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Tuesday 1 March 2016
McHenry Man Indicted on Child Pornography ChargesRead the Press Release
ROCKFORD — A McHenry, Ill. man was indicted today by a federal grand jury in Rockford on child pornography charges.
MICHAEL L. CHAPARRO, 27, was charged with one count of transporting child pornography via the internet, and two counts of accessing child pornography that had crossed state lines, including an image of a prepubescent minor and a minor under 12 years of age, with intent to view the child pornography.
Transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, and accessing child pornography carries a maximum of 10 years in prison, and up to 20 years in prison for an offense involving a minor under 12 years of age. Each count carries a $250,000 maximum fine. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Chaparro will appear for arraignment on March 3, 2016, at 11:00 a.m. in Federal Court in Rockford, before U.S. Magistrate Iain D. Johnston.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Michael Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The McHenry County Sheriff’s Department and McHenry County State’s Attorney’s Office assisted in the investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Indictment
Martinez Resident Pleads Guilty in ID Theft Tax Fraud ConspiracyRead the Press Release
OAKLAND – Lynsey Hartsinck pleaded guilty to conspiracy to file false claims and aggravated identity theft announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
According to the plea agreement filed late yesterday, in 2013 and 2014, Hartsinck, 30, of Martinez, Calif., devised a scheme to defraud the United States by filing false tax returns and then claiming the fraudulently obtained tax refund payments. As part of the scheme, Hartsinck conspired with a codefendant to obtain the names and Social Security numbers of at least twelve individuals, most of whom resided in Alameda and Contra Costa Counties. Hartsinck then used the information to prepare and electronically file false tax returns in the names of the individuals without their knowledge or consent.
Hartsinck obtained the tax returns using several methods. For example, on some of the fraudulently-obtained tax returns, Hartsinck listed a home in Martinez she was renting at the time. Hartsinck also opened an account with a UPS store in San Ramon using a false California driver’s license. The license had Hartsinck’s name and another individual’s picture. Hartsinck used the UPS account to rent a postal deposit box and then used the postal box as the address on some of the false tax returns. Hartsinck’s scheme claimed federal tax refunds amounting to at least $198,249. On many of the fraudulent returns that Hartsinck prepared and filed, she directed the IRS to deposit the fraudulent refunds onto prepaid debit card accounts that she controlled.
A federal grand jury indicted Hartsinck on June 16, 2015, with conspiracy to file false claims, thirteen counts of wire fraud, three counts of identity theft, and one count of possession of stolen mail. Pursuant to the plea agreement, Hartsinck pleaded guilty to conspiracy to file false claims, in violation of 18 U.S.C. § 286, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A.
The maximum statutory penalty for conspiracy to file false claims is ten years in prison and a fine of $250,000. The maximum sentence for aggravated identity theft is two years in prison, to serve consecutively to the underlying felony, and a $250,000 fine. However, any sentence following this conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Leader of Robbery Crew Exiled to 15 Years in Prison for Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Ted Duckett, age 31, of Landover, Maryland, today to 15 years in prison, followed by five years of supervised release, for: conspiracy to commit a commercial robbery; conspiracy to possess with the intent to distribute five kilograms or more of cocaine; conspiracy to possess a firearm in furtherance of a drug trafficking crime and in relation to a crime of violence; possession of a firearm in furtherance of a drug trafficking crime and in relation to a crime of violence; and possession of a firearm by a previously convicted felon.
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 (ATF); and Chief Hank Stawinski of the Prince George’s County Police Department.
Duckett admitted that between September 2013 and October 29, 2013, he conspired with Donnell Williamson and others to rob certain drug dealers operating in Maryland, and conspired to possess with the intent to distribute five kilograms or more of cocaine.
On October 10, 2013, Duckett met an ATF undercover agent (UC) posing as a disgruntled drug courier to discuss robbing a drug stash house. During this meeting, the UC explained how he would be transporting 2 to 3 kilograms of cocaine from a narcotics “stash house,” which would contain approximately 12 to 15 kilograms of cocaine. The UC further explained that he planned to rob the cocaine stash house, which was protected by armed guards, and would split the stolen cocaine (12 to 15 kilograms) with whoever helped him commit the robbery. Duckett agreed to commit the robbery and discussed how he and his crew planned to execute the robbery and obtain the cocaine. Duckett assured the UC that he had the equipment necessary to rob a stash house protected by armed guards. Duckett also told the UC that he would bring his robbery crew to future meetings with the UC. While Duckett was meeting with the UC, Williamson was waiting for Duckett in a car parked nearby.
On October 11 and October 23, 2013, Duckett and members of his crew met the UC at locations in Maryland. During these meetings, Duckett assured the UC that his crew knew how to commit these types of robberies and that if the UC had no connection to the armed guards protecting the stash house, the robbery could be done with force. During the meeting on October 23, 2013, Duckett confirmed the particulars of the robbery and that he and his crew were prepared to do the robbery. All of the meetings with the UC were audio and video recorded.
On October 29, 2013, the UC and Duckett spoke on the telephone and Duckett confirmed that they were ready to commit the robbery. Duckett and Williamson drove together and met the UC in Laurel, Maryland. The UC told Duckett that the rental car which they were going to use to commit the robbery was at a nearby location. The UC asked Duckett if they wanted to put their “straps,” which is code for firearms, in the UC’s vehicle before driving to the rental car location. Williamson removed a duffel bag from his vehicle, and placed it in the trunk of the UC’s vehicle. Duckett and Williamson then followed the UC in their own vehicle to the location where the conspirators believed they would pick up the rental car and receive the location of the cocaine stash house. Shortly after Duckett and Williamson arrived at the location, the law enforcement arrest team placed them under arrest.
A search of the duffel bag that Williamson had placed in the UC’s vehicle revealed three firearms and ammunition and clear plastic gloves. From the conspirators and their vehicle, officers recovered black skull caps, a black balaclava, and a black ski mask.
Donnell Williamson, a/k/a “Anthony Thomas,” age 25, of Landover, Maryland, previously pleaded guilty and was sentenced to 198 months in prison for conspiracy to possess with the intent to distribute five kilograms or more of cocaine, and for possession of a firearm in furtherance of a drug trafficking crime and in relation to a crime of violence.
Duckett and Williamson have been detained since their arrest.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leah J. Bressack and Thomas M. Sullivan, who prosecuted the case.
Leader of Global Cybercrime Campaigns Pleads Guilty to Computer Intrusion and Access Device Fraud ConspiraciesRead the Press Release
Earlier today, Ercan Findikoglu, a Turkish citizen also known by the online nicknames “Segate,” “Predator,” and “Oreon,” pleaded guilty to computer intrusion conspiracy, access device fraud conspiracy, and effecting transactions with unauthorized access devices for his leadership role in organizing and carrying out three cyberattacks between 2011 and 2013 that inflicted more than $55 million in losses in a matter of hours on the global financial system. Today’s guilty plea took place before United States District Court Judge Kiyo A. Matsumoto. At sentencing Findikoglu faces 57.5 years of imprisonment.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and David E. Beach, Special Agent in Charge, United States Secret Service, New York Field Office.
“By hacking into the computer networks of global financial institutions, the defendant and his co-conspirators were able to wreak havoc with the worldwide financial system by simultaneously withdrawing tens of millions of dollars. Today’s guilty plea by a leader of these massive cyberattacks demonstrates this office’s commitment to pursue those who use the perceived safety and anonymity of their computers to steal from innocent victims,” stated United States Attorney Capers. Mr. Capers praised the extraordinary efforts of the Secret Service in investigating these complex network intrusions.
“The Secret Service is pleased to have participated in this criminal investigation. This case demonstrates by constricting this criminal enterprise, there is no such thing as anonymity in the cyber world. The Secret Service’s New York Electronic Crimes Task Force continues to seek new and innovative ways to combat emerging cyber threats. Our success in this case and other similar investigations is a result of our close work with our network of international law enforcement partners,” said Secret Service Special Agent in Charge Beach.
Findikoglu’s organization used sophisticated intrusion techniques to hack into the systems of credit and debit card processing companies, stole data for prepaid debit cards, and eliminated withdrawal limits for those debit cards. During these cyber-attacks, Findikoglu and other co-conspirators manipulated network administrator privileges at the victim card processing companies and stole the personal identification numbers (PINs) associated with the compromised debit cards. Findikoglu and his co-conspirators then disseminated the stolen card data worldwide to the leaders of cashing crews and directed that their teams use the information to make fraudulent ATM withdrawals on a massive scale across the globe. As a result of the effective elimination of withdrawal limits, these cyber-attacks were known as “unlimited operations.”
In one operation on February 27 and 28, 2011, Findikoglu’s cashing crews withdrew approximately $10 million through approximately 15,000 fraudulent ATM withdrawals in at least 18 countries. In a second operation on December 22, 2012, Findikoglu’s cashing crews withdrew approximately $5 million through more than 4,500 ATM in approximately 20 countries. In a third operation on February 19 and 20, 2013, Findikoglu’s cashing crews in 24 countries executed approximately 36,000 transactions and withdrew approximately $40 million from ATMs. During this third operation, in New York City alone, the crews withdrew approximately $2.4 million in nearly 3,000 ATM withdrawals over the course of less than 11 hours.
Findikoglu was paid a significant portion of the illegal proceeds from these unlimited operations.
Today’s guilty plea is the latest in a string of convictions of dozens of other members of the cybercrime organization, including members of a New York City cell charged in May 2013 in connection with their roles in two of the attacks. See United States v. Collado, et al., 13 CR 259 (KAM).
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Hilary Jager, Douglas M. Pravda, Richard M. Tucker, and Saritha Komatireddy are in charge of the prosecution. Assistant United States Attorney Brian Morris of the Office’s Civil Division is responsible for the forfeiture of assets.
The Defendant:
ERCAN FINDIKOGLU
Aliases: Segate, Predator, Oreon
Age: 34
Nationality: TurkishE.D.N.Y. Docket No. 13-CR-440 (KAM)
Katy Couple Indicted for Enslaving ServantRead the Press Release
HOUSTON – A federal grand jury has returned a five-count indictment against the couple who allegedly enslaved a Nigerian national for more than two years in their Katy home, announced U.S. Attorney Kenneth Magidson.
Chudy and Sandra Nsobundu, 56 and 50, respectively, are charged with forced labor, withholding documents, visa fraud, conspiracy to harbor and harboring an illegal alien and. They were originally charged by criminal complaint Feb. 4, 2016, and arrested four days later. The indictment was returned today and they are expected to make their next appearance in federal court in the near future.
According to the affidavit in support of the criminal complaint, the 38-year-old victim was subjected to physical and verbal abuse while employed by the Katy couple and regularly referred to as “the idiot.” The victim allegedly worked every day from 5:30 a.m. until 1:00 a.m. and was responsible for cleaning the house, making meals and taking care of five children. The criminal complaint alleges she was told she could not watch television or even sit down during her work hours. She was also allegedly told to sleep on the floor and could not use warm water to bathe or wash her hair. The affidavit also claims that she was not allowed to eat fresh food and was only permitted the leftovers from the previous prepared meals. Further, if the victim even wanted some milk for her tea, she would have to actually strain the milk out of the children’s cereal bowls, according to the allegations. In one instance of alleged abuse, the criminal complaint charges that Sandra Nsobundu drug the victim by her hair and hit her across her face because she did not like the socks the victim put on one of the children.
The victim did not have access to a phone and could not communicate with her family, according the charges. Her movements were mostly limited to the residence and allegedly only allowed out for short walks with the youngest children around her block. The charges outlined in the complaint indicate the victim also did not have access to her passport and other travel documents.
The defendants had previously agreed to pay the woman 20,000 Nigerian nairas - $100 U.S. dollars per month, according to the charges. The Nsobundus allegedly never paid the victim for any of her work here in the U.S.
The victim was rescued Oct. 10, 2015, after more than two years with the Nsobundus in the U.S., following a tip to the National Human Trafficking Resource Center.
The indictment also includes a notice of forfeiture of the Katy residence as property used in the facilitation of the alleged crimes.
If convicted of the conspiracy or forced labor, the defendants face up to 20 years in federal prison. For withholding documents, they face another five years, while the visa fraud and harboring illegal aliens carries a possible 10-year-sentence. All of the charges could also result in a $250,000 maximum fine.
The investigation leading to the filing of criminal charges was the result of an investigation conducted by members of the Human Trafficking Rescue Alliance in Houston, which includes Homeland Security Investigations, Fort Bend Sheriff’s Office and the Department of State - Diplomatic Security Service. Assistant U.S. Attorneys Julie N. Searle and Ruben R. Perez are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Irish Citizen Pleads Guilty to Misuse of Social Security NumberRead the Press Release
BOSTON – Francis J. Moloney, an Irish citizen living in Marlborough, pleaded guilty yesterday in U.S. District Court in Boston to one count of misuse of a social security number. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 16, 2016.
