Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 14 March 2016
York Man Sentenced to 120 Months in Prison for Coercion and Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gabriel Palmer, age 22, York, Pennsylvania, was sentenced to 120 months in prison by United States District Court Judge John E. Jones, III, in Harrisburg, for coercion and enticement of a minor to engage in sexual activity.
According to United States Attorney Peter Smith, Palmer sexually assaulted a teenage boy and received and distributed child pornography to coerce the minor to engage in sexual activity between 2013 and 2015.
Palmer was indicted by a federal grand jury in Harrisburg in May 2015, as a result of an investigation by the United States Postal Inspection Service, the Silver Spring Township Police Department, Homeland Security Investigations and the Cumberland County Forensics Team. The case was prosecuted by Assistant United States Attorney Daryl Bloom.
# # #
Williamson County Man Sentenced for Methamphetamine OffensesRead the Press Release
On March 9, 2016, Jeremey A. Phillips, a/k/a "Jeremy Phillips," 29, of Marion, was sentenced for methamphetamine violations, Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Phillips, who had previously pled guilty to a two-count indictment charging conspiracy to manufacture methamphetamine and possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine, was sentenced to 60 months in federal prison, to be followed by 3 years of supervised release, and fined $400.00. The offenses occurred between 2012 and February 2015, in Williamson, Jackson, and Jefferson Counties. Evidence at the plea and sentencing hearings established that Phillips was involved with others in obtaining pseudoephedrine and manufacturing methamphetamine. At sentencing, the judge found that Phillips was responsible for the possession of more than 224 grams of pseudoephedrine.
The investigation was conducted by the Southern Illinois Enforcement Group and Marion Police Department.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
U.S. Attorney’s Office to Conduct Election Day MonitoringRead the Press Release
CHICAGO — The U.S. Attorney’s Office will monitor the primary elections in Chicago and surrounding suburbs on March 15, 2016, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced today.
As part of the monitoring effort, the office will operate a telephone hotline for candidates or the public to report complaints related to the voting process. Two teams of Assistant U.S. Attorneys and other office personnel will monitor the hotline and be available to respond to complaints as needed.
The hotline number, staffed on Election Day only, is (312) 469-6157.
“There is no greater responsibility in a democracy than protecting the integrity of the voting process,” said Mr. Fardon. “A citizen who is entitled to vote should in no way be inhibited from doing so, and we stand ready to ensure the sanctity of the process.”
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes. Federal law also protects the rights of voters to mark their own ballot or to be assisted by a person of their choice. Violations of federal voting rights statutes carry penalties ranging from one to ten years in prison and fines of up to $250,000.
The office’s election monitoring efforts and subsequent investigations, if any, will be performed in consultation with the U.S. Justice Department. The Chicago office of the Federal Bureau of Investigation and the U.S. Marshals Service will assist in this effort by following up, if necessary, on any complaints of election fraud or voting rights infringements.
Complaints about ballot problems or discrimination can also be made directly to the Voting Section of the Justice Department’s Civil Rights Division in Washington, D.C., at (800) 253-3931 or (202) 307-2767. The Voting Section enforces the civil provisions of federal laws that protect the right to vote, including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act and the Civil Rights Acts.
For information as to the location and hours of polling locations, Illinois residents are advised to contact the Illinois State Board of Elections by logging on to www.elections.il.gov or by calling (312) 814-6440.
Two drug dealers plead guilty to Federal charges in CharlestonRead the Press Release
CHARLESTON, W.Va. – Two men pleaded guilty today to federal drug crimes, announced Acting United States Attorney Carol Casto.
Joseph Cooper, 41, of Charleston and Las Vegas, pleaded guilty to possession of 50 or more grams of methamphetamine with intent to distribute. Law enforcement pulled Cooper over on January 20, 2016, in Saint Albans, and seized over 170 grams of methamphetamine, 70 grams of crack, and over $30,000 in cash from the car. Cooper admitted that he intended to distribute the methamphetamine throughout the Southern West Virginia area. Cooper faces a minimum of 5 years and up to 40 years in federal prison when he is sentenced on June 14, 2016.
In a separate drug prosecution, Dennis Walls, 25, of Charleston, pleaded guilty to possession with intent to distribute heroin. Walls admitted that on March 24, 2015, when agents of the Charleston Police Department’s Special Enforcement Unit came to his Fairview Drive residence to inquire about his involvement in dealing heroin in the Charleston area, they found him in the process of weighing heroin for future drug deals. Walls turned over the heroin to law enforcement, along with a .45 caliber handgun. Walls also admitted to his involvement in the distribution of heroin in the area over a several month period. Walls faces up to 20 years in federal prison when he is sentenced on June 15, 2016.
The investigation of Cooper was conducted by the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations. Assistant United States Attorney Haley Bunn is responsible for the prosecution of Cooper. The Charleston Police Department’s Special Enforcement Unit conducted the investigation of Walls. Assistant United States Attorney John J. Frail is handling the prosecution of Walls. United States District Judge John T. Copenhaver, Jr., presided over both of the plea hearings.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Two Essex County, New Jersey, Men Charged in Prison Tax Scam That Used Fraudulent Tax Refunds to Pay for Attorneys and BailRead the Press Release
NEWARK, N.J. – Two East Orange, New Jersey, men are charged today with filing false federal income tax returns on behalf of inmates at the Essex County Correctional Facility (“Essex County Jail”) in order to fraudulently obtain income tax refunds that were used to pay for bail, lawyers, and other expenses, U.S. Attorney Paul J. Fishman announced.
Reginald Eaford, 45, and Winfred Moses, 48, are each charged by complaint with one count of conspiracy to defraud the United States and one count of aggravated identity theft. Both defendants are currently in custody. Moses will appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor. Eaford will appear on a date yet to be determined.
According to the complaint:
Eaford was an inmate at the Essex County Jail from approximately May 20, 2013 through Feb. 12, 2014. Law enforcement became aware that during his incarceration, Eaford deposited unusually large amounts of money into his inmate account.
Through a review of the recorded telephone calls and records maintained by the Essex County Jail, law enforcement officers learned that Eaford, Moses, and others conspired to obtain social security numbers, dates of birth, and other information from inmates at the Essex County Jail. Eaford and Moses would then generate false W-2 forms indicating that the inmates had earned income during the relevant tax year and that federal income tax had been withheld from their paychecks. Eaford and Moses would then file false federal income tax returns on behalf of the inmates and refund checks would be sent to the Essex County Jail or to Moses’s East Orange residence. The proceeds of the fraud were split among Eaford, Moses, and the relevant inmates.
According to interviews conducted by law enforcement of current and/or former inmates at the Essex County Jail, the fraudulent tax proceeds were used by inmates to pay for bail, lawyers, or other needs.
For example, on Nov. 2, 2013, Eaford placed a telephone call from the Essex County Jail to Moses. The call was recorded by the Essex County Jail. During the call, Eaford and Moses discussed the refund status for a tax return filed using a social security number belonging to an inmate at the Essex County Jail (“Inmate 1”). IRS records indicate that Inmate 1’s 2013 tax return was filed electronically on March 18, 2014 by an individual using an IP address registered at Moses’s residence. In addition, Inmate 1’s 2013 tax return included a bogus W-2 form that claimed that Inmate 1 had earned $70,021 in wages, even though he had not received any W-2 form from any employer that year.
From Jan. 28, 2014 to April 22, 2014, 60 tax returns were filed in the same manner using an IP address registered at Moses’s residence, for a total of $368,557 in fraudulently-obtained tax refunds. The majority of those fraudulent tax returns were for current or former inmates of the Essex County Jail. Of the 60 tax returns, 24 listed Moses’s residence as the taxpayer’s address and 59 of the 60 tax returns contained W-2 forms that did not match IRS records.
The conspiracy charge carries a maximum potential sentence of five years in prison. The aggravated identity theft charges carry a mandatory sentence of two years in prison that must be served consecutively to the punishment imposed on the conspiracy charge.
U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge J.R. Ball, and the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and the allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Eaford: Assistant Federal Public Defender Lisa Mack Esq., Newark
Moses: Leigh-Anne Mulrey Esq., Morristown, New Jersey
Topeka Man Sentenced for CarjackingRead the Press Release
TOPEKA KAN. – A Topeka man was sentenced Monday to 18 months in federal prison for carjacking, U.S. Attorney Barry Grissom said.
Michael Min Koy, 25, Topeka, Kan., pleaded guilty to one count of carjacking. In his plea, he admitted that on Jan. 12, 2015, he and a co-defendant physically assaulted a Topeka man and stole the keys to the victim’s 1999 Ford Mustang. The assault occurred in the 1800 block of Michigan Avenue in Topeka. The victim didn’t get his car back until March 29, 2015. The car had suffered extensive damage.
Co-defendant Marcus Anthony Montoya was sentenced to three years in federal prison.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jarred Maag for their work on the case.
The right prescription for West Virginia: Reducing the supply of painkillers to ease the drug epidemicRead the Press Release
The drug problem in West Virginia is complex with many moving parts and seemingly few concrete solutions. Enforcement, prevention and treatment are all important but one strategy that deserves additional attention is that of supply-side intervention. This involves taking steps to reduce the number of prescription painkillers actually prescribed and dispensed in our state. Researchers have found that when the number of pills distributed declines, the reduced supply does not recover, drug abuse decreases, and public health improves. Supply-side strategies save lives and are worth pursuing with great vigor in West Virginia.
The excessive prescribing of painkillers began in the mid-1990s as a result of aggressive and misleading marketing by certain manufacturers. It was during this time that the painkiller OxyContin was promoted as being non-addictive despite being virtually identical to heroin. Doctors were convinced by this idea and began to write scripts for it and a variety of other painkillers without hesitation. The number of prescriptions for opioids skyrocketed, and today Americans consume 81 percent of the world's oxycodone and nearly 100 percent of the world's hydrocodone. This widespread prescribing has led to thousands of annual overdose deaths, millions of pill abusers, and a demand for heroin that has reached epidemic proportions. Doctors in West Virginia write with a heavy pen, issuing more painkiller prescriptions per capita than all but two states.
What the pharmaceutical industry did in promoting pain pills was not much different than what the tobacco industry did with cigarettes: it lied about the addictive nature of its product and earned billions by deceiving naive consumers. "Big Pharma", much like "Big Tobacco", left a great deal of damage in its wake, and the costs to clean up the mess are extraordinary. One of the costs -that of treatment - is one that our state cannot afford. As a result, many West Virginians who want help for their addiction cannot afford it, cannot find it, or die trying.
There are, however, some actions that if taken will bring us closer to the end of this crisis. If I could write a prescription for West Virginia, it would look something like this:
1) Conservative prescribing practices. Doctors and hospitals should adopt policies that call for opioids to be prescribed less often, in lower doses, and for shorter durations. In fact, opioids should be a last resort for pain treatment instead of the first line of defense. These policies should also discourage the prescribing of opioids (i.e. Percocet) together with benzodiazepines (i.e. Xanax) because it's often a lethal combination.
2) Lower expectations from patients. Many of us have unreasonable expectations about how our pain should be treated. We have come to expect a 60-day supply of pain pills when something less will often do. The answer is not always a Percocet, but instead might be physical therapy, acupuncture, exercise, rest, or the use of non-narcotic pain relievers.
3) Increased accountability for deviant distributors. Wholesale distributors, pharmacies, and practitioners continue to engage in unlawful practices that cause excessive amounts of pain pills to be dispensed in West Virginia. The price to pay for this crime should be steep, to include prison time, licensure revocation, and large financial penalties.
4) Use of settlements to fund treatment. When drug companies reach financial settlements with the state or federal government for wrongdoing, a portion of the proceeds should be used to pay for treatment facilities in the affected states. This might be the only way that a state like ours will ever be able to afford adequate treatment resources.
5) Better use of prescription drug monitoring programs (PDMPs). Pharmacies should always check the PDMP (some don’t) and every state’s PDMP should be connected (they’re not) to prevent doctor-shopping and the dispensing of contra-indicated medications.
