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5 April 2016
Gila River Indian Community Member Sentenced for MurderRead the Press Release
PHOENIX, Ariz. – Last week, Royce Allen Young, 38, of Laveen, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge G. Murray Snow to 15 years in federal prison. Young had previously pleaded guilty to second degree murder.
On Aug. 10, 2012, Daniel Ballesteros, 24, who was also a member of the Gila River Indian Community was found lying dead in an intersection on the Gila River Indian Community. Ballesteros had died after sustaining three gunshot wounds. A spent shotgun shell and a kitchen knife were found at the scene, though the victim had not been stabbed. Young was located in Phoenix about an hour after the victim was found. He had a shotgun in his car. At sentencing, Judge Snow ordered that the 15 years run consecutive to a state sentence of imprisonment that Young is currently serving for another matter.
The investigation in this case was conducted by the Gila River Police Department and the Federal Bureau of Investigation. The prosecution was handled by Gayle L. Helart and Bill C. Solomon, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: 2:14-cr-1539-GMS-1
RELEASE NUMBER: 2016-030_Young
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Four indicted for conspiring to possess with intent to distribute 20 pounds of marijuana and nearly 20 pounds of MDMARead the Press Release
Four people were indicted in federal court on charges of conspiring to possess with intent to distribute at least 20 pounds of marijuana and nearly 20 pounds of MDMA, law enforcement officials said.
Indicted are: Rinald Turhani, 37, of Macomb, Mich.; Denisa Alicka, 26, of Rocky River; Jonida Alicka, 28, of Rocky River, and Leka Konini, 46, of Canton, Mich.
The indictments follow a joint investigation of multiple sales of MDMA and marijuana by the Alicka sisters from their residences and vehicles between September 2014 and March 2016. Investigators determined the Alickas obtained MDMA and marijuana through Turhani and Konini. Jonida Alicka also obtained MDMA from her boyfriend who resides in Canada, according to court documents.
Denisa Alicka travelled to Michigan on several occasions to pick up the narcotics and transport them back to Ohio. Jonida Alicka, a reserve police officer with the Linndale Police Department, traveled to New York to pick up MDMA and transport it back to Ohio. Denisa and Jonida Alicka distributed the narcotics throughout the Northern District of Ohio, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Robert F. Corts, Marissa Darden and Antoinette T. Bacon following an investigation by the FBI, Cleveland Division of Police, Ohio HIDTA, Parma Police Department, Rocky River Police Department and US Border Patrol.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Tax Preparer, Elected Public Official Sentenced for Tax FraudRead the Press Release
PROVIDENCE, R.I. – Leon F. Tejada, 51, of Providence, former owner of El Centro Multiservices, a tax preparation service in Providence, and a former member of the Providence City Council and Rhode Island General Assembly, was sentenced today to 12 months and one day in federal prison for devising and executing two tax fraud schemes to steal tax refunds monies from 76 taxpayers whose tax returns he prepared and filed, and from the IRS.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Tejada to serve three years supervised release upon completion of his prison term, during which time he is ordered to perform 1,000 hours of community service. Tejada pleaded guilty on December 18, 2015, to one count of tax fraud and four counts of wire fraud.
Tejada’s sentence is announced by United States Attorney Peter F. Neronha and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation.
At the time of his guilty plea, Tejada admitted to the court that during tax years 2009 through 2012, without the knowledge of his clients, he devised a scheme to create and falsify clients’ dependents, exemptions, tax credits, deductions, and expenses in order to increase the amount of tax refund due to some of the clients. An investigation by IRS Criminal Investigation and the United States Attorney’s Office determined that this scheme resulted in a loss to the United States of $54,440.
Additionally, Tejada admitted to the court that he devised a scheme to divert a portion of tax refunds some of his clients’ received into his own bank account for his own personal use. An investigation by IRS Criminal Investigation and the U.S. Attorney’s Office determined that Tejada diverted $24,987 in tax refund monies skimmed from the tax refunds of at least 76 individuals.