On March 20, 2013, Moloney fraudulently obtained a driver’s license using the identity and social security number of an Irish national and former permanent legal resident, after that person renounced his legal status in the United States and returned to Ireland.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
Investment Advisor Pleads Guilty to Stealing from Clients in Minnesota and WisconsinRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of LEVI DAVID LINDEMANN, 40, for stealing from investment advisory clients. LINDEMANN was indicted on December 22, 2015, for one count of mail fraud and one count of money laundering. He pleaded guilty today to the entire indictment against him before U.S. District Judge Donovan W. Frank in U.S. District Court in Saint Paul, Minn. A sentencing date has not yet been determined.
According to the defendant’s guilty plea, between 2009 and 2014, LINDEMANN owned and operated Gershwin Financial, Inc., an investment management company that did business under the name, Alternative Wealth Solutions (AWS). Through AWS, LINDEMANN provided financial planning and asset management services, and sold insurance annuities and investment products to clients in Minnesota and Wisconsin.
According to the defendant’s guilty plea, LINDEMANN used AWS to solicit investor funds from approximately 50 investor clients. LINDEMANN encouraged his clients to surrender to him their retirement accounts so that he could invest funds on their behalf. LINDEMANN induced clients to entrust him with their money by falsely representing that he would use the invested funds to buy secured notes or other legitimate investment vehicles. Instead of investing their money into legitimate investment vehicles, LINDEMANN used the invested funds to pay personal expenses, convert the investments to cash for his own use, purchase an Infiniti QX56 sport utility vehicle and to make Ponzi-type payments of promised returns to other investors.
According to his guilty plea, LINDEMANN took steps to conceal his fraudulent activity and lull investor-clients by creating counterfeit secured notes and providing them to investor-clients as proof of their investment.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau, Criminal Investigation Division of the IRS and the Federal Bureau of Investigation.
This case is being prosecuted by Assistant United States Attorney Joseph H. Thompson.
Defendant Information:
LEVI DAVID LINDEMANN, 40
Stillwater, Minn.
Convicted:
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Mail fraud, 1 count
- Money laundering, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Indictment: Wichita Man Committed Four Bank Robberies and Robbery at Jewelry StoreRead the Press Release
WICHITA, KAN. - A federal grand jury indicted a Wichita man Wednesday on charges of committing four bank robberies and a robbery at a jewelry store, U.S. Attorney Barry Grissom said.
Terence L. Thomas, 24, Wichita, Kan., is charged with four counts of bank robbery, one count of robbing a commercial business, one count of brandishing a firearm during a robbery and one count of unlawful possession of a firearm following a felony conviction.
The indictment alleges Thomas:
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Robbed the Fidelity Bank at 3525 E. Harry in Wichita on Nov. 3, 2015.
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Robbed the Fidelity Bank at 3101 S. Seneca on Nov. 3, 2015.
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Robbed the Fidelity Bank at 3525 E. Harry on Nov. 21, 2015.
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Robbed the Intrust Bank at 3433 E. Central on Nov. 3.
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Robbed Kim Chi Jewelry at 3038 N. Broadway on Dec. 1, 2015.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000 on each bank robbery count and the commercial robbery count; a penalty of not less than seven years (consecutive) and a fine up to $250,000 on the charge of brandishing a firearm during a robbery, and a maximum penalty of 10 years and a fine to $250,000 on other firearm charge. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
OTHER GRAND JURY INDICTMENTS
Paul Jeffrey Gladney, 26, Topeka, Kan., is charged with one count of carjacking. The crime is alleged to have occurred Jan. 31, 2016, in Topeka. The indictment alleges he threatened the driver of a 2008 Chevrolet Trailblazer and stole the vehicle.
If convicted, he faces a maximum penalty of 15 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Sarah J. Hopkins, 28, Newton, Kan. was charged with one count of knowingly transferring a firearm to a convicted felon. The crime is alleged to have occurred on July 30, 2015 in Harvey County, Kan.
Hopkins initially was charged in a criminal complaint filed Feb. 26 alleging she gave firearms to Cedric Ford, who she knew was prohibited from possessing firearms because he was a convicted felon. Ford had the guns when he was shot and killed by police last month after they were called to a shooting incident at Excel Industries in Hesston, Kan.
If convicted, Hopkins faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Hesston Police Department, the Harvey County Sheriff’s Department, the Newton Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation and the FBI investigated. Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney David Lind are prosecuting.
Andre S. Morgan, 52, Plano, Texas, is charged with one count of unlawful possession of a firearm by a user of a controlled substance, one count of unlawful possession of a stolen firearm, and one count of possession of marijuana. The crimes are alleged to have occurred April 4, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each of the first two counts and a maximum penalty of 1 year and a fine of not less than $1,000 on the marijuana count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Samir F. Elias, 60, Wichita, Kan., owner of GiGi’s Elite Massage in Wichita, is charged with one count of transporting an alien who is in the United States unlawfully, one count of harboring an alien who is in the United States unlawfully, one count of harboring an alien for the purpose for prostitution and two counts of money laundering.
Elias initially was charged in a criminal complaint filed Feb. 12. The indictment adds a count seeking the forfeiture of $15,115 seized from an account at Bank of America, $17,125 seized from an account at Credit Union of America, and a building located at 357 N. Hillside in Wichita.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on each of the first three counts, and a maximum penalty of 20 years and a fine up to $250,000 on each of the money laundering counts. The Wichita Police Department, Homeland Security Investigations (HSI) and the Kansas Department of Labor investigated. Assistant U.S. Attorney Jason Hart is prosecuting
Robby Alan Murphy, aka Bruce Reynolds, 35, Wichita, Kan., is charged in a superseding indictment with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred April 9, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Sedgwick County Sheriff’s Department investigated. Assistant U.S. Attorney David Lind is prosecuting.
Michael J. Madden, 32, Wichita, Kan., is charged with two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Aug. 28 and Sept. 9, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
Jason A. Farner, 32, Towanda, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Feb. 11, 2016.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Alan Metzger is prosecuting.
Timothy M. Pope, 39, Derby, Kan., is charged with one count of unlawful possession of a firearm in furtherance of drug trafficking, one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Jan. 9, 2016, in Wichita, Kan.
If convicted, he faces a penalty of not less than five years and a fine up to $250,000 on each of the first two counts and a maximum penalty of 10 years and a fine up to $250,000 on the remaining count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Houston Woman Heads to Prison for Stealing Labor Union AssetsRead the Press Release
HOUSTON - Cynthia Angulo, 55, has been ordered to prison following her conviction of theft from a labor union, announced U.S. Attorney Kenneth Magidson. Angulo pleaded guilty Aug. 27, 2015.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty plea, handed Angulo a 10-month sentence. She was further ordered to pay a $61,272.79 restitution. Angulo will also be required to serve a term of three years of supervised release following completion of the prison term. Also, as a result of the conviction, she will be prohibited from holding any union position of leadership for a period of 13 years.
Angulo served as the president of the Currency and Securities Handlers Association (CASHA) from August 2010 until December 2014.
Angulo admitted she embezzled $61,206.29 from CASHA from Nov. 1, 2010, through Dec. 12, 2014. She accomplished this theft by claiming false union expenses for herself, using the union debit card to make cash withdrawals to pay for personal expenses and withdrawing cash for her personal use from the union’s checking account. The theft of this money was done without the knowledge or approval of the executive board, or membership, of CASHA.
Angulo was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by the Department of Labor - Office of Labor-Management Standards. Assistant U.S. Attorney Glenn Cook is prosecuting the case.
Hazelton Man Indicted for Stealing Firearms from Local Sporting Goods StoreRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Hazelton man has been indicted by a federal grand jury in Scranton on conspiracy and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Stefan Rease, age 19, with stealing firearms from Bob’s Sporting Goods, a federally licensed firearms dealer in Hazleton, in December 2015.
The charges stem from a joint investigation between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Hazelton Police Department which alleges that the defendant and co-conspirators broke into the establishment and stole four firearms.
The investigation was conducted by the ATF, working in conjunction with the Hazelton Police Department. Prosecution is assigned to Assistant United States Attorney Evan Gotlob.
This case was brought as part of the Violent Crime Reduction Partnership (“VRCP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VRCP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for all charges under federal law is up to 25 years imprisonment, a term of supervised release following imprisonment, and $750,000 in fines. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Greenbrier County man denied bond in Federal firearms caseRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto announced that a Greenbrier County man charged with federal gun crimes was denied bond today. United States Magistrate Judge Dwayne L. Tinsley ordered that Ronald Ray McMillion, 64, of Renick, remain in custody following a hearing in federal court in Charleston.
McMillion was indicted by a federal grand jury in Beckley on February 23, 2016. The indictment alleges that McMillion possessed three firearms on April 21, 2014, and one firearm on April 25, 2014, at his residence in Renick, all while being prohibited from possessing firearms because he is a convicted felon and because he is an unlawful user of a controlled substance.
McMillion’s trial is scheduled for March 28, 2016, in Beckley before United States District Judge Irene C. Berger.
The United States Attorney’s Office advises that an indictment is merely an allegation of criminal behavior and not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
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Four Ohio men indicted in unrelated child pornography casesRead the Press Release
Four Ohio men were indicted in federal court on charges related to possession of child pornography, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Indicted in the unrelated cases are: Cole A. Wolak, 29, of East Canton; Gary M. Kasunic, 49, of Willowick; Bryan K. Feguson, 56, of Lakewood, and Steven A. Ciccone, 65, of Kent.
Wolak was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct. From on or about December 1, 2015, through on or about January 18, 2016, in the Northern District of Ohio, Eastern Division, and elsewhere, Wolak knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. On February 3, 2016, Wolak possessed two computers, a USB storage device, a secure digital card, an Ipod and a cell phone, each that contained child pornography, according to the indictment.
Kasunic was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct. From on or about August 16, 2012, through on or about January 18, 2013, in the Northern District of Ohio, Eastern Division, and elsewhere, Kasunic knowingly received and distributed, using any means and facility of interstate and foreign commerce, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct, and which files had been shipped and transported in and affecting interstate and foreign commerce. On January 18, 2013, Kasunic possessed a computer that contained child pornography, according to the indictment.
Ferguson was charged with possessing visual depictions of minors engaged in sexually explicit conduct. On or about December 7, 2015, in the Northern District of Ohio, Eastern Division, Ferguson knowingly possessed a micro secure digital card and a USB storage device, both that contained child pornography, according to the indictment.
Ciccone was charged with possessing child pornography. On or about February 4, 2016, images of child pornography were found on a DVD in Steven Ciccone’s possession, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
These cases are being prosecuted by Assistant United States Attorneys Michael A. Sullivan and Carole M. Skutnik following investigations by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four Arrested During Alien Smuggling AttemptRead the Press Release
The U.S. Attorney for the District of Vermont announced that U.S. Border Patrol Agents arrested four persons during an alien smuggling episode near the Vermont-Canadian international border on Saturday night, February 27, 2016.
A Criminal Complaint filed in U.S. District Court in Burlington alleges that, at approximately 8:20 PM on February 27, 2016, the Tactical Communications Center of the United States Border Patrol’s Swanton sector received a report of possible cross-border illegal activity near Derby, VT. Border Patrol agents assigned to the Newport station responded to the area and watched a man lead two other persons south across the international border in a remote rural area. South of the border, the three persons were picked-up by a 2008 Infinity automobile with New Jersey license plates. As the car proceeded south on Interstate 91, Border Patrol agents then performed a traffic stop and arrested the four occupants.
The occupants of the Infinity were all natives of the Ukraine and Georgia. The two persons in the front seat had obtained U.S. Citizenship and are suspected of smuggling into the country the two passengers in the back seat, neither of whom had legal authority to be in the United States. The front seat passenger had guided the two backseat passengers over the border. The driver and owner of the car, Tamar Toradze, had driven north to the border area with her front seat passenger to pick-up the two in the back seat.
The Criminal Complaint charged the driver, Tamar Toradze, 27, and her front seat passenger, Levan Arutinov, 25, with alien smuggling and conspiracy. If convicted, they each face a maximum of ten years imprisonment and a $250,000 fine. Because Arutinov is a lawfully admitted permanent resident of the United States, he also faces removal from the United States and a bar to reentry.