We’ve still got a long way to go, but a comprehensive and proactive supply-side strategy will help us to navigate through this painkiller-fueled storm. By keeping the pressure on the pharmaceutical industry, modifying the frequency, dose, and duration of narcotic prescriptions, and lessening our expectations as patients, West Virginia will emerge as a healthier and safer place to live and raise a family.
The Hayner Hoyt Corporation to Pay $5 Million to Resolve False Claims Act LiabilityRead the Press Release
Government Contractor and Several Individuals Admit That They Violated Laws Designed to Enhance Contracting Opportunities for Our Nation’s Service-Disabled Veterans
Syracuse-based Hayner Hoyt Corporation has agreed to pay $5 million, plus interest, to resolve allegations that its chairman and chief executive officer, Gary Thurston, its president, Jeremy Thurston, employees, Ralph Bennett and Steve Benedict and Hayner Hoyt affiliates LeMoyne Interiors and Doyner Inc., engaged in conduct designed to exploit contracting opportunities reserved for service-disabled veterans.
The United States has long used government contracting to promote small businesses in general and specifically small businesses owned by veterans who have service-connected disabilities. Congress has established a targeted procurement program for the U.S. Department of Veterans Affairs (VA), which requires the VA to set annual goals for contracting with service-disabled veteran-owned small businesses. To be eligible for these contracts, an applicant must qualify as a “small business.” In addition to being a small business, a service-disabled veteran must own and control the business and handle its strategic decisions and day-to-day management.
The settlement resolves allegations that the defendants orchestrated a scheme designed to take advantage of the service-disabled veteran-owned small business program to secure government contracts for a now-defunct company, 229 Constructors LLC, that Gary and Jeremy Thurston created and controlled and subcontracts for Hayner Hoyt and its affiliates. The Thurstons – neither of whom is a veteran – exerted significant influence over 229 Constructors’ decision-making during the bid, award and performance of these contracts in various ways, including by staffing the company entirely with then-current and former Hayner Hoyt employees and their spouses. They also provided 229 Constructors with considerable resources, which provided it with a competitive advantage over legitimate service-disabled veteran-owned small businesses neither affiliated with nor controlled by a larger, non-veteran owned corporation. Hayner Hoyt officials caused false certifications and statements to be made to the government representing that 229 Constructors met all requirements to be a service-disabled veteran-owned small business when they knew, or should have known, that 229 Constructors did not meet such requirements. By diverting contracts and benefits intended for our nation’s service-disabled veterans to Hayner Hoyt and its affiliates, the defendants undercut Congress’s intent of encouraging contract awards to legitimate service-disabled veteran-owned small businesses.
The investigation revealed that Bennett – a service-disabled veteran who allegedly ran 229 Constructors, served as its president and oversaw its $14.4 million government-contracts portfolio – was not involved in making important business decisions for the company. He was instead responsible for overseeing Hayner Hoyt’s tool inventory and plowing snow from Hayner Hoyt’s property. Jeremy Thurston set up an email account in Bennett’s name in such a way that all emails received by the veteran were automatically forwarded to him. After the government began to question 229 Constructors’ affiliation with Hayner Hoyt, Gary Thurston wrote others that he and Jeremy Thurston would likely terminate operations of 229 Constructors. A few months later, service-disabled veteran Bennett and Benedict, who was simultaneously the “co-owner” of 229 Constructors and listed on Hayner Hoyt’s website as one of its five “key” officials, transferred a total of $52,000 to Gary Thurston’s personal bank account allegedly to show their appreciation for the assistance he had provided.
Defendants make various admissions in the settlement agreement, including that their conduct violated federal regulations designed to encourage contract awards to legitimate service-disabled veteran-owned small businesses. They also admit that 229 Constructors provided more than $1.3 million in service-disabled veteran-owned small business subcontracts to Hayner Hoyt, LeMoyne Interiors and Doyner and that those companies generated $296,819 in gross profits as a result.
“Those who do business with the federal government must do so honestly,” said U.S. Attorney Richard S. Hartunian for the Northern District of New York “As today’s settlement demonstrates, this office will vigorously pursue those individuals and entities who game programs designed to help our nation’s veterans succeed in starting small businesses.”
“Federal contracting programs designed to help service-disabled veteran-owned small businesses should never be undermined by actions such as the ones taken by Hayner Hoyt Corporation officials to divert contracts to ineligible large firms,” said Inspector General Peggy E. Gustafson for the Small Business Administration (SBA). “The Office of Inspector General (OIG) will continue to work with the U.S. Department of Justice and partnering agencies in using all available remedies to deter parties from taking advantage of contracting programs designed to assist deserving service-disabled veteran-owned small businesses.”
“This settlement demonstrates the Department of Veterans Affairs, Office of Inspector General’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Special Agent in Charge Jeff Hughes for the Office of Inspector General for the Department of Veteran Affairs (VA-OIG). “The VA-OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans. I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”
“This civil settlement is a positive result of a joint investigation that proved Department of Defense contractor Hayner Hoyt executed a scheme to exploit and violate SBA and VA regulations in order to obtain service-disabled veteran-owned small business set aside contracts,” said Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office for the U.S. Department of Defense Office of the Inspector General. “Through these schemes, Hayner Hoyt denied small businesses, owned by legitimate service-disabled veterans, the opportunity to obtain government contracts. Such schemes erode public confidence and undermine the mission of our government. The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate procurement fraud allegations in order to safeguard the American taxpayer and its military veterans.”
The government’s investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery. The relator in this case will receive $875,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 14-cv-830.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, SBA-OIG, VA-OIG and DCIS. The United States was represented by Assistant U.S. Attorney Adam J. Katz.
The Hayner Hoyt Corporation to Pay $5 Million to Resolve False Claims Act LiabilityRead the Press Release
SYRACUSE, NEW YORK – Syracuse-based Hayner Hoyt Corporation has agreed to pay $5 million, plus interest, to resolve allegations that its Chairman and Chief Executive Officer, Gary Thurston, its President, Jeremy Thurston, employees, Ralph Bennett and Steve Benedict and Hayner Hoyt affiliates LeMoyne Interiors and Doyner Inc., engaged in conduct designed to exploit contracting opportunities reserved for service-disabled veterans.
The United States has long used government contracting to promote small businesses in general and specifically small businesses owned by veterans who have service-connected disabilities. Congress has established a targeted procurement program for the U.S. Department of Veterans Affairs (VA), which requires the VA to set annual goals for contracting with service-disabled veteran-owned small businesses. To be eligible for these contracts, an applicant must qualify as a “small business.” In addition to being a small business, a service-disabled veteran must own and control the business and handle its strategic decisions and day-to-day management.
The settlement resolves allegations that the defendants orchestrated a scheme designed to take advantage of the service-disabled veteran-owned small business program to secure government contracts for a now-defunct company, 229 Constructors LLC, that Gary and Jeremy Thurston created and controlled and subcontracts for Hayner Hoyt and its affiliates. The Thurstons – neither of whom is a veteran – exerted significant influence over 229 Constructors’ decision-making during the bid, award and performance of these contracts in various ways, including by staffing the company entirely with then-current and former Hayner Hoyt employees and their spouses. They also provided 229 Constructors with considerable resources, which provided it with a competitive advantage over legitimate service-disabled veteran-owned small businesses neither affiliated with nor controlled by a larger, non-veteran owned corporation. Hayner Hoyt officials caused false certifications and statements to be made to the government representing that 229 Constructors met all requirements to be a service-disabled veteran-owned small business when they knew, or should have known, that 229 Constructors did not meet such requirements. By diverting contracts and benefits intended for our nation’s service-disabled veterans to Hayner Hoyt and its affiliates, the defendants undercut Congress’s intent of encouraging contract awards to legitimate service-disabled veteran-owned small businesses.
The investigation revealed that Bennett – a service-disabled veteran who allegedly ran 229 Constructors, served as its president and oversaw its $14.4 million government-contracts portfolio – was not involved in making important business decisions for the company. He was instead responsible for overseeing Hayner Hoyt’s tool inventory and plowing snow from Hayner Hoyt’s property. Jeremy Thurston set up an email account in Bennett’s name in such a way that all emails received by the veteran were automatically forwarded to him. After the government began to question 229 Constructors’ affiliation with Hayner Hoyt, Gary Thurston wrote others that he and Jeremy Thurston would likely terminate operations of 229 Constructors. A few months later, service-disabled veteran Bennett and Benedict, who was simultaneously the “co-owner” of 229 Constructors and listed on Hayner Hoyt’s website as one of its five “key” officials, transferred a total of $52,000 to Gary Thurston’s personal bank account allegedly to show their appreciation for the assistance he had provided.
Defendants make various admissions in the settlement agreement, including that their conduct violated federal regulations designed to encourage contract awards to legitimate service-disabled veteran-owned small businesses. They also admit that 229 Constructors provided more than $1.3 million in service-disabled veteran-owned small business subcontracts to Hayner Hoyt, LeMoyne Interiors and Doyner and that those companies generated $296,819 in gross profits as a result.
“Those who do business with the federal government must do so honestly,” said U.S. Attorney Richard S. Hartunian for the Northern District of New York “As today’s settlement demonstrates, this office will vigorously pursue those individuals and entities who game programs designed to help our nation’s veterans succeed in starting small businesses.”
“Federal contracting programs designed to help service-disabled veteran-owned small businesses should never be undermined by actions such as the ones taken by Hayner Hoyt Corporation officials to divert contracts to ineligible large firms,” said Inspector General Peggy E. Gustafson for the Small Business Administration (SBA). “The Office of Inspector General (OIG) will continue to work with the U.S. Department of Justice and partnering agencies in using all available remedies to deter parties from taking advantage of contracting programs designed to assist deserving service-disabled veteran-owned small businesses.”“This settlement demonstrates the Department of Veterans Affairs, Office of Inspector General’s continued commitment to aggressively pursue individuals and companies that misrepresent themselves as service-disabled veteran-owned small businesses and deny legitimate disabled veterans the opportunity to obtain VA set-aside contracts,” said Special Agent in Charge Jeff Hughes for the Office of Inspector General for the Department of Veteran Affairs (VA-OIG). “The VA-OIG will continue to work diligently to protect the integrity of this important program, which is designed to aid disabled veterans. I also want to thank the U.S. Attorney’s Office and our law enforcement partners in this effort.”
“This civil settlement is a positive result of a joint investigation that proved Department of Defense contractor Hayner Hoyt executed a scheme to exploit and violate SBA and VA regulations in order to obtain service-disabled veteran-owned small business set aside contracts,” said Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service’s (DCIS) Northeast Field Office for the U.S. Department of Defense Office of the Inspector General. “Through these schemes, Hayner Hoyt denied small businesses, owned by legitimate service-disabled veterans, the opportunity to obtain government contracts. Such schemes erode public confidence and undermine the mission of our government. The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate procurement fraud allegations in order to safeguard the American taxpayer and its military veterans.”
The government’s investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to
file civil actions on behalf of the United States and share in any recovery. The relator in this case will receive $875,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 14-cv-830.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, SBA-OIG, VA-OIG and DCIS. The United States was represented by Assistant U.S. Attorney Adam J. Katz.Telephone Scammers Continue to Target Idaho ResidentsRead the Press Release
BOISE – The United States Attorney’s Office and the United States Marshals Service are advising Idaho residents to be aware of telephone calls threatening individuals of a pending arrest warrant. Calls have been reported in the Boise, Pocatello and Twin Falls area.
It was recently reported that Idaho residents have received a phone call from a person claiming to be a Deputy U.S. Marshal. The calls are coming from (208) 252-6977. The caller identifies himself as “David Perry” and leaves the phone number (208) 917-8141. When unsuspecting citizens return the call an automated message says:
You have reached the U.S. Marshals Service serving the Northern District of Idaho. If this is an emergency, hang up and dial 911. If you have information regarding the whereabouts of an absconded fugitive please remain on the line for the next available deputy. For all other inquiries please listen closely because our menu options have recently changed. For warrants division, press 1; for civil processing division, press 2; for gang enforcement, press 3; for the officer in charge, press 4; for clerk of courts, press 5.
