust tax return scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Marlowe Williams, 68, was sentenced today to seven months in prison to be followed by seven months of home confinement as part of his two years of supervised release. Williams’ co-conspirator, Joan Clark, was sentenced on Feb. 18 to 20 months in prison to be followed by two years of supervised release. Williams and Clark were jointly ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $601,780. In November 2015, both Williams and Clark pleaded guilty to conspiracy to defraud the United States. Clark also pleaded guilty to an additional conspiracy charge connected to another scheme for which she was indicted in May 2015.
According to court documents and statements in court, in early 2011, Williams and Clark established a trust that purported to be for charitable purposes and then filed tax returns in the name of the trust for tax years 2008, 2009 and 2010. Each tax return fraudulently requested a tax refund of $300,000. Williams and Clark established at least two bank accounts in the name of the trust to receive the tax refunds and disburse the funds for personal use. Williams and Clark received $601,780 in tax refunds from the IRS as a result of filing these false tax returns.
Clark was also sentenced for her participation in a separate conspiracy in which she, along with co-defendant Daniel Heggins of Charlotte, operated Guarantor Manufactures Inc. (GMI), a business that purported to help individuals who were in debt. Clark and her co-conspirators in that scheme prepared and filed false tax returns on behalf of GMI’s clients claiming fraudulent tax refunds from the IRS in the amount of their clients’ debts. The intended loss of the conspiracy exceeded $4 million. Heggins pleaded guilty in November 2015 to conspiracy to defraud the United States and is awaiting sentencing.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rose commended special agents of IRS-Criminal Investigation and the FBI, who investigated the case and Assistant U.S. Attorney Mike Savage of the Western District of North Carolina and Trial Attorney Todd Kostyshak of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.