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15 April 2016
Four Charged with Distributing Heroin in DubuqueRead the Press Release
Four men have been charged with distributing heroin in Dubuque in 2016. The charges are contained in four Complaints unsealed yesterday in United States District Court in Cedar Rapids.
The Complaints allege distributions of heroin on the following dates by the following individuals:
Derrick Jermaine Brown on February 1, 2016;
Tywone Derrel Matthews on March 29, 2016;
Antrell D. Lewis on March 31, 2016; and
D’Anthony Lamont Moore on April 11, 2016.
If convicted, each man faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime term of supervised release following any imprisonment.
All four men appeared Thursday in federal court in Cedar Rapids and were held without bond. Their next appearances for detention hearings are set for 4:30 p.m. on Monday, April 18, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Dubuque Drug Task Force and Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are:
Derrick Brown – 16-MJ-102
Tywone Matthews – 16-MJ-104
Antrell Lewis – 16-MJ-106
D’Anthony Moore – 16-MJ-107.
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Former U.S. Postal Service Employee Sentenced to Probation for Conviction on Destruction of Mail Misdemeanor ChargeRead the Press Release
ALBUQUERQUE – Phillip Duran, 33, of Las Vegas, N.M., pleaded guilty yesterday in federal court to an opening and destruction of mail misdemeanor charge. After entering his guilty plea, Duran was sentenced to one year of probation and ordered to pay an $800 fine.
Duran was charged in a misdemeanor information on March 16, 2016, with unlawfully opening mail not directed to him while employed as a U.S. Postal Service officer. According to the information, Duran committed the crime between Nov. 19, 2015 and Jan. 7, 2016, in San Miguel County, N.M.
During yesterday’s hearing, Duran pled guilty to the information and admitted that from Nov. 19, 2015 through Jan. 7, 2016, he intentionally opened other people’s mail when he was not supposed to do so.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Eva M. Fontanez.
Former U.S. Coast Guard Serviceman Sentenced to 235 Months in Prison for Production of Child PornographyRead the Press Release
A former United States Coast Guard serviceman was sentenced on Tuesday, April 12, 2016, to 235 months in prison by United States District Judge Jose E. Martinez for producing child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Rear Admiral Scott Buschman, United States Coast Guard Seventh District, and Thomas E. Robarge, Special Agent in Charge, United States Coast Guard Investigative Service (CGIS) Southeast Region, made the announcement.
Drew Alexander Young, 24, of Key West, previously pled guilty to one count of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e). After his release from According to court documents and information disclosed during the court proceedings, CGIS investigators executed a military search authorization and searched Young’s Samsung Galaxy S5 cellular telephone as part of a sexual harassment investigation. Investigators found over twenty video files containing suspected child pornography in Young’s phone. Investigators also discovered a number of sexually explicit Kik Messenger chats between the defendant and girls as young as thirteen-years-old. Kik Messenger is a web-based instant messaging application. During their review of the Kik Messenger chats, investigators discovered chats in which Young repeatedly solicited and received sexually explicit pictures of the minor girls.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of CGIS. This case was prosecuted by Assistant United States Attorney Christopher B. Browne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former U.S. Army Sergeant Sentenced to Federal PrisonRead the Press Release
In El Paso today, 46–year-old former U.S. Army Sergeant 1st Class Michael Hall, Jr., was sentenced to four years in federal prison for possession of child pornography announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso.
In addition to the prison term, United States District Judge Kathleen Cardone ordered that Hall be placed on supervised release for a period of five years after completing his prison term and to register as a sex offender.
On June 3, 2015, HSI Cyber Crimes Unit agents and El Paso County Sheriff’s deputies executed a federal search warrant at the defendant’s residence and seized various items including two laptop computers and various electronic media. A forensic analysis of the seized items revealed the presence of 23,050 images and 22 videos which depict minors engaged in sexually explicit conduct.
On January 20, 2016, Hall pleaded guilty to one count of possession of child pornography.
This case was investigated by HSI with assistance from the El Paso County Sheriff’s Office. Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.
Former U.S. Army Corps of Engineers Employee Sentenced to 30 Years in Prison for Transportation and Possession of Child PornographyRead the Press Release
HARRISONBURG – A former regional chief of public affairs for the U.S. Army Corps of Engineers was sentenced to 30 years in prison yesterday in the United States District Court for the Western District of Virginia in Harrisonburg for charges involving the sexual exploitation of children, announced United States Attorney John P. Fishwick Jr.
On Oct. 6, 2015, Michael Steven Beeman, 62, of Winchester, Virginia, pleaded guilty to one count of transportation of child pornography and four counts of possession of child pornography. U.S. District Court Judge Michael F. Urbanski of the Western District of Virginia sentenced Beeman and also ordered him to serve a lifetime term of supervised release.
According to documents filed with the plea agreement, in and around the late 1980s, Beeman was a U.S. Air Force employee in a public affairs position at Patrick Air Force Base in Florida and during that time, engaged in sexual acts with a minor on multiple occasions and sometimes recorded the abuse. In 2014, Beeman’s dog walker discovered images of naked minors on one of Beeman’s devices and called the Frederick County, Virginia, Sheriff’s Office, according to the plea document. Beeman further admitted that, in January 2014, he had more than 50 items, including VHS tapes, DVDs, desktop and laptop computers, tablets, external hard drives and thumb drives, at his home that contained thousands of images of child sexual exploitation.
At sentencing, Judge Urbanski found that Beeman sexually abused two minors on multiple occasions and later downloaded images of similar victimization of other children for his own interests.
The Page County, Virginia, Sheriff’s Office; the Northern Virginia/Washington, D.C., Internet Crimes Against Children Task Force and Evidence Recovery Section; the Frederick County Sheriff’s Office; the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Virginia Attorney General’s Office’s Computer Evidence Recovery Section; the Virginia State Police’s High Tech Crimes-Computer Recovery Section; the Air Force Office of Special Investigations; the U.S. Army Corps of Engineers – Middle East District; and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) High Tech Investigative Unit investigated the case. CEOS Trial Attorney Herbrina D. Sanders and Assistant U.S. Attorney Nancy S. Healey of the Western District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Richmond Man Pleads Guilty to Bank FraudRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Howard Hoffman, 53, formerly of Richmond, Maine, pled guilty today in U.S. District Court to bank fraud.
According to court records, in March 2007, Hoffman’s childhood friend died while abroad. Over a year later, Hoffman used his deceased friend’s personal identifying information to gain access to the friend’s bank account and change the address on the account to his residence in Richmond. Over the next few weeks, Hoffman caused two checks, totaling about $80,000, to be issued from his friend’s account. Hoffman deposited the checks into a bank account of a company he controlled. Hoffman did not have authority to access his friend’s account or cause the bank to issue the two checks.
Hoffman faces up to 30 years in prison, a $1,000,000 fine and five years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Secret Service.
Former Nurse at Wilkes-Barre Veterans Administration Medical Center Charged Federally with Reckless EndangermentRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Richard Pieri, age 59, Drums, Pennsylvania, a former registered nurse with the Wilkes-Barre Veterans Administration Medical Center, was charged with reckless endangerment in a criminal complaint filed with the U.S. District Court in Scranton.
According to United States Attorney Peter Smith, on February 4, 2016, Pieri allegedly committed a violation of Pennsylvania law by placing a patient at the medical center in danger of death or serious bodily injury when Pieri participated in a surgical procedure while under the influence of alcohol. Under the Federal Assimilated Crimes Act, violations of state law can be prosecuted in the federal system if the alleged offense takes place in areas within federal jurisdiction. The medical center is a federal facility.
The case is being investigated by the U.S. Department of Veterans Affairs Police. Prosecution is assigned to Assistant United States Attorney Todd K. Hinkley. The matter arose initially out of an investigation by the Luzerne County District Attorney’s Office.
Pieri is no longer employed at the medical center.
Criminal complaints, like 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 the offense under federal law is 2 years, a term of supervised release following imprisonment, and a $5,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Law Firm IT Engineer Convicted in Computer Intrusion Case is Sentenced to 115 Months in Federal PrisonRead the Press Release
DALLAS — A former Information Technology (IT) engineer for a Dallas-headquartered law firm, who was convicted at trial in September 2015 on felony offenses stemming from his unauthorized access to the firm’s computer network, has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
Anastasio N. Laoutaris, 41, of Spring, Texas, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 115 months in federal prison and ordered to pay $1,697,000 in restitution. The jury convicted Laoutaris on two counts of knowingly accessing a computer network without authorization and intentionally issuing commands and codes that caused damage to the network. Laoutaris was remanded into federal custody following that verdict.
Laoutaris, who was an IT engineer for Locke Lord LLP from 2006 to August 2011, accessed the firm’s computer network without authorization on December 1, 2011, and December 5, 2011, and on both occasions, issued instructions and commands that caused significant damage to the network, including deleting or disabling hundreds of user accounts, desktop and laptop accounts, and user e-mail accounts
The law firm, Locke Lord LLP, has offices throughout the U.S. and the world; its headquarters is located in Dallas. The U.S. Attorney’s Office wishes to thank them for their support and cooperation throughout the investigation and prosecution.
The U.S. Secret Service investigated the case. Assistant U.S. Attorneys Paul Yanowitch and Nick Bunch prosecuted.
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Former Guard Sentenced for Having Sex with InmateRead the Press Release
HOUSTON – A former guard at the federal prison camp in Bryan will now be on the other side of prison bars following his conviction on one count of sexual abuse of a ward, announced U.S. Attorney Kenneth Magidson. Marshall Thomas, 35, of College Station, pleaded guilty to the charges Jan. 7, 2016.
Today, U.S. District Judge Gray Miller handed Thomas a 18-month sentence to be immediately followed by 10 years of supervised release. He must also register as a sex offender.
Thomas was charged with engaging in a sexual relationship in July 2014 with two different inmates while he was employed as a correctional officer.
Beginning in March 2014, Thomas began supervising a female inmate at federal prison camp. Soon after, he began making inappropriate comments to her and began to hug, kiss and touch her inappropriately whenever they would be alone. On or about July 19, 2014, Thomas directed her to go into the back of the dry storage room behind several boxes. At that time, Thomas began to kiss her, unzipped his pants and pulled down her pants. She resisted his efforts to have intercourse, but he did it anyway.
Thomas told her that if she reported any of the inappropriate conduct he would “flag” her and that “it was his career and her good time.”
Previously released on bond, Thomas 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 are the result of an investigation conducted by the Department of Justice - Office of the Inspector General. Assistant United States Attorneys Ruben R. Perez and Jill Stotts are prosecuting the case.
Federal Prosecutions Serve as Reminder to Comply with Tax Obligations as Filing Deadline ApproachesRead the Press Release
CHICAGO — Federal authorities today announced criminal charges against four Chicago-area residents for a variety of alleged income tax frauds. With tax season in full swing, the prosecutions serve as a warning to avoid dishonest tax-return preparers, and to remind taxpayers that each individual is responsible for the contents of his or her own return.
Two Chicago-area tax preparers were charged with assisting clients in obtaining hundreds of thousands of dollars in fraudulent refunds. The preparers fraudulently reduced their clients’ tax liabilities by misrepresenting their eligibility to claim tax credits, such as dependent exemptions, education and child credits.
In addition, two individuals were indicted for filing hundreds of fraudulent income tax returns that claimed refunds totaling more than $2.1 million. The fraudulent returns were filed electronically with the Internal Revenue Service.
“Tax preparers and individuals who willfully file false returns will be held accountable,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “Although tax prosecutions occur throughout the year, it is especially important with Tax Day looming to remind the public of the importance of proper compliance with their tax obligations.”