Once connected to a person, individuals are given the choice to avoid a federal arrest warrant by paying a fine to settle out of court. The individual may be instructed to purchase a prepaid Visa or MasterCard, and to provide the number on the back of the card to the caller.
Because the telephone calls are continuing to occur, the United States Attorney wants the public to be aware of these scam calls. Officers do not notify people of arrest warrants by phone. A valid arrest warrant would be served in person by a Deputy U.S. Marshal or other law enforcement officer. Persons receiving such a telephone call are cautioned not to provide any information and to notify the U.S. Marshals Service immediately.
“I urge everyone who receives this type of phone call to be very skeptical, or better yet, simply hang up the phone,” said Brian T. Underwood, United States Marshal for the District of Idaho. “This is not a typical way that the U.S. Marshals resolve warrant related matters.”
It is a crime for an individual to falsely represent himself or herself as a federal official or Deputy United States Marshal. Accordingly, this scam and any similar fraudulent conduct will be investigated by the U.S. Marshals Service, in partnership with the FBI.
Tax Return Preparer Gets 30-Month Federal Prison SentenceRead the Press Release
DALLAS – A local commercial tax preparer, Rudy Contreras, was sentenced to 30 months in federal prison, following his guilty plea in November 2015 to one count of aiding and assisting in the preparation or presentation of a false or fraudulent tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Contreras was also ordered to pay $75,221 in restitution to the Internal Revenue Service; he must surrender to the Bureau of Prisons on June 15, 2016.
According to the factual resume filed in the case, Contreras did business in Garland, Texas, as Amigo’s Taxes, located on South Garland Avenue, and then later as Priority One Taxes, located on North First Street. Because he was not eligible to obtain an Electronic Filer Identification Number (EFIN), Contreras obtained an EFIN and a Preparer Tax Identification Number (PTIN) in his wife’s name, even though she did not work at Amigo's Taxes and did not prepare tax returns.
When IRS Special Agents conducted a search warrant in April 2012 at Amigo's Taxes, according to the factual resume, Contreras admitted that he was the only tax return preparer at the business. Later, however, Contreras closed Amigo's Taxes and opened Priority One Taxes. This time Contreras obtained an EFIN and PTIN in his brother's name, even though he did not work at Priority One Taxes and did not prepare tax returns.According to the factual resume, IRS Criminal Investigation identified 24 fraudulent tax returns, involving 17 clients, prepared by Contreras for the years 2010, 2011 and 2012, which resulted in a loss to the government of $75,221. The 17 clients all claimed that Contreras portrayed himself as a knowledgeable and experienced return preparer, and they did not know he falsified their tax returns with false forms and false expenses.
Assistant U.S. Attorney Joseph Revesz was in charge of the prosecution.
# # #
Statement of U.S. Attorney Jill Westmoreland Rose on the U.S. Court of Appeals Fourth Circuit Decision in U.S. v. Nicholas RaginRead the Press Release
CHARLOTTE, N.C. – Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina, provided the below statement regarding the recent U.S. Court of Appeals decision in U.S. v. Ragin:
“Mr. Ragin’s prosecution, conviction and incarceration kept the community safe. While we are disappointed that the Court of Appeals did not accept the findings of fact by the trial judge who we believe was in the best position to observe the conduct of defense counsel during the trial, public safety continues to be our priority and we are committed to retrying Mr. Ragin for the crimes he committed.”
A copy of this press release and the court’s opinion may be found on the website of the U.S. Attorney’s Office for the Western District of North Carolina.
Sierra National Forest Marijuana Cultivator Pleads GuiltyRead the Press Release
FRESNO, Calif. — Francisco Javier Gomez-Rodriguez, 38, of Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.
According to court documents, co-defendant Humberto Ceballos-Rangel, 37, also of Mexico, was found at a campsite within the marijuana cultivation site, where agents found 5,904 marijuana plants. Gomez-Rodriguez and two other co‑defendants, Alejandro Ramirez-Rojo, 31, of Mexico, and Anthony Isaac Santibanez, 20, of Woodlake, California, were found a short time later approaching the grow site in a vehicle delivering supplies.
Ceballos-Rangel previously pleaded guilty. Both Gomez-Rodriguez and Ceballos-Rangel have agreed to make restitution to the U.S. Forest Service for the damage they inflicted on the public land and natural resources as a result of their marijuana cultivation activities. Native vegetation was cut down, and water was diverted from a nearby creek to irrigate the marijuana plants. A large quantity of trash was also found at the site.
Gomez-Rodriguez is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on June 13, 2016. Ceballos-Rangel is scheduled for sentencing on April 18. They face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Santibanez and Ramirez-Rojo are scheduled for trial on August 9. They face additional charges, including depredation of public land and natural resources. The charges are only allegations; these defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Schenectady Man Pleads Guilty to Identity TheftRead the Press Release
ALBANY, NEW YORK – A Schenectady man pleaded guilty on Friday to stealing another person’s identity and using that person’s information to apply for a United States passport and public benefits.
The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge David Schnorbus of the Department of State Diplomatic Security Service, and Edward J. Ryan, Special Agent-In-Charge of the Social Security Administration Office of the Inspector General.
During his plea on Friday before United States District Judge Mae A. D’Agostino, the man identified himself as Fernando Lugo, a citizen of the Dominican Republic residing in Schenectady prior to his arrest. He admitted that in April 2010, he submitted an application for a U.S. passport to the U.S. Post Office in Schenectady. In February 2015, he applied to receive Medicaid benefits with the Schenectady County Department of Social Services. On both applications, he used the name, Social Security Number, and date of birth of another person he knew.
The defendant faces at least 2 years and up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on July 7, 2016 by Judge D’Agostino. 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.
This case was investigated by the Department of State Diplomatic Security Service and the Social Security Administration Office of the Inspector General, and is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
San Diego Man Sentenced to 96 months in Prison for Making False Statements in an International Terrorism InvestigationRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney John Parmley (619) 546-7957 and Michael Kaplan (619) 546-7927
NEWS RELEASE SUMMARY – March 14, 2016
SAN DIEGO – Mohamad Saeed Kodaimati of San Diego was sentenced in federal court today to eight years in prison for making false statements to FBI and State Department officials during a terrorism-related interview at the U.S. Embassy in Ankara, Turkey.
Kodaimati, a naturalized U.S. citizen, pleaded guilty in October 2015 to one count of False Statements Involving International Terrorism. As part of his guilty plea, Kodaimati acknowledged that he lied in March 2015 when he said he did not know any members of Islamic State in Iraq, a designated foreign terrorist organization known as ISIL; that he falsely claimed that while in Syria he was never involved with Al Nusrah, also a foreign terrorist organization; and that he again lied when he said that while in Syria he had never engaged in combat or fired a weapon at anyone.
In his plea agreement, Kodaimati admitted that he knew a member of ISIL and that while in Syria he participated in a battle against the Syrian regime, including shooting at others, in coordination with Al Nusrah fighters.
During today’s sentencing hearing, U.S. District Judge Anthony Battaglia noted that the crime involved “very, very serious” false statements and that an eight year sentence was necessary to deter others who might be tempted to lie when national security is at stake.
“The defendant deliberately hid his connections to terrorists and the fact that he participated in combat in Syria,” said U.S. Attorney Laura Duffy. “This is an appropriately severe sentence that underscores the very serious nature of a crime that has the potential to jeopardize our national security.”
“This international terrorism investigation that started in Ankara, Turkey and ended up in San Diego, California, exemplifies the tireless efforts of the FBI's Joint Terrorism Task Force (JTTF) members to aggressively investigate and prosecute those who engage in international terrorism activity,” said FBI Special Agent in Charge, Eric S. Birnbaum. “Today's sentencing will hold Mr. Kodaimati accountable for his lies and dissuade others from lying to FBI agents regarding international terrorism matters.”
“This investigation underscores the serious threat posed by the violent propaganda being spread by international terrorist organizations both here and abroad,” said Dave Shaw, special agent in charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Diego. “I commend the San Diego Joint Terrorism Task Force for its outstanding work to connect the dots in this complicated case, which eventually tied back to San Diego. HSI is using all of the tools and authorities at its disposal to promote national security and protect our citizens.”
Kodaimati was born in Syria and became a naturalized U.S. citizen in September 2008. In December 2012, Kodaimati travelled from San Diego to Istanbul and was in Syria and Turkey until his return to the United States.
In March 2015, he met with an FBI agent and a State Department agent at the U.S. Embassy in Ankara, Turkey, where he made the false statements.
Kodaimati eventually returned to San Diego on March 29, 2015. He was arrested by FBI agents and members of the San Diego Joint Terrorism Task Force (JTTF) in Rancho Bernardo, California, without incident on April 22, 2015.
DEFENDANT Case Number: 15cr1298-AJB
Mohamad Saeed Kodaimati Age 25 San Diego
SUMMARY OF CHARGES
False Statements Involving International Terrorism, in violation 18 U.S.C. 1001(a)(2)
Maximum penalty eight years in prison, $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Joint Terrorism Task Force
Homeland Security Investigations
Randolph County Resident Sentenced for Methamphetamine OffensesRead the Press Release
On March 9, 2016, John G. Haslett, 41, of Percy, was sentenced for methamphetamine offenses, Acting United States Attorney for the Southern District of Illinois James L. Porter announced today.
Haslett, who had previously pled guilty to conspiracy to manufacture methamphetamine and possessing pseudoephedrine knowing that it was going to be used to manufacture methamphetamine, was sentenced to 65 months in federal prison, to be followed by 3 years supervised release, and fined $200.00. Evidence at the plea and sentencing hearings established that Haslett was involved with co-defendants Michael Boyt, Jr., and Russell Stokes and others in the manufacture of methamphetamine. Haslett provided pseudoephedrine to multiple other persons and allowed others to manufacture methamphetamine on his property. The offenses occurred from 2013 to January 2015, in Perry, Randolph, Williamson, Jackson, and Franklin Counties. Co-defendants Boyt, Jr., and Stokes have previously received sentences of 60 months and 100 months, respectively, for their roles in the methamphetamine conspiracy.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Steeleville Police Department, Coulterville Police Department, Sparta Police Department, Perry County Drug Task Force, and Illinois State Police Methamphetamine Response Team. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Providence Resident Sentenced to 13 Years in Prison on Firearms, Hobbs Act Conspiracy ChargesRead the Press Release
PROVIDENCE, R.I. – Allen Prout, 44, of Providence, was sentenced on Friday to 13 years in federal prison on firearms and robbery conspiracy charges relating to his June 2014 plan to rob a drug dealer and a robbery conspiracy charge relating to his involvement in an armed robbery in September 2012.
On October 29, 2015, Prout pleaded guilty to one count each of conspiracy to commit Hobbs Act robbery, possession of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm in connection with the June 2014 robbery conspiracy. On that same date, Prout pleaded guilty to one count of conspiracy to commit Hobbs Act robbery in connection with the armed robbery in September 2012. At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Prout to serve 3 years supervised release upon completion of his prison term.
Prout’s sentence is announced by United States Attorney Peter F. Neronha, West Warwick Police Chief Colonel Richard G. Silva and Daniel J. Kumor, Special Agent in Charge of the Boston field division of ATF.
At the time of his guilty plea, Prout admitted to the court that on June 6, 2014, he and a co-conspirator, Emmett Blyden, 45, of Providence, took possession of firearms they intended to use to rob a drug stash house in Providence. The defendants believed that two kilos of heroin and a substantial amount of cash were being stored at the house. The two men were arrested moments after taking possession of the firearms.