One of the illegal aliens, Mykhaylo Andrushko, a 48 year old citizen of the Ukraine, had been previously removed from the United States. He allegedly produced a Hungarian passport with a false name when confronted by Border Patrol agents. A Criminal Complaint charges him with reentry after removal. He faces a maximum of two years imprisonment and a $250,000 fine. He also faces removal from the United States and bar to reentry. The other illegal alien, Nino Lempanintze, a 33 year-old native and resident of Georgia with Greek citizenship, is detained as a material witness.
All four persons had court appearances before U.S. Magistrate Judge John M. Conroy on February 29 and March 1, 2016.
The United States Attorney emphasizes that these charges are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.
“This is a great example of some of the training and unique skills our agents use to perform their border security mission,” said Patrol Agent in Charge Fernando Beltran. “I commend these agents for their work securing our border with Canada.” The Swanton Sector is responsible for securing the land border between ports of entry in Vermont, New Hampshire and northeastern New York. The assistance of citizens is invaluable to their border security mission and they welcome community members to help them keep our nation’s borders safe and report suspicious activity at 1-800-689-3362.
For more on Customs and Border Protection’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
United States Attorney Eric S. Miller commended the investigative efforts of the United States Border Patrol.
The United States is represented in this matter by Assistant U.S. Attorney William Darrow. Taradze is represented by the Office of the Federal Public Defender for the District of Vermont. Arutinov is represented by attorney Mark Oettinger. Andrushko is represented by attorney “Bud” Allen. Lempanintze is represented by attorney Robert Behrens.
Former Stockbroker Sentenced for Fraud and Tax EvasionRead the Press Release
BOSTON – A previously convicted former stockbroker was sentenced yesterday in U.S. District Court in Springfield in connection with an investment scheme which defrauded victims of more than $600,000.
Jeffrey Eldred Gallagher, 73, of Bradenton Beach, Fla., was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years in prison. In December 2015, Gallagher pleaded guilty to one count of wire fraud, three counts of engaging in a monetary transaction and two counts of tax evasion. In 1989, Gallagher was convicted of one count of mail fraud and three counts of interstate transportation of stolen property in connection with his illegal and unauthorized options trading while he was a stockbroker.
From at least 2008 through early 2012, Gallagher persuaded friends and associates to pay him money to invest on their behalf, and made promises that the investments would yield guaranteed returns of 10 to 15 percent. Gallagher then commingled investor funds with his own personal funds, and paid some investors with monies given to him by other investors. When investors asked Gallagher for the return of their investments, he provided numerous false explanations concerning his attempts to repay them, such as by falsely claiming that his mother, who is still alive, had died on several different dates. In a similar effort to stall for time, Gallagher wrote investors more than 40 bad checks totaling $1,783,375. In sum, 23 investors lost a total of approximately $617,475.
As part of the scheme, in 2009 and 2010, Gallagher used approximately $249,703 of investor monies for his personal benefit, but did not report any of this income on his federal income tax returns for those years.
During the hearing, Judge Mastroianni described Gallagher’s crimes as “very serious offenses” and stated that they involved a “betrayal of friendships and a breach of trust among friends.”
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Former Officers of New Mexico-Based Defense Contractor Plead Guilty to Criminal Charges Relating to Iraq Rebuilding EffortsRead the Press Release
ALBUQUERQUE – Two former officers of a New Mexico-based defense contracting firm pleaded guilty on Feb. 26, 2016, to criminal charges arising out of their involvement in a scheme to solicit and accept kickbacks in return for favorable treatment in awarding subcontracts relating to wartime rebuilding projects in Iraq. Neal Kasper, 66, of Montana, and his wife Tiffany White, 49, of Cibolo, Tex., entered their guilty pleas in federal court in Albuquerque, N.M. Kasper pleaded guilty to wire fraud and conspiracy to solicit and accept kickbacks charges, and White pleaded guilty to wire fraud and tax charges.
The guilty pleas were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, Special Agent in Charge Ismael Nevarez, Jr., of the Phoenix Field Office of IRS Criminal Investigation, and Special Agent in Charge Janice M. Flores of the Defense Criminal Investigative Service Southwest Field Office in Arlington, Tex.
Kasper and White, together with codefendant Bradley G. Christiansen, 50, of Albuquerque, N.M., all former officers of a New Mexico-based defense contractor, and four foreign nationals, were charged with conspiring to defraud the United States of more than $5 million through wire fraud in an indictment filed in Feb. 2012. The indictment also charged the seven defendants with wire fraud offenses and with offering and receiving illegal kickbacks. In addition, Kasper, White, Christiansen and Sara Christiansen were charged with money laundering offenses, and Christiansen with tax evasion offenses. The indictment was superseded in Aug. 2013, after Christiansen entered a guilty plea and the charges against his wife, Sara Christiansen, were dismissed. The charges against one of the foreign nationals were also dismissed.“While our brave men and women in uniform in the Iraq War made sacrifices for their country, Neal Kasper and Tiffany White saw it as an opportunity to enrich themselves," said U.S. Attorney Damon P. Martinez. “The defendants corrupted the process by which the United States sought to help Iraqis recover from decades of dictatorship and devastation of warfare. The defendants solicited and received bribes from foreign businessmen as the price of participation in Iraq reconstruction. Our community can take comfort in knowing that there is a dedicated team of agents, investigators and prosecutors who will strive to make sure that those responsible for this kind of corruption are prosecuted and held accountable for their actions. I thank the Pueblo of Laguna for its cooperation during the investigation of this case.”
“Many brave Americans and Iraqi citizens made incredible sacrifices in this conflict. Iraq deserves the best help America has to offer, not criminals looking to make a quick buck. These guilty pleas send a clear message that unscrupulous business people who take advantage of an ally trying to get back on its feet will face justice,” said FBI Special Agent in Charge Terry Wade. “I congratulate the FBI Special Agents and support staff, U.S. Attorney's Office, IRS Criminal Investigation, Defense Criminal Investigative Service, Defense Contract Audit Agency and Laguna Pueblo for a job well done.”
According to court filings, during the Iraqi war and continuing through 2011, the United States funded numerous construction and rebuilding projects in Iraq and Jordan, including contracts administered by the United States Air Force Center for Engineering and the Environment (AFCEE). Laguna Construction Company, Inc. (LCC), a minority disadvantaged business wholly owned by the Pueblo of Laguna, successfully bid and was awarded multiple contracts, including AFCEE contracts, for wartime reconstruction and rebuilding projects in Iraq and Jordan. From 2003 through 2009, LCC administered more than $350 million of Iraqi and Jordanian reconstruction contracts.
LCC was required to award subcontracts to foreign companies by generating requests for proposals and soliciting independent subcontract bids from qualified foreign companies. All subcontract bids were required to be independently prepared by the subcontractors without collusion from LCC, and LCC was required objectively to evaluate the bids and to award the subcontracts to the lowest qualified bidders. LCC and its personnel were prohibited from accepting anything of value, whether gifts, bribes or kickbacks, from the bidders. According to the superseding indictment, from Jan. 2004 through Feb. 2009, Kasper, Christiansen and White, who were officers and employees of LCC but not members of the Pueblo of Laguna, conspired with the four foreign nationals to defraud the United States of more than $5 million. They also conspired to launder the illegal kickbacks they received from the foreign nationals to conceal the unlawful nature of the proceeds.
Court filings reflect that AFCEE awarded two prime contracts to LCC relating to United States’ reconstruction efforts in Iraq, which required LCC to serve as a prime contractor and provide construction management services in response to task orders from AFCEE. From 2003 through 2009, LCC received and administered approximately $397 million through the two contracts which contemplated that LCC would award work to subcontractors to complete reconstruction projects. Christiansen was hired as a LCC division manager in 2002 by Kasper, who was then president of LCC, and became LCC’s operations manager and vice president of operations in 2005. In that capacity, Christiansen oversaw all LCC Iraq reconstruction projects under the supervision of Kasper, who was in charge of all of LCC’s construction operations, including those involving wartime reconstruction efforts in Iraq and Jordan.
Beginning in Dec. 2004, Kasper, Christiansen, White and others sought and obtained payments for task orders under the prime contracts under false pretenses by repeatedly certifying that all subcontracts were awarded pursuant to competitive bidding procedures when in fact they were accepting kickbacks from subcontractors in return for awarding subcontracts to them.From Dec. 2004 through Feb. 2009, Kasper, Christiansen, White and others conspired with the four foreign nationals to defraud the United States by soliciting and accepting kickbacks from the foreign nationals in return for awarding them subcontracts.Kasper and Christiansen accepted numerous kickbacks from the foreign nationals.
During his change of plea hearing on Friday, Kasper pled guilty to one count of wire fraud and one count of conspiracy to provide, solicit and accept kickbacks. In his plea agreement, Kasper admitted that from Dec. 2005 through Feb. 2009, while he was President of LCC, he conspired with others to accept improper payments from subcontractors in connection with subcontracts let by LCC. Kasper also accepting wire transfers totaling $204,356 in improper payments from subcontractors between April 2007 and Nov. 2008.
White pleaded guilty to a wire fraud charge in the superseding indictment and a felony information charging her with one count of filing a false tax return. In her plea agreement, White admitted that while she was LCC’s Compliance Manager for federal contracts, she submitted subcontract bids to Kasper and Christiansen without proper compliance review and with knowledge that the bids would be altered so that particular subcontractors would be selected. The selected subcontractors then paid kickbacks to Kasper, Christiansen and White. White’s plea agreement provides details of how the kickback scheme operated and how Kasper, Christiansen and she used illegal kickbacks to pay for improvements to their homes and for other personal purposes. White also admitted failing to declare $93,912 she received in illegal kickbacks as income when she filed her 2008 federal tax return.
At sentencing, Kasper faces a statutory maximum penalty of 20 years in prison on the wire fraud charge and five years on the kickback conspiracy charge. Under the terms of his plea agreement, Kasper is required to forfeit to the United States $431,911, which represents part of the net profit he derived from the crimes charged in the superseding indictment. Of this amount, Kasper is wholly responsible for $303,084 and jointly responsible with White for $136,827.
Under the terms of her plea agreement, White will be sentenced to not more than six months in prison followed by not more than three years of supervised release. White also will have to pay restitution in the amount of $33,997 to the IRS and will be required to forfeit jointly with Kasper $136,827 to the United States.
Christiansen pled guilty in July 2014, to conspiracy to provide, solicit and accept kickbacks and to solicitation and receipt of kickbacks and tax evasion, respectively. In his plea agreement, Christiansen admitted receiving his first kickback in Dec. 2004, through Kasper, who had received a $20,000 kickback and shared half with Christiansen. According to Christiansen, from Jan. 2005 through Feb. 2009, Kasper and he received numerous kickbacks from the foreign nationals, which they split 50/50. In addition to approximately $360,000 in monetary kickbacks, Christiansen also admitting to receiving a 2006 Porsche Cayman valued at $65,163, a Ford GT350 Shelby valued at $290,000, several watches valued at an aggregate of $103,800 as kickbacks from the foreign nationals. Christiansen also admitted that he willfully failed to declare the kickback payments and assets he received from the foreign nationals as personal income when filing his federal income tax returns in 2006, 2007 and 2008. As a result, Christiansen evaded approximately $389,413 in federal taxes.
At sentencing, Christiansen faces a maximum penalty of ten years in prison.The plea agreement also requires Christiansen to pay full restitution to the victims of his criminal conduct, including $389,413 in restitution to the IRS.The plea agreement also requires that Christiansen agree to the imposition of a money judgment against him in the amount of $1,687,310.84 and that he forfeit all assets derived from his criminal conduct, including his residence which was substantially remodeled with kickbacks from the foreign nationals.As required by Christiansen’s plea agreement, the United States filed a motion to dismiss all charges against Sara Christiansen and the charges against her have been dismissed.
The three foreign nationals who remain under indictment, Ramzi Snobar and Yacoub Snobar, citizens of Jordan, and Mustapha Ahmad, a duel citizen of Lebanon and Great Britain, have yet to be arrested and are considered fugitives. The charges in the indictment against these three defendants are merely allegations and the defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
“The defendants have taken responsibility for defrauding the citizens of the U.S. and the people of Iraq. Their sophisticated fraud scheme diverted U.S. taxpayer funds that were meant for wartime reconstruction and rebuilding projects in Iraq,” said Ismael Nevarez Jr., Special Agent in Charge of IRS Criminal Investigation.
“The Defense Criminal Investigative Service will continue to diligently work to protect the integrity of our public contracting system by pursuing those who seek to violate the system through corruption, especially where contractors have been engaged to supply critical support for the work of stabilizing Iraq and Afghanistan,” said Special Agent in Charge Janice M. Flores of the DCIS Southwest Field Office in Arlington, Tex. “This investigation should serve as a warning for those intent on defrauding the U.S. military and the American public that DCIS, and its law enforcement partners remain vigilant and committed to bringing individuals who subvert the acquisition system to justice.”