“IRS Criminal Investigation is committed to ensuring that honest taxpayers are not cheated and that all taxpayers pay their fair share,” said James D. Robnett, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “With the filing deadline approaching, individuals who might be thinking about cheating should think twice or they will risk the consequences.”
According to statistics available from the Treasury Inspector General for Tax Administration, U.S. taxpayers filed approximately 150 million returns in 2014. The IRS found that more than 2.1 million of those returns claimed fraudulent refunds totaling more than $15.7 billion.
In addition to criminal penalties, including incarceration, fines and the costs of prosecution, convicted defendants remain responsible for all taxes and interest due, as well as civil penalties, U.S. Attorney Fardon noted. Individuals making false claims against the government may be required to pay restitution and could be sued civilly for an amount greater than the fraudulent claims, he added.
In one of the prosecutions announced today, TAMITHA BROWN, 50, of Bolingbrook, was charged with preparing and filing false and fraudulent income tax returns. Brown, a tax preparer who owned Bolingbrook-based E&T Tax Services Inc., filed the returns for the years 2008 through 2012, resulting in tax losses of approximately $189,856, according to the indictment. The government in Brown’s case is represented by Assistant U.S. Attorneys Jeannice Appenteng and Cornelius Vandenberg.
Another tax preparer, BARBARA GARRETT, who co-owned Chicago-based Preferred Financial, was charged with filing seven individual income tax returns that she knew contained false and fraudulent information. Garrett, 45, of Chicago, filed the returns on behalf of various taxpayers for the tax year 2009. The false information included invalid business losses and education credits, according to the indictment. The government in Garrett’s case is represented by Assistant U.S. Attorney Sean Driscoll.
Two individuals, TANYEA MACK and KATRINA WALLS, were charged with filing hundreds of fraudulent individual income tax returns. Mack, 40, of Waukegan, filed approximately 232 false returns in the names of various individuals, claiming refunds totaling more than $1.15 million, according to the indictment. Walls, 41, of Chicago, filed approximately 177 false returns in the names of various individuals, claiming refunds totaling $983,798, according to the indictment. Assistant U.S. Attorney Derek Owens represents the government in the Mack and Walls cases.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
For tips and guidelines to assist taxpayers in choosing a reputable tax professional and for preparing their own taxes, visit the official IRS website by logging on to: https://www.irs.gov/uac/Choose-Your-Tax-Preparer-Wisely.
Farmington Man Pleads Guilty to Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – Allen Goosen, 30, of Farmington, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to heroin trafficking charges. The guilty plea was entered without the benefit of a plea agreement.
Goosen was arrested in Feb. 2016, on a criminal complaint charging him with trafficking heroin in San Juan County, N.M. According to the complaint, Goosen sold approximately 6.03 grams of heroin to an undercover agent on Dec. 17, 2014. The complaint further alleges that on Jan. 5, 2015, Goosen was in possession of 5.95 grams of heroin packaged in six-single gram packages when he was arrested on a felony arrest warrant.
Goosen was subsequently indicted on March 8, 2016, and charged with distribution of heroin on Dec. 17, 2014, and possession of heroin with intent to distribute on Jan. 5, 2015. The indictment included forfeiture allegations requiring Goosen to forfeit at least $600 to the United States.
During today’s proceedings, Goosen pled guilty to both counts of the indictment. At sentencing, Goosen faces a maximum statutory penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
The case was investigated by the Albuquerque office of Homeland Security Investigations and the HIDTA Region II Task Force. The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the High Intensity Drug Trafficking Area (HIDTA) program that was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
The case is being prosecuted by Assistant U.S. Attorney Alexander M. Uballez as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Fabens, TX Man Sentenced to Federal Prison for Receipt and Distribution of Child PornographyRead the Press Release
In El Paso today, 34-year-old Corey Gosnell was sentenced to seven years in federal prison for receipt and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso.
In addition to the prison term, United States District Judge Kathleen Cardone ordered that Gosnell be placed on supervised release for a period of ten years after completing his prison term and to register as a sex offender.
On January 19, 2016, Gosnell pleaded guilty to one count of receipt and distribution of child pornography. By pleading guilty, Gosnell admitted he downloaded child pornography to his computer and made it available to others. According to court documents, HSI agents executed a search warrant at the defendant’s residence on May 19, 2015, based on information obtained from the New Mexico Attorney General’s Office. A subsequent forensics examination of the defendant’s computer and related media revealed the presence of 239 images and 52 videos depicting child pornography.
Assistant United States Attorney Rifian Newaz prosecuted this case on behalf of the Government.
Dominican National Sentenced to Time Served for Making A False Claim to U.S. CitizenshipRead the Press Release
CONCORD, N.H. – Pedro Julio Alcantar-Bernabel a/k/a Francis Villar de la Santos, a citizen of the Dominican Republic who pleaded guilty to one count of Social Security Number Misuse and one count of Making a False Claim to United States Citizenship on January 7, 2016, was sentenced to time served, announced United States Attorney Emily Gray Rice. Alcantar-Bernabel has been in custody since his arrest on July 1, 2015.
Alcantar-Bernabel applied for a driver’s license at the Department of Motor Vehicles in Manchester, New Hampshire on July 1, 2015, using another person’s name, date of birth, and Social Security number. He also indicated on the application that he was a United States citizen. When Alcantar-Bernabel produced an altered Social Security card as a means of identification, the New Hampshire State Police were called to investigate. Upon further investigation, it was discovered that Alcantar-Bernabel was encountered by the United States Coast Guard in August 2000 off the coast of Puerto Rico. At that time, he admitted that he was a citizen of the Dominican Republic and was given a voluntary return to that country. Fingerprint analysis confirmed that the individual claiming United States citizenship on the New Hampshire driver’s license application was the same individual who was returned to the Dominican Republic in 2000.
Alcantar-Bernabel was sentenced by United States District Court Judge Paul J. Barbadoro. He will face deportation upon his release from custody.
The case was investigated by the United States Department of Homeland Security Immigration and Customs Enforcement, and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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Defendants Guilty of BP Fund Fraud ClaimsRead the Press Release
Father and daughter, who filed fraudulent claims against the Gulf Coast Claims Facility for lost income purportedly suffered as a result of the oil spill, pled guilty to mail fraud, in violation of Title 18, United States Code, Sections 1341and 2.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
On April 11, 2016, Caridad Rioseco Alejandrez, 50, of Key West, Florida, pled guilty for her involvement in the filing of a false claim in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico in April 2010. Alejandrez faces a possible term of imprisonment of up to twenty years on the mail fraud charge, a criminal fine of up to $250,000 or twice the intended gain or loss caused by the relevant conduct, and a period of supervised release of up to five years. Additionally, Alejandrez may be ordered to make restitution to the identifiable victims of her crime. Alejandrez is scheduled to be sentenced before United States District Court Judge Jose E. Martinez on July 11, 2016, at 1:30 p.m., in Key West.
On April 12, 2016, Raul Rioseco, 73, of Stock Island, Florida, was sentenced to one year and a day in prison, in connection with his involvement in a similar false claim. Rioseco was also ordered to serve six months of house arrest and at three year term of supervised release, upon his release. Rioseco was further ordered to make restitution payments to the Deepwater Horizon Fund, the successor to the GCCF, in the amount of $144,606.57, which represented the money he unlawfully received from the GCCF and the amounts received by certain other individuals based on fraudulent documents Rioseco provided in support of other fraudulent claims. Additionally, Rioseco was ordered to surrender to the State of Florida and the federal government all his permits and licenses associated with commercial fishing activities.
According to court filings and proceedings, in June 2010, BP established the Gulf Coast Claims Facility (GCCF) for the purpose of administering and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010, explosion and fire on the Deepwater Horizon, an oil exploration rig operating in the Gulf of Mexico. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion private Trust Fund established for that purpose.
Alejandrez and her father, Rioseco, filed fraudulent claims against the fund, in their own names, which resulted in them receiving $35,900 and $55,000, respectively, from the GCCF. The scheme to defraud the GCCF was carried out through mailings and through the use of the internet, to open the claims and to provide required forms and documentation, including employment verification letters and tax return documents. Alejandrez, produced and provided the documents to the GCCF, on behalf of herself and her father. The documents were materially false and fraudulent and claimed Alejandrez and Rioseco were adversely affected by the spill and lost income in the months following the incident, when this was not in fact, the truth.
Rioseco represented himself to the GCCF to be a commercial fisherman, when in fact he was retired and had not been an active fisherman for many years. A lobster boat, licenses, and permits in his name were in fact being used by others, and Rioseco suffered no loss of income or other adverse effect from the oil spill. Additionally, Rioseco admitted that he facilitated the filing of other false claims, in addition to his own fraudulent claims, by signing and providing notarized “Crewshare Statements” for at least five other individuals attesting that he had employed and paid wages to those persons as boat crewmembers during periods relevant to the GCCF claims process. The fraudulent statements were produced to support claims for compensation which were filed by Alejandrez with the GCCF, claiming approximately $89,000 for economic losses purported to have been suffered as a result of the Deepwater Horizon incident, despite the fact that none of the individuals were crewmembers aboard the vessel or had been fishing during the relevant time period. Additionally, according to the Florida Fish & Wildlife Conservation Commission, the oil spill had little if any effect on the Key West fishing industry, with commercial landings in 2010, the year of the spill, and every year since.
Alejandrez created false income tax returns which she provided to the GCCF in support of her claim that her tax and document preparation business, located on Stock Island, lost income after the oil spill because her customers, primarily fishermen operating out of Stock Island, could no longer afford her services. To maximize her compensation, Alejandrez significantly increased her claimed income on returns for 2008 and 2009, over the income actually reflected in the tax returns filed with the Internal Revenue Service for those years. Alejandrez provided similar false documentation in the support of claims for many other individuals. A U.S. Postal Service document analyst evaluated Alejandrez’ bank records and found that contrary to the sworn statements on her claim forms, her income had increased substantially after the oil spill. The United States advised the Court that records established an actual loss, due to the fraudulent claims, of approximately $500,000, and that the amounts claimed, although not all paid, approached $1.5 million.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, the Department of Commerce, National Oceanic and Atmospheric Administration, Office of Law Enforcement, the United States Coast Guard Investigative Service, U.S. Immigration and Customs Enforcements Homeland Security Investigations and the support provided by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Thomas Watts-FitzGerald, Deputy Chief of the Economic and Environmental Crimes Section.
Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, to the National Center for Disaster Fraud (NCDF) by calling 877-NCDF-GCF (877-623-3423), sending a fax to (225) 334-4707, or emailing [email protected].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Clear Lake Felon and Drug User Sentenced to PrisonRead the Press Release
A man who accidentally shot his girlfriend was sentenced yesterday to more than five years in federal prison.
Norris O’Dell Hughes, age 30, from Clear Lake, Iowa, received the prison term after a December 2, 2015, guilty plea to possession of a firearm by a felon. He was also an illegal user of controlled substances.
The evidence showed that on February 24, 2015, Hughes accidentally shot his girlfriend at a residence in Forest City, Iowa. After being alerted to the shooting by a neighbor, officers stopped a vehicle occupied by Hughes and his girlfriend. Officers observed Hughes’ girlfriend had a gunshot wound to the leg. Officers recovered Hughes’ loaded handgun from the vehicle, which was determined to be stolen. Hughes was prohibited from possessing a firearm because he had a prior felony conviction for burglary and was an illegal user of marijuana and meth.
Hughes was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hughes was sentenced to 70 months imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Hughes is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Hancock County Sheriff’s Office, and the Bureau of Alcohol, Tobacco and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-3037.