Blyden pleaded guilty on September 22, 2015, to conspiracy to commit Hobbs Act robbery and being a felon in possession of a firearm. He was sentenced on January 5, 2016, to 96 months in federal prison, to be followed by 3 years supervised release.
At the time of his guilty plea, Prout also admitted to the court that he participated in a conspiracy in September 2012 to rob an individual at gun point of money the victim intended to use to purchase a significant quantity of oxycodone pills. According to court records, Prout and a co-defendant, Kiplagatt Stewart, 41, of Providence, posed as drug dealers in order to gain access to the home of the victim. Instead of selling the victim oxycodone pills, Prout and Stewart robbed the victim at gunpoint of approximately $14,000 in cash.
Stewart was sentenced on October 22, 2015, to 84 months in federal prison, to be followed by 3 years supervised release. Stewart pleaded guilty on June 17, 2015, to conspiracy to commit Hobbs Act robbery.
The cases were prosecuted by Assistant U.S. Attorneys Milind M. Shah, with the assistance of First Assistant U.S. Attorney Stephen G. Dambruch and Assistant U.S. Attorney Adi Goldstein.
Providence Police and Rhode Island State Police assisted West Warwick Police and ATF in the investigation of these matters.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Pottawattamie County Man Sentenced to Prison for Methamphetamine and Felon in Possession of a Firearm ChargesRead the Press Release
COUNCIL BLUFFS, IA – On March 11, 2016, Carlton Allan Owens, 57, of Council Bluffs, Iowa, was sentenced by Senior United States District Court Judge Robert W. Pratt, to 144 months in prison for Possession with Intent to Distribute Methamphetamine and 120 months imprisonment for Felon in Possession of a Firearm, announced Acting United States Attorney Kevin E. VanderSchel. The two prison terms will be served concurrently. Owens’ term of imprisonment will be followed by five years of supervised release.
Owens pleaded guilty to the charges on November 10, 2015. According to the plea agreement, Council Bluffs police officers responded to a domestic violence call involving Owens. Upon arrival at the scene, officers contacted Owens, who was standing next to his motorcycle. Owens was arrested for domestic violence and a search of Owens and his property revealed over 600 grams of methamphetamine, a loaded handgun, and a large amount of cash. Prior to June 2015, Owens had been convicted of a felony offense.
This matter was investigated by the Council Bluffs Police Department and the Southwest Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Philadelphia Man Sentenced to 33 Months for Passing $17,900 in Counterfeit MoneyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Harvey Blake, age 57, of Philadelphia, Pennsylvania, was sentenced today to 33 months in prison by United States District Court Judge John E. Jones, III, in Harrisburg, for passing $17,400 in counterfeit $100 bills in four central Pennsylvania counties between October 2014 and March 2015.
Judge Jones also ordered that Blake make restitution to the victims as follows: Lowe’s - $7,600; Home Depot - $9,000; Staples - $300; Wal-Mart - $300; and Giant - $300.
According to United States Attorney Peter Smith, Blake was charged in a one count indictment in July 2015 with passing $17,400 in counterfeit $100 bills in Dauphin, Franklin, York and Cumberland Counties. The bills were used to purchase merchandise at Home Depot, Lowes and Walmart stores in the four counties. Blake pled guilty to the indictment in October 2015.
The case was investigated by the Harrisburg office of the United States Secret Service, and the police departments of Lower Paxton Township, Swatara Township, and Hampden Township, as well as the loss prevention personnel for the affected stores. Assistant United States Attorney William A. Behe prosecuted the case.
# # #
New York Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A New York tax return preparer pleaded guilty today in the U.S. District Court for the Eastern District of New York in Central Islip, New York, to one count of aiding and assisting in the preparation of a false tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to court documents, Thelma Rodriguez-Garden, 54, owned and operated a tax preparation business called Garden Insurance Agency Corporation, which was located in Bay Shore, New York. Rodriguez-Garden prepared false individual income tax returns for clients of Garden Insurance Agency for tax years 2008 through 2011. On the tax returns, Rodriguez-Garden included grossly inflated or wholly fictitious itemized deductions for unreimbursed employee expenses. The information to which Rodriguez-Garden pleaded guilty alleges that she filed 47 false tax returns that caused a loss to the government of more than $100,000.
“Today’s plea is a reminder that tax return preparers who knowingly include false items on their clients’ returns face criminal investigation, prosecution and incarceration,” said Acting Assistant Attorney General Ciraolo. “Working with its partners within the Internal Revenue Service (IRS), the Tax Division remains committed to pursuing these offenders and holding them accountable for their fraudulent conduct.”
Rodriguez-Garden faces a statutory maximum sentence of three years in prison and a $250,000 fine. As part of her plea agreement, Rodriguez-Garden agreed to pay restitution to the IRS in the amount of $107,459. U.S. District Judge Joseph F. Bianco set sentencing for July 11.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
New York Man Convicted of Computer Hacking Internet Service ProviderRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dariusz J. Prugar, age 32, of Syracuse, New York, was convicted on Friday, after a week-long trial before a federal jury in Harrisburg, Pennsylvania, of computer fraud and wire fraud. Prugar was continued on bail and no date is set for sentencing. Senior U.S. District Court Judge Sylvia H. Rambo presided over the trial.
According to United States Attorney Peter Smith, Prugar was the network administrator for Pa Online, an internet service provider formerly located in Enola, Pennsylvania. Prugar was fired by Pa Online in June 2010. Days later, Prugar secretly hacked into the business’s computer network which caused files and directories to be erased and ultimately caused the network to crash. For approximately a week, Pa Online was unable to provide sustained service to over 5,000 residential customers and over 500 business customers. He also installed numerous “backdoor” entry points into the network so that he could access the network again.
Over a dozen former employees, outside consultants, and former clients of Pa Online testified to the impact the outage had. Former employees and outside consultants hired by Pa Online testified that the crash caused them to work for days attempting to return service. Former customers described their inability to access tools essential to their businesses, which resulted in the customers terminating their relationship with Pa Online. The business owner testified he had the entire network rebuilt to prevent Prugar from sabotaging the business again.
The computer fraud charge related to Prugar’s unlawful intrusion to the computer network, which caused thousands of dollars in damage. The wire fraud charge related to Prugar’s attempt to cause financial loss to his former employer through the use of interstate wires.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Michael A. Consiglio and Carl D. Marchioli.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a 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.
# # #
Naples Man Sentenced to More Than Six Years for Operating an $8 Million Investment SchemeRead the Press Release
Fort Myers, Florida – United States District Judge Sheri Polster Chappell today sentenced Dorian Garcia (31, Naples) to six years and six months in federal prison for wire fraud. As part of his sentence, Garcia will forfeit pieces of artwork that were purchased with proceeds of the fraud, along with a $10,000 retainer that he had paid to a law firm. The Court also entered a money judgment in the amount of $3,108,734.52, the proceeds of the scheme. Garcia will also be required to pay restitution in the amount of approximately $5 million, representing the approximate loss to victims. A restitution hearing has been scheduled for May 16, 2016.
According to the plea agreement, from February 2009 through April 2015, Garcia induced investors to provide money to him based on misrepresentations that he would invest their funds and guarantee their initial investment, as well as a specific rate of return over a defined term of the investment. As part of the scheme, Garcia presented investors with false bank statements indicating large account balances, when in fact the true amounts were a small fraction of what Garcia claimed to be in the accounts, and were insufficient to support the guarantees he had promised. Garcia facilitated the scheme through a number of companies that he controlled, including DG Wealth Management ("DG Wealth"), Macroquantum Capital LLC ("Macroquantum"), Commodity Projections and Predsyst LLC, and UKUSA Currency Fund LP ("UKUSA"). According to statements made during the sentencing hearing, Garcia solicited and received at least $8 million dollars from approximately 111 victims located throughout the United States. Garcia only repaid approximately $3,990,285.48 to any of the victims.
Garcia only invested a small portion of the funds provided by investors. After investors had provided him with money, Garcia continued to send them false trading statements reflecting that he had earned trading profits, when he had not. Instead, Garcia used a greater portion of investors’ funds to repay other investors by disguising new investments as trading profits. Garcia also used a significant portion of the invested funds for personal and business expenses, including artwork, rent, luxury car payments, domestic help, including a personal chef, jewelry, and dinner parties.
When investors began asking for their money back, Garcia provided a series of misrepresentations as to why he could not do that and often insisted that they sign new agreements falsely appearing to convert their investments into loans. In addition, Garcia encouraged investors to mislead others, including investigators, about the true nature of their investment with him, and encouraged them to falsely claim that they had made a loan to his companies when, in fact, they had provided Garcia money to invest on their behalf.
This case was investigated by the Federal Bureau of Investigation, with assistance from the United States Commodity Futures Trading Commission (Chicago, Illinois), and the State of Florida, Office of Financial Regulation. It is being prosecuted by Assistant United States Attorney David G. Lazarus.
The Commodity Futures Trading Commission (CFTC) offers a free online tool for potential public investors to conduct due diligence on potential financial counselors. CFTC SmartCheck provides easy access to free tools to check the background of financial professionals, and provides information on the latest fraud schemes. For more information, visit www.smartcheck.cftc.gov.
Mount Pleasant Woman Indicted for Wire Fraud and Filing False Tax ReturnsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Charleston, South Carolina ---- United States Attorney Bill Nettles announced an indictment charging Cynthia Cave, age 45, of Mount Pleasant, with Wire Fraud, a violation of Title 18, U. S. C. § 1343, and Filing a False Tax Return, a violation of Title 26, U. S. C. §7206(1).
Cave is charged with devising a scheme to defraud her employer, a plastic surgery practice owned and operated by a single individual physician in Mt. Pleasant, S.C., starting in or around 2007 and continuing through 2011. The indictment alleges that Cave, used her position as office manager to utilize the medical practice’s funds to pay for, among other things, personal services, retail items, meals, and travel, all unrelated to the practice and without the knowledge or authorization of the practice’s owner. The indictment also alleges that Cave willfully made and subscribed false Form 1040s in three separate tax years that she did not believe to be true and correct as to every material matter.
The maximum penalties that Cave could receive are 20 years imprisonment if convicted of Wire Fraud and 10 years imprisonment if convicted for Filing a False Tax Return. The Indictment is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service. Assistant United States Attorney Matt Austin of the Charleston office is prosecuting the case.
Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
#####
Montgomery County Oxycodone Distributor Sentenced to Three Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Philip Rice D’Avanzo, age 29, of Bethesda, Maryland, today to three years in prison, followed by three years of supervised release, and ordered D’Avanzo to pay a $10,000 fine, for conspiracy to distribute and possess with intent to distribute oxycodone. Judge Chuang also entered an order requiring D’Avanzo to forfeit three luxury wristwatches, his pick-up truck and $241,352 in cash.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to D’Avanzo’s plea agreement and court documents, from June 2014 through September 25, 2014, D’Avanzo, Richard Michael Mathisen, and others, conspired to distribute oxycodone. As part of the conspiracy, co-conspirators obtained MRIs, which another co-conspirator altered to make them appear as though the individuals required prescriptions for pain medication. The co-conspirators either gave or sold to D’Avanzo or Mathiesen all or some of the oxycodone obtained from the prescriptions. The defendants then used some of the oxycodone for themselves and distributed some of the oxycodone to others.
According to D’Avanzo’s plea agreement, on September 25, 2014, D’Avanzo went to Mathisen’s residence and at Mathisen’s request took 18 oxycodone pills, 10 methadone pills and 45 amphetamine and detroampehetamine pills, that Mathisen wanted removed from his home in case law enforcement officers searched his house. D’Avanzo put the drugs in his truck. Later that day, Montgomery County Police officers executed a search warrant at D’Avanzo’s residence. In addition to recovering the pill bottles in the names of people who did not reside at his residence, law enforcement recovered both a shotgun and a semi-automatic assault rifle next to D’Avanzo’s bed, and eight 30-round magazines, including one that was fully loaded and was found adjacent to the semi-automatic assault rifle.