This case is being prosecuted by Assistant U.S. Attorneys Jonathon M. Gerson and Shana B. Long, and was investigated by the Albuquerque Division of the FBI, the Albuquerque office of IRS Criminal Investigation, the Southwest Field Office of the Defense Criminal Investigative Service and the Defense Contract Audit Agency. Assistant U.S. Attorney Stephen R. Kotz is handling the related forfeiture proceedings.
Former Longwood Police Chief Sentenced to Four Years in Federal PrisonRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell has sentenced Thomas S. Jackson to four years in federal prison for conspiracy and bribery of an agent of a local government receiving federal funds. A federal jury found him guilty on October 27, 2015.
According to the evidence presented at trial, Jackson was the Chief of Police of the Longwood Police Department (LPD) from 1997 until his retirement on May 28, 2010. Between October 2007 and the date of his retirement, Samer Majzoub, a convicted felon, paid Jackson more than $30,000 in bribes. In return, Jackson appointed Majzoub as an officer with the LPD. Jackson gave Majzoub the supervisory titles of commander, lieutenant, and sergeant, and provided him with badges and credentials that represented Majzoub as an officer of LPD. Jackson also assisted Majzoub in possessing firearms and ammunition. As a previously convicted felon, Majzoub was prohibited from possessing firearms and ammunition under federal law.
Majzoub has been charged by indictment with one count of conspiracy and three counts of bribery of an agent of a local government receiving federal funds. He has not been arrested and is a fugitive.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Roger B. Handberg and James D. Mandolfo.
Former Hill Air Force Base Civilian Contract Employee Charged with Unlawful Exportation of F-16 Parts to IndonesiaRead the Press Release
SALT LAKE CITY – Scott A. Williams, age 51, of Huntsville, Utah, is charged with two counts of unlawful exportation of goods from the United States, false statement in a document, and conversion of property of the United States in an indictment unsealed last week in U.S. District Court in Salt Lake City. Williams is a former civilian contract employee at Hill Air Force Base where he worked with the Foreign Military Sales Program with specific responsibility for F-16 parts.
The indictment alleges Williams exported two F-16 Aircraft brake assemblies, knowing it was a violation of federal law to export them. The indictment alleges Williams prepared a document falsely authorizing two F-16 brake assemblies to be shipped to Indonesia in violation of federal law. The indictment further alleges Williams exported several documents, identified in the indictment as U.S. Air Force technical orders for F-16 aircraft. The final count of the indictment alleges Williams converted to his own use, and for the use of another, technical data of F-16 aircraft through the use of an external hard drive containing U.S. Air Force orders. The indictment alleges the items were in Williams’ care and possession by virtue of his employment as a program and financial manager at Hill Air Force Base.
“The U.S. Attorney’s Office represents the interests of the United States in the federal court, and we are committed to protecting the assets and technology of the U.S. Air Force and the Department of Defense,” U.S. Attorney John W. Huber said today.
"Air Force Office of Special Investigations (AFOSI) takes allegations involving the illegal technical transfer of Department of Defense aircraft technologies very seriously. Prevention, detection, and/or prosecution of such transfers are essential to ensuring our ability to maintain air supremacy against our adversaries. This investigation was the result of hard work and contributions made by the personnel of the U.S. Department of Homeland Security’s Homeland Security Investigations, IRS Criminal Investigation, the Air Force Audit Agency, the Defense Contract Audit Agency, and the Defense Criminal Investigative Service," said OSI Special Agent Dave Bolton, OSI Detachment 113.
"The primary goal of Homeland Security Investigations (HSI) Counter Proliferation Investigations is detecting and disrupting illegal exports before they, or the actors behind them, damage U.S. national security interests," said David A. Thompson, Special Agent in Charge of HSI Denver. “HSI is committed to aggressively investigating these violations to prevent unauthorized countries from procuring anything that could harm the national security interests of the United States and its allies.”
Williams, who was arrested on the charges in the indictment on Feb. 19, 2016, was arraigned Feb. 23 in federal court in U.S. Magistrate Judge Dustin Pead’s courtroom. He entered a plea of not guilty to the four charges. Trial is set for May 2, 2016, before U.S. District Court Judge Jill N. Parrish. Magistrate Pead released Williams on strict conditions, including a restriction that he avoid contact with individuals considered either alleged victims, potential witnesses and or co-defendants in the case. He also must undergo a mental health evaluation and complete any recommended treatment, as directed by his pretrial release officer.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The potential maximum penalty for each count of unlawful exportation of goods from the United States is 10 years in prison. False statement in a document carries a potential penalty of up to five years. Conversion of government property has a potential penalty of 10 years.
Former Fugitive Pleads Guilty in Florida Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
A Cuban national who fled the United States and had been wanted since 2013 on federal criminal charges relating to a multimillion-dollar health care fraud scheme in the greater Tampa Bay, Florida, area pleaded guilty today for his role in the scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney A. Lee Bentley III of the Middle District of Florida; Special Agent in Charge Paul Wysopal of the FBI’s Tampa, Florida, Field Office, Special Agent in Charge George Piro of the FBI’s Miami Field Office; and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
Ubert Guillermo Rodriguez, aka Ubert Guillermo Rodriguez Sigler, 47, pleaded guilty in federal court in Tampa today to conspiracy to commit health care fraud. Rodriguez was arrested on the health care fraud charges when he arrived at Miami International Airport on a flight from Cuba in October 2015.
According to documents filed in the case, Rodriguez was the president and owner of G.R. Services Equipment & Supplies Inc., a Largo, Florida, company that purported to provide durable medical equipment to Medicare beneficiaries. From May 2013 through July 2013, Rodriguez’s company submitted approximately $2,579,695 in false and fraudulent claims to Medicare seeking reimbursement for durable medical equipment, such as wound care supplies, that was not legitimately prescribed by doctors and was not provided to beneficiaries. For example, Rodriguez’s company sought reimbursement for thousands of dollars of negative pressure wound therapy electrical pumps and sterile collagen dressings purportedly provided in May and June 2013 to Medicare beneficiaries. Federal law enforcement agents previously executed a seizure warrant on Rodriguez’s company’s bank account, resulting in the seizure of approximately $243,339 in proceeds of the health care fraud scheme.
HHS-OIG and the FBI are investigating the case, which and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office of the Middle District of Florida. Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Former Fugitive Pleads Guilty in Florida Multimillion-Dollar Health Care Fraud SchemeRead the Press Release
Tampa, FL – A Cuban national who fled the United States and had been wanted since 2013 on federal criminal charges relating to a multimillion-dollar health care fraud scheme in the greater Tampa Bay area pleaded guilty today for his role in the scheme.
U.S. Attorney A. Lee Bentley III of the Middle District of Florida; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office, Special Agent in Charge George Piro of the FBI’s Miami Field Office; and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
Ubert Guillermo Rodriguez, aka Ubert Guillermo Rodriguez Sigler, 47, pleaded guilty in federal court in Tampa today to conspiracy to commit health care fraud. Rodriguez was arrested on the health care fraud charges when he arrived at Miami International Airport on a flight from Cuba in October 2015.
According to documents filed in the case, Rodriguez was the president and owner of G.R. Services Equipment & Supplies Inc., a Largo company that purported to provide durable medical equipment to Medicare beneficiaries. From May 2013 through July 2013, Rodriguez’s company submitted approximately $2,579,695 in false and fraudulent claims to Medicare seeking reimbursement for durable medical equipment, such as wound care supplies, that was not legitimately prescribed by doctors and was not provided to beneficiaries. For example, Rodriguez’s company sought reimbursement for thousands of dollars of negative pressure wound therapy electrical pumps and sterile collagen dressings purportedly provided in May and June 2013 to Medicare beneficiaries. Federal law enforcement agents previously executed a seizure warrant on Rodriguez’s company’s bank account, resulting in the seizure of approximately $243,339 in proceeds of the health care fraud scheme.
HHS-OIG and the FBI are investigating the case, which and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Middle District of Florida. Senior Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to www.stopmedicarefraud.gov.
Former Customs and Border Protection Officer Sentenced to Nearly 4 Years in Federal Prison in Bribery and Smuggling SchemeRead the Press Release
LOS ANGELES – A former supervisor with U.S. Customs and Border Protection (CBP) who conspired with his ex-wife to smuggle goods into the United States in exchange for bribes has been sentenced to serve 45 months in prison.
Sam Herbert Allen Jr., 54, of San Juan Capistrano (formerly of Diamond Bar), received the prison sentence late yesterday from United States District Judge Dean D. Pregerson, who also ordered the defendant to pay $781,632 in restitution to compensate the United States for duties that were not paid on the smuggled goods.
At yesterday’s sentencing hearing, Judge Pregerson said that society could not tolerate law enforcement “entrusted with border safety” who “sell their jobs.”
Allen pleaded guilty in February 2015 to conspiring to defraud the United States by deceitful and dishonest means.
“This defendant betrayed his sworn duty to uphold the law,” said United States Attorney Eileen M. Decker. “Defendant supervised the inspection of shipping containers entering the United States and thus played an important role in our border security. His greed led him to commit a serious offense that cost the United States hundreds of thousands of dollars and presented an unacceptable security risk to our community and to the nation.”
According to the plea agreement filed in the case, Allen was a supervisor that oversaw the examination and release of international cargo that arrived at “Foreign Trade Zones,” or FTZs, which are privately operated warehouses that perform customs functions under the supervision of CBP. FTZs are considered to be outside the United States, and if goods brought to an FTZ are bound for another country, those goods are not subject to duties and taxes that would be required if the items were entering the United States.
Allen and his ex-wife, Wei “Julia” Lai, agreed to smuggle shipments of clothing into the United States through an FTZ operated by Lai. In exchange for allowing shipments to go through by promising to alter a CBP database to falsely show that the clothing had been exported to Mexico, Lai paid Allen bribes of $2,000 per shipping container. Allen received approximately $100,000 in bribe payments from Lai over the course of several months in 2009 and 2010.
When law enforcement began investigating the shipments, Allen told Lai to lie to federal agents in an attempt to obstruct the investigation.
Lai previously pleaded guilty to conspiracy and money laundering, and she is scheduled to be sentenced by Judge Pregerson on March 31. Several other defendants charged in the case also pleaded guilty and received sentenced that ranged from nine to 15 months in federal prison.
The investigation into Allen was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Office of Professional Responsibility, ICE’s Homeland Security Investigations (HSI), and U.S. Customs and Border Protection’s Office of Professional Responsibility.
Former CEO Indicted for Masterminding Conspiracy Not to Compete for Oil and Natural Gas LeasesRead the Press Release
Aubrey K. McClendon has been charged by a federal grand jury with conspiring to rig bids for the purchase of oil and natural gas leases in northwest Oklahoma, the Department of Justice announced today.
The indictment alleges that McClendon orchestrated a conspiracy between two large oil and gas companies to not bid against each other for the purchase of certain oil and natural gas leases in northwest Oklahoma. During this conspiracy, which ran from December 2007 to March 2012, the conspirators would decide ahead of time who would win the leases. The winning bidder would then allocate an interest in the leases to the other company. McClendon instructed his subordinates to execute the conspiratorial agreement, which included, among other things, withdrawing bids for certain leases and agreeing on the allocation of interests in the leases between the conspiring companies.
“While serving as CEO of a major oil and gas company, the defendant formed and led a conspiracy to suppress prices paid to leaseholders in northwest Oklahoma,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “His actions put company profits ahead of the interests of leaseholders entitled to competitive bids for oil and gas rights on their land. Executives who abuse their positions as leaders of major corporations to organize criminal activity must be held accountable for their actions.”
“The FBI is committed to investigating individuals who engage in corrupt criminal conduct,” said Special Agent in Charge Scott L. Cruse of the FBI’s Oklahoma City Division. “We will continue to work with the DOJ Antitrust Division to target those who devise schemes which create an unfair competitive advantage by way of bid rigging or other illegal means.”
The indictment, filed today in the U.S. District Court for the Western District of Oklahoma, alleges that McClendon’s conspiracy affected certain bids for leasehold interests and producing properties in northwest Oklahoma. Leasehold interests give a lessee the right to develop the land and to extract oil and natural gas from the land for a time period typically lasting three to five years. Producing properties are tracts of land where the existing lessee has drilled wells on the land and the wells are producing a stream of oil and/or natural gas. Purchasing a producing property includes not just the underlying leasehold interests to drill on the land, but also the producing wells and infrastructure already on the land.
Each violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals.