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Clarksburg woman sentenced for heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brittany Hurst, 25, of Clarksburg, was sentenced today to 30 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Hurst was discovered in possession of heroin in late 2014 in Harrison County, West Virginia. She pled guilty in February 2015 to one count of “Possession with Intent to Distribute Heroin – Aiding and Abetting.”
Assistant U.S. Attorneys Stephen Warner and Andrew Cogar along with former Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Irene M. Keeley presided.
Citizen of China Pleads Guilty to Trafficking in Counterfeit Computer ChipsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that Daofu Zhang, 40, of Shenzen, China, pleaded guilty today in New Haven federal court to conspiring to sell counterfeits of sophisticated integrated circuits to a purchaser in the United States.
According to court documents and statements made in court, Zhang and his two co-conspirators each operated businesses in China that bought and sold electronic components, including integrated circuits (“ICs”). In the summer of 2015, Zhang’s co-conspirator, Xianfeng Zuo asked the other co-conspirator, Jiang Yan, to locate and purchase several advanced ICs made by Xilinx Corp., which had military applications, including radiation tolerance for uses in space. Yan then asked a U.S. individual to locate the Xilinx ICs and sell them to Yan. The U.S. individual explained that the ICs cannot be shipped outside the U.S. without an export license, but Yan still wished to make the purchase. When the U.S. individual expressed concern that the desired ICs would have to be stolen from military inventory, Yan proposed to supply the U.S. source with “fake” ICs that “look the same,” to replace the ones to be stolen from the military. In November 2015, Zhang shipped from China to the U.S. individual, two packages containing a total of eight counterfeit ICs, each bearing a counterfeit Xilinx brand label. After further discussions between Yan and the U.S. individual, Yan, Zhang, and Zuo flew together from China to the U.S. in early December 2015 to complete the Xilinx ICs purchase. On December 10, 2015, the three conspirators drove to a location near Route 95 in Milford, Connecticut, where they planned to meet the U.S. individual, make payment, and take custody of the Xilinx ICs. Federal agents arrested all three at the meeting location. Zhang pleaded guilty to one count of conspiracy to traffic in counterfeit goods. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on July 8, 2016, at which time he faces a maximum term of imprisonment of 10 years and a fine of up to $2 million fine. On March 7, 2016, Yan, 33, pleaded guilty to one count of conspiracy to traffic in counterfeit goods, and one count of attempt to export integrated circuits without the required export license. On March 16, 2016, Zuo, 38, pleaded guilty to one count of conspiracy to traffic in counterfeit goods. They await sentencing. This matter is being investigated by the Defense Criminal Investigative Service, the Department of Homeland Security, the Department of Commerce, the Federal Bureau of Investigation, and the Air Force Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel and U.S. Department of Justice Counterintelligence and Export Control Section Trial Attorney Casey Arrowood.Catskill Man Receives 57 Months in Prison for Benefits FraudRead the Press Release
ALBANY, NEW YORK – John W. Caltabiano, Jr., age 49, of Catskill, New York, was sentenced today to serve 57 months in prison after a jury found him guilty in October of fraudulently obtaining federal and state disability benefits. He was immediately taken into custody.
The announcement was made by United States Attorney Richard S. Hartunian and Edward J. Ryan, Special Agent in Charge for the Social Security Administration ("SSA") Office of the Inspector General.
On October 16, 2015, following a two-week trial, a jury found Caltabiano and co-defendant Colleen McCarten guilty of conspiracy to commit mail fraud, five counts of mail fraud, and theft of government property. Between April 2008 and October 2010, Caltabiano and McCarten conspired to steal Social Security Disability and Workers’ Compensation benefits by falsely representing to the SSA, the New York State Workers’ Compensation Board, and Travelers Insurance that an on-the-job injury had left him almost completely blind. In reality, as demonstrated in videos taken during the investigation and presented at trial, he was able to drive, shop, go to the gym, and otherwise move about without the assistance that a blind person would need.
At the sentencing, Judge D’Agostino said, "And had he not been caught, I have no doubt that Mr. Caltabiano would still have someone leading him into any proceedings or any hearings as though he couldn’t see a darn thing when we all know that he was seeing well enough to carry out his ordinary activities, to drive, to go to convenience stores, all of that."
U.S. Attorney Richard S. Hartunian stated: "If Caltabiano had not been stopped, he would have been able to steal more than one-half a million dollars based on his life expectancy. His sentence reflects the magnitude of his fraud and sends a message that those who steal benefits face significant prison sentences. My office will continue to prosecute benefits fraud aggressively so that that taxpayer-funded government benefits go to people who truly need them."
Edward J. Ryan, Special Agent in Charge for the SSA Office of the Inspector General, stated: "As guardians of the public trust we vigorously pursue incidents of fraud against SSA programs. We continue to investigate allegations of fraudulent disability claims to combat fraud in federal and state government sponsored disability programs. Our successful criminal prosecutions protect the SSA trust funds for those who truly deserve disability benefits. Our office greatly appreciates the continued support and the priority given to these cases by the United States Attorney’s Office for the Northern District of New York."
United States District Judge Mae A. D’Agostino also sentenced Caltabiano to serve 3 years of post-imprisonment supervised release, and to pay $27,784 in restitution to the SSA. At today’s sentencing hearing, Judge D’Agostino described his criminal history as "extremely disturbing." She referred to Caltabiano’s many prior convictions, four of which involved his sexual assault or attempted abduction of teenage girls.
McCarten’s sentencing is scheduled for April 20, 2016 in Albany before Judge D’Agostino.
This case was investigated by the Social Security Administration, Office of the Inspector General, and the Office of the New York State Workers’ Compensation Fraud Inspector General, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Coffman and Special Assistant U.S. Attorney Jason W. White.
Banker Shaun Hayes and Real Estate Developer Michael Litz Indicted on Bank Fraud ChargesRead the Press Release
St. Louis, MO – Shaun Hayes and Michael Litz were indicted on bank fraud charges relating to Excel Bank, which was closed by regulators in 2012.
The indictment was returned Wednesday by a federal grand jury in St. Louis. Hayes, from Frontenac, was arrested late Thursday. Litz, from Ladue, is expected to turn himself in early next week.
Hayes had ownership in and other associations with a number of banks in the St. Louis area. Litz was an owner of major real estate businesses in the area, Eighteen Investments and Bellington Realty. According to the indictment, Eighteen Investments was facing serious financial difficulties in 2009. At that time Hayes was the majority shareholder of the holding company through which Excel Bank operated. Through his efforts, Excel Bank opened up a loan production office in Clayton which Hayes controlled. (Excel Bank had its main office in Sedalia, Missouri, and principally served the western Missouri area.) Hayes and Litz were also co-owners of McKnight Man I LLC, through which they were attempting to develop property at the intersection of Manchester and McKnight Roads in St. Louis County.
Both Eighteen Investments and the McKnight Man entity were delinquent on loans at Centrue Bank, which, in June 2009, sued Eighteen Investments and Litz. Centrue Bank also threatened to sue Hayes and Litz as guarantors on a delinquent McKnight Man loan. These loans totaled over $4 million. The indictment charges a scheme in which Hayes used his status as an insider at Excel Bank to cause Excel Bank to buy the pool of delinquent Eighteen Investments loans at a discount, but hid that purchase from the bank’s board of directors. According to the indictment, Hayes and Litz then caused Excel Bank to issue a loan of approximately $3.3 million to a straw party only identified as LS. According to the indictment, some $2.4 million of the loan proceeds were used to pay Centrue Bank for the pool of Eighteen Investments loans purchased by Excel Bank, and $906,000 of the loan proceeds were used to pay off the McKnight Man loan at Centrue Bank, thereby relieving Hayes and Litz of that liability. According to the indictment, the purpose of the loan to LS was to benefit Eighteen Investments, Hayes and Litz, but the loan was set up in the name of a straw party to conceal that from bank officials, as well as federal and state bank regulators.
The indictment charges that federal bank regulators later adversely classified the loans to LS and other straw parties as substandard. The indictment refers to these as "friends of Shaun" loans, which were pushed through the bank due to Hayes’ influence and without adequate underwriting safeguards for the bank. These loans were, in effect, additional loans to Eighteen Investments which was already delinquent on loan payments and real estate taxes on many properties securing the loans. According to the indictment, these loans far exceeded the lending limit allowable by regulators for loans by Excel Bank to Eighteen Investments and the use of straw parties was designed to conceal that fact.
According to the indictment the use of $906,000 of the LS loan proceeds to pay the McKnight Man loan at Centrue Bank constituted a misapplication of Excel Bank funds and unlawful self-dealing by Hayes, an insider who exercised substantial control over the loan transactions at Excel Bank’s loan production office in Clayton. The Excel Bank records relating to the payment on behalf of McKnight Man made no reference to McKnight Man or any liability of McKnight Man to Excel Bank. As a result, there was no loan to McKnight Man shown on the Excel Bank books and, accordingly, Hayes and Litz made no payments to Excel Bank for McKnight Man.
"The abuse of public funds by trusted banking officials is a serious crime which the FBI will diligently investigate with our law enforcement partners to bring justice for American taxpayers," said Steve D’Antuono, Acting Special Agent in Charge of the FBI St. Louis Division.
“Insider deals regarding pools of mortgage loans place risk on the housing/mortgage industry and the economy. This indictment is proof that matters involving insider deals and fraud concerning mortgage loans are being dealt with seriously,” stated Barry McLaughlin, Special Agent in Charge, Office of Inspector General, Federal Housing Finance Agency Mid-Western Region.
“Excel Bank lost millions of dollars from Hayes’ alleged crimes, did not repay the taxpayers’ $4 million TARP investment in the bank and did not make 11 dividend payments to Treasury, which lost nearly $5 million when the bank failed," said Special Inspector General Christy Goldsmith Romero of the Troubled Asset Relief Program (SIGTARP). "SIGTARP stands united with our law enforcement partners to bring justice to bank officials and their associates who commit bank fraud."
Hayes and Litz were indicted on one count of bank fraud and one count of misapplication of Excel Bank funds. Hayes was also indicted on the charge of causing false entries to be made in the Excel Bank records relating to the LS loan. Each count carries a maximum penalty of up to 30 years in prison and fines up to $1 million. In determining an actual sentence a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by Special Agents from the Federal Bureau of Investigation, the Federal Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program. Assistant United States Attorneys James E. Crowe, Jr., Reginald L. Harris and Gilbert C. Sison are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Baldwin Man Admits to Taking Sexually Explicit Photos of His Friends’ ChildrenRead the Press Release
Baltimore, Maryland – Raymond Mykale Goodridge, age 21, of Baldwin, Maryland, pleaded guilty late yesterday to producing child pornography in connection with images and videos he made of a four year old boy and a 13 year old boy engaged in sexually explicit conduct.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Harford County Sheriff Jeffrey R. Gahler; Chief James W. Johnson of the Baltimore County Police Department; Harford County State’s Attorney Joseph I. Cassilly; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Goodridge was friends with the mother of a toddler. Goodridge spent time alone with the boy, spending the night at the boy’s home in Dundalk, Maryland. The boy also spent the night at Goodridge’s home. In May 2014, when Goodridge was alone with the boy at the boy’s house, Goodridge used his cell phone to produce four photos which depict the boy, who was then four years old, partially naked. The photos focused on the boy’s genitals.
Goodridge was also friends with the mother of a 13 year old boy, who lived in Harford County. Goodridge and the 13 year old boy spent time together alone. In May 2014, Goodridge used a camera phone to surreptitiously take a video of the boy, intending to capture images of the boy engaging in sexually explicit conduct. The video captured the boy changing clothes and in various states of undress, included fully naked, and his genitals.
In February 2015, law enforcement seized digital devices belonging to Goodridge from his former residence, including a laptop and hard drive, which contained more than 600 images and videos of minors engaged in sexually explicit conduct. Numerous files portrayed prepubescent children engaged in sex acts with adults. The hard drive also contained the images and videos Goodridge produced of the two boys.