A search warrant was also executed at Mathisen’s residence on September 25, 2014, and Montgomery County Police seized pill bottles in the names of individuals who did not reside at his residence.
D’Avanzo admitted that during his participation in the drug conspiracy between 15 and 60 grams of oxycodone were distributed. D’Avanzo used proceeds from the conspiracy to purchase three luxury wristwatches, which he must forfeit along with his pick-up truck and $241,352 in cash.
On February 3, 2016, Richard Michael Mathisen, age 29, of Rockville, Maryland was sentenced to nine years in prison for conspiring to distribute oxycodone. Judge Chuang also entered an order requiring him to pay a $60,000 fine.
United States Attorney Rod J. Rosenstein commended the ATF and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Lindsay Eyler Kaplan, who prosecuted the case.
Modesto Tri Counties Bank Robber Sentenced to over 26 Years in PrisonRead the Press Release
FRESNO, Calif. — Lloyd George Kenney, 65, was sentenced today by United States District Judge Anthony W. Ishii to 26 years and seven months in prison for an armed bank robbery he committed at the Tri Counties Bank in Modesto. The sentencing followed his conviction by a jury in December 2015 of armed bank robbery, using a firearm during a crime of violence, and of being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to evidence presented at trial, on the morning of May 25, 2012, Kenney robbed the Tri Counties Bank located inside the Raley’s grocery store at Floyd Avenue in Modesto. Kenney was armed with a semi-automatic handgun and was heavily disguised, wearing a hockey helmet, facemask, long black coat and gloves. He took $2,872 from tellers at gunpoint and fled on a bicycle into a neighborhood to the east of the store where he had parked a van earlier.
Within minutes of being alerted to the robbery, a Modesto police officer saw Kenney, who was still wearing the helmet, enter his van and begin to drive away. The officer pulled the van over and Kenney was taken into custody. During a search of the van, officers found the cash taken from the Tri Counties Bank, Kenney’s bike, a hockey helmet, a mask, a loaded Glock handgun and a loaded Browning handgun. While searching Kenney, officers found a police scanner set to channels used by the Modesto Police Department.
Court records reflect that Kenney had federal felony convictions in 1984 and 1985, as well as a felony conviction in San Mateo Superior Court in 1974.
This case was the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department. Assistant United States Attorneys Michael Frye and Mia Giacomazzi prosecuted the case.
Mississippi Man found guilty of multiple drug trafficking crimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a jury has found a Mississippi man guilty of two drug trafficking crimes based on his efforts to distribute methamphetamine and crack cocaine in late 2013.
Charlie B. Lewis, III, a/k/a “Little Chuck,” a/k/a “LC,” 28, originally of Grenada, Mississippi, was convicted by the jury of being a member of a drug trafficking conspiracy whose aim was to distribute methamphetamine and crack cocaine in Anchorage. The jury also convicted Lewis of actually selling methamphetamine on September 25, 2013. The jury acquitted Lewis on a related firearms count.
According to Assistant U.S. Attorneys Stephanie C. Courter and Timothy D. Edmonds, who prosecuted the case, the evidence at trial showed that Lewis relocated to Anchorage several years ago and began dealing illegal drugs shortly thereafter. Specifically, between September and December 2013, Lewis worked with several different people in order to sell methamphetamine and crack cocaine.
On September 25, 2013, Lewis and his co-defendant, Michael Ewing, sold methamphetamine to a confidential informant working for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Audio recordings played at trial captured Lewis arranging the deal, quoting the prices for the methamphetamine, and, ultimately, taking $800 in cash from the informant.
Lewis later sold crack cocaine as part of a separate undercover operation conducted by the Anchorage Police Department (APD). Text messages shown at trial documented Lewis arranging the deal. During the execution of a search warrant at Lewis’ residence following the deal, APD officers also recovered all of the indicia of drug trafficking activity – cocaine, crack cocaine, scales, baggies, cash, multiple cell phones, and a loaded 9mm handgun. Officers found the money used to purchase the crack cocaine in Lewis’s pants pocket.
U.S. District Judge Ralph R. Beistline presided over the trial. Judge Beistline scheduled Lewis’s sentencing for 9:00 a.m. on June 27, 2016. Lewis faces a mandatory minimum sentence of five years on the counts of conviction and a statutory maximum sentence of up to 40 years. Lewis’s co-defendant, Michael Ewing, previously pled guilty in the case and is set to be sentenced on April 6, 2016.
In announcing the sentence, U.S. Attorney Loeffler praised the work of the ATF, APD, and Homeland Security Investigations, whose investigative efforts led to Lewis’s conviction.
Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
DANVILLE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the guilty plea of a Henry County man to a federal firearms charge.
Barry Latwan Lowe, 41, of Henry County, Virginia pled guilty today in the United States District Court for the Western District of Virginia in Danville to one count of being a previously convicted felon illegally in possession of a firearm.
“The United States Attorney’s Office continues to stays focused on getting illegal guns off the streets,” United States Attorney John P. Fishwick said today.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Henry County Sheriff’s Office. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Man Arrested in Multi-Million Dollar Ponzi SchemeRead the Press Release
BOSTON – A former Massachusetts-resident was arrested at the Miami airport on Sunday for allegedly running a Ponzi scheme.
Mark Anderson Jones, 64, who currently resides in Jamaica, was charged with wire fraud after allegedly leading investors to believe that they would be providing financing to Jamaican businesses. Jamaican banks can take time to close loans to businesses and Jones claimed that he was offering these businesses “bridge loans” as an interim measure (i.e., to “bridge” the gap between the date a loan was sought from Jamaican banks and the distribution of funds by those banks).
According to the complaint, between 2007 and 2015, Jones obtained approximately $10 million in investments from over 20 individuals. In reliance on Jones’s representations that their money would be used to fund bridge loans, Jones’s investors, including investors in Massachusetts, provided financing and expected a return on their investments. In reality, however, beginning in at least November 2014, Jones stopped using investor money to fund loans. Instead, he used new investor money to pay back other investors. It is alleged that, in November 2014 and January 2015, Jones obtained $500,000 in new investments, most of which he used to pay other investors bogus investment returns.
The statutory maximum penalty for wire fraud is 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross loss to the victim. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Carmen Ortiz and Special Agent in Charge Harold Shaw of the Federal Bureau of Investigation’s Boston Division made the announcement today. Valuable assistance was also provided by the United States Postal Inspection Service and the Internal Revenue Service’s Criminal Investigations in Boston. The case is being prosecuted by Assistant United States Attorney Sarah E. Walters, Chief of Ortiz’s Economic Crimes Unit and Special Assistant U.S. Attorney Eric A. Forni from the SEC.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Los Angeles Man Sentenced to 150 Years in Prison for Sexually Abusing Minors in RussiaRead the Press Release
A Los Angeles man was sentenced today to 150 years in prison for sexually abusing three minor girls during trips to Russia over a two-year period, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
In November 2015, a jury convicted Yusef Yunosovich Abramov, 58, of five felony counts of engaging in illicit sexual conduct in foreign places. U.S. District Judge Otis D. Wright II of the Central District of California also imposed a lifetime term of supervised release.
According to the evidence introduced at trial, in June 2009, Abramov, a dual Russian and U.S. citizen, flew from Los Angeles to Russia, and shortly after his arrival, he raped a 12-year-old girl and threatened to sever her head and play soccer with it if she told anyone about the abuse. The trial evidence showed that in November 2009, Abramov again traveled to Russia and engaged in further sexual abuse of minor girls.
Trial evidence additionally demonstrated that in March 2010, believing that local schoolgirls had contacted the police, Abramov and two accomplices cornered three minor girls. Abramov threatened all three girls while wielding a knife and each man then raped one of the girls. The evidence showed that after threatening the girls’ lives, Abramov continued to rape at least two of the girls during that trip and subsequent trips to Russia.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, in cooperation with The Investigative Committee of the Russian Federation and the Moscow City Police, investigated this case. Trial Attorneys Maureen C. Cain and Ravi Sinha of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case. The Criminal Division’s Office of International Affairs also provided assistance.
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.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 11, 2016, Nicole Lynn Zabel, 41, of Lincoln, was sentenced to 120 months in prison for conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine between January of 2010 and April of 2015. Zabel will serve five years on supervised release following the prison term.
Information provided to law enforcement indicated Zabel was involved in the distribution of at least five kilograms (11 pounds) of methamphetamine in the Lincoln area. On April 3, 2015, a search warrant was executed at Zabel’s apartment. Over 95 grams of methamphetamine was found.
Zabel’s co-defendant, Kenneth Ali Carman, also pled guilty to the conspiracy charge and was sentenced in January of 2016 to 57 months in prison.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Laddie Leon Guerrero Aguigui Sentenced for Receipt of Explosive Materials by Non-LicenseeRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant LADDIE LEON GUERRERO AGUIGUI, age 27, was sentenced on March 9, 2016, in the District Court of Guam to three (3) months imprisonment and, upon release, three (3) years of supervised release to include three (3) months home detention.
On or about June 2, 2014, while in the outside kitchen of his residence, Defendant AGUIGUI possessed commercial electric blasting caps. Defendant AGUIGUI had removed the leg wires from three (3) commercial electric blasting caps by making close cuts to the base of the caps. Defendant AGUIGUI had cut through the cap of the fourth (4) commercial electric blasting cap, which detonated and caused Defendant to be injured. Defendant was then transported to the Emergency Room at Guam Memorial Hospital where he was treated for his injuries. Federal and local law enforcement conducted a scene check of the outside kitchen at Defendant AGUIGUI’s residence and noted, among other things, nine (9) Commercial Electric Blasting Caps. At that time, Defendant AGUIGUI did not possess a federal explosives license within the Federal Licensing System.
U.S. Attorney Alicia A.G. Limtiaco stated, “This case unfortunately demonstrated the serious consequences of misusing explosive materials. Federal licensing requirements help ensure the safe and appropriate use of destructive devices. Our office will continue to support the enforcement of these laws and regulations to protect public safety.”
This case was investigated by Special Agents of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Stephen F. Leon Guerrero.
Justice Department Announces Resources to Assist State and Local Reform of Fine and Fee PracticesRead the Press Release
The Department of Justice today announced a package of resources to assist state and local efforts to reform harmful and unlawful practices in certain jurisdictions related to the assessment and enforcement of fines and fees. The resources are meant to support the ongoing work of state judges, court administrators, policymakers and advocates in ensuring equal justice for all people, regardless of financial circumstance.
“The consequences of the criminalization of poverty are not only harmful – they are far-reaching,” said Attorney General Loretta E. Lynch. “They not only affect an individual’s ability to support their family, but also contribute to an erosion of our faith in government. One of my top priorities as Attorney General is to help repair community trust where it has frayed, and a key part of that effort includes ensuring that our legal system serves every American faithfully and fairly, regardless of their economic status.”
The package, which was sent to state chief justices and state court administrators throughout the country, includes the following elements:
- Dear Colleague Letter from the Civil Rights Division and the Office for Access to Justice to provide greater clarity to state and local courts regarding their legal obligations with respect to the enforcement of court fines and fees. The letter addresses some of the most common practices that run afoul of the U.S. Constitution and/or other federal laws, such as incarcerating individuals for nonpayment without determining their ability to pay. The letter also discusses the importance of due process protections such as notice and, in appropriate cases, the right to counsel; the need to avoid unconstitutional bail practices; and due process concerns raised by certain private probation arrangements.
- $2.5 million in competitive grants through the Bureau of Justice Assistance (BJA) to state, local or tribal jurisdictions that, together with community partners, want to test strategies to restructure the assessment and enforcement of fines and fees. The grant program, titled The Price of Justice: Rethinking the Consequences of Justice Fines and Fees, will provide four grants of $500,000 to agencies and their collaborative partners to develop strategies that promote appropriate justice system responses, including reducing unnecessary confinement, for individuals who are unable to pay fines and fees. BJA will award an additional grant of $500,000 to a technical assistance provider. For agencies interested in applying for this funding opportunity, BJA will host an informational webinar on March 28, 2016, at 11:30 a.m. EDT to describe the background, key concepts and requirements of the solicitation. To register, please follow this link.