The charges contained in the indictment are allegations and not evidence of guilt. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This is the first case resulting from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the oil and natural gas industry. This investigation is being conducted by the Antitrust Division’s Chicago Office and the FBI’s Oklahoma City Field Office, with assistance from the U.S. Attorney’s Office of the Western District of Oklahoma. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Chicago Office at 312-984-7200, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Oklahoma City Field Office at 405-290-7770.
Former Bailbonds Employee Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Darlene E. Bush, 48, of Mobile, was sentenced today in federal court on charges that she conspired to possess methamphetamine ice for distribution during 2013 and 2014. Court documents reveal that Bush sold drugs from her Mobile residence as well as from the bonding company where she worked. Bush admitted that she was accountable for the distribution of 168 grams of methamphetamine ice, and that she entered a guilty plea to the charges in June of 2015.
United States District Court Judge Charles R. Butler, Jr., imposed a sentence of 64 months imprisonment, which will be followed by a three-year term of supervised release. As conditions of her supervision, Bush will be subject to testing and treatment for drug abuse. The judge also ordered that Bush pay $100 in special mandatory assessments, but no fine was imposed.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Former Anchorage Prosecutor convicted in wire fraud and money laundering scheme amounting to $31 millionRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a former Anchorage resident and former municipal prosecutor Mark J. Avery was convicted of three counts of wire fraud, six counts of money laundering, one count of bank fraud, and one count of making false statements to a bank after a two week trial before U.S. District Judge Ralph R. Beistline.
Avery, 57, of San Francisco, California, was indicted by a federal grand jury in Anchorage in 2013 alleging he defrauded May Wong Smith and the May Smith Trust, of over $52 million dollars. Avery was, at the time, a trustee of the trust and used his influence to obtain access to $52 million of trust assets, all of which he expended in a period of six months. The jury’s verdict found that, in 2005 and 2006, Avery committed over $31 million in wire fraud related to the scheme to defraud the May Smith Trust. The verdicts involve the largest money laundering convictions by amount ever prosecuted in Alaska.
The jury did not reach verdicts on one count of wire fraud and three counts of money laundering. The jury acquitted Avery of one count of wire fraud.
Avery was re-charged after the Ninth Circuit Court of Appeals reversed Avery’s conviction on similar charges for honest services wire fraud in 2013 based on a Supreme Court decision that found the theory of honest services fraud under which Avery was previously convicted unconstitutional. The revised indictment filed against Avery, a trustee and lawyer to the May Smith Trust, charged that Avery engaged in a scheme to defraud the trust and May Wong Smith. Avery held those positions from early 2002, and received yearly compensation in the amount of $600,000 in trustee fees for his role as trustee and fiduciary to these trusts. Avery was also owner/operator of Avery and Associates, L.L.C., Security Aviation, Inc., and Regional Protective Services, L.L.C. Avery’s companies, many of which were created after receipt of trust funds, were engaged in air charter services, aeromedical evacuation, legal services, development of real property, and court imposed electronic monitoring.
During the trial, the jury heard that May Wong Smith was born in China in 1922 and shortly after World War II married Stanley Smith, a citizen of Australia. Stanley Smith amassed millions of dollars from post-war business investments and became a quiet benefactor of various charitable organizations. Stanley Smith died in 1968 and May Wong Smith never remarried.
The May Smith Trust was established on October 10, 1982, to provide for May Wong Smith’s support and maintenance during her life and certain charitable purposes after her death.
In the early 1980s, May Wong Smith began to show signs of dementia. From that time, her mental condition began to deteriorate to the point where she was not capable of living without assisted care. Due to her mental condition she had full time live-in care from at least 1991 until her death in Nassau, Bahamas, on July 15, 2006. In spite of her compromised mental capacity, she remained a trustee until her death in July 2006.
The indictment alleged that Avery engaged in a scheme that involved pledged assets of the May Smith Trust as collateral for a $52 million dollar loan made to Avery. The jury’s verdicts found that Avery defrauded May Wong Smith and the May Smith Trust by using the $52 million loan funds for his personal use and to invest in various businesses without any indicia of normal business practices in that the money was obtained and spent with no written business plan, no controls over how the money was to be spent, no repayment terms, no promissory note and none of the common safeguards of commercial investments. At trial the evidence showed that Avery ran through all $52 million he obtained from the trust in six months using the funds for various purchases including two World War II era fighters, a P-51D Mustang, and an F4U-4 Corsair, other antique aircraft, real estate, a personal mortgage payoff, a 47' Carver Yacht, and a 37' heavy-duty patrol boat.
Avery also was convicted of bank fraud and making false statements to a bank in connection with a $500,000 line of credit made to Wells Fargo in October 2006. Avery failed to list the $52 million dollar debt when applying for the loan, which, if listed, would have been material in Wells Fargo’s decision in evaluating the loan.
Sentencing is set for May 17, 2016. Avery remains released on bail pending sentencing.
The IRS-Criminal Investigation and the FBI conducted the investigation leading to the indictment and conviction in this case. U.S. Attorney Loeffler commended the FBI and IRS for their dedication and exemplary efforts in the prosecution and conviction of Avery.
Flandreau Woman Sentenced for AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Flandreau, South Dakota, woman convicted of assault was sentenced on February 29, 2016, by U.S. District Judge Karen E. Schreier.
Christina Weston, a/k/a Christina Anderson, age 41, was sentenced to 30 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Weston was indicted for Assault Resulting in Serious Bodily Injury by a federal grand jury on May 5, 2015. She pled guilty on October 7, 2015.
In April of 2015, Weston assaulted her husband causing him serious bodily injury.
This case was investigated by Federal Bureau of Investigation. Assistant U.S. Attorney Connie Larson prosecuted the case.
Weston was immediately turned over to the custody of the U.S. Marshals Service.
Euclid man indicted for distribution of fentanyl and crack cocaine; also faces firearm chargeRead the Press Release
A three-count indictment was filed in federal court charging a Euclid man for having more than 900 pills of fentanyl, crack cocaine and a firearm, said Acting U.S. Attorney Carole Rendon.
Ryan Gaston, 29, was indicted on one count each of possession with intent to distribute fentanyl, possession with intent to distribute crack cocaine, and possession of a firearm in furtherance of drug trafficking.
Gaston was arrested on Feb. 3 in Cleveland Heights. A search of his car, and subsequent search of his apartment, revealed rocks of crack cocaine, a 9 mm High Point rifle and approximately 925 round blue pills believed to be Oxycodone 30 mg pills.
A test revealed the pills were not Oxycodone, but instead fentanyl, according to court documents.
Fentanyl is a very potent synthetic opiate used to treat pain and as a surgical anesthetic. While heroin is approximately three times as potent as morphine, fentanyl is approximately 80-100 times more powerful than morphine, according to court documents.
“Each one of these pills is capable of killing a person,” said Acting U.S. Attorney Carole Rendon. “We will continue to attack the opioid problem from all sides – prevention, education, treatment and enforcement.”
This case is being prosecuted by Assistant U.S. Attorney Michelle Baeppler following an investigation by the Drug Enforcement Administration, the Cleveland Heights Police Department, the Cuyahoga County Sheriff’s Office and the Euclid Police Department.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Eagle Butte Man Charged with Assault Resulting in Substantial Bodily Injury to an Intimate PartnerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Emmanuel Gomez, a/k/a Manny Gomez, age 28, was indicted on February 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 29, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 22, 2015, Gomez unlawfully committed a domestic assault upon his spouse, intimate partner, or dating partner and said assault resulted in substantial bodily injury.
The charge is merely an accusation and Gomez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Gomez was released on bond pending trial. A trial date has not been set.
Doctor Sentenced to 84 Months in Prison for Distributing Prescription DrugsRead the Press Release
A doctor from Superior Township, Michigan was sentenced yesterday to 84 months in prison for participating in a conspiracy to distribute prescription pills illegally, U.S. Attorney Barbara L. McQuade announced. McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division. Dr. Abbey Akinwumi, age 55, was sentenced by U.S. District Judge Nancy Edmunds. Dr. Akinwumi operated a medical clinic in Detroit, Michigan. During his plea, he admitted that he issued more than 500,000 dosage units of Roxicodone (oxycodone HCl), approximately 300,000 dosage units of Opana (oxymorphone) and more than 2 million dosage units of Hydrocodone outside the course of legitimate medical practice and without any medical justification. The prescriptions were issued after either a cursory examination or without any examination at all. Dr. Akinwumi then billed Medicare, Medicaid and private insurance companies for medically unnecessary procedures, to include drainage of an abscess and wound repair. Once the prescriptions were filled, the pills were sold on the street market. Oxycodone HCl, oxyorphone, and hydrocodone are all scheduled II controlled substances that may be prescribed by medical professionals only for a legitimate medical purpose in the usual course of a doctor’s professional practice. They are powerful and highly addictive drugs and are increasingly abused because of their potential to provide a heroin-like euphoria. In addition to imprisonment, Dr. Akinwumi was ordered to forfeit various assets. “More people die in America every year from prescription drug overdoses than from overdoses of all other drugs combined,” McQuade said. “In addition, prescription drug addiction has led to resurgence in heroin use. Physicians who divert prescription drugs to the street market are contributing to this epidemic, and we are focusing our enforcement efforts on stopping them.” "Dr. Akinwumi's actions were reprehensible," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Not only were his acts a betrayal of his profession, but he did great disservice to insurers, to patients, and to those whose addictions he help perpetuate." The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Regina R. McCullough. She was assisted by Assistant U.S. Attorney Julie Beck of the Forfeiture Section.Detroit One Collaboration Leads to Expanded Racketeering Indictment of Violent Gang Members from Detroit’s EastsideRead the Press Release
The work of the Detroit One partnership of local, state and federal law enforcement resulted in the indictment today of 12 more members of Seven Mile Bloods street gang, United States Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement were Acting Special Agent in Charge David A. Grant, Drug Enforcement Administration, Detroit Division, Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, and Chief James Craig, Detroit Police Department.
The superseding indictment unsealed today adds charges for racketeering, murder in aid of racketeering, firearms violations and related offenses. The previous indictment had charged three other individuals.
According to the superseding indictment, the gang operates on the east side of Detroit, between Gratiot Avenue and Kelly Road and between Seven and Eight Mile Roads. Seven Mile Bloods or “SMB” members have claimed this area as their territory and refer to it as the “Red Zone.” The area is in zip code 48205, which SMB members refer to as “4-8-2-0-Die” in some of their rap lyrics.
The indictment alleges an ongoing gang war between the Seven Mile Bloods and an alliance of other gangs operating on Detroit’s east side stemming from a murder that occurred in July 2014. During the past 18 months, these rival gangs have been violently attacking one another and have posted respective “hit lists” on social media. This shooting war has led to increased homicides and non-fatal shootings on Detroit’s east side.
The indictment also stems from collaborative law enforcement efforts to dismantle the opioid pipeline from Detroit to other states, alleging incidents in which SMB members were arrested in Charleston, West Virginia, in connection with drug trafficking.
Under the Detroit One Initiative, investigators were able to bring together separate probes into various members of this organization and its criminal activities into one encompassing investigation. Partners include the Detroit Police Department Gang Intelligence Unit, the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, Homeland Security Investigations, Customs and Border Patrol, Michigan Department of Corrections and Michigan State Police, with the cooperation of the ATF and DEA.
Charged today are:
• Billy Arnold, a/k/a “B-Man,” “Berinzo,” “Killa,” 29, of Detroit, with RICO conspiracy and multiple counts of murder in aid of racketeering; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; use of a firearm during, and in relation to, a crime of violence resulting in death; possession of a firearm during, and in relation to, a crime of violence; and felon in possession of a firearm;
• Steven Arthur, Jr., a/k/a “Steve-O,” 26, of Detroit, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence; and felon in possession of a firearm; • Eugene Fisher, a/k/a “Fist,” 35, of Detroit, with RICO conspiracy; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; use of a firearm during, and in relation to, a crime of violence; possession of a firearm during, and in relation to, a crime of violence; and felon in possession of a firearm;
• Corey Bailey, a/k/a “Sonny,” “Cocaine Sonny,” 28, of Detroit, with RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; assault with a dangerous weapon in aid of racketeering; use of a firearm during, and in relation to, a crime of violence; and possession of a firearm during, and in relation to, a crime of violence;
• Quincy Graham, a/k/a “Dub,” “Q,” 32, of Detroit, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence; and felon in possession of a firearm;
• Robert Brown II, a/k/a “R.O.,” 33, of Warren, Michigan, with RICO conspiracy and possession of a firearm during, and in relation to, a crime of violence;
• Jerome Gooch, a/k/a “Rome,” “Dada,” 30, of Detroit, Michigan and Charleston with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Michael Rogers, a/k/a “Smoke,” “Ace,” 33, of Eastpointe, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Derrick Kennedy, a/k/a “Dip,” 29, of Warren, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Devon Patterson, a/k/a “Duck,” “Sosa,” 30, of Detroit, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Christopher Owens, a/k/a “Baby O,” “Cee,” 29, of Charleston, West Virginia, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Jeffery Adams, a/k/a “Brick,” “Product,” 26, of Detroit, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Arlandis Shy, a/k/a “Grymee,” “VIL,” 26, of Clinton Township with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence;
• Anthony Lovejoy, a/k/a “PT,” 33, of Charleston, West Virginia and Buckeye, Arizona, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence; and
• Diondre Fitzpatrick, a/k/a “D-Nice,” 26, of Harper Woods, with RICO conspiracy; possession of a firearm during, and in relation to, a crime of violence.