As part of his plea agreement, Goodridge must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Goodridge and the government have agreed that if the Court accepts the plea agreement, Goodridge will be sentenced to 210 months in prison followed by 25 years of supervised release. U.S. District Judge Marvin J. Garbis has scheduled sentencing for June 23, 2016 at 9:00 a.m. Goodridge is in federal custody.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Harford County Sheriff’s Office, Baltimore County Police Department, and the Harford County and Baltimore County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Attorney General Loretta E. Lynch Announces Renata B. Hesse to Serve as Head of Antitrust DivisionRead the Press Release
Attorney General Loretta E. Lynch announced today that Principal Deputy Assistant Attorney General Renata B. Hesse of the Antitrust Division will assume leadership of the Division.
Hesse succeeds Bill Baer, who became the Acting Associate Attorney General.
“Renata Hesse is an outstanding leader, a determined advocate, and a faithful servant of the law,” said Attorney General Lynch. “Through her long record of public service, Renata has developed a wide-ranging and comprehensive expertise in antitrust and intellectual property law that makes her exceptionally qualified for her new position. She has played a key role in some of the most challenging antitrust cases brought by the department in the last 15 years. And she has distinguished herself at every turn through her tireless work ethic, her keen intelligence, and her steadfast commitment to doing justice. I am confident that, under her guidance, the Antitrust Division will continue to excel in its work to ensure free and fair markets and to protect American consumers.”
Before her selection to run the Antitrust Division, Hesse served as the Deputy Assistant Attorney General for Criminal and Civil Operations in the division for almost four years. During this time, she also served as the division’s Acting Assistant Attorney General immediately prior to Baer’s confirmation. Hesse was a career trial attorney in the division between 1997 and 2006, in the last four years of which she served as the Chief of the Networks and Technology Section.
Hesse has also served as a senior counsel to the Chairman of the Federal Communications Commission, where she was responsible for overseeing the FCC’s review of AT&T’s proposed acquisition of T-Mobile, and was a partner at Wilson Sonsini Goodrich & Rosati.
Hesse received her J.D. from the University of California, Berkeley School of Law and her B.A. from Wellesley College.
“I am deeply honored to have been chosen to lead the hardworking men and women of the Antitrust Division,” Hesse said. “For over three years, Bill provided the division with exceptional leadership and sharp judgment and it has been a privilege to work with him. During Bill’s tenure, the division achieved outstanding results in both its criminal and civil enforcement programs. We intend to continue to vigorously enforce the nation’s antitrust laws on behalf of American consumers.”
Alien Charged with Illegal Possession of Firearm and False Identity DocumentsRead the Press Release
SYRACUSE, NEW YORK – Chanel Garcia-Enrique, 36, of Utica, New York, was indicted on four federal criminal violations: (1) felon in possession of a firearm and ammunition; (2) alien in possession of a firearm and ammunition; (3) making false statements; and (4) possession of false identification documents, announced United States Attorney Richard S. Hartunian. The charges involving firearms and ammunition filed against Garcia-Enrique carry a maximum sentence of 10 years in prison and a term of supervised release of up to 3 years following release from incarceration The defendant faces up to fifteen years for the charge of possessing false identification documents and five years for making false statements. Fines of up to $250,000 could be levied on each charge. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. The charges in the indictment are merely accusations and the defendant is presumed innocent until proven guilty.
A federal criminal complaint alleged that Garcia-Enrique was arrested on April 5, 2016 in Utica, New York after the execution of a search warrant at his residence by members of the Drug Enforcement Administration’s Syracuse Task Force and the Oneida County Drug Task Force. According to the complaint, Garcia-Enrique was found in his bedroom with a loaded 20 gauge shotgun.
The criminal complaint alleged that Garcia-Enrique is a citizen of the Dominican Republic who illegally entered the United States in 1996 and lived under an alias since that time. The complaint further alleges that using the alias, Garcia-Enrique was arrested on October 23, 1998 in Oneida County, New York and thereafter convicted and sentenced for criminal sale of a controlled substance in the 5th degree – all while under the alias.
Garcia-Enrique was arrested on the federal criminal complaint and made his initial appearance on April 6, 2016 in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter. After holding a detention hearing on April 8, 2016, Judge Baxter ordered the defendant held without bail.
This case is being investigated by the DEA, Oneida and Onondaga County District Attorney’s Offices, the Oneida County Drug Task Force, the U.S. Department of Homeland Security/U.S. Border Patrol, the New York State Police, Oneida and Onondaga County Sheriff’s Offices, the Rome Police Department, and the Utica Police Department. This case is being prosecuted by
Assistant U.S. Attorney Carl G. Eurenius and Oneida County Assistant District Attorney Grant Garramone.
Alaska Attorney Sentenced to Prison for Failing to File Tax ReturnsRead the Press Release
A criminal defense attorney, who operated a law practice in Anchorage, Alaska, was sentenced to 14 months in prison today following his guilty plea in June 2014 to three counts of willful failure to file income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Paul D. Stockler admitted that he failed to file federal income tax returns with the Internal Revenue Service (IRS) for the years 2006, 2008 and 2009 despite earning gross income in excess of the filing threshold. The court found that Stockler’s conduct caused a tax loss to the government of $886,058.
“This case is a reminder that no one is above the law,” said Acting Assistant Attorney General Ciraolo. “Indeed, as an attorney who has defended individuals charged with financial crimes, Mr. Stockler was particularly aware of his obligations under the tax laws and the consequences of violating them. Taxpayers who willfully disregard their legal responsibilities will be held to account.”
According to a sentencing memorandum filed by the government, Stockler still has not paid the more than $800,000 in income taxes that he owed for the years 2006, 2008 and 2009. At the same time that he failed to file his tax returns and pay the taxes due, Stockler made personal expenditures for gambling, cars, and property. The government’s filing also reveals that Stockler failed to file timely income tax returns for the years 2000 through 2004, 2007, 2010 and 2011, failed to file employment tax returns during the years 2004 through 2008 and failed to pay employment taxes to the IRS. According to documents filed with the court, Stockler also submitted a false Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to the IRS in 2009. A Form 433-A is used by the IRS to obtain financial information from a taxpayer to determine his ability to pay an outstanding tax liability. On the Form 433-A, which he signed under the penalties of perjury, Stockler failed to disclose certain retirement assets.
In addition to the prison term, Stockler was ordered to serve one year of supervised release and pay restitution to the IRS in the amount of $886,058.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Kevin F. Sweeney of the Tax Division and Assistant U.S. Attorney Katherine Wong of the Eastern District of Virginia, formerly of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
11 Seguin-Based Texas Mexican Mafia Members and Associates Indicted on Federal Drug Trafficking ChargesRead the Press Release
Today, federal, state and local authorities arrested eight individuals and are looking for three others in connection with a heroin/cocaine trafficking operation in the Seguin and New Braunfels, TX areas announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, Texas Department of Public Safety Director Steven McCraw, Seguin Police Chief Kevin Kelso and New Braunfels Police Chief Tom Wibert.
Those arrested include:
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Joey Mertz Gonzales (aka “Wheel Chair”), age 47, of Seguin;
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Jeffrey Ozell Sarabia (aka “Guero”), age 43, of Seguin;
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Eddie Flores (aka “Lil E”), age 29, of Seguin;
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Carlos Rios, age 45, of Live Oak, TX;
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David Phillip Urdiales (aka “Termite”), age 37, of New Braunfels;
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Cruz Carlos Acosta, age 36, of New Braunfels;
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Noel Arce, age 44, of Mario, TX; and,
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Mario Albert Leal, Jr. (aka “Lil Man”), age 34, of Seguin.
Authorities are still searching for: Adrian Francisco Barbosa (aka “Lil A”), age 29, of New Braunfels; John Gary Ortiz (aka “Big John”), age 30, of Seguin; and, Christopher James Davila (aka “Luck”), age 32, of Seguin.
A federal grand jury indictment, unsealed this afternoon in San Antonio, charges the defendants with conspiracy to possess with intent to distribute a controlled substance. Rios is also charged with three counts; Acosta and Arce, two counts; and, the remaining defendants with one count of possession with intent to distribute a controlled substance. The indictment alleges that the defendants are responsible for distributing heroin, cocaine and methamphetamine in the Seguin and New Braunfels areas since 2010.
During this investigation, authorities seized approximately three pounds of heroin, approximately 13 pounds of powder cocaine, one pound of “crystal” methamphetamine; one pound of marijuana; approximately $60,000 in U.S. Currency; and six firearms.
The defendants face up to 20 years in federal prison upon conviction. Those defendants arrested today remain in federal custody awaiting detention hearings in federal court next week.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the FBI together with the Seguin Police Department, New Braunfels Police Department and the Texas Department of Public Safety. If you have information as to the whereabouts of Barbosa, Ortiz and Davila, please contact the FBI at (210) 225-6741.
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14 April 2016
“Pimp” and “John” Receive Lengthy Federal Prison SentencesRead the Press Release
DALLAS — Luis Rivera, 19, of Irving, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 188 months in federal prison, following his guilty plea in October 2015 to one count of conspiracy to commit sex trafficking of children, announced U.S. Attorney John Parker of the Northern District of Texas.
Last month, Rivera’s co-defendant, Brady Rodriguez-Cruz, a/k/a Marcos Antonio Rodriguez-Mejia, 33, also of Irving, was sentenced by Judge Boyle to 293 months in federal prison. He was convicted at trial in November 2015 on one count of conspiracy to commit sex trafficking of children, and he pleaded guilty before trial to one count of possession of counterfeit documents.
In the conspiracy, Rodriguez-Cruz acted as the “john,” and Rivera acted as the “pimp.” From approximately December 23, 2014, through December 25, 2014, Rodriguez-Cruz and Rivera agreed to cause Jane Doe, a 12-year-old child, to engage in a commercial sex act.
Rivera met Jane Doe, along with three other minor females, in Irving. Shortly after he met the minor females, Rivera learned that Jane Doe was 12-years-old. Rivera and his friends, including one minor friend, took the four minor females to an empty apartment in Irving, where they stayed overnight. The minor females had no money, so they were not able to eat that day.
The next day, the group left the abandoned apartment and went to Rivera’s minor friend’s apartment, and Rivera told the four minor females that they needed to engage in commercial sex acts to earn money for food. Rivera then made several phone calls seeking potential commercial sex customers for the minor females. He planned to charge $100 for sexual intercourse with one of the minors. Rivera reached Rodriguez-Cruz and Rodriguez-Cruz agreed to come to the location to engage in a commercial sex act. Rodriguez-Cruz brought another man with him to the apartment. Rivera told the four minor females to line up so the men could select who they wanted to have sex with, and Rodriguez-Cruz selected the youngest girl, 12-year-old Jane Doe. Rodriguez-Cruz then negotiated the price for sex with a girl down to $50. Shortly thereafter, he engaged in commercial sex acts with Jane Doe, paid Rivera and his minor male friend approximately $50, and hastily left. A portion of that money was then used to buy some fast food for the minor girls.
Additionally, on August 28, 2015, when officers with the Irving Police Department executed a traffic stop on a vehicle driven by Rodriguez-Cruz, they found him in possession of an unlawfully obtained, counterfeit U.S. Permanent residence card. That card was issued in another name but bore Rodriguez-Cruz’s photograph.
The Irving Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case. Assistant U.S. Attorneys Cara Foos Pierce and John Kull prosecuted.
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Wilkes-Barre Man Sentenced to 5 Years in Prison for Possession of A Firearm in Furtherance of Heroin TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced yesterday by United States District Judge Malachy E. Mannion, in Scranton, to serve 5 years in prison for possession of a firearm in furtherance of heroin trafficking.