At sentencing, U.S. District Court Chief Judge William E. Smith ordered Tejada to pay full restitution to the 76 individuals whose tax refund monies he stole and to the IRS, totaling $78,548.
Tejada has been ordered to self-surrender to begin serving his prison sentence by May 2, 2016.
In a separate matter, a federal grand jury last week returned a 70-count indictment alleging that Belkis M. Guzman, 47, of Cranston, a former tax preparer employed at El Centro Multiservices, participated in schemes to prepare false tax returns claiming deductions taxpayers were not entitled to and to filing fraudulent tax returns using personal identifying information of others without authorization. It is alleged that the latter scheme resulted in tax refunds totaling more than $686,000, which were deposited into Guzman’s personal bank account.
The indictment, which charges Guzman with thirty-three counts of preparing false income tax returns, eight counts of wire fraud, four counts of aggravated identity theft, twenty-three counts of forgery, and one count of theft of government funds. Guzman pleaded not guilty at her arraignment on April 4, 2016.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorney Richard W. Rose.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former St. Charles District Attorney Harry Morel Charged with Obstruction of JusticeRead the Press Release
U.S. Attorney Kenneth A. Polite announced today the unsealing of a Bill of Information charging HARRY J. MOREL, JR., with obstruction of justice in violation of Title 18, United States Code, Section 1512(d)(1).
The Bill of Information charges MOREL with intentionally harassing an Individual A and thereby hindering, delaying, preventing, and dissuading Individual A from attending and testifying in a federal grand jury proceeding investigating possible wrongdoing by MOREL, in his capacity as St. Charles Parish District Attorney and Assistant District Attorney.
If convicted, MOREL faces a maximum term of imprisonment of three years, a fine of $250,000 and one year of supervised release following any term of imprisonment.
U.S. Attorney Kenneth Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite noted that the investigation has not implicated any other former or current employees of the St. Charles Parish District Attorney's Office.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation, particularly Special Agent Michael Zummer, and the St. Charles Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney James Baehr is in charge of the prosecution.
Former Senior Executives of Global Financial Services Company Charged in Scheme to Defraud Clients through Secret Trading CommissionsRead the Press Release
BOSTON – Two former high-ranking executives of a Boston-based financial services company, which is one of the world’s largest asset managers and custody banks, have been charged with engaging in a scheme to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades.
Ross McLellan, 44, of Hingham, Mass. and Edward Pennings, 45, who is believed to be living abroad, were charged in a five-count indictment with conspiring to commit securities fraud and wire fraud, as well as two counts each of securities fraud and wire fraud. McLellan, a former executive vice president of the bank who served as president of its U.S. broker-dealer unit, was arrested this morning in Hingham and will appear in U.S. District Court in Boston later today.
U.S. Attorney Carmen M. Ortiz of the District of Massachusetts, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Harold M. Shaw of the Boston Field Office of the Federal Bureau of Investigation made the announcement.
“The secret conversations and backroom plotting laid bare in today’s charges paint a vivid picture of a brazen fraud,” said U.S. Attorney Ortiz. “The defendants never thought anyone would hear those conversations – conversations in which they plotted to overcharge their clients by millions of dollars, and to hide their tracks. With each trade, they chipped away at the savings of thousands of retirees whose pensions they were charged with safeguarding. Bankers who abuse their clients’ trust in this way must be held accountable. And we will work hard to ensure that they are.”
“The defendants are charged with reaping millions of dollars of illicit profits by abusing their clients' trust and secretly setting their own inflated compensation,” said Assistant Attorney General Caldwell. "The charges announced today reflect our continued commitment to hold individuals accountable for toying with the integrity of our financial system.”
"As alleged, Ross McLellan and Edward Pennings cheated and lied to investors so that the bank could line its pockets. Actions like theirs undermine investor confidence. This case demonstrates the FBI's commitment to unraveling elaborate and complex schemes, motivated by sheer greed, that ultimately undermine our financial markets," said Special Agent in Charge Shaw.