- Support for the National Task Force on Fines, Fees and Bail Practices, which is led by the Conference of Chief Justices and the Conference of State Court Administrators. The task force is being funded by BJA and is also supported by the State Justice Institute. It is comprised of leaders from the judiciary, state and local government, the advocacy community and the academy. The task force will draft model statutes, court rules and procedures, and will develop an online clearinghouse of best practices. Department officials will also serve as ex officio members of the task force.
- Resource Guide that assembles issue studies and other publications related to the assessment and enforcement of court fines and fees. The resource guide, compiled by the Office of Justice Programs Diagnostic Center, helps leaders make informed policy decisions and pursue sound strategies at the state, local and tribal levels.
Today’s announcement follows a seminal two-day convening held by the Justice Department and the White House in Washington, D.C., on Dec. 2 and 3, 2015. Judges, court administrators, researchers, advocates, prosecutors, defense attorneys and impacted individuals came together to discuss challenges surrounding fines and fees. The convening made plain the existence of unlawful and harmful practices in some jurisdictions and highlighted a number of promising reform efforts already underway. At the meeting, participants and department officials also discussed ways in which the Justice Department could assist courts in their efforts to make needed changes. Participants specifically asked the department to provide legal guidance to state and local actors; to highlight and help develop model practices; and to provide resources for local reform efforts.
The Justice Department is committed to reforming justice-system practices that perpetuate poverty and result in unnecessary deprivations of liberty. The department discussed many of these practices in its March 2015 report on the investigation of the Ferguson, Missouri, police department and municipal court. As discussed at the December 2015 convening, however, these practices can be found throughout the nation. And their effects are particularly severe for the most vulnerable members of our communities, often with a disproportionate impact on racial minorities. The resources released today are aimed at reforming these practices and mitigating their harmful effects.
Fines and Fees Cover Letter
Illinois Woman Sentenced to Probation for Using Counterfeit Credit CardsRead the Press Release
PITTSBURGH - A resident of Bolingbrook, Illinois, has been sentenced in federal court to a term of three years of probation and restitution in the amount of $25,310.26 on her conviction of conspiracy and using unauthorized access devices, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Monique S. Morris, 33, of Bolingbrook, Illionois.
According to information presented to the court, on or about August 9, 2013, Morris used counterfeit credit cards to make purchases in excess of $1,000 at a high-end Pittsburgh retail store.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Morris.
Huntington felon and Charleston heroin dealer sentenced to prison for Federal crimesRead the Press Release
HUNTINGTON, W.Va. – Two men were sentenced today on federal charges, announced Acting United States Attorney Carol Casto. Semaj Markes Leondre Figg, 24, of Huntington, was sentenced to two and a half years in federal prison for being a felon in possession of a firearm. In a separate prosecution, Anthony Lamar Jordan Honeycutt, 35, of Charleston, was sentenced to two years and three months in federal prison for possession with intent to distribute heroin.
Figg previously pleaded guilty in December 2015. He admitted that on April 29, 2015, he was arrested by members of the Huntington Police Department on a warrant for a parole violation. At the time of his arrest, officers found Figg in possession of a CZ Model 52, 7.62 x 25 caliber pistol. Figg was prohibited from possessing any firearm under federal law because of a 2014 felony conviction in Cabell County Circuit Court for conspiracy to deliver cocaine.
Honeycutt previously pleaded guilty in December 2015, and admitted that on December 16, 2014, drug task force officers working with the Metropolitan Drug Enforcement Network Team stopped him in downtown Charleston. Honeycutt was on his way to deliver heroin to a confidential informant working with law enforcement. Officers found Honeycutt in possession of approximately 42 grams of heroin at the time of his arrest.
The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of Figg. Assistant United States Attorney Timothy D. Boggess handled the prosecution of Figg. The investigation of Honeycutt was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks is in charge of the prosecution of Honeycutt. Chief United States District Judge Robert C. Chambers imposed the sentences.
The prosecution of Figg is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
The Honeycutt case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Harrisburg Man Sentenced to Six Months in Prison for Defrauding the IRS of $337,000Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hung Danh, age 55, Harrisburg, Pennsylvania, was sentenced to six months in prison by U.S. District Court Judge John E. Jones, III, in Harrisburg for a conspiracy to evade $337,000 in employment taxes in connection with his operation of an employee leasing business known as HD Staffing.
In addition, Danh was ordered to pay restitution to the IRS in the amount of $337,302 and serve three years supervised release. Danh was ordered to surrender to the Bureau of Prisons on March 28, 2016 to commence service of his sentence.
According to U.S. Attorney Peter Smith, Danh helped operate an employee leasing business between 2009 and 2010, known as HD Staffing. HD Staffing provided laborers to various businesses throughout the Harrisburg area and failed to withhold payroll taxes from the laborers’ wages.
Employers are required to withhold income taxes from employee wages based on the number of allowances on the employees’ W-4 Form. Employers are also required to withhold FICA taxes from their employees’ wages at the FICA tax rate and remit those payments, along with the employee’s matching FICA tax, when they file their Employer’s Quarterly Federal Income Tax Return-Form 941.
Danh admitted he conspired with two other previously convicted individuals to evade these employment taxes for HD Staffing. Danh was indicted in July 2014 along with two other individuals and remained a fugitive until he was detained by U.S. Customs authorities entering the country on July 12, 2015 at JFK airport.
On March 23, 2015, Vanny Son, age 34, of Harrisburg, was sentenced to 37 months’ imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy. On March 24, 2015, Son Thach, age 56, of Harrisburg, was sentenced to one month imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy.
The case was investigated by the Criminal Investigation Division of the IRS and was prosecuted by Assistant United States Attorney Bruce Brandler, Chief of the Criminal Division.
# # #
Grand Prairie Man Sentenced to 10 Years in Federal Prison on Money Laundering ConvictionRead the Press Release
FORT WORTH, Texas — Hao Tran, 37, of Grand Prairie, Texas has been sentenced by U.S. District Judge John McBryde to 120 months in federal prison, following his guilty plea in November 2015 to one count of money laundering, announced U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, Tran purchased a $150,000 cashier’s check using money that came from his illegal drug trafficking business that he had been operating between California and Texas.
Tran, who has been in custody since August 2015 on a related federal criminal complaint, was also ordered to forfeit to the government property that he acknowledged was traceable to his money laundering activities, including of a parcel of land in Grand Prairie; seven vehicles, including a Bentley Continental, two Mercedes Benz, and a Hummer H2; as well as jewelry and cash.
The case was investigated by Internal Revenue Service Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Brian Poe was in charge of the prosecution.
# # #
Gang Member Sentenced to 34 Years in Prison for RICO ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Douglas Ashby, 29, of Newport News, was sentenced today to 412 months in prison for a racketeering conspiracy. Ashby’s sentence will run consecutive to a 10 year sentence on an earlier federal firearms conviction.
Ashby plead guilty on Nov. 12, 2015. According to court documents, Ashby was a member of the Newport News street gang “Thug Relations”, which engaged in the distribution of marijuana and crack cocaine. The gang established dominance over the drug trade in its territory through violence and intimidation, which included physical assaults, home invasions, and numerous shootings, some of which resulted in murders. In particular, Ashby admitted his involvement in the murder of Aaron Sumler, because the victim and a friend had been selling cocaine in the area of Aqueduct Apartments, which was part of Thug Relations territory. Further, Ashby participated in two other home invasion robberies or attempted robberies which resulted in the wounding of one victim and the death of another caused by another robbery participant. Ashby also participated in two additional shooting incidents.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General for the U.S. Department of Justice’s Criminal Division; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Howard J. Zlotnick, Lisa R. McKeel, Brian Samuels, and Trial Attorney Yvonne L. Garcia of the Criminal Division’s Organized Crime and Gang Section 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. 4:14-cr-59.
Former Prison Guard Sentenced for Smuggling ContrabandRead the Press Release
PHILADELPHIA – Joseph Romano, 31, previously employed at The Philadelphia Industrial Correctional Center (“PICC”) and the Riverside Correctional Facility, was sentenced today to 30 months in prison for attempted extortion which interfered with interstate commerce and two counts of attempted distribution of controlled substances. In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered a $1,000 fine, three years of supervised release, and a $200 special assessment.
Romano agreed to deliver OxyContin pills to a prisoner in exchange for $1,000. To obtain the contraband and payment, Romano arranged a meeting with the inmate’s purported associate at locations in Philadelphia. During the ensuing meeting, the inmate’s purported associate handed the contraband and cash payment to Romano, and Romano subsequently smuggled the contraband past prison security and delivered it to an inmate.
The case was investigated by the FBI and the Philadelphia Department of Corrections with assistance from the Philadelphia Police Department’s Prison Intelligence Group. It is being prosecuted by Assistant United States Attorney Kevin Brenner.
Former Owner of Virginia Beach Used Car Dealership Pleads Guilty to Defrauding Navy Federal Credit UnionRead the Press Release
NORFOLK, Va. – Andysheh Ayatollahi, 36, formerly of Virginia Beach, pleaded guilty today to charges of conspiracy to commit financial institution fraud and filing a false tax return.
According to a statement of facts filed with the plea agreement, in July 2007 Ayatollahi purchased a 50 percent interest in the Car Store, a used car dealership located in Virginia Beach. From then until May 2008, when the Car Store closed, Ayatollahi conspired with others, including Car Store personnel, to defraud Navy Federal Credit Union (NFCU). Ayatollahi and his co-conspirators engaged in fraudulent practices that included using individuals as straw buyers/borrowers to apply to NFCU for car loans because the actual buyers were not sufficiently creditworthy to qualify for a car loan. Ayatollahi also submitted fraudulent car loan applications to NFCU with false supporting documents; made telephone calls to NFCU impersonating buyers applying for car loans; provided false employer telephone numbers to NFCU and then impersonated the employer while verifying the applicant’s employment and wages; and fraudulently inflated the true purchase price of vehicles and split the excess with the buyers. In total, Ayatollahi fraudulently caused NFCU to issue 61 car loans with a total loan amount of $1,168,904.97. Most of these loans went into default, resulting in a loss to NFCU of approximately $867,448.43. Additionally, Ayatollahi filed false tax returns with the IRS that underreported his income for tax years 2005-2007, resulting in a tax loss of $113,093.
Ayatollahi will be sentenced on July 13, 2016, and faces a maximum penalty of 30 years in prison on the financial institution fraud charge and three years in prison on the charge of filing a false tax return. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Alan M. Salsbury is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:10cr15.
Former Bald Knob Police Chief Pleads Guilty to Gun CrimeRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Jeffrey Reed, Resident Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and Col. William J. Bryant of the Arkansas State Police, announced today that former Bald Knob Police Chief Erek Balentine, 31, of Bald Knob, pled guilty to a felony Information charging him with possessing a stolen firearm. In addition, he agreed to personally pay more than $12,000 in restitution relating to an incident in which his personal truck burned shortly prior to his resignation from the police department.
Today’s plea hearing took place in Little Rock before United States District Judge Brian S. Miller. Judge Miller will sentence Balentine at a later date.
Balentine’s final day as Bald Knob police chief was October 5, 2015. In spring 2015, Balentine had a conversation with a former White County police officer who was interested in donating a shotgun to the Bald Knob Police Department. Bald Knob was attempting to raise money for a K-9 unit for the department, and the purpose of this firearm donation was to auction off the shotgun to obtain funds to retrofit a police car with a cage to hold the K-9 unit.
The former officer purchased the shotgun, a Beretta, Model A300, 12-gauge shotgun, for $1,199 and had it shipped to All Star Pawn in Bald Knob, a federal firearm licensee. The donor intended for All Star Pawn to hold the shotgun and make a legal transfer to the winner of the auction, after the police department had the funds. At no time was Balentine or anyone authorized to keep the shotgun for personal use prior to the auction.