According to United States Attorney Peter Smith, Disean Kendricks, age 26, previously pleaded guilty to the charge of possession of a firearm in furtherance of a drug trafficking crime. Kendricks was indicted by a grand jury in June 2015.
The charges stem from an incident in which investigators served a search warrant at a residence located on Sullivan Street in Wilkes-Barre and seized 45 individual retail bags of heroin and two firearms from a bedroom in which Kendricks was sleeping.
The investigation was conducted by the Wilkes-Barre Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF).
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal state and local law enforcement agencies.
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Valdosta Dentist Indicted for Healthcare FraudRead the Press Release
On Wednesday, April 13, 2016, Dr. Stanley Marable, DDS aged 55, from Valdosta, Georgia was indicted on 12 counts of Healthcare Fraud in the Middle District of Georgia, announced Acting United States Attorney G.F. Peterman, III. The federal charges stem from dental claims submitted to Georgia’s Medicaid program with Dr. Marable receiving an alleged overpayment totaling nearly $800,000 as the result of his conduct.
This case is being prosecuted by Assistant United States Attorney Sonja B. Profit along with Assistant Attorney General Jim Mooney. The case was investigated by the Georgia Medicaid Fraud Control Unit. Members of Georgia’s Department of Community Health – Office of the Inspector General and the Georgia Department of Audits and Accounts also made substantial contributions to the investigation.
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. Dr. Marable is presumed innocent until and unless proven guilty in a court of law. If convicted, Dr. Marable faces a potential maximum penalty of 10 years’ imprisonment, a $250,000 fine, or both, on each count.
U.S. Nuclear Engineer, China General Nuclear Power Company and Energy Technology International Indicted in Nuclear Power Conspiracy against the United StatesRead the Press Release
A two-count indictment was unsealed today in the Eastern District of Tennessee charging Szuhsiung Ho, aka Allen Ho, a citizen of the United States; China General Nuclear Power Company (CGNPC), formerly known as the China Guangdong Nuclear Power Company and Energy Technology International (ETI) for conspiracy to unlawfully engage and participate in the production and development of special nuclear material outside the United States, without the required authorization from the U.S. Department of Energy. This authorization is required by U.S. law and is robustly observed through frequent legal U.S.-China civil nuclear cooperation. Ho was also charged with conspiracy to act in the United States as an agent of a foreign government.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Nancy Stallard Harr of the Eastern District of Tennessee and Executive Assistant Director Michael Steinbach of the FBI’s National Security Branch.
“Allen Ho, at the direction of a Chinese state-owned nuclear power company allegedly approached and enlisted U.S. based nuclear experts to provide integral assistance in developing and producing special nuclear material in China,” said Assistant Attorney General Carlin. “Ho did so without registering with the Department of Justice as an agent of a foreign nation or authorization from the U.S. Department of Energy. Prosecuting those who seek to evade U.S. law by attaining sensitive nuclear technology for foreign nations is a top priority for the National Security Division.”
“The prosecution of individuals who potentially endanger our U.S. citizens by violating laws enacted to ensure our national security, has been and will remain a priority for the U.S. Attorney’s Office in eastern Tennessee,” said Acting U.S. Attorney Harr.
“The arrest and indictment in this case send an important message to the U.S. nuclear community that foreign entities want the information you possess,” said Executive Assistant Director Steinbach. “The federal government has regulations in place to oversee civil nuclear cooperation, and if those authorities are circumvented, this can result in significant damage to our national security. The U.S. will use all of its law enforcement tools to stop those who try to steal U.S. nuclear technology and expertise.”
According to the indictment, Ho is a nuclear engineer employed by CGNPC as a senior advisor and is also the owner and president of ETI. Born in China, he is a naturalized U.S. citizen with dual residency in Delaware and China. CGNPC, which is owned by China’s State-Owned Assets Supervision and Administration Commission of the State Council, is the largest nuclear power company in China and specializes in the development and manufacture of nuclear reactors. ETI is a Delaware corporation headquartered in Ho’s home in Wilmington, Delaware.
According to allegations in the indictment, which was returned on April 5, 2016, beginning in 1997 and continuing through April 2016, Ho, CGNPC and ETI allegedly conspired with others to engage and participate in the development and production of special nuclear material in China, with the intent to secure an advantage to China and without specific authorization to do so from the U.S. Secretary of Energy, as required by law. In particular, the defendants allegedly sought technical assistance related to, among other things, CGNPC's Small Modular Reactor Program; CGNPC's Advanced Fuel Assembly Program; CGNPC's Fixed In-Core Detector System; and verification and validation of nuclear reactor-related computer codes.
The indictment further alleges that Ho, under the direction of CGNPC, identified, recruited and executed contracts with U.S.-based experts from the civil nuclear industry who provided technical assistance related to the development and production of special nuclear material for CGNPC in China. Ho and CGNPC also allegedly facilitated the travel to China and payments to the U.S.-based experts in exchange for their services.
The indictment further alleges that during this same period of time, Ho conspired with others to knowingly act as an agent of China without prior notification to the Attorney General, as required by law. On or about Oct. 4, 2009, Ho allegedly told experts who he was attempting to recruit that, “China has the budget to spend,” and that he needed assistance so that, “China will be able to design their Nuclear Instrumentation System independently and manufactur[e] them independently after the project is complete.” In further correspondence with nuclear experts in the United States, Ho made clear that he was charged with obtaining necessary expertise from the United States at the direction of the CGNPC and the China Nuclear Power Technology Research Institute, a subsidiary of CGNPC, and that he was to do so surreptitiously.
If convicted, the charge of conspiracy to unlawfully engage and participate in the production and development of special nuclear material outside the United States carries a maximum sentence of life in prison and a $250,000 fine. The charge of conspiring to act in the United States as an agent of a foreign government carries a maximum sentence of 10 years in prison along with fines and supervised release.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, the Tennessee Valley Authority-Office of the Inspector General, the Department of Energy-National Nuclear Security Administration and the U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from other agencies. The case is being prosecuted by Assistant U.S. Attorney Charles E. Atchley Jr. of the Eastern District of Tennessee and Trial Attorney Casey T. Arrowood of the National Security Division’s Counterintelligence and Export Control Section.
Ho Indictment
U.S. Nuclear Engineer, China General Nuclear Power Company and Energy Technology International Indicted in Nuclear Power Conspiracy Against the United StatesRead the Press Release
WASHINGTON – A two-count indictment was unsealed today in the Eastern District of Tennessee charging Szuhsiung Ho, aka Allen Ho, a citizen of the United States; China General Nuclear Power Company (CGNPC), formerly known as the China Guangdong Nuclear Power Company and Energy Technology International (ETI) for conspiracy to unlawfully engage and participate in the production and development of special nuclear material outside the United States, without the required authorization from the U.S. Department of Energy. This authorization is required by U.S. law and is robustly observed through frequent legal U.S.- China civil nuclear cooperation. Ho was also charged with conspiracy to act in the United States as an agent of a foreign government.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Nancy Stallard Harr of the Eastern District of Tennessee and Executive Assistant Director Michael Steinbach of the FBI’s National Security Branch.
Acting U.S. Attorney Harr affirmed the importance of this case by stating, “The prosecution of individuals who potentially endanger our U.S. citizens by violating laws enacted to ensure our national security, has been and will remain a priority for the U.S. Attorney’s Office in eastern Tennessee.”
“Allen Ho, at the direction of a Chinese state-owned nuclear power company allegedly approached and enlisted U.S. based nuclear experts to provide integral assistance in developing and producing special nuclear material in China,” said Assistant Attorney General Carlin. “Ho did so without registering with the Department of Justice as an agent of a foreign nation or authorization from the U.S. Department of Energy. Prosecuting those who seek to evade U.S. law by attaining sensitive nuclear technology for foreign nations is a top priority for the National Security Division.”
“The arrest and indictment in this case send an important message to the U.S. nuclear community that foreign entities want the information you possess,” said Executive Assistant Director Steinbach. “The federal government has regulations in place to oversee civil nuclear cooperation, and if those authorities are circumvented, this can result in significant damage to our national security. The U.S. will use all of its law enforcement tools to stop those who try to steal U.S. nuclear technology and expertise.”
According to the indictment, Ho is a nuclear engineer employed by CGNPC as a senior advisor and is also the owner and president of ETI. Born in China, he is a naturalized U.S. citizen with dual residency in Delaware and China. CGNPC, which is owned by China’s State-Owned Assets Supervision and Administration Commission of the State Council, is the largest nuclear power company in China and specializes in the development and manufacture of nuclear reactors. ETI is a Delaware corporation headquartered in Ho’s home in Wilmington, Delaware.
According to allegations in the indictment, which was returned on April 5, 2016, beginning in 1997 and continuing through April 2016, Ho, CGNPC and ETI allegedly conspired with others to engage and participate in the development and production of special nuclear material in China, with the intent to secure an advantage to China and without specific authorization to do so from the U.S. Secretary of Energy, as required by law. In particular, the defendants allegedly sought technical assistance related to, among other things, CGNPC's Small Modular Reactor Program; CGNPC's Advanced Fuel Assembly Program; CGNPC's Fixed In-Core Detector System; and verification and validation of nuclear reactor-related computer codes.
The indictment further alleges that Ho, under the direction of CGNPC, identified, recruited and executed contracts with U.S.-based experts from the civil nuclear industry who provided technical assistance related to the development and production of special nuclear material for CGNPC in China. Ho and CGNPC also allegedly facilitated the travel to China and payments to the U.S.-based experts in exchange for their services.
The indictment further alleges that during this same period of time, Ho conspired with others to knowingly act as an agent of China without prior notification to the Attorney General, as required by law. On or about Oct. 4, 2009, Ho allegedly told experts who he was attempting to recruit that, “China has the budget to spend,” and that he needed assistance so that, “China will be able to design their Nuclear Instrumentation System independently and manufactur[e] them independently after the project is complete.” In further correspondence with nuclear experts in the United States, Ho made clear that he was charged with obtaining necessary expertise from the United States at the direction of the CGNPC and the China Nuclear Power Technology Research Institute, a subsidiary of CGNPC, and that he was to do so surreptitiously.
If convicted, the charge of conspiracy to unlawfully engage and participate in the production and development of special nuclear material outside the United States carries a maximum sentence of life in prison and a $250,000 fine. The charge of conspiring to act in the United States as an agent of a foreign government carries a maximum sentence of 10 years in prison along with fines and supervised release.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, the Tennessee Valley Authority-Office of the Inspector General, the Department of Energy-National Nuclear Security Administration and the U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from other agencies. The case is being prosecuted by Assistant U.S. Attorney Charles E. Atchley Jr. of the Eastern District of Tennessee and Trial Attorney Casey T. Arrowood of the National Security Division’s Counterintelligence and Export Control Section.
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U.S. John Huber joining in Nationwide Department of Justice Effort to Confront Discriminatory BacklashRead the Press Release
WASHINGTON – Utah U.S. Attorney John Huber is joining other U.S. Attorneys around the country, local law enforcement, and community leaders for a series of events around the country to address backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, California. The 14 events in 11 districts will build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
From April 12 through May 6, U.S. Attorneys in Utah, California, Colorado, Connecticut, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, and Ohio will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes.
U.S. Attorney John Huber will visit the Khadeeja Islamic Center in West Valley City Friday where he will participate in Friday prayers and consultations with Center leaders. Salt Lake City Police Chief Mike Brown also made a recent visit to Utah’s largest mosque.