The Indictment alleges that, between February 2010 and September 2011, McLellan and Pennings, together with others, conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios. The commissions were charged on top of fees the clients had agreed to pay the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions. McLellan and Pennings then allegedly took steps to hide the commissions from the clients and others within the bank, including by directing that the commissions not be broken out in post-trade reports.
For example, the Indictment alleges, among other things, that:
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In a telephone call in March 2010, Pennings instructed an unidentified co-conspirator in the transition management unit not to talk about the plans to charge hidden commissions on one transaction “with anyone . . . because it’s not going to help our story.Don’t even share it with the rest of the team, to be honest.”
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In June 2010, McLellan and the unidentified co-conspirator requested that the bank’s traders provide them with the reported daily high and low prices of securities the bank had traded for the client so that they could determine the amount of the commissions to be applied to each security without attracting the client’s attention by exceeding the bounds of reported prices.
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In March 2011, McLellan instructed a U.S. fixed income trader to charge a one basis point (0.01%) commission to each trade conducted for another client – notwithstanding that the written trading instructions for the transaction said to charge zero commissions – and subsequently instructed the trader to delete any reference to the commissions from the trading results he sent to the transition manager assigned to the project.
In June 2011, when one of the affected clients inquired about whether it had, in fact, been charged commissions in breach of its agreement with the bank, it is alleged that Pennings initially denied that any commissions had been charged. Later – at McLellan’s direction – Pennings acknowledged only that some commissions had been “inadvertently” charged on securities traded in the United States, but did not disclose that they had, in fact, been intentionally charged, in the United States and in Europe. McLellan and Pennings then allegedly sought to mislead the bank’s compliance staff into believing that the commissions had been charged in error and that the amount of the overcharges was limited to the commissions applied on U.S. securities.
The ongoing investigation is being conducted by the Federal Bureau of Investigation. The United States Attorney’s Office and the Fraud Section have also received valuable assistance from the Securities & Exchange Commission as well as from authorities in the United Kingdom, including the City of London Police. The Criminal Division’s Office of International Affairs also provided assistance. The case is being prosecuted by Assistant U.S. Attorney Stephen E. Frank, Deputy Chief of Ortiz’s Economic Crimes Unit and Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section.
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Former Oregon Resident Sentenced to Prison for Role in One Million Dollar Tax Fraud SchemeRead the Press Release
A former resident of Portland, Oregon was sentenced to 37 months in prison today for her role in a tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Tataneisha White, 43, admitted to conspiring with multiple individuals, including Jasmine Mason, Shawntina Ware and Brandon Leath, all of Portland, to file more than 227 false income tax returns claiming more than $1 million in fraudulent refunds. The false information on the tax returns included fictitious W-2 wages and inflated withholding amounts to generate tax refunds ranging from $1,000 to $12,000. White also admitted that she and her co-conspirators shared personal identifying information and employer information with each other to file the false returns. White directed the Internal Revenue Service (IRS) to divide the fraudulently obtained tax refunds between bank accounts and debit cards controlled by White and others, including friends and family members of White and her co-conspirators. In October 2015, White pleaded guilty to one count of conspiracy to file false claims, one count of filing a false claim and one count of theft of government funds.
In addition to the prison term, U.S. District Judge Robert E. Jones ordered White to serve three years of supervised release and pay restitution to the IRS in the amount of $626,750. Mason and Leath previously pleaded guilty to similar charges and were sentenced to 32 months and 24 months in prison, respectively. Ware also pleaded guilty and is scheduled to be sentenced on July 27.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division, who are prosecuting the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the District of Oregon for their valuable assistance.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Oregon Resident Sentenced to Prison for Role in One Million Dollar Tax Fraud SchemeRead the Press Release
WASHINGTON – A former resident of Portland, Oregon was sentenced to 37 months in prison today for her role in a tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Tataneisha White, 43, admitted to conspiring with multiple individuals, including Jasmine Mason, Shawntina Ware and Brandon Leath, all of Portland, to file more than 227 false income tax returns claiming more than $1 million in fraudulent refunds. The false information on the tax returns included fictitious W-2 wages and inflated withholding amounts to generate tax refunds ranging from $1,000 to $12,000. White also admitted that she and her co-conspirators shared personal identifying information and employer information with each other to file the false returns. White directed the Internal Revenue Service (IRS) to divide the fraudulently obtained tax refunds between bank accounts and debit cards controlled by White and others, including friends and family members of White and her co-conspirators. In October 2015, White pleaded guilty to one count of conspiracy to file false claims, one count of filing a false claim and one count of theft of government funds.