“When law enforcement became aware of the violent gang activity in this neighborhood, the Detroit One partnership poured resources into dismantling the gangs that are responsible,” McQuade said. “We are using our combined resources to restore peace to this neighborhood for its residents.”
DEA Acting Special Agent in Charge David A. Grant stated, “DEA will continue to work hand in hand with the United States Attorney’s Office and the members of Detroit One in the continuing effort to reduce the violence associated with drug trafficking in all areas of Detroit. Today’s indictment demonstrates solid success in the effort to dismantle the Seven Mile Bloods, and to curtail some of the inevitable violence stemming from their trafficking in drugs on Detroit’s east side.”
"The Detroit One initiative continues to be a valuable partnership for the FBI, and for the city of Detroit," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "The dismantling of violent gangs in this city must remain a priority, and we remain fully committed to that end. These gang arrest operations are absolutely necessary in order to make Detroit a more livable, workable, and secure city."
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit. This indictment is the latest in a string of indictments from the United States Attorney’s Office and Wayne County Prosecutor’s Office over the last two years involving violent street gangs in the city of Detroit. Most significantly, Detroit has seen a reduction in homicides every year since the Detroit One collaboration began in 2013
DeLand Man Sentenced to Seven Years in Prison for Threatening to Kill the President and Assault A Federal AgentRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Jeremy L. Addison (24, DeLand) to seven years in federal prison for mailing a letter threatening to kill the President and assaulting the U.S. Secret Service agent who was investigating the threat. He pleaded guilty on October 13, 2015.
According to court documents, on September 17, 2014, while awaiting trial for an unrelated state charge in the Volusia County Jail, Addison wrote a letter to President Obama. In that letter he stated, “you’re a dead man…boy I hate swine. I’m the general me…and anthrax, so yes I intend to kill you.” A short time later, a U.S. Secret Service agent attempted to interview Addison about the letter. At the conclusion of the interview, Addison spit in the agent’s face and stated, “…I am going to kill you too.”
After pleading guilty in this case, but prior to sentencing, Addison wrote another letter, this time threatening to kill the Assistant U.S. Attorney handling the case. Four days later, Addison wrote a second letter apologizing for the threatening letter.
Based on Addison’s criminal history and the threat to kill the prosecutor, the Court enhanced Addison’s sentence by finding that he had not accepted responsibility for his criminal behavior and that he had obstructed justice by writing a letter threatening to kill the assigned Assistant U.S. Attorney.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Dayton Man Sentenced to 150 Months for Possessing Child Pornography While on Probation for Similar ConvictionRead the Press Release
DAYTON, Ohio – Jonathan Gray, 42, of Dayton, Ohio, was sentenced in U.S. District Court to 150 months in prison for possession of child pornography after having previously been convicted of a crime of abusive sexual conduct involving a minor.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Montgomery County Sheriff Phil Plummer announced the sentence handed down today by U.S. District Judge Walter H. Rice.
According to court documents, in August 2013, while Gray was on probation, he possessed more than 1,360 images and more than 390 videos containing child pornography.
Gray pleaded guilty in May 2015 to one count of possessing child pornography after having previously been convicted of a crime of abusive sexual conduct involving a minor. He was charged by indictment in June 2014.
This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and Montgomery County Sheriff’s Office, as well as Assistant United States Attorney Alex R. Sistla, who is representing the United States in this case.
Cyberstalker Sentenced to 10 Years in PrisonRead the Press Release
Michael Daniel Rubens, 31, formerly of Tallahassee, Florida, was sentenced today to 10 years in prison, a $15,000 fine and $1,550 in restitution for cyberstalking, unauthorized access to a protected computer and aggravated identity theft. The sentence was announced by Acting U.S. Attorney Christopher P. Canova for the Northern District of Florida.
During his guilty plea on Dec. 3, 2015, Rubens admitted that, between January 2012 and January 2015, he publicly humiliated dozens of young women by hacking into their online accounts, including e-mail and social media, stealing photographs and other personal information, using the photographs to create pornography and posting the pornographic images on social media websites and on a revenge pornography website that was recently shut down by the FBI. Rubens engaged in most of the conduct from his residence in Tallahassee. He used software to conceal his IP address.
Rubens’ victims included an employee of a local restaurant he frequented, an out-of-town colleague, an acquaintance in his office building, clients of the defendant’s employer, a former girlfriend and her colleagues, high school classmates and the victims’ relatives or friends. For one particular woman, Rubens’ laptop contained 470 files with more than 5,000 references to the victim. Rubens’ computer searches focused on finding the victims’ personal identifying information, such as past addresses, family information and other personal data that could be used to answer security questions. As a result of Rubens’ conduct, the victims became afraid to conduct any online activities and often deleted their social media presence entirely. In some instances, the conduct also damaged the victims’ personal relationships.
Urging leniency, Ruben’s counsel argued that, unlike bank robbery or drug dealing, cyberstalking was not something people thought of as a serious crime. U.S. District Judge Robert L. Hinkle for the Northern District of Florida responded, “Perhaps it’s time they learned.”
“This sentence sends an unequivocal message to anyone tempted to use a computer as a weapon to victimize and steal the identities of others: Expect to be prosecuted. And expect to go to prison,” said Acting U.S. Attorney Canova.
“This criminal hacked into social media accounts and tormented women with blackmail and harassment,” said Special Agent in Charge Susan L. McCormick of Homeland Security Investigations’ (HSI) Tampa Field Office. “His crimes demonstrate how predators use the Internet to target innocent victims and ruin lives. With the help of victims and our law enforcement partners, like the Florida State University Police and the Leon County Sheriff’s Office, HSI will find these predators and hold them accountable.”
This case resulted from investigations by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Florida State University Police Department, and the Leon County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Jason S. Beaton.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Cyberstalker Sentenced to 10 Years in PrisonRead the Press Release
TALLAHASSEE, FLORIDA – Michael Daniel Rubens, 31, formerly of Tallahassee, was sentenced today to 10 years in prison, a $15,000 fine, and $1,550 in restitution for cyberstalking, unauthorized access to a protected computer, and aggravated identity theft. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
During his guilty plea on December 3, 2015, Rubens admitted that, between January 2012 and January 2015, he publicly humiliated dozens of young women by hacking into their online accounts, including e-mail and social media, stealing photographs and other personal information, using the photographs to create pornography, and posting the pornographic images on social media websites and on a revenge pornography website that was recently shut down by the FBI. Rubens engaged in most of the conduct from his residence in Tallahassee. He used software to conceal his IP address.
Rubens’ victims included an employee of a local restaurant he frequented, an out-of-town colleague, an acquaintance in his office building, clients of the defendant’s employer, a former girlfriend and her colleagues, high school classmates, and the victims’ relatives or friends. For one particular woman, Rubens’ laptop contained 470 files with more than 5,000 references to the victim. Rubens’ computer searches focused on finding the victims’ personal identifying information, such as past addresses, family information, and other personal data that could be used to answer security questions. As a result of Rubens’ conduct, the victims became afraid to conduct any online activities and often deleted their social media presence entirely. In some instances, the conduct also damaged the victims’ personal relationships.
Urging leniency, Ruben’s counsel argued that, unlike bank robbery or drug dealing, cyberstalking was not something people thought of as a serious crime. United States District Judge Robert L. Hinkle responded, “Perhaps it’s time they learned.”
Acting United States Attorney Canova stated, “This sentence sends an unequivocal message to anyone tempted to use a computer as a weapon to victimize and steal the identities of others: Expect to be prosecuted. And expect to go to prison.”
“This criminal hacked into social media accounts and tormented women with blackmail and harassment,” said Susan L. McCormick, special agent in charge of HSI Tampa. “His crimes demonstrate how predators use the Internet to target innocent victims and ruin lives. With the help of victims and our law enforcement partners, like the Florida State University Police and the Leon County Sheriff’s Office, HSI will find these predators and hold them accountable.”
This case resulted from investigations by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Florida State University Police Department, and the Leon County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jason S. Beaton.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Convicted Sex Offender Pleads Guilty to Illegal Possession of Firearms and AmmunitionRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Larry Garfield Letterman (63, Wildwood) yesterday pleaded guilty to one count of possession of firearms and ammunition affecting commerce by a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Letterman met with a confidential informant in a series of video-recorded transactions during October and November 2015. Each transaction took place at Letterman’s residence, where he sold the informant three firearms and ammunition, including an AR-15 rifle. Based on the transactions, federal agents executed a search warrant at the residence on December 15, 2015. They recovered an AK-47 rifle, a shotgun, a handgun, packaging from another handgun, and more than 260 rounds of assorted ammunition.
Letterman confessed to possessing all of the firearms and ammunition, and that he had multiple prior felony convictions, including possession of a firearm by a convicted felon, burglary, and sodomy of a male less than 14 years old. As a previously convicted felon, Letterman is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Convenience Store Owner Pleads Guilty to over One Million Dollars in Food Stamp FraudRead the Press Release
ATLANTA - Sholondrell Taylor has pleaded guilty to theft of government funds in a $1.6 million food stamp fraud scheme. Taylor’s stores allowed customers to exchange their food stamps for cash, buying Women, Infants, and Children (WIC) vouchers at less than face value and redeeming them at full price.
“The defendant abused the food stamp program for her own financial gain, taking advantage of families in need and stealing over a million dollars from taxpayers,” said U.S. Attorney John Horn. “Taylor’s elaborate scheme even included a driver to pick up food stamps and WIC vouchers from those willing to sell them for a fraction of their value.”
“Taylor’s plea should serve as a warning to all stores that participate in the WIC and EBT programs as vendors, that fraud and trafficking (purchasing those benefits for cash) will be vigorously investigated and prosecuted by the USDA-OIG, the US Attorney’s Office, and all of its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from tax payer funded programs,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations.
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through January 2011, Taylor operated Dandes Food Center, LLC, in Forest Park, Georgia, and Shop Rite Food Mart, LLC, located in Atlanta, Georgia, where she unlawfully allowed her customers to exchange their food stamp benefits for cash at the rate of 50 cents on the dollar. Taylor also purchased Women, Infants, and Children (WIC) vouchers from benefit recipients at less than their actual value and redeemed the vouchers for full value with the U.S. Department of Agriculture.
Taylor set the rates of redemption, and instructed her employees to keep detailed ledgers of all transactions to ensure that they were not stealing from her. She trained her employees on how to determine the available balances on food stamp cards; and required employees to obtain WIC voucher codes and usable voucher dates before purchasing the vouchers. Many of the customers who sold their WIC vouchers, and food stamp benefits, never visited Dandes or Shop Rite because Taylor employed a driver to retrieve WIC vouchers and food stamp cards in exchange for cash.
This case came to the attention of federal authorities as a result of a investigation involving Georgia Department of Human Services employees. In 2011, Gene Tell and Kristy Williams were charged with conspiracy and mail fraud for their roles in the fraudulent creation and distribution of thousands of food stamp cards. Many of the fraudulent cards were illegally redeemed at Dandes Food Center operated by Taylor.
Sentencing for Sholondrell Taylor, 47, of Ellenwood, Georgia, has not yet been scheduled.This case is being investigated by the U.S. Department of Agriculture, Office of Inspector General.
Assistant United States Attorney Loranzo M. Fleming is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cleveland man charged with threatening and stalking at least three peopleRead the Press Release
A federal grand jury returned a nine-count indictment charging Jonathan L. Chain, 35, of Cleveland, with using a cellular telephone to send threats and stalking at least three victims, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
The indictment alleges that on at least five occasions, Chain made cellular telephone calls to victims and threatened to kill, sexually assault or rape them. The indictment further alleges that the defendant, over a period of months in 2015, made a series of threatening telephone calls to at least three victims during which he threatened to sexually assault, rape or kill them.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Fairlawn Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Robert E. Bulford.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chief Executive Officer of International Metallurgical Company Arrested for Exporting Aerospace-Grade Metals to IranRead the Press Release
Defendant Exported High-Tech Material Used in Missile Production and Nuclear Applications
Earlier today Erdal Kuyumcu, 44, of Woodside, New York, was arrested on charges of illegally exporting a cobalt-nickel metallic powder from the United States to Iran, through an intermediary in Turkey. Kuyumcu will make his initial appearance this afternoon before U.S. Magistrate Judge Ramon E. Reyes Jr. of the Eastern District of New York.