On October 2, 2015, the last business day he was still police chief, Balentine retrieved the Beretta shotgun from All Star Pawn. On October 14, 2015, Arkansas State Police Corporal Mike McNeill received information that Balentine was attempting to sell the shotgun, which was still police property, to an individual with whom Balentine was acquainted. Earlier that day, Balentine sent this acquaintance a text message with a picture of the Beretta shotgun, still in its case, which stated, "brand new, I will take $800 for it." Balentine also said that he needed the money for personal reasons.
After this communication agents observed Balentine go to his residence in Bald Knob and retrieve what appeared to be a gun in its case and proceed toward the location of the proposed gun transaction. Cpl. McNeill and ATF Special Agent David Oliver then initiated a traffic stop on Balentine, at which time he admitted he had a gun in the car. The shotgun was never auctioned.
During the plea hearing, in addition to admitting to the facts of the stolen firearm, Balentine did not contest facts offered by the United States to support a restitution payment of $12,968.71 to Progressive Insurance related to a fraudulent insurance claim for a vehicle fire. This restitution is designed to repay Progressive for insurance payments from the fire which destroyed Balentine’s 2007 Dodge Ram pickup truck.
The fire occurred at Balentine’s residence on September 24, 2015, and was immediately determined to be arson. At Monday’s plea hearing the United States—in providing a factual basis for the proposed restitution order—presented numerous examples of evidence which suggest that Balentine was a participant in causing the fire which resulted in the damage to his truck. The United States informed Judge Miller that it would not pursue charges before a Grand Jury for arson and mail fraud, and Balentine agreed to repay as restitution the money Progressive paid as a result of Balentine’s fraudulent insurance claim.
The charge of possession of a stolen firearm carries a maximum sentence of up to 10 years in prison, a $250,000 fine, and three years of supervised release. The investigation was conducted by the Arkansas State Police and the ATF. The case is being prosecuted by Assistant United States Attorney Chris Givens.
Federal Jury Convicts Studio City Man of Credit Card Fraud for Possessing Card Numbers Stolen from Gas Station ‘Skimmers’Read the Press Release
LOS ANGELES – A federal jury has convicted a Studio City man of possessing more than 1,400 credit card profiles that had been stolen from consumers who used gas pumps with “skimmers” that illegally collected their credit card information.
Koren Robert Kechedzian, 24, of Studio City, was convicted on March 11 in United States District Court of two counts of credit card fraud (specifically, two counts of possession of 15 or more counterfeit access devices) and two counts of aggravated identity theft.
At the conclusion of a one-week trial, the jury found that Kechedzian possessed two USB flash drives – which are commonly called “thumb drives” – that contained stolen credit card information. The portable drives were found at Kechedzian’s residence when federal authorities executed a search warrant in June 2013. At that time, investigators also recovered an illegal skimming device designed to be installed in gas station pumps to steal credit card data.
“As credit card thieves use increasingly sophisticated technology to access consumer data, consumers must be more vigilant in protecting their financial information and keeping a close eye on their transactions,” said United States Attorney Eileen M. Decker. “Law enforcement is responding to the increasing use of skimmers by working with businesses to help them secure their equipment and by more aggressively targeting those engaging in identity theft. This case demonstrates our commitment to protect consumers and to punish those who seek to defraud consumers and financial institutions.”
The investigation in this case was conducted by special agents with IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the United States Secret Service.
Special agents testifying at trial said that credit card fraud rings install skimming devices in gas station pumps and obtain credit card numbers from the devices using Bluetooth technology. Customers who use these compromised gas pumps are the unwitting victims of the credit card fraud.
“The incidence of skimming, both here in Los Angeles and nationwide, has reached epidemic proportions and consumers need to very vigilant about any suspicious or unauthorized activity on their accounts,” said Joseph Macias, special agent in charge for HSI Los Angeles. “These types of crimes not only result in major losses for financial institutions and merchants, but can cause a major disruption in consumers’ personal finances. HSI will continue to work closely with its federal and local law enforcement partners to target skimming schemes and the criminal syndicates that typically are behind them.”
Bank records examined by investigators established that the stolen credit cards numbers on the USB flash drives came from Chevron gas stations in Palmdale and Moorpark, and testimony at trial showed that the data on portable drives was consistent with the output from a credit card skimming device.
“As credit card fraud becomes more prevalent, we are increasing our efforts to protect consumers from fraud artists committed to taking the identities of innocent victims,” stated IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “Law enforcement officers respond to credit card fraud with every legal resource available. Let this conviction serve as a warning to those who are considering similar conduct.”
United States District Judge Philip S. Guttierez, who presided over the trial, is scheduled to sentence Kechedzian on June 27, at which time the defendant faces a statutory maximum sentence of 10 years in prison on each of the credit card fraud counts. The charge of aggravated identity theft carries a mandatory consecutive two-year prison term.
Farmington Woman Sentenced to 30 Months in Prison for Mail Fraud and Filing False Tax ReturnsRead the Press Release
CONCORD, N.H. – A 55-year-old resident of Farmington, New Hampshire, Susan Durrance, has been sentenced to 30 months in prison for a mail fraud offense that involved the theft of more than $396,000 from her former employer and three counts of filing false tax returns for failing to report the embezzled funds on her federal tax returns, announced United States Attorney Emily Gray Rice.
Durrance stole $396,212.93 while employed as a bookkeeper for a privately owned appliance store in Wolfeboro and (later) Ossipee, New Hampshire from 2005 to June 2011. Durrance stole the money by issuing checks from the store’s operating account to make payments on her personal credit accounts. For example, in May 2010, Durrance paid for a tractor she purchased for her personal use by causing a $2,999 check drawn on the operating account to be mailed to the tractor’s manufacturer. Durrance also issued checks from the operating account to “Cash” or to herself in amounts that were inconsistent with her salary, which were cashed or deposited to her personal bank account.
In addition, Durrance failed to report the proceeds of her embezzlement scheme on her federal income tax returns for tax years 2005 through 2010. Through this conduct, she evaded paying additional taxes totaling $94,270 to the Internal Revenue Service.
Durrance was ordered to pay restitution to the victim of her crime.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, the United States Postal Inspection Service, and Carroll County New Hampshire Sheriff’s Office. The case was prosecuted by Senior Litigation Counsel Robert M. Kinsella.
###
Evansville, Indiana Man Guilty of Transportation of an Owensboro, Kentucky Minor to Engage in Criminal Sexual ActivityRead the Press Release
OWENSBORO, Ky. – An Evansville, Indiana man pleaded guilty today in United States District Court, before Magistrate Judge H. Brent Brennenstuhl, to the charge of transportation of a minor to engage in criminal sexual activity, announced United States Attorney John E. Kuhn, Jr.
In court, Zachary Andrew Coleman, 28, pleaded guilty to a single count Indictment pursuant to a plea agreement reached with the United States. According to the plea agreement, on or about February 6, 2015, Coleman picked up a twelve year old female from her residence in Owensboro, Kentucky and took her to his home in Evansville, Indiana for the purpose of engaging in criminal sexual activity with her. Coleman communicated with the minor via a social networking site called MyLOL and sent sexually explicit messages to the minor, while claiming to be a teenager himself. Conversations obtained via a search of the minor’s computer show Coleman arranged to pick the minor up at her home for the purposes of transporting her to engage her in sexual activities that would violate Kentucky law.
Coleman was arrested on May 5, 2015 by federal authorities. Coleman faces a statutory mandatory minimum of 10 years and a maximum of life imprisonment, a fine of $250,000, and supervised release of not less than 5 years and not more than life. The sentencing hearing is scheduled to take place in Owensboro on June 9, 2016 at 9:00 CST.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness, and is being investigated by the Federal Bureau of Investigation (FBI) with assistance from the Daviess County, Kentucky Sheriff’s Office, and the Evansville, Indiana Police Department.
***
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Essex County, New Jersey, Woman Admits Leadership Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – A Belleville, New Jersey, woman today admitted leading a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.
Victoria Horvath, 43, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging her with conspiracy to distribute oxycodone.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Victoria Horvath as a senior member of the drug trafficking organization.
Horvath admitted that, between Feb. 5, 2014 and Aug. 13, 2014, she personally went to various doctors’ offices and obtained prescriptions for pills containing oxycodone, had the prescriptions filled by various pharmacies, and sold the pills to members of the conspiracy and others. Horvath also drove other conspirators to specific doctors to obtain oxycodone prescriptions, assisted them in getting the prescriptions filled, and helped them sell the pills.
For example, Horvath admitted that she, while working with multiple conspirators, sold 119 oxycodone pills to an undercover law enforcement officer in February 2014 in exchange for $2,020. Horvath also admitted to being an organizer and manager of the conspiracy.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
The charge to which Horvath pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for June 20, 2016.
Of the individuals originally charged with Horvath, Daniel Horvath, 27, Monica Horvath, 22, Johnny Horvath, 46, Tony Marco, 47, and Steven Horvath, 45, all of Rutherford, New Jersey, and Justin Farraj, 24, of Newark, New Jersey have pleaded guilty and await sentencing. Brian Perez, 23, was sentenced to a term of 40 months in prison in September 2014. Luis Rivera, 25, was sentenced to 54 months in prison in August 2015. Charges were dismissed against Belleville pharmacist Vincent Cozzarelli after his death in April 2014. The indictment remains pending against six other conspirators.
U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office in Newark.
Defense counsel: Frank P. Arleo Esq., West Orange, New Jersey
East St. Louis Man Sentenced to Federal Prison for Possession of A Firearm by A FelonRead the Press Release
An East St. Louis man, who pled guilty to possession of a firearm by a felon, was sentenced to 84 months in federal prison on March 10, 2016, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Craig Flowers, 42, of East St. Louis, Illinois, received an 84-month prison sentence for being a felon in possession of a firearm. Following release from imprisonment, Flowers will serve a 3-year term of supervised release. Flowers was also fined $300 and ordered to pay a special assessment of $100. Flowers pleaded guilty to the charge on October 30, 2015.
Flowers was arrested after police went to the door of his girlfriend’s apartment in Belleville, and her son said, "He threw it out the window. He threw the gun out the window."
This case was investigated by the Illinois State Police. The case was prosecuted by Assistant United States Attorney Donald S. Boyce.
EOIR Swears in Eight Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of eight immigration judges. Acting Chief Immigration Judge Print Maggard presided over the investiture during a ceremony held March 11, 2016, at the U.S. Court of Appeals for the Armed Forces in Washington, D.C.
After a thorough application process, Attorney General Loretta E. Lynch appointed Raisa Cohen, Evalyn P. Douchy, D’Anna H. Freeman, Rebecca B. Jamil, Elise M. Manuel, R. Reid McKee, Vernon B. Miles, and Morris I. Onyewuchi to their new positions.
“We are pleased to welcome these appointees to the immigration judge corps,” said Maggard. “We look forward to continuing to hire more qualified people to fill these important positions in public service.”
Biographical information follows.
Raisa Cohen, Immigration Judge, New York City Immigration Court
Attorney General Loretta E. Lynch appointed Judge Raisa Cohen to begin hearing cases in March 2016. Judge Cohen earned a Bachelor of Business Administration in 2002 from Baruch College, City University of New York Zicklin School of Business, and a Juris Doctor in 2007 from St. John’s University School of Law. From September 2015 to February 2016, and previously from April 2009 to September 2014, Judge Cohen served as assistant chief counsel for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security, in New York. From October 2014 to September 2015, Judge Cohen was an attorney at Cohen & Cohen Law Group PC, in New York. From 2007 through 2009, Judge Cohen was an immigration attorney at the Law Firm of Ted Sofer, in New York. Judge Cohen is a member of the New York State Bar.