In addition to the prison term, U.S. District Judge Robert E. Jones ordered White to serve three years of supervised release and pay restitution to the IRS in the amount of $626,750. Mason and Leath previously pleaded guilty to similar charges and were sentenced to 32 months and 24 months in prison, respectively. Ware also pleaded guilty and is scheduled to be sentenced on July 27.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division, who are prosecuting the case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the District of Oregon for their valuable assistance.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Milwaukee Police Detective Charged with Excessive Force in Violation of Victim's Civil RightsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin has announced that the federal grand jury sitting in Milwaukee has indicted former Milwaukee Police Department Detective Rodolfo Gomez, Jr. (age: 49) for willfully depriving an in-custody subject of his civil right not to be subjected to excessive force, in violation of Title 18, United States Code, Section 242. If convicted, Mr. Gomez could be sentenced to a maximum possible term of imprisonment of ten years, a fine of not more than $250,000, and a term of supervised release not to exceed three years.
The charge is based on the allegation that, in an interview room in the Police Administration Building on August 14, 2013, Gomez repeatedly punched the victim in the face and head and kneed him in the torso, all while one of the victim’s hands was handcuffed to a wall in the interview room. Gomez stopped punching and kicking the victim when a police lieutenant who heard yelling entered the room. The indictment alleges that the force used was unreasonable and that the victim suffered bodily injury.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
This case was investigated by the FBI, building upon an earlier investigation done by the Milwaukee Police Department. The case is being prosecuted by United States Attorney Gregory J. Haanstad and Assistant United States Attorney Mel S. Johnson.
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Former IT Director and Wife Arrested for Embezzling More Than $1 Million from EmployerRead the Press Release
HOUSTON – A Frisco couple, formerly of Houston, have been taken into custody on a multi-count indictment alleging a $1 million mail and wire fraud conspiracy, announced U.S. Attorney Kenneth Magidson. Bradley Freitas, 36, was the former Director of Information Technology (IT) services for Orion Real Estate Services Inc.
Freitas and his wife - Loren Freitas, 32 - are set to make their initial appearance in Sherman in the Eastern District of Texas at 11:00 a.m. They are then expected to appear in Houston before U.S. Magistrate Judge Stephen Smith on April 7 at 10:00 a.m.
The indictment, filed Feb. 17, 2016, and unsealed upon their arrests today, charges the Freitas with one count of conspiracy to commit mail and wire fraud, 11 counts of mail fraud and 10 counts of wire fraud.
According to the allegations in the indictment, from approximately April 14, 2009, through Jan. 14, 2014, Bradley Freitas embezzled approximately $1,009,634.45 from Orion Real Estate Services Inc. with the help of his wife. Orion is a full-service, multi-family residential real estate management company serving a wide variety of investors, ranging from institutions, private partnerships, foreign investors, individual owners and government housing organizations. With more than 665 employees, Orion allegedly provides management for all types of multi-family properties and had a growing portfolio of more than 25,000 apartment homes under management throughout the nation.
Bradley Freitas was hired as the director of IT services for Orion on March 5, 2009.
Throughout his employment, Bradley Freitas allegedly created false explanations on internal Orion company justification documents to mask unauthorized purchases as legitimate IT-related items. The indictment alleges he miscoded Orion justification documents to mask unauthorized personal purchases for several years and made these unauthorized purchases with company credit cards issued to him for IT purchases only. He allegedly purchased merchandise from online retailers, such as Amazon, NewEgg and CDW, and mailed it to either to his office or home.