The arrest and charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement’s New York Field Office.
The complaint alleges that Kuyumcu, a U.S. citizen and the CEO of Global Metallurgy LLC, twice exported a specialized metallic powder used in aerospace, missile production and nuclear applications. Exporting this specialized powder to Iran without a license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) is illegal. As detailed in the complaint, Kuyumcu and others conspired to obtain over a thousand pounds of the metallic powder from a U.S.-based supplier for export to Iran, without the requisite approval from OFAC. To conceal the true destination of the goods from the U.S. supplier, Kuyumcu and a co-conspirator arranged for the items to be shipped first to Turkey and subsequently to Iran. As described in the complaint, Kuyumcu and a co-conspirator used coded language when discussing Iran, such as calling Iran the “Neighbor,” referring to the fact that Turkey shares a border with Iran.
“According to the complaint, Kuyumcu conspired with others to illegally send specialized U.S. technology – over a thousand pounds of metallic powder with nuclear and missile applications – to Iran via Turkey,” said Assistant Attorney General Carlin. “In circumventing U.S. law, including the International Emergency Economic Powers Act, the defendant harmed our nation’s security. The department will continue to vigorously pursue and hold accountable those who evade our export laws in pursuit of profit.”
“U.S. export laws exist to prevent potentially dangerous goods and technology from falling into the wrong hands,” said U.S. Attorney Capers. “Those who seek to evade the scrutiny of the regulatory agencies by operating in the shadows present a danger to our national security and our allies abroad. We will continue to use all of our law enforcement and national security tools to hold such individuals and corporations accountable.”
“As alleged, Erdal Kuyumcu intentionally misrepresented illegal business transactions to make them appear legitimate, thereby threatening national security and violating federal statutes,” said Assistant Director in Charge Diego Rodriguez. “The FBI works with our partners, such as the Department of Commerce, to keep weapons of mass destruction and other embargoed technologies from falling into the wrong hands, to protect national assets, and to strengthen the global threat picture. Special thanks to the FBI special agents who uncovered the alleged conspiracy with their colleagues at the Departments of Commerce and Justice.”
“Today’s action is the result of outstanding collaborative investigative work by the Justice Department, the Commerce Department and the FBI to break up a network whose alleged aim was to illegally ship sophisticated U.S.-origin technology to Iran,” said Special Agent in Charge Jonathan Carson. “We will continue to pursue violators wherever they may be.”
The charges contained in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Kuyumcu faces up to 20 years in prison a $1 million fine.
The case is being prosecuted by Assistant U.S. Attorneys Tiana A. Demas and Ameet B. Kabrawala of the Eastern District of New York, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Kuyumcu Complaint
Chief Executive Officer of International Metallurgical Company Arrested for Exporting Aerospace-Grade Metals to IranRead the Press Release
Earlier today, Erdal Kuyumcu of Woodside, New York, was arrested on federal charges of illegally exporting a cobalt-nickel metallic powder from the United States to Iran through an intermediary in Turkey.[1] Kuyumcu is scheduled to make his initial appearance today at 3:00 p.m. at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge Ramon E. Reyes, Jr.
The arrest and charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement’s New York Field Office.
The complaint alleges that Kuyumcu, a U.S. citizen and the CEO of Global Metallurgy LLC, twice exported a specialized metallic powder used in aerospace, missile production and nuclear applications. Exporting this specialized powder to Iran without a license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) is illegal. As detailed in the complaint, Kuyumcu and others conspired to obtain over a thousand pounds of the metallic powder from a U.S.-based supplier for export to Iran, without the requisite approval from OFAC. To conceal the true destination of the goods from the U.S. supplier, Kuyumcu and a co-conspirator arranged for the items to be shipped first to Turkey and subsequently to Iran. As described in the complaint, Kuyumcu and a co-conspirator used coded language when discussing Iran, such as calling Iran the “Neighbor,” referring to the fact that Turkey shares a border with Iran.
“According to the complaint, Kuyumcu conspired with others to illegally send specialized U.S. technology – over a thousand pounds of metallic powder with nuclear applications – to Iran via Turkey,” said Assistant Attorney General Carlin. “In circumventing U.S. law, including the International Emergency Economic Powers Act, the defendant harmed our nation’s security. The department will continue to vigorously pursue and hold accountable those who evade our export laws in pursuit of profit.”
“U.S. export laws exist to prevent potentially dangerous goods and technology from falling into the wrong hands,” said U.S. Attorney Capers. “Those who seek to evade the scrutiny of the regulatory agencies by operating in the shadows present a danger to our national security and our allies abroad. We will continue to use all of our law enforcement and national security tools to hold such individuals and corporations accountable.”
“As alleged, Erdal Kuyumcu intentionally misrepresented illegal business transactions to make them appear legitimate, thereby threatening national security and violating federal statutes. The FBI works with our partners, such as the Department of Commerce, to keep weapons of mass destruction and other embargoed technologies from falling into the wrong hands, to protect national assets, and to strengthen the global threat picture. Special thanks to the FBI special agents who uncovered the alleged conspiracy with their colleagues at the Departments of Commerce and Justice,” stated FBI Assistant Director-in-Charge Rodriguez.
“Today’s action is the result of outstanding collaborative investigative work by the Justice Department, the Commerce Department and the FBI to break up a network whose alleged aim was to illegally ship sophisticated U.S.-origin technology to Iran. We will continue to pursue violators wherever they may be,” said Carson, Special Agent-in-Charge of the Commerce Department’s New York Office of Export Enforcement.
If convicted of the charges, Kuyumcu faces up to 20 years in prison a $1 million fine.
The case is being prosecuted by Assistant U.S. Attorneys Tiana A. Demas and Ameet B. Kabrawala of the Eastern District of New York, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
ERDAL KUYUMCU
Age: 44
Woodside, New YorkE.D.N.Y. Docket No. 16-0134M
[1] The charges contained in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Buffalo Woman Arrested, Charged with Distributing HeroinRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. — U. S. Attorney William J. Hochul, Jr. announced today that Brittaney Ridgeway, 27, of Buffalo, NY, was arrested and charged by criminal complaint with distribution of heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the complaint, on March 25, 2015, Cheektowaga Police officers recovered bundles of heroin following a traffic stop of a vehicle that the defendant was riding in with her boyfriend Dellsean Hamilton. Analysis determined that some of the heroin contained fentanyl.
Subsequent investigation determined that Hamilton was a large volume heroin supplier in Buffalo and the surrounding area and Ridgeway assisted him in the distribution of the heroin. Hamilton was arrested in December 2015, also on distribution charges. Following Hamilton’s arrest, law enforcement officers learned that Ridgeway continued to distribute heroin. Officers made controlled purchases of heroin from Ridgeway on February 4 and February 11, 2016.
Ridgeway made an initial appearance this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained pending a detention hearing on March 4, 2016 at 10:00 a.m.
The criminal complaint is the culmination of an investigation by the Cheektowaga Police Department, under the direction of Chief David Zack, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bucks County Man Sent Back to Prison for Committing Fraud While Behind BarsRead the Press Release
PHILADELPHIA - Robert Joseph Whiteman, Jr., 38, of Levittown, Pennsylvania was sentenced today to 95 months in prison for committing bank fraud and aggravated identity theft while serving a prison sentence for a similar fraud scheme. In addition to the prison term, U.S. District Court Judge Gerald J. Pappert ordered five years of supervised release, restitution in the amount of $67,834.06, and a $500 special assessment.
In 2006, Whiteman was sentenced to 10 years in prison for bank fraud. While serving that sentence, between 2010 and 2012, Whiteman obtained and attempted to obtain credit in his name and the names of others under false pretenses. Whiteman frequently did this by causing false credit card applications to be submitted in his name and the names of fellow inmates. Whiteman also caused female associates to be included as authorized users for these cards. After the cards were approved, Whiteman caused these female accomplices to use the credit cards to make charges and to take cash advances. When the conspirators reached the cards’ limit, Whiteman caused fraudulent payments to be made on the credit cards, temporarily and falsely increasing the cards’ available credit. Whiteman and his accomplices then resumed their fraud. Moreover, even after the banks and credit card companies stopped allowing Whiteman to make additional charges, he continued to defraud these financial institutions. Whiteman generally wrote fraudulent letters to the institutions falsely claiming that the charges were unauthorized in order to cause the institutions to forgive the charges. In addition, Whiteman submitted false tax returns and fictitious police reports to the financial institutions in order to advance his scheme. His fraud caused over $65,000 in actual losses to his victims and attempted to cause approximately $165,000 more. One of these victims was his own father.
Furthermore, while awaiting sentencing on the most recent charges, Whiteman, again, tried to continue his fraud from the Federal Detention Center in Philadelphia, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Patrick J. Murray.
Brief Filed in United States v. State of TexasRead the Press Release
PDF version of the brief recently filed in United States v. State of Texas.
Blackstone Woman Charged with Stealing Customers’ Personal InformationRead the Press Release
BOSTON – A Blackstone woman was charged today in U.S. District Court in Boston in connection with her role in a scheme to steal personal and bank account information from clients of her former employer.
Jasmine Banks, 29, was charged in an Information with one count of conspiracy to commit identity theft and access device fraud.
The Information alleges that, in 2014, Banks was a customer service employee for Mercer, Inc., in Norwood, and assisted customers with technical questions regarding their retirement plans that were administered by Mercer. In connection with her work, she had access to detailed account information and personally identifiable information (PII) for customers’ retirement accounts.
According to court documents, from approximately February 2014 through April 2014, Banks accessed Mercer account information at her computer and provided the names, addresses, and bank account and routing numbers of approximately 270 Mercer account holders to one of her co-conspirators via email and text message. In many cases, she also provided dates of birth and social security numbers. Banks allegedly reviewed 401(k) accounts for large balances, chose four with significant assets, and sent the co-conspirator detailed account access information for those four accounts. Based on the information Banks provided, a fraudulent withdrawal of $23,485 was made from one of the retirement accounts.
Mercer fully cooperated with law enforcement to prevent further account breaches and withdrawals.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. 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.
United States Attorney Carmen M. Ortiz and Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney David J. D’Addio of Ortiz’s Cybercrime Unit.
The details in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baggage Handler Sentenced to over 9 Years in Prison for Smuggling Methamphetamine Through Oakland AirportRead the Press Release
OAKLAND – Siosiua Fihaki was sentenced to 112 months in prison today for his role in smuggling nine pounds of methamphetamine through a secured door at the Oakland International Airport announced Acting United States Attorney Brian Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin.
Fihaki, 32, of Hayward, Calif., pleaded guilty on December 15, 2015, to one count of distributing methamphetamine. In pleading guilty, Fihaki admitted that on May 29, 2014, he was working as a baggage handler at the Oakland International Airport for a flight bound for Honolulu. Early that morning, Fihaki used his airport employee credentials to access a secure door at the airport while carrying a duffel bag full of methamphetamine. Fihaki admitted that he put the duffel bag into the belly of the airplane with other checked luggage. The duffel bag was seized by U.S. Drug Enforcement Administration agents in Honolulu and the subsequent search revealed nine pounds of methamphetamine.
The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge. In handing down the sentence, Judge White noted that the case was particularly troubling given that the defendant, as a baggage handler, was entrusted with the safety of everyone who flies through the airport. Judge White also stated that he was extremely concerned that in an era of enhanced security for airlines, Fihaki chose to abuse the trust of the flying public. Judge White’s sentence also included a three-year period of supervised release.
Assistant U.S. Attorney Aaron Wegner is prosecuting the case with the assistance of Vanessa Vargas. The prosecution is the result of an investigation by the U.S. Drug Enforcement Administration, the Internal Revenue Service, and the Alameda County Sheriff’s Office. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force, a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Atlanta Store Owner Pleads Guilty to Trafficking in Food StampsRead the Press Release
ATLANTA - Samuel Kwushue has pleaded guilty to eight counts of wire fraud for illegally exchanging food stamp benefits for cash in his convenience store. Between late 2010 to approximately June 2015, Kwushe exchanged food stamp benefits for pennies on the dollar.
“The federal food stamp program is intended to help low-income citizens obtain needed nutritional assistance for themselves and their families,” said U. S. Attorney John Horn. “Instead, Kwushue abused the program by exchanging food stamp benefits for cash so he could enrich himself.”