Evalyn P. Douchy, Immigration Judge, New York City Immigration Court
Attorney General Loretta E. Lynch appointed Judge Evalyn P. Douchy to begin hearing cases in March 2016. Judge Douchy earned a Bachelor of Arts degree in 1992 from Binghamton University and a Juris Doctor in 1995 from New York Law School. From 1997 to February 2016, she served as assistant chief counsel for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security, in New York. From 1996 through 1997, she was an associate at the Law Offices of Anil Jethmalani & Timothy Herrick, in New York. From 1995 through 1996, she was a lawyer at the Law Office of Mark S. Drucker in Jackson Heights, N.Y. Judge Douchy is a member of the New York State Bar.
D’Anna H. Freeman, Immigration Judge, Pearsall Immigration Court
Attorney General Loretta E. Lynch appointed Judge D’Anna H. Freeman to begin hearing cases in March 2016. Judge Freeman earned a Bachelor of Science degree in 1988 from Baylor University, a Master of Public Health in 1995 from the University of Texas Health Science Center, and Juris Doctor in 2004 from the University of Houston Law Center. From 2007 to February 2016, Judge Freeman served in various capacities for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security, including: as assistant chief counsel from 2013 to 2016, in Dallas; as senior attorney from 2010 through 2013, in Livingston, Texas; and as assistant chief counsel from 2007 through 2010, in Eloy, Ariz. From 2006 through 2007, she was a partner at Forrest & Harrison LLC, in Houston. From 2005 through 2006, she served as an attorney at Dunbar, Harden & Benson LLP, in Houston. From 2004 through 2005, she operated the Law Office of D’Anna Harrison, in Houston. Judge Freeman is a member of the State Bar of Texas.
Rebecca B. Jamil, Immigration Judge, San Francisco Immigration Court
Attorney General Loretta E. Lynch appointed Judge Rebecca B. Jamil to begin hearing cases in March 2016. Judge Jamil earned a Bachelor of Arts degree in 1998 from Stanford University and a Juris Doctor in 2006 from the University of Washington Law School. From 2011 to February 2016, Judge Jamil served as assistant chief counsel for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security, in San Francisco. From 2006 to 2011, she served as staff attorney in the Research Unit, Ninth Circuit Court of Appeals, in San Francisco. Judge Jamil is a member of the Washington State Bar.
Elise M. Manuel, Immigration Judge, Newark Immigration Court
Attorney General Loretta E. Lynch appointed Judge Elise M. Manuel to begin hearing cases in March 2016. Judge Manuel earned a Bachelor of Arts degree in 1983 from Northwestern University and a Juris Doctor in 1987 from Georgetown University Law Center. From 1991 to February 2016, Judge Manuel served in various capacities on the Board of Immigration Appeals, Executive Office for Immigration Review, U.S. Department of Justice, including: as a temporary board member from 2012 to 2016; as an attorney-advisor from 2008 through 2012, from 1998 through 2005, and 1991 through 1995; as a team leader from 2005 through 2008; and as a senior panel attorney from 1995 through 1998. From 1987 through 1991, she was a staff attorney for the Legal Assistance Foundation of Chicago. Judge Manuel is a member of the Illinois State Bar.
R. Reid McKee, Immigration Judge, Pearsall Immigration Court
Attorney General Loretta E. Lynch appointed Judge R. Reid McKee to begin hearing cases in March 2016. Judge McKee earned a Bachelor of Arts degree in 1997 from the University of Alabama, a Master of Arts in Social Sciences in 1998 from the University of Chicago, and a Juris Doctor in 2003 from the University of Mississippi School of Law. From 2010 to February 2016, Judge McKee served as assistant chief counsel for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security. From 2009 through 2010, he was the manager of R. Reid McKee PLLC, in Madison, Miss. From 2003 through 2009, he was an associate at Watkins and Eager PLLC, in Jackson, Miss. Judge McKee is a member of the Mississippi and Tennessee Bars.
Vernon B. Miles, Immigration Judge, San Antonio Immigration Court
Attorney General Loretta E. Lynch appointed Judge Vernon B. Miles to begin hearing cases in March 2016. Judge Miles earned a Bachelor of Arts degree in 1980 from the University of Mississippi, a Juris Doctor in 1983 from Howard University School of Law, and a Master of Laws degree in 1992 from the U.S. Army Judge Advocate General’s School. From 1995 to February 2016, Judge Miles served in various capacities for the U.S. Department of Justice, including: as a trial attorney in the Narcotic and Dangerous Drug Section, Criminal Division, from 2014 to February 2016, in Washington, D.C.; as an assistant U.S. attorney in the Office of the U.S. Attorney from 2003 through 2014, in San Juan, Puerto Rico; as an assistant U.S. attorney in the Office of the U.S. Attorney from 1998 through 2003, in Oxford, Miss.; and as a civil appellate trial attorney in the Office of Immigration Litigation from 1995 through 1998, in Washington, D.C. From 1985 through 1994, he served in various capacities in the U.S. Marine Corps, including: as assistant officer-in-charge, defense attorney and prosecuting attorney in the Naval Legal Service Office Detachment from 1992 through 1994, in Roosevelt Roads, Puerto Rico; as deputy staff judge advocate, chief defense counsel and chief legal assistance officer in the 3d Force Service Support Group from 1989 through 1991, in Okinawa, Japan; and as prosecuting attorney, defense attorney and chief legal assistance attorney in the 2d Force Service Support Group from 1985 through 1989, in Cherry Point, N.C. From 1983 to 1985, he served in various capacities for the North Mississippi Rural Legal Services, including as managing attorney and staff attorney. Judge Miles is a member of the Mississippi Bar.
Morris I. Onyewuchi, Immigration Judge, Port Isabel Immigration Court
Attorney General Loretta E. Lynch appointed Judge Morris I. Onyewuchi to begin hearing cases in March 2016. Judge Onyewuchi earned a Bachelor of Arts degree in 1990 from Georgia State University, a Juris Doctor in 2002 from the Thurgood Marshall School of Law, Texas Southern University, and a Master of Studies in International Human Rights Law in 2010 from the University of Oxford in Oxford, U.K. From 2002 to February 2016, Judge Onyewuchi served as assistant chief counsel and trial attorney for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security. Judge Onyewuchi is a member of the State Bar of Texas.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Dodge City Woman Pleads Guilty to Producing Child PornRead the Press Release
WICHITA, KAN. B A Dodge City woman pleaded guilty Monday to making a video of herself engaged in a sex act with a child under five years old and uploading the video to the Internet, U.S. Attorney Barry Grissom.
Ashley Marie Kelly, 25, Dodge City, Kan., pleaded guilty to one count of producing child pornography. In her plea, she admitted she used a smartphone to record the act and posted the video to her Google Drive account. Google discovered the photographs and sent reports to the National Center for Missing and Exploited Children.
Sentencing is set for June 1. Both parties have agreed to recommend a sentence of 300 months in federal prison. Grissom commended the Ford County Sheriff’s Office, the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
Dodge City Man Pleads Guilty to Transporting Child PornographyRead the Press Release
WICHITA, KAN. - A Dodge City man pleaded guilty Monday to transporting child pornography across state lines, U.S. Attorney Barry Grissom said.
Joel Edward McClure, 36, Dodge City, Kan., pleaded guilty to one count of transportation of child pornography. In his plea, he admitted that in May and August 2015 he used his laptop computer to download and share child pornography with other users via a file sharing network. Investigators followed an electronic trail to McClure’s home in Dodge City, Kan., where they served a search warrant. They learned McClure had left Dodge City with his laptop and gone to Denver. Investigators found McClure with the laptop containing the child pornography.
Sentencing is set for June 1. Both parties have agreed to recommend a sentence of 77 months in federal prison. Grissom commended the Kansas Internet Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
District Man Sentenced to Nine Years in Prison for Attacking 65-Year-Old Homeless WomanRead the Press Release
WASHINGTON – Benjamin Smalls Allen III, 52, of Washington, D.C., was sentenced today to nine years in prison on charges stemming from a brutal assault last year of a homeless 65-year-old woman with a baseball bat, U.S. Attorney Channing D. Phillips announced.
Allen was found guilty by a jury in January 2016, following a trial in the Superior Court of the District of Columbia, of one count of assault with a dangerous weapon (baseball bat) of a senior citizen and one count of committing the offense while he was on release in two other pending cases. The Honorable Anita Josey-Herring sentenced him to a total of 16 years in prison, but suspended seven years of that time on the condition that he later successfully complete a period of supervised probation. At sentencing, she described Allen as “a very dangerous man.”
According to the government’s evidence, on Aug. 28, 2015, at approximately 9:15 p.m., the victim was seated in front of the tarp tent that she calls home in the area of Miriam’s Kitchen, located in the 700 block of 24th Street NW. The victim was putting medication on the lower part of her stomach when Allen seated himself in front of her and started staring at her.
Wanting some privacy, she asked the defendant to move down the road. Allen refused and began verbally harassing her. She then called 911, stating that a man was threatening her. While she was still on the phone with the 911 dispatcher, the defendant announced himself by name in the background, twice stating, “Tell them my name is Benjamin Smalls Allen III.” When she completed the 911 call, Allen asked her if she had called the police and she replied that she had. At this time, Allen removed a metal baseball bat from his bag and struck the victim repeatedly with it, using overhead swings.
The woman put her hands over her head to protect herself as Allen continued to strike her in the hand, elbow and knee. An eyewitness, also homeless, saw a portion of this assault. The victim sought medical treatment a few days later and was diagnosed with a closed non-displaced fracture on her right hand. She later identified Allen as the person who assaulted her.
At sentencing, the government noted that Allen has prior convictions for assault with intent to kill, criminal sexual conduct in the third-degree, burglary and grand larceny.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Crystal Waddy; Victim/Witness Coordinator Tonya Jones; Victim/Witness Advocate Diana Lim, and Assistant U.S. Attorneys Allessandra Stewart and Melissa Jackson, who investigated and prosecuted the case.
Discharged Air Force Serviceman Sentenced for Theft on Robins Air Force BaseRead the Press Release
Simon Watson, age 37, of Warner Robins, Georgia, was sentenced on March 10, 2016, in Macon, Georgia, by the Hon. Judge Leslie J. Abrams to serve a total of 51 months imprisonment for Theft of Public Funds, Aggravated Identity Theft, and Failure to Appear for Sentencing. Mr. Watson is also required to pay $3,088.30 in restitution to the Army and Air Force Exchange Service.
Mr. Watson entered a guilty plea to Theft of Public Funds and Aggravated Identity Theft on June 9, 2015. From February 11, 2014, through March 2, 2014, Mr. Watson, a discharged Air Force serviceman, cashed and attempted to cash eleven forged checks at the Army and Air Force Exchange Service (“AAFES”) located at Robins Air Force Base. The checks cashed by Mr. Watson were from two business accounts he had incorporated, both of which were later dissolved. The bank accounts for both businesses had also been closed. Mr. Watson stole three Common Access Cards (“CAC”) from the gym at Robins Air Force Base, which he used as identification to cash the fraudulent checks. Mr. Watson would print the name from the stolen CAC on the checks from his dissolved businesses and bring the checks, along with the stolen CAC, to the AAFES to cash. Mr. Watson successfully cashed $3,088.30 in checks at the AAFES. However, investigators located additional pre-printed checks in his vehicle. The parties agreed that the intended loss amount was $10,000 - $30,000.
Mr. Watson was scheduled to appear for sentencing on October 8, 2015 on the Theft of Public Funds and Aggravated Identity Theft charges. He was aware of this scheduled court appearance but did not appear as required. Mr. Watson was subsequently charged with Failure to Appear for Sentencing, and entered a plea of guilty to that charge on December 4, 2015.
Acting United States Attorney G.F. “Pete” Peterman stated; “Not only did Mr. Watson steal money that did not belong to him but he also betrayed the trust of his fellow servicemen by stealing their identities to further his criminal enterprise. The agents did an outstanding job which resulted in this significant sentence of imprisonment.”
The case was investigated by the United States Air Force Office of Special Investigations. Assistant United States Attorney Beth Howard 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.