Several of the items Freitas purchased, including a dining room table and chairs, a Gucci purse and wallet, home entertainment systems, televisions, etc., were for his and wife’s own personal enrichment, according to the allegations. Other items - iPads, laptops, etc. - were fraudulently purchased with the company card and allegedly sold on EBay or to their own private customers in New York and elsewhere for the Freitas to earn a profit.
According to the indictment, Loren Freitas would direct her husband at times on what to purchase and then mail the various items to be sold to their customers via FedEx or UPS.
Each charge carries a possible 20 years in federal prison and a possible $250,000 maximum fine, upon conviction.
The FBI conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former East Cleveland police sergeant sentenced to nine years in prisonRead the Press Release
A former East Cleveland police sergeant was sentenced to nine years in prison for her role in a conspiracy in which she kept thousands of dollars from alleged drug dealers, much of which was seized through illegal searches and fabricated reports, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Torris Moore pleaded guilty late last year to one count each of conspiracy against rights, Hobbs Act conspiracy and false statements to law enforcement and two counts of theft concerning programs receiving federal funds.
Officers Antonio Malone and Eric Jones both previously pleaded guilty to one count of conspiracy against rights and one count of Hobbs Act conspiracy. They are scheduled to be sentenced Monday.
“This police supervisor betrayed her badge and her community,” Rendon said. “She profited from the drug trade that has devastated the city she swore to protect. She has earned every day of this prison sentence through her criminal behavior.”
“Torris Moore acted like a cunning criminal rather than an honorable public servant who swore to protect and serve,” Anthony said. “She will now serve time behind bars for her reprehensible, unlawful conduct.”
Moore, of South Euclid, was a sergeant at the East Cleveland Police Department, where he supervised the Street Crimes Unit. Malone, of Cleveland, and Jones, of Cleveland Heights, were detectives assigned to the Street Crimes Unit. The unit, including Moore, Malone and Jones, were familiar with several drug traffickers, according to court documents.
From 2012 through June 2014, the defendants conspired to unlawfully enter premises and exceed the scope of lawful entry, thereafter conducting unlawful searches and seizures, used their power to seize money and property for themselves under the guise of legitimate search warrants, and created and approved false reports, affidavits and other documents to conceal their illegal searches and seizures, according to court documents.
These illegal searches took place in East Cleveland but also outside city limits, in various locations throughout Greater Cleveland. The conspirators placed false and inaccurate information in police reports, which Moore reviewed, knew was incorrect, but she failed to correct the inaccuracies. This false information was used to obtain search warrants, according to court documents.
The conspirators seized money and property during these searches, and diverted some of the seized money and property for their own use. Malone provided false information to the Cuyahoga County Prosecutor’s Office about certain investigative techniques in order to conceal their illegal conduct, including attributing information to a confidential informant that did not exist, according to court documents.
For example, on Sept. 10, 2012, Jones presented an affidavit to an East Cleveland Municipal Judge, which the conspirators knew contained false and misleading statements. The judge, unaware of false information, issued a search warrant for a home on Sheldon Avenue. Moore, Malone, Jones and another officer then executed the search warrant and seized $20,000. On Sept. 11, Moore, Malone and Jones met at a park in East Cleveland and divided a portion of the $20,000, which each officer receiving between $2,000 and $3,000. Jones then authored a report reflecting that they had seized a total of $11,173, according to court documents.
On June 20, 2013, SCU officers, including Moore, searched a home on East 85th Street. Malone, without a search warrant, forced his way into a room that was secured by a padlock and seized approximately $100,000 in cash. Moore, Malone and Jones removed a portion of the cash before causing the remainder to be secured in the East Cleveland Police Department’s evidence room. Later that day, the three officers met at an East Cleveland park and divided the money, with each receiving about $10,000. Malone later wrote the search resulted in the recovery of $74,670, according to court documents.