“The federally funded food stamp program was designed with the best of intentions for those individuals truly in need. Kwushue was not one of those truly in need. This guilty plea in federal court will now firmly hold him accountable for his greed driven criminal acts of preying on those in need and stealing from a government program,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U. S. Attorney Horn, the charges and other information presented in court: from August 2011 until at least June 2015, Kwushue owned and operated KD Metro Tropical Market, a convenience store in Atlanta, Georgia, where he unlawfully exchanged his customers’ food stamp benefits for cash at the rate of approximately 60 cents on the dollar. Stores that participate in the food stamp program are prohibited by law from exchanging cash for food stamp benefits or accepting food stamp benefits for the purchase of alcohol, tobacco, and non-food items.
During the investigation, law enforcement obtained data showing that KD Metro Tropical Market, a small convenience store, gradually raised its food stamp benefits transactions each month from approximately $1,100 in October 2010, to approximately $200,000 in June 2015. During undercover transactions where Kwushue paid agents cash in exchange for food stamp benefits, agents saw a collection of foodstuffs that could not justify the substantial sums Kwushue charged to the food stamp program each month. The scheme allegedly netted Kwushue approximately $2 million. He also allegedly handed out nearly $3 million in cash to customers.
Sentencing for Samuel Kwushue, 54, of Union City, Georgia, has not yet been scheduled.
This case is being investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation.
Assistant United States Attorney Samir Kaushal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed Career Criminal Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Terrance Tyrone Davis, 47, of Mobile, was sentenced in federal court this morning as an “armed career criminal.” As such, under a federal statute punishing gun violations, he was subject to a mandatory minimum sentence of 15 years imprisonment. To qualify under this statute, a defendant who violates the gun law must have three prior convictions for violent felonies. Court documents identified Davis’ violent felonies as Robbery Third Degree, Assault Second Degree and Sexual Abuse First Degree. Davis was indicted in federal court in July of 2015, and pled guilty to the sole charge in the indictment, felon in possession of a firearm, in September of 2015.
United States District Court Judge Callie V. S. Granade imposed a sentence slightly in excess of the mandatory minimum, 188 months, which was the low end of the advisory guideline range that applied to Davis’ case. Judge Granade also ordered that Davis serve a term of five years on supervised release when he comes out of prison. No fine was imposed, but Davis was ordered to pay $100 in special mandatory assessments.
The case was investigated by the Prichard Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorneys Gina Vann and Gloria Bedwell.
Albuquerque Women Plead Guilty to Federal Mail Theft ChargesRead the Press Release
ALBUQUERQUE – Crystal Devon Romero, 33, and Michelle Josephine Candelaria, 25, both of Albuquerque, N.M., pleaded guilty yesterday in federal court to theft of mail charges.
Romero and Candelaria were arrested on Jan. 19, 2016, on a criminal complaint charging them with theft of mail and conspiracy. The complaint alleged that the two women conspired with each other to steal mail in Jan. 2015, in Bernalillo County, N.M. Romero and Candelaria allegedly pried open cluster mailboxes and stole mail from them. A search of the truck Romero and Candelaria allegedly used to carry out their mail theft scheme uncovered stolen mail, including checks that had been altered and debit/credit cards.
During yesterday’s proceedings, Romero and Candelaria pled guilty to felony informations charging them stealing mail from Jan. 12, 2016 through Jan. 15, 2016. The guilty pleas were entered without the benefit of plea agreements.
At sentencing, Romero and Candelaria each face a maximum of five years in federal prison. Their sentencing hearings have yet to be scheduled.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei.
Albany Man Pleads Guilty to Child Pornography DistributionRead the Press Release
ALBANY, NEW YORK – Michael G. Isaacson, age 33, of Albany, pled guilty today to distributing and possessing child pornography, announced U.S. Attorney Richard S. Hartunian.
Isaacson faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life, when he is sentenced on July 6, 2016 by U.S. District Judge Gary L. Sharpe. 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. Isaacson will also be required to register as a sex offender upon his release from prison.
As part of his plea, Isaacson admitted that he distributed child pornography files over the Internet to a Colonie Police Department Investigator. He also admitted to possessing more than 1,000 image files, and more than 30 video files, depicting minors engaged in sexually explicit poses or conduct.
This case was investigated by the Colonie Police Department and the Federal Bureau of Investigation’s Albany Division, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Akron man indicted for distribution of heroin and methamphetamineRead the Press Release
A federal grand jury returned a two-count indictment charging Chesseray T. Whatley, 39, of Akron, with possession with intent to distribute heroin and methamphetamine, said Acting U.S. Attorney Carole S. Rendon.
The indictment alleges that on February 8, 2016, Whatley possessed with the intent to distribute one kilogram or more of heroin and one kilogram or more of methamphetamine.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Ohio State Highway Patrol and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Robert E. Bulford.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Agency Village Man Charged with Multiple Counts of AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Agency Village, South Dakota, man has been charged with an Information for Assault by Striking, Beating, and Wounding; Assaulting, Resisting, and Impeding a Federal Officer; and Simple Assault.
Javier Arteaga, age 38, was charged on January 22, 2016. He appeared before U.S. Magistrate Veronica L. Duffy on February 25, 2016, and pled not guilty to the Information.
The maximum penalty upon conviction is up to one year in custody and/or a $100,000 fine, one year of supervised release, and up to $60 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Information alleges that on or about July 5, 2015, Arteaga unlawfully assaulted his spouse by striking, beating, and wounding her. The Information also alleges that on or about November 4, 2015, Arteaga forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a law enforcement officer while the officer was employed by the Sisseton Wahpeton Oyate Law Enforcement. Arteaga is also alleged to have committed the offense of simple assault on his spouse on or about November 4, 2015.
The charges are merely accusations and Arteaga is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Arteaga was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
34 Defendants Charged with Conspiracy to Commit Fraud in Battle CreekRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that a federal grand jury returned an Indictment charging 34 defendants for their alleged roles in a conspiracy to defraud the IRS through the filing of false tax forms, mostly through using other people’s identification information. The charges result from a joint investigation led by the IRS, Veterans Affairs – Office of the Inspector General, U.S. Postal Inspection Service, the Bureau of Alcohol Tobacco and Firearms, Department of Homeland Security, Battle Creek Police Department, Albion Police Department, Calhoun County Sheriff’s Department, and Michigan State Police.
The Indictment alleges that the defendants utilized other individuals’ personal identification information (PII)—obtained in part from patients and employees of the Battle Creek Veterans Affairs Medical Center and from inmates of the Michigan Department of Corrections—to file false tax returns. In total, the Indictment alleges that for tax years 2007 through 2014, the co-conspirators, led by lead defendant DERRICK J. GIBSON, filed at least 4,668 federal income tax returns claiming false, fictitious, and fraudulent refunds totaling over $22 Million.
"In a modern world in which personal identification information can be acquired in various ways and misused, and where government funds are growing ever scarcer, my office will continue to lead investigations into cases where identification information was misused as a tool to commit tax fraud," said US Attorney Miles. "My office will bring to justice those willing to misuse other people’s identification information, often victimizing them, in order to steal money from the government."
Special Agent in Charge Jarod J. Koopman, IRS-Criminal Investigations, added: "The American tax system is designed to provide important services to the American people. It will not be used as the personal piggy bank for thieves and those who assist them. The allegations in this case show a blatant disregard of the law. The filing of false returns is notoriously disruptive to those whose information was misused without their knowledge and to the IRS’s mission. This indictment is the direct result of the hard work and dedication of numerous law enforcement agencies and the U.S. Attorney’s office to protect the American public and the principles of this country."
The alleged roles of the defendants are detailed in the Indictment, unsealed Monday, as part of initial court proceedings. Twenty-four of the defendants have been arrested on the charge so far. The individual named defendants, all from Battle Creek, are listed below.
- DERRICK J. GIBSON, 52
- CHARMICA GRIFFIN, 44
- STEPHANIE T. BAKER, 34
- LATIA M. WILLIAMS, 41
- ALVIN E. STEPHENSON II, 46
- SANDRIA M. BLAKLEY, 34
- EDWARD WARDEN, JR., 47
- CHANEL MCCLENNEY, 35
- DARWIN GIBSON, 25
- BOBBY CRABTREE, 45
- DEQYNN GIBSON, 24
- DARRIEN GIBSON, 25
- ROCHELLE R. VELASQUEZ, 29
- SCHERRIE MCNUTT, 35
- DEVOINE GIBSON, 51
- PRENTIS H. GIBSON, 74
- LAMONT JOYNER, 25
- SHAMEIKA N. CARR-MCCLENNEY, 33
- CHARLEETA CORK, 39
- KEITH CORK, 41
- MAIYA R. JACKSON, 21
- SHAWN MCKNIGHT, 36
- DAVID HAYMER, 48
- DIALLO DOTSON, 42
- ROMELL BOLDEN, 25
- LABRISHA PORTER, 23
- KYPREE TAYLOR, 22
- ROSEMARY BOYD, 53
- PATRICIA RIDDLE-MCCLINTON, 60
- JOSEPH JEREMY JOHNSON, 29
- KISHA N. EVANS, 36
- RASHALL FORD, 47
- SIMONE WATKINS, 47 and
- ROMARO CARSWELL, 45.
Each defendant faces up to 10 years imprisonment and a fine of $250,000, if convicted.
The public is reminded that the charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
13 Defendants Sentenced for Springfield Tax Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that all 13 co-defendants have been sentenced in federal court for their roles in a fraudulent tax return preparation scheme that claimed nearly $340,000 in fraudulent income tax refunds.
Cherie Christine Dupuis, 43, of Springfield, was sentenced by U.S. District Judge Brian C. Wimes on Monday, Feb. 29, 2016, to two years and nine months in federal prison without parole. The court also ordered Dupuis to pay $272,819 in restitution.
Dupuis was among 13 defendants who were sentenced yesterday and today. Dupuis pleaded guilty to leading the fraudulent tax return preparation conspiracy and her co-defendants pleaded guilty to making false and fraudulent income tax returns.
Dupuis and her co-conspirators defrauded the government by filing false claims for income tax refunds from February 2009 to March 2012. In the false and fraudulent federal income tax returns they prepared and filed, conspirators claimed refunds from the IRS totaling approximately $340,630, of which approximately $336,839 was false. Over the course of the scheme, the total actual tax loss to the IRS was $284,169.
Conspirators recruited individuals to assist in filing fraudulent returns, and obtained their identifying information, including their names and Social Security numbers. They used that information to file federal income tax returns that included fictitious employment information and reported wages that had not been earned and employment taxes that had not been withheld. Conspirators shared employer information for the purpose of creating fictitious W-2 forms. They also shared dependent information to enable them to falsely claim dependents on their returns.
Dupuis utilized tax preparation software called Taxact.com to prepare these false federal income tax returns on her own laptop computer, public library computers and on a co-conspirator’s laptop computer. She used a co-conspirator’s mailing address on some false federal income tax returns.
Dupuis admitted that she filed fraudulent federal income tax returns in her own name and for at least 19 other individuals. Dupuis would usually split the fraudulent refunds with her co-conspirators. The total amount of the false claims Dupuis personally prepared and/or filed was approximately $298,708, with approximately $256,281 being paid on these false claims and a loss to the government of approximately $213,711.
Seven additional defendants sentenced on Monday, Feb. 29, 2016, included:
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Johnny L. Cooper, 28, of Springfield, to seven months in prison and $10,100 in restitution;
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Shawna Marie Hughey, 37, of Joplin, Mo., formerly of Springfield, to six months in prison and $22,626 in restitution;
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Delbert L. Allen, 37, of Pleasant Hope, Mo., formerly of Springfield, to five months in prison and $4,541 in restitution;
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Jeannette R. Dunn, 48, of Huntsville, Ark., formerly of Springfield, to two months in prison and $10,430 in restitution;
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Lisa Lorre DeHaven, 35, of Springfield, to time served and $19,791 in restitution;
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Asia Michelle Couchman, 26, of Oak Grove, Mo., to five years of probation and $9,456 in restitution; and
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Heather Nicole Drennen, 32, of Cameron, Mo., formerly of Springfield, to five years of probation and $5,203 in restitution.
Five additional defendants sentenced today included:
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Travis L. Ashmead, 30, of Springfield, to 10 months in prison and $9,906 in restitution;
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Amanda Leigh Boyd, 34, of Springfield, to six months in prison and $29,409 in restitution;
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William J. Coonce, 29, of Otterville, Mo.; to four months in prison and $15,750 in restitution;
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Claudia Dorsey, 34, of Springfield, to five years of probation and $27,791 in restitution; and
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Jeannie Marie Rhodes, 34, of Springfield, to five years of probation and $6,881 in restitution.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
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