“I value the relationships I have with leaders of the Muslim community in Utah and particularly, my association with those at the Khadeeja Mosque. Every religious community in Utah should be free from discrimination and harassment. Open lines of communication will help us quickly identify and address any issues that may develop,” Huber said.
The Department of Justice is determined to uphold the fundamental principle that all Americans should be free from violence and protected from hatred no matter who they are, what they look like, or where they're from,” said Attorney General Loretta E. Lynch. “These events underscore our ongoing commitment to safeguard the civil rights of every American – including Muslim, Arab, Sikh and South Asian Americans, who are so often the targets of threats on the basis of their appearance or religion. There is no place for intolerance in our country. In the weeks and months ahead, the Department of Justice will continue to work with local law enforcement partners and community leaders to defend the safety and the dignity of all our people.”
During the last several months, individuals who are, or who are perceived to be, Muslim, Arab, Sikh and South Asian have been targeted for harassment and violence around the country.
A Connecticut man pleaded guilty to firing a high-powered rifle at a mosque; a Florida man pleaded guilty to threatening to firebomb two mosques and shoot their congregants; a former Missouri man pleaded guilty to violating the civil rights of others by leading a conspiracy to deface a local Islamic center with graffiti and burn two copies of the Qur’an; and a New York man was sentenced to 13 months in prison for emailing death threats to the executive director of an Islamic advocacy group.
Places of worship also face discrimination through unlawful barriers to construction in many communities around the country. In the last year, the Justice Department filed suit against Des Plaines, Illinois, over the city’s denial of rezoning to allow a Muslim congregation to use a vacant office building as a mosque. The complaint alleged that the city treated the mosque less favorably than it has treated nonreligious assemblies, discriminated against the mosque based on religion and imposed a substantial burden on the mosque members’ religious exercise without justification. The Justice Department also closed its investigation into Norwalk, Connecticut, after the city made changes to treat religious assemblies equally with nonreligious assemblies in five of its zoning districts. The department had opened an investigation of Norwalk’s zoning practices in 2012 in response to the city’s denial of a special use permit to the Al Madany Islamic Center to build a mosque on land it had bought in a residential zoning district.
Backlash against Muslim, Arab, Sikh and South Asian Americans can have a particularly harmful impact on education, employment and housing. In March, the Civil Rights Division announced that the Educational Opportunities Section launched a new enforcement initiative with the U.S. Attorneys’ Offices to strengthen our efforts to combat religious discrimination in schools and other educational settings. The new initiative, together with Justice Department’s recent work in Bakersfield, California; Lewisville, Texas; Pine Bush, New York; Dearborn Heights, Michigan; DeKalb County, Georgia; and many more cities and counties through the nation, will help ensure that schools remain free from discrimination, harassment and violence for all students.
This effort is a reflection of the Department of Justice’s long-standing commitment to working to protect Muslim, Sikh, Arab and South Asian Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Since September 11th, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S Attorneys’ offices have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
U.S. Attorney's Office Concludes Investigation into Fatal Shooting of Robbery Suspect in Southeast WashingtonRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the Metropolitan Police Department officers who were involved in the fatal shooting of Gregory Gray on Dec. 24, 2014, in a courtyard in Southeast Washington. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officers involved in the fatal shooting of Mr. Gray.
The U.S. Attorney’s Office for the District of Columbia and MPD conducted a comprehensive review of the incident, which included interviews of over a dozen law enforcement and civilian witnesses and assessing photographs, DNA, diagrams, physical evidence, recorded radio communications, the autopsy report, and other evidence.
According to the evidence, the chain of events began at about 3 p.m. on Dec. 24, 2014, when MPD received reports that two men had been robbed at the corner of 30th Street and Alabama Avenue SE. The witnesses who reported the robbery provided a detailed description of the robber.
MPD officers quickly responded to the area and spotted Mr. Gray, 33, who was walking in the 2700 block of Naylor Road SE, approximately three blocks from where the robbery occurred. Mr. Gray, who matched the description of the robbery suspect, began running when police asked him to stop. Four MPD officers got out of their vehicles and pursued Mr. Gray on foot. Mr. Gray ran between two apartment buildings and into a courtyard area behind residences in the 2800 block of Naylor Road SE. He did not heed numerous commands to stop and wound up being positioned between the officers and an iron fence that ran the length of the courtyard. At this point, the evidence shows, Mr. Gray pulled a handgun and pointed it in the direction of the officers. Seeing the weapon, all four officers fired their weapons, fatally wounding Mr. Gray.
A black firearm was recovered near Mr. Gray. An MPD technician who assisted with collecting evidence from the scene of the shooting was able to retrieve DNA from the firearm. A subsequent analysis of the DNA revealed, to a reasonable degree of scientific certainty, that Mr. Gray was a major contributor to the DNA mixture recovered from the firearm.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officers used excessive force under the circumstances.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney Holds Roundtable with Community and Law Enforcement Leaders to Address Prevention of Backlash Against Muslim, Arab, Sikh and South Asian Americans Following Terrorist AttacksRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Ben Wagner held a roundtable discussion today with Muslim and Sikh community leaders and senior law enforcement officials to discuss community concerns over potential bias incidents and hate crimes, the need for reporting by victims of those incidents, and the need to build solid relationships between the community and law enforcement. The group also discussed how law enforcement can assist in building resilient communities that can resist radicalization to violence. After the discussion, local media was invited to talk with participants.
Today’s meeting was one of 14 events in 11 federal judicial districts across the United States designed to build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
U.S. Attorney Wagner stated: “The Muslim community is a strong ally in combatting radicalization and terrorism. We want the Muslim community to know that we stand with them against Islamophobia and hate. Those who seek to target or harass them should be on notice that such conduct will be investigated by law enforcement.”
Since Sept 11, 2001, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S. Attorneys’ offices throughout the country have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
The Civil Rights Division is leading an interagency initiative to combat religious discrimination, which includes combatting illegal restrictions on religious properties like mosques.
U.S. Attorney and IRS Announce Message to Potential Tax Cheats That Tax Crimes Result in Criminal Prosecution and Lengthy Prison Sentences and Fines and Issue A Fraud Notice to TaxpayersRead the Press Release
HARRISBURG - With the deadline for filing income tax returns rapidly approaching, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes including a listing of recent tax fraud prosecutions and sentences.
“During this time of the year, IRS will receive millions of tax returns from honest taxpayers who file their returns on time and pay taxes they owe,” said U.S. Attorney Peter Smith. “Today’s warning is not for them; it is for tax cheats who break tax laws and abuse our tax system. If you belong in this category, pay close attention. My office will hold accountable anyone who participates in a tax fraud scheme that puts an added tax burden on honest taxpayers and drains our public finances.”
“Tax fraud exists in many forms, from unscrupulous tax preparers filing false and fraudulent returns, to identity thieves, and to those that go complex lengths to hide their income and evade paying the taxes they owe” said Special Agent in Charge Akeia Conner. “IRS-Criminal Investigation pursues tax cheats year-round. As the filing deadline quickly approaches, those who are contemplating engaging in tax fraud should know that they will be pursued.”
FILING FALSE TAX RETURNS AND EVASION
Over the last year, the U.S. Attorney’s Office has prosecuted and convicted individuals for filing false federal tax returns. Defendants have received substantial sentences for tax charges, ranging from several years in prison to home confinement. For example, the following individuals were sentenced for their roles in submitting false returns to the IRS:
Mitchell Orewiler, of Adams County was sentenced to 15 months in prison in July 2015. Orewiler pleaded guilty to filing false claims with the Internal Revenue Service in relation to his 2006, 2007 and 2008 Federal income tax returns. Orewiler was also ordered to pay $324,000 in restitution.
Felicia Burks, of Williamsport, PA was sentenced to 27 months in prison for filing 52 false income tax returns with the Internal Revenue Service in an attempt to obtain in excess of $150,000 in refunds. Burks was also ordered to pay $88,812 in restitution.
Paul Biko, of Harrisburg, pleaded guilty on January 14, 2016 to federal tax fraud in relation to his three Harrisburg businesses: Clearview of Harrisburg, Clearview Landscaping and Clearview Builders. As owner, Biko controlled the financial affairs of the three companies including all business bank accounts. For the fourth quarter of 2008, Biko’s companies withheld employment taxes from employees but failed to pay to the IRS the federal income taxes and Federal Insurance Contributions Act (FICA) taxes due to the United States. The government’s estimate of the loss is approximately $674,969.
Theodore Martin and his wife, Arminda Martin, of Ravenna, Ohio (formerly resided in York County), pleaded guilty on January 27, 2016 to tax evasion charges regarding their three cemetery businesses, including Suburban Memorial Gardens in Dover, Pennsylvania, and Grandview Memorial Park and Fairview Memorial Park in Ohio. The Martins failed to report to the IRS all the income they received from the operations of the cemeteries located in Ohio.
Felix Ramon Diaz, of Harrisburg, pleaded guilty on March 29, 2016 to forty-five counts of aiding and assisting the preparation of false tax documents. Diaz was a tax preparer who owned Felix Tax Service. From 2010 through 2013, Diaz filed forty five tax returns with false and fraudulent income, deductions, and addresses in an effort to maximize income tax refunds. Diaz’s conduct resulted in approximately $100,000 in taxes due and owed the Internal Revenue Service.
Sherry Garner, of Red Lion, pleaded guilty on February 19, 2016 to embezzlement from a credit union and with evading federal income taxes. Garner, the former Chief Executive Officer-Manager of the HD York Federal Credit Union in York, Pennsylvania embezzled $252,106 from the credit union between 2010 and 2013 and failed to report $70,983 in stolen income on her federal income tax return for 2011, thereby evading $19,069 in federal income taxes.
STOLEN IDENTITY REFUND FRAUD
In addition to prosecuting tax evaders and fraudulent tax return preparers, the IRS and the U.S. Attorney’s Office are conducting a continuing major effort to investigate and prosecute individuals who steal the identities of taxpayers and file fraudulent tax return. Rafael Sanchez, of Hazleton, the owner and operator of a check cashing, tax preparation and money transfer business in Hazleton was sentenced to 94 months in September 2015. Sanchez used the identities of unknowing third parties to file fraudulent federal income tax returns. He pleaded guilty to conspiracy to submit false claims and aggravated identity theft. Other similar fraud schemes are currently pending in court, or under investigation.
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
TAX SCAM WARNING
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them.
The IRS has issued its annual “Dirty Dozen” which lists common tax scams that taxpayers may encounter, particularly during filing season. Taxpayers are urged look out for, and to avoid, the following common schemes:
• Identity Theft
• Phone Scams
• Phishing
• Return Preparer Fraud
• Offshore Tax Avoidance
• Inflated Refund Claims
• Fake Charities
• Falsely Padding Deductions on Returns
• Excessive Claims for Business Credits
• Falsifying Income To Claim Credits
• Abusive Tax Shelters
• Frivolous Tax Arguments
Education is the best way to avoid these common schemes. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website.
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Two Men Sentenced for Montgomery Bank RobberyRead the Press Release
Montgomery, Alabama - Edward Hundley, 50, of Birmingham, and Richard Freeman, 39, of Montgomery, were sentenced Wednesday, April 13, 2016 for bank robbery, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Hundley was sentenced to 84 months in federal prison. Freeman was sentenced to 48 months.
On July 21, 2015, Hundley and Freeman entered the U.S. AmeriBank on Atlanta Highway just after 9:00 A.M. They approached the tellers and handed them notes demanding money. The teller turned over $7,000 to Hundley and Freeman and they fled the scene. Following the investigation, both were later located and arrested in Atlanta. Both pled guilty to the robbery charge in federal court in Montgomery.
The case was investigated by the Federal Bureau of Investigation and the Montgomery Police Department. This case was prosecuted by Assistant United States Attorney Brandon Bates.