On June 19, 2014, Malone encountered a parked car driven by a known drug trafficker, identified in the indictment only as M.M. Malone arrested M.M., who told the officer he had approximately $11,000 or $12,000 in the car’s glove box. Malone agreed to release M.M. but insisted on towing the car. Malone said: “I looked out for you. You gotta look out for me,” before instructing M.M. to get the cash from the glove box but to leave behind $3,000. Malone removed $3,000 from M.M.’s car but did not list the money when he completed the vehicle’s inventory form, according to court documents.
This case is being prosecuted by Assistant U.S. Attorney Edward F. Feran following an investigation by the Federal Bureau of Investigation – Cleveland Division, with assistance from the East Cleveland Police Department and Cuyahoga County Prosecutor’s Office.
Former Deere Employee Charged with Wire Fraud, Money LaunderingRead the Press Release
Rock Island, Ill. – A former employee of Deere and Company appeared in federal court today on charges of wire fraud and money laundering. Harvey Ulfers, 62, Cedar Falls, Iowa, appeared before U.S. District Judge Sara Darrow in Rock Island. Trial has been scheduled for June 6, 2016. Ulfers was allowed to remain on bond pending trial. The indictment was returned on Mar. 22, 2016, but remained sealed pending Ulfers’ court appearance.
The indictment alleges that from about 2004 to January 2013, Ulfers defrauded Deere & Company, headquartered in Moline, of at least $250,000. Using his position at Deere’s foundry facility in Waterloo, Iowa, Ulfers allegedly caused the creation and approval of fraudulent internal documents that allowed significantly undervalued scrap metal to leave the facility. Ulfers conspired with others to obtain the excess value of the scrap after it was sold at scrap yards, using a third party to launder the fraudulent proceeds and provide cash payments to Ulfers.
If convicted, the statutory maximum penalty for each count of wire fraud is 20 years in prison, and a fine of up to $250,000, and the statutory maximum penalty for each count of money laundering is 20 years in prison, and a fine of up to $500,000, or twice the value of property involved in the transactions, whichever is greater.
The case is being prosecuted by Assistant U.S. Attorneys Meredith DeCarlo and Donald Allegro. The charges are the result of investigation by the Internal Revenue Service Criminal Investigation Division and the Federal Bureau of Investigation. Deere & Company is cooperating in the investigation and referred the matter to law enforcement following internal investigations.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Canadian Youth Soccer Coach Sentenced to 7 Years in Prison for Seeking Sex with Person He Believed was 12-Year-Old GirlRead the Press Release
A 47-year-old man from Surrey, British Columbia was sentenced today in U.S. District Court in Seattle to seven years in prison and ten years of supervised release for a federal sex crime, announced U.S. Attorney Annette L. Hayes. KULDIP “KELLY” SINGH MAHAL was arrested in February 2015 at a park in Burlington, Washington, where he was expecting to meet a 12-year-old girl whom he believed he had enticed into having sexual contact with him. MAHAL had in fact sent multiple sexually explicit messages and photos to an undercover agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). At the sentencing hearing, U.S. District Judge Robert S. Lasnik said, “We have so many child victims and if we can stop abuse of real children by doing these sting operations, then it is a good use of government resources.”
“Even with the knowledge that another man had been arrested in a similar internet enticement case, this defendant persisted in seeking sex with a 12-year-old child,” said U.S. Attorney Annette L. Hayes. “This case should send a clear message to those trolling the internet to victimize children: you will be caught and pay with your freedom for such crimes.”
According to records in the case, MAHAL responded to a posting on the internet in January 2015. MAHAL sent a picture of his arms and upper body, and expressed interest in a sexual relationship. MAHAL continued to communicate with the undercover agent even after the agent claimed she was 12-years-old. In fact MAHAL sent sexually explicit photos of himself and repeatedly requested the “girl” send sexually explicit photos of herself back to him. MAHAL engaged in lengthy sexualized chats via text message with the “girl.” MAHAL crossed the border from Canada into the U.S. at Blaine, Washington and was arrested at the park where he thought he was going to meet the “girl” and have sex.
MAHAL was employed as a facilities manager for a Vancouver, BC tech firm and was a volunteer coach for a U-16 soccer team in British Columbia.
“We entrust teachers and coaches to serve as role models for our children and safeguard their welfare,” said Bradford Bench, special agent in charge for HSI Seattle. “This sentence should serve as a stern warning to those who mistakenly believe cyberspace affords them anonymity and they can use the Internet to sexually exploit children with impunity. HSI will continue to work closely with our law enforcement partners to investigate these predators and ensure that they feel the full weight of the law.”
MAHAL will be required to register as a sex offender.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Kate Vaughan.
Former Air Force Reservist Pleads Guilty to Distribution of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Steven Fine, 30, of Orchard Park, NY, pleaded guilty to distribution of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum sentence of five years in prison, a maximum of 20 years, and a $250,000 fine.Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that the investigation began when the defendant, a former United States Air Force Reservist, distributed videos containing child pornography to an undercover agent. On September 12, 2014, law enforcement officers executed a search warrant at the defendant’s mother’s house in West Seneca, NY and recovered electronics being used by Fine. A subsequent forensic examination determined that several of the electronics contained images and videos of child pornography, including a video that the defendant had produced of himself engaging in sexually explicit conduct with a minor under the age of 16.
The plea is the culmination of an investigation by the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Town of West Seneca Police Department under the direction of Chief Daniel Denz.
Sentencing is scheduled for July 15, 2016 before Judge Arcara.
Federal Court Holds Tennessee Tax Return Preparer in ContemptRead the Press Release
Court Finds That “The Tax Firm” is Successor to Previously
Enjoined Operation, “The Tax Factory,” Flouted Court’s Earlier OrderFinding that she “is not competent, or if competent, she is not willing to prepare returns that comply with the law,” a federal court yesterday held Stephanie Edmond in contempt of court for violating the court’s previous injunction orders. The U.S. District Court for the District of Tennessee also barred Edmond’s businesses, the Tax Factory and the Tax Firm, and her husband, Kevin Williams, from preparing tax returns and it ordered them to disgorge to the United States all fees they have earned since January 15.
On April 17, 2015, the court enjoined Edmond and the Tax Factory from preparing improper federal income tax returns. The court also ordered Edmond and her businesses to pay for an independent monitor who would be required to report to the United States on a monthly basis as to whether Edmond complied with the internal revenue laws. However, the court found that after the independent monitor sent Edmond and the Tax Factory a letter regarding their failure to provide bank statements and otherwise comply with the April 2015 injunction, Williams arranged, in exchange for a fee, to use the Electronic Filing Identification Number of another entity, the Tax Firm, to file returns. The court found that the Tax Firm was the successor of the Tax Factory and concluded that “[t]here is no evidence that the Tax Firm was created for any reason except to escape the review of the monitor and the injunctions issued by this Court. There is no evidence to show a legitimate separate entity. Instead, the evidence demonstrates that Tax Firm was created for the improper purpose of flouting the Court’s orders.” The court ordered a copy of the contempt order to be posted at the locations of the Tax Factory and the Tax Firm in Memphis.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
El Paso, Texas Man Pleads Guilty in New Mexico to Federal Drug Trafficking Charge Arising from Seizure of Almost Six Pounds of HeroinRead the Press Release
ALBUQUERQUE – Luis Alejandro Escapite Perez, 21, of El Paso, Texas, pleaded guilty today in federal court in Albuquerque, N.M., to a heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Perez was arrested on Oct. 13, 2015, on a criminal complaint charging him with possession of heroin with intent to distribute in Valencia County, N.M. According to the complaint, Perez was arrested after law enforcement officers discovered approximately 2.67 kilograms (5.9 pounds) of heroin concealed inside Perez’s vehicle during a traffic stop on Interstate 25 near Belen, N.M. Perez was subsequently indicted on the same charge on Dec. 17, 2015. The indictment included forfeiture allegations requiring Perez to forfeit a white 2011 Volkswagen Jetta to the United States.