Turner Falls Man Sentenced for Importing “Molly” and “Flakka” from ChinaRead the Press Release
BOSTON –A Turner Falls man was sentenced on Tuesday, April 12, 2016, in U.S. District Court in connection with importing and distributing kilograms of methylone, also known as “molly,” and alpha-PVP, also known as “flakka,” into the United States from China.
Stanislav Nestorov, 25, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 78 months in prison and three years of supervised release. In December 2015, Nestorov pleaded guilty to conspiracy to import several kilograms of methylone and alpha-PVP.
In 2013 Nestorov began ordering substantial quantities of methylone and alpha-PvP over the Internet from suppliers in China. Nestorov arranged for the packages to be shipped to different addresses, and paid other individuals to wire payments for the drugs to China, all to avoid detection. When the drug packages were shipped to Nestorov, the Chinese supplier included bogus documents that falsely described the contents of the packages as containing other items such as car parts.
Federal agents discovered the scheme when a package was seized in New York which contained one kilogram of methylone. In September 2013, a package destined for Massachusetts was intercepted and found to contain one kilogram of alpha-PVP.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Susan Winkler of Ortiz’s Narcotics and Money Laundering Unit.
Tom Beall to Serve as Acting U.S. Attorney for the District of KansasRead the Press Release
TOPEKA, KAN. – Tom Beall will serve as Acting U.S. Attorney for the District of Kansas.
Beall takes over after U.S. Attorney Barry Grissom steps down on April 15 to re-enter private practice. As Acting U.S. Attorney, Beall will be in charge of the U.S. Attorney’s Office for the District of Kansas, which comprises approximately 50 Assistant U.S. Attorneys and 50 support staff members working in offices in Topeka, Kansas City, Kan., and Wichita. Beall will work mainly out of the office in Topeka.
“It makes it easier for me to go knowing the U.S. Attorney’s Office is in Tom’s capable hands,” Grissom said. “It has been a pleasure working with him.”
Since November 2013, Beall served as First Assistant U.S. Attorney, making him the second in command of the U.S. Attorney’s Office. He joined the office as an Assistant U.S. Attorney in April 2011.
Beall is a native of Leavenworth, Kan. He served as Chief Deputy in the office of Kansas Attorney General Steve Six from March 2008 to January 2011. He was an adjunct instructor at Washburn University School of Law from August 2013 to January 2015. He was in private practice from 2000 to 2008.
Beall graduated in 2000 from the Washburn University School of Law after earning a master’s degree in public administration from Kansas State University and a bachelor’s degree from Baker University.
Three Minnesota Tax Return Preparers Sentenced to Prison for Conspiracy to Defraud the Government and Filing False Tax ReturnsRead the Press Release
Defendants Prepared Thousands of False Tax Returns for Filing with IRS and State of Minnesota
Three tax return preparers based in Minneapolis, Minnesota, were sentenced to prison yesterday for their involvement with a fraudulent return-preparation business with multiple storefronts in the Minneapolis area, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Ishmael Kosh, 39, of Philadelphia, Pennsylvania, and Amadou Sangaray, 36, of New York, New York, were convicted following a two-week jury trial in September 2015. Kosh was convicted of one count of conspiracy to defraud the United States and eight counts of aiding and assisting in the filing of false tax returns. Sangaray was convicted of one count of conspiracy to defraud the United States, four counts of aggravated identity theft and eight counts of aiding and assisting in the filing of false tax returns. Francis Saygbay, 43, of Minneapolis, failed to appear for trial, but later pleaded guilty to one count of conspiracy to defraud the United States, one count of aggravated identity theft, and two counts of aiding and assisting in the preparation of false tax returns.
Yesterday, Chief U.S. District Judge John R. Tunheim sentenced Kosh to 52 months in prison, Sangaray to 50 months in prison and Saygbay to 40 months in prison. In addition to the prison terms, Judge Tunheim also ordered each Kosh and Saygbay to serve three years of supervised release and Sangaray two years of supervised release, following their release from prison.
“As the 2016 tax filing season draws to a close, taxpayers are reminded to be wary of return preparers who make promises that seem too good to be true,” said Acting Assistant Attorney General Ciraolo. “Dishonest return preparers like Messrs. Kosh, Sangaray and Saygbay cost the U.S. Treasury billions of dollars each year. Taxpayers should stay alert for the warning signs that their preparer is more interested in making a quick buck than filing an accurate tax return.”
According to the evidence presented at the trial, Kosh, Sangaray, Saygbay and a fourth individual, Chatonda Khofi, 50, of St. Paul, Minnesota, established a storefront location of Primetime Tax Services Inc. (Primetime), a tax return preparation business in the Minneapolis area. Along with a fifth individual, David Mwangi, 47, of Arlington, Texas, the defendants prepared over 2,000 fraudulent individual income tax returns on behalf of customers of Primetime for filing with the Internal Revenue Service (IRS) for the years 2006, 2007 and 2008. The defendants also prepared approximately 1,700 fraudulent state income tax returns for filing with the state of Minnesota for those years. At yesterday’s sentencing hearing, Judge Tunheim found that the defendants’ conduct caused a total tax loss of between $1.5 and $3.5 million.
On the fraudulent returns, the defendants included false dependents, fake business income and losses, inflated deductions and credits and false filing status in order to obtain inflated tax returns for their customers. The defendants also bought and sold dependents for use on their customers’ tax returns in order to falsely qualify their customers for inflated deductions and tax credits. The defendants caused the fraudulently obtained refunds to be sent directly to Primetime in order to maintain control over the funds. When a customer came to pick up their refund checks or debit card, the defendants sometimes demanded an additional fee in cash, and/or escorted that customer to a check cashing location or ATM.
“Tax-return preparers who try to scam the government for tax refunds are not only stealing from the government, they are stealing from all the honest citizens who pay their fair share of taxes,” stated Special Agent in Charge Shea Jones of IRS-Criminal Investigation St. Paul Field Office. “The special agents of IRS-Criminal Investigation are committed to protecting the integrity of our system of taxation by investigating tax and accounting professionals who conspire with others to violate the tax laws. It is our hope that yesterday’s sentencings of Ishmael Kosh, Amadou Sangaray and Francis Saygbay, send the strong message that tampering with the integrity of our nation’s tax system will result in jail time.”
In November 2014, Mwangi pleaded guilty to one count of conspiracy to defraud the United States and Khofi pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft. They are currently awaiting sentencing. A sixth individual associated with this scheme, Stephanie Robinson, 33, of Minneapolis, pleaded guilty in August 2013 to one count of filing a false tax return in her own name and one count of aiding and assisting in the filing of a false tax return for another individual.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Thomas W. Flynn and Ryan R. Raybould, and former Trial Attorney Dennis R. Kihm of the Tax Division, who prosecuted the case. Acting Assistant Attorney General Ciraolo also thanked the Minnesota Department of Revenue for their significant work on this matter.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Third Circuit Court Affirms Inmate’s Four-Year Prison Sentence for Mailing Threatening Letter to A Monroe County JudgeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals upheld a 48-month prison sentence yesterday for a former state prison inmate who mailed a letter threatening to kill a Monroe County Common Pleas judge.
According to United States Attorney Peter Smith, the Court’s decision affirmed the sentence imposed on Devon Williams, age 26, by Senior U.S. District Court Judge James M. Munley on March 24, 2015.
Williams pleaded guilty on December 17, 2014, to mailing a threatening communication. In his plea, Williams admitted that while he was an inmate at the State Correctional Institution in Albion, Pennsylvania, he mailed a letter from the prison in January 2014 to the judge’s chambers at the Monroe County Courthouse in Stroudsburg. The letter threatened harm and death to the judge.
Williams was indicted by a federal grand jury in September 2014, as a result of an investigation by the United States Postal Inspection Service and the Pennsylvania State Police.
In its opinion, the Court explained that Judge Munley’s sentence, which varied upward from the sentencing guidelines, was both procedurally and substantively reasonable, and that the defendant’s history of violence and the threatening and graphic nature of the letter justified a sentence above the suggested guidelines range.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case and handled the appeal.
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Texas Man Sentenced to 20 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Miguel Angel Carbajal, age 27, of Dallas, Texas, was sentenced today to 240 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable P. K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, on August 7, 2015, the Drug Enforcement Administration (DEA) received information that Carbajal was bringing approximately 2 kilograms of methamphetamine into Fort Smith. Agents with the DEA were able to arrange for a controlled purchase of four pounds of methamphetamine from Carbajal. Carbajal had a juvenile male go out to his vehicle and retrieve the meth, and after the transaction was made, he got in his car and left at a high rate of speed nearly hitting several law enforcement vehicles. Officers were able to stop him after he drove his car into a ditch, and they apprehended him when he jumped out of the car and attempted to flee on foot. The suspected substance was sent for testing and the results were positive to be 1,431 grams of actual methamphetamine. Carbajal was arrested on August 10, 2015 and pleaded guilty to the charge on December 10, 2015.
“Federal and local law enforcement has successfully collaborated in order to put this drug dealer in jail for 20 years as a result of his desire to supply the citizens in the Fort Smith area with methamphetamine, said DEA Assistant Special Agent in Charge Matthew Barden. “It is disturbing when drug suppliers exert control over the lives of young people, enlisting them in the culture of drug trafficking and violence. DEA will remain relentless in our efforts to cripple these dealers and remove them from our neighborhoods, keeping our communities safe.”
This case was investigated by the Drug Enforcement Administration and the Fort Smith Police Department. Assistant United States Attorney Aaron Jennen prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Syracuse Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
SYRACUSE, NEW YORK – Carl Switala, 34, was indicted yesterday for failing to register as a sex offender after he moved to Syracuse, New York from North Carolina, announced United States Attorney Richard S. Hartunian.
The indictment alleges that Switala moved to Syracuse from Raleigh, North Carolina in November 2015 and lived in the area without registering as a sex offender for more than four months prior to being arrested. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Switala was previously arrested on April 4, 2016 pursuant to a Criminal Complaint. On April 7, 2016, Switala appeared before United States Magistrate Judge Andrew T. Baxter for a detention hearing after which he was ordered held without bail pending trial.
The charge against Switala carries a maximum sentence of 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the United States Marshals Service Sex Offender Investigation Branch and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
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/.
State Inmate Charged with Mailing Threatening LettersRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Williamsport returned an indictment against an inmate serving a sentence at the State Correctional Institution, Smithfield, Huntingdon County, PA.
According to the United States Attorney Peter Smith, Gerald Mack, age 50, of Carlisle, Pennsylvania is charged with making repeated threats to injure a state correctional employee, and another woman during 2014.
The federal investigation was conducted by the United States Postal Inspection Service and Geoffrey MacArthur has been assigned to the prosecution of this matter.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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St. Paul Woman Indicted for Filing Fraudulent Income Tax Returns for Friends and FamilyRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging EBONY SHANTE YARBROUGH, 27, for filing fraudulent income tax returns for friends and family and stealing the identities of minors to obtain tax refunds.[1] YARBROUGH is charged with nine counts of making false, fictitious and fraudulent claims and three counts of aggravated identity theft. The defendant appeared today before Magistrate Judge Franklin Noel in U.S. District Court in Minneapolis, Minn.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said Shea Jones, Special Agent in Charge of the IRS - Criminal Investigation Division, St. Paul Field Office. “As our tax filing season winds down next week, today’s court action should serve as a warning to taxpayers, to be wary of any scheme to defraud the IRS and steal from American taxpayers. The IRS will continue to pursue those who unjustly enrich themselves by preparing false claims for refunds.”
According to the indictment and documents filed in court, between 2013 and 2015, YARBROUGH convinced friends and family members to allow her to file their state and federal income tax returns by claiming she knew how to prepare the returns and would charge less than a tax preparation service. YARBROUGH would then obtain from the taxpayers W-2s and 1099s, as well as personal identifying information such as social security numbers, addresses and dependent information.
According to the indictment and documents filed in court, as part of her scheme, YARBROUGH would prepare taxpayers’ returns by claiming false Schedule C income characterized as “hair stylist,” “cleaner” or “exotic dancer.” Additionally, YARBROUGH would include dependents on taxpayers’ returns by using stolen personal identifying information belonging to minors, enabling them to qualify for other tax credits. YARBROUGH’S scheme accounted for more than $500,000 in false state and federal claims.
As Tax Day approaches, the U.S. Attorney’s Office reminds all Minnesotans that the deadline for filing federal income tax returns is Monday, April 18. Federal law enforcement is committed to pursuing those who commit tax fraud or attempt to defraud the tax system.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS. The Minnesota Department of Revenue assisted in the investigation.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
Defendant Information:
EBONY SHANTE YARBROUGH, 27
St. Paul, Minn.
Charges:
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Making False, Fictitious and Fraudulent Claims, 9 counts
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Aggravated Identity Theft, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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St. Croix Man Sentenced for Manufacturing MarijuanaRead the Press Release
St. Croix, USVI –Senior District Court Judge Raymond Finch sentenced today Michael Velez, 36, to three years of probation, six months of electronic monitoring, and a $500 fine on one count of manufacture of marijuana, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, Velez admitted that on January 29, 2015, he was the sole resident of property located at 4-0 Catherine’s Rest, St. Croix, where U.S. Drug Enforcement administration (DEA) and Virgin Islands Police Department (VIPD) officers found 204 marijuana plants while executing a search warrant for the premises. According to court records, they also discovered cultivation equipment, including lights, watering mechanisms, and cloning solution.
This case was investigated by the DEA and the VIPD and was prosecuted by Assistant U.S. Attorney Christian Stringer.
St. Croix Man Pleads Guilty to Using a Telephone to Facilitate a Drug TransactionRead the Press Release
St. Croix, USVI – Carl Hansen, 55, pleaded guilty today in federal court before the Honorable George W. Cannon to one count of using a communications facility in causing or facilitating the commission of felonies under the Controlled Substances Act, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, on May 7, 2015, Carl Hansen facilitated a drug deal over the telephone between a prospective buyer and seller of illegal controlled substances.
The defendant faces a maximum of four years in prison and a $250,000 fine. A sentencing date has been set for August 17, 2016. The defendant remains out of custody pending sentencing.
The charge is the result of investigative work of the U.S. Drug Enforcement Administration and the Virgin Islands Police Department. The case is being prosecuted by Assistant U.S. Attorney Christian Stringer.
Somerset County Woman Admits Possessing MethRead the Press Release
JOHNSTOWN, Pa. – A Somerset County resident pleaded guilty in federal court in Johnstown to a charge of possession with the intent to distribute a quantity of methamphetamine, United States Attorney David J. Hickton announced today.
Samantha E. McKenzie, 21, of Friedens, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 14, 2013, McKenzie, along with another person, possessed with the intent to distribute a quantity of methamphetamine.
Judge Gibson scheduled sentencing for Aug. 10, 2016, at 11 a.m. The law provides for a maximum of 20 years in prison, a fine of $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.The Pennsylvania State Police Troop A Barracks, the Somerset Borough Police Department and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of McKenzie.
Somerset County Man Sentenced to Five Years of Probation for Income Tax EvasionRead the Press Release
JOHNSTOWN, Pa. - A resident of Hooversville, Pa., has been sentenced in federal court to five years’ probation and restitution ordered to be paid to the Internal Revenue Service in the amount of $98,127.60, on his conviction of income tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Robert A. Varnish, Jr.
According to information presented to the court, during the calendar year 2011, Varnish received taxable income in the sum of $135,011.75, with an income tax due and owing of $28,760.00. Likewise, in calendar year 2012, Varnish received taxable income in the sum of $108,453.61, with an income tax due and owing of $21,104. During both of these calendar years, Varnish evaded paying the income tax due and owing to the Internal Revenue Service by concealing his true and correct income. Mr. Varnish also had taxes due and owing, with interest, to the Internal Revenue Service from calendar years 2009 and 2010.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Internal Revenue Service Criminal Investigation for the investigation leading to the successful prosecution of Varnish.
Shawnee Man to Serve Five Years Probation and Pay over $181,000 in Restitution for Receiving Kickbacks in Scheme to Embezzle from Citizen Potawatomi NationRead the Press Release
Oklahoma City, Oklahoma – Yesterday, THOMAS BIERD, 35 from Shawnee, Oklahoma, was sentenced by United States District Judge Vicki Miles-LaGrange to serve probation for five years and pay $181,763 in restitution to the Citizen Potawatomi Nation for embezzlement from the tribe, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
Bierd was indicted on April 21, 2015, for his role in the embezzlement scheme that involved a related case against KRISTI BIAS, 42, also of Shawnee. According to court records and information at court hearings, Bias was employed as the Executive Director of the Citizen Potawatomi Nation’s Community Development Corporation (CDC), which promoted economic development in the Native American community by providing loans and grants to companies owned by or which primarily employed members of federally-recognized Indian tribes. From December of 2010 and September of 2011, Bias was alleged to have caused grants to be issued to false or ineligible entities, falsified supporting documents, and received kickbacks for doing so. Bierd controlled an entity that received checks issued from CDC by Bias who, in turn, kicked back a portion of the proceeds to Bias.
On October 8, 2015, Bias was sentenced to serve 24 months in federal prison for embezzlement from the Citizen Potawatomi Nation, and pay $251,018.35 in restitution to the tribe. Following her 24-month prison term, Bias is ordered to served 3 years of supervised release and pay $251,018.35 in restitution to the tribe.
On September 3, 2015, Bierd pled guilty to embezzlement from the tribe. Yesterday, he was ordered to serve probation for five years and pay $181,763 in restitution to the tribe for his role in the embezzlement.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Tim Ogilvie.
Reference is made to court filings for further information.
Sentencings for April 7 - April 12, 2016Read the Press Release
Denise Renee Nelson-Marchetti, 46, of Lander, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 12, 2016, for conspiracy to distribute methamphetamine. Nelson-Marchetti was arrested in Lander, Wyoming. She received two years of probation and was ordered to pay a $100.00 special assessment and restitution in the amount of $400.00. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation, the U.S. Drug Enforcement Administration and the Internal Revenue Service. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Jose Mejia-Becerril, aka Jose Mejia, aka Jose Mejia Becerrill, aka Jose Meja, 30, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 12, 2016, for illegal re-entry of a previously deported alien into the United States and for being a felon and illegal alien in possession of a firearm. Mejia-Becerril was arrested in Jackson, Wyoming. He received 30 months imprisonment, to be followed by three years of supervised release, was ordered to pay a $200.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Mark Edward Aylward, 46, of Littleton, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 11, 2016, for conspiracy to distribute methamphetamine. Aylward was arrested in Cheyenne, Wyoming. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Clark Champion Crow, 36, of Lincoln City, Oregon, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 11, 2016, for possession with intent to distribute 500 grams or less of methamphetamine and aiding and abetting. Crow was arrested in Rawlins, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $500.00. This case was investigated by the Wyoming Division of Criminal Investigation.
Jose Sosa-Rodriguez, aka Mauricio Garcia-Ramos, 30, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 11, 2016, for illegal re-entry of a previously deported alien into the United States. Sosa-Rodriguez was arrested in Jackson, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement.
Daniel Nathan Bruce, 33, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 8, 2016, for being a felon and unlawful user of a controlled substance in possession of a firearm. Bruce was arrested in Casper, Wyoming. He received 21 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
John William Spoonhunter, 32, of Arapahoe, Wyoming, was sentenced by Judge Scott W. Skavdahl on April 7, 2016, for child abuse. Spoonhunter was arrested in Fort Washakie, Wyoming. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $1,020.00. This case was investigated by the Federal Bureau of Investigation.
Sacramento Man Pleads Guilty to Manufacturing Guns, Dealing in Firearms, and Possession of a MachinegunRead the Press Release
SACRAMENTO, Calif. — Daniel Albert Crowninshield, 53, of Sacramento, pleaded guilty today to unlawfully manufacturing and dealing in firearms and possession of an unregistered machinegun, United States Attorney Benjamin B. Wagner announced.
In his plea agreement, Crowninshield, who was also known by his online moniker “Dr-Death,” admitted that he operated an unlicensed firearms manufacturing business out of C&G Tool, a metal shop in North Sacramento. Using sophisticated computer controlled machines, Crowninshield manufactured lower receivers for AR-15s and other firearms. Crowninshield did not conduct background checks, enforce waiting periods, or complete firearm transaction paperwork.
Crowninshield advertised such services on at least one online firearm enthusiast forum. This website mainly consists of forums where people ask and answer questions related to firearms. Crowninshield, using the moniker “Dr-Death” was a prolific poster on the website. Additionally, other members frequently posted about Dr-Death, including review of service provided and recommending that other users visit his shop.
“The manufacturing and unlicensed sale for profit of high-capacity firearms is a serious threat to public safety,” said U.S. Attorney Wagner. “We will continue to vigorously investigate unlicensed gun dealers and prosecute violations of the federal firearms laws.”
“Daniel Crownshield, AKA: Dr. Death owned and operated a machine shop where he allowed customers with unknown backgrounds to use his machinery to unlawfully manufacture firearms for profit,” said Special Agent in Charge Jill A. Snyder. “ATF regulates the firearm industry, and it is illegal to manufacture and sell firearms without possessing a federal firearms license, and without conducting background checks. ATF’s goal is to keep firearms out of the hands of prohibited individuals and prevent violent crime.”
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the California Department of Justice’s Bureau of Firearms, with the assistance of the Sacramento Police Department, the Sacramento County Sheriff’s Department, and the California Highway Patrol. Assistant United States Attorneys Justin Lee and Matthew Yelovich are prosecuting the case.
Crowninshield is scheduled to be sentenced by Judge Troy L. Nunley on June 30, 2016. Crowninshield faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Richmond Man Pleads Guilty to Robbery of Cell Phone StoresRead the Press Release
RICHMOND, Va. – Julius Ripley, 60, of Richmond, pleaded guilty yesterday for his in role the robberies of a Sprint Wireless store located in Colonial Heights and the robbery of a Verizon Wireless store located in Mechanicsville. Ripley was also ordered to pay $49,002 in restitution to the victims of the offense.
In a statement of facts filed with the plea agreement, Ripley admitted that on February 1, 2015, he robbed the Adcomm store (Sprint) located in Colonial Heights. He entered the business with a small, semi-automatic handgun and demanded the employees give him cell phones and cash. He then had the employees remove their clothing and ordered them at gunpoint into the bathroom. Ripley obtained $39, 912 worth of phones and tablets from the robbery, and $140.00 in cash. Ripley also admitted that on March 2, 2015, he robbed the Wireless Zone store (Verizon) located in Mechanicsville. Ripley entered the business with a small semi-automatic handgun and demanded the employees give him cell phones. He then had the employees remove their clothing and ordered them at gunpoint into the back room of the store. Ripley obtained approximately $8,950.00 worth of phones and tablets from the robbery.
Ripley was indicted by a federal grand jury on June 2, 2015, and faces a maximum penalty of twenty years in prison when sentenced on July 28, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Douglas A. Middleton, Chief of Police for the Henrico County Police Division, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney.
This case was investigated by officers and detectives with the Henrico County Police Division in conjunction with the FBI’s Central Virginia Violent Crime Task Force. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-107.