During today’s proceedings, Perez pled guilty to the indictment. In entering the guilty plea, Perez admitted that on Oct. 13, 2015, he was in the process of transporting 2.67 kilograms of heroin to Albuquerque when he was stopped by law enforcement officers. Perez admitted that he previously delivered heroin from the area of El Paso and Juarez, Mexico to Albuquerque on April 28, 2015 and May 18, 2015. During each of these prior deliveries, Perez was paid to transport the heroin from the El Paso and Juarez, Mexico area to Albuquerque.
At sentencing, Perez faces a statutory minimum of ten years and a maximum of life in federal prison. Perez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorney Shaheen P. Torgoley is prosecuting the case.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative 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.
Eight Members of Cherry Hill Group ‘UDH’ Plead Guilty to Racketeering Conspiracy on the Eve of TrialRead the Press Release
Baltimore, Maryland – Eight men have pleaded guilty to conspiracy to participate in a racketeering enterprise in connection with their gang activities as members of the UDH organization, which operates in the Cherry Hill section of Baltimore. The following defendants pleaded guilty on April 1 and April 4, 2016, just prior to trial:
Steven Jackson, a/k/a Cutty, age 25, of Baltimore; Asim Benns, a/k/a Seem, age 33, of Baltimore; Gregory Sykes-Bey, age 22, of Baltimore; Elijah Sykes-Bey, a/k/a LaLa, age 21, of Baltimore; James Scott, a/k/a Mook Day, age 24, of Essex, Maryland; Michael Smith, a/k/a Lil Mikey, age 23, of Baltimore; Donte Thornton, a/k/a Tay, age 30, of Baltimore; and
Alonzo Clea, a/k/a Zo, age 26, of Baltimore.The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Disputes between rival drug gangs lead to many shootings and murders in Baltimore City,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we are holding accountable the criminals who turned Cherry Hill into a war zone.”
According to their plea agreements, from at least 2007 to 2013, the UDH organization operated in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” or “Down da Hill,” (DDH), and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the DDH section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
The defendants admitted that as members of UDH they were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, and narcotics trafficking.
In addition to selling drugs, UDH members have also committed murders, attempted murders, assaults, carjackings, and robberies. Beginning in 2004, UDH members committed six murders of rival gang members and/or drug dealers, and shot nine other individuals. In addition, the members of UDH committed street and bank robberies in order to fund their narcotics activities.
According to his plea agreement, in addition to being a member of UDH, Asim Benns was also a high ranking member of the Black Guerilla Family (BGF), overseeing the Up the Hill area of Cherry Hill. Benns admitted that he planned and/or participated in the murders of two rival gang members, and two other shootings. Benns ran a heroin shop in the UDH area, as well as distributing other drugs. In July and August of 2011, Benns and other UDH members robbed two banks, stealing a total of $11,100, which he and the other robbers used to buy drugs that they could sell. Thornton participated in one of the bank robberies.
All of the defendants admitted to their participation in the gang’s narcotics trafficking activities. In addition, co-defendant Steven Jackson admitted to the murder of a rival gang member and the shooting of another person. Gregory Sykes-Bey admitted to two shootings and the murder of a rival gang member, and Michael Smith admitted committing the murder of a rival gang member and to possessing a firearm used in that murder and two additional shootings. According to their plea agreements, Elijah Sykes-Bey participated in the murders of two rival gang members, and Donte Thornton participated in a shooting and a murder of a rival gang member.
The defendants and the government have agreed to recommend specific sentences as part of their plea agreements. If the Court accepts the plea agreements Benns be sentenced to between 20 and 25 years; Jackson and Smith will each be sentenced to 25 years; the Sykes-Bey brothers will each be sentenced to 24 years each; Clea will be sentenced to 10 years in prison; Thornton will be sentenced to 15 years in prison; and Scott will be sentenced to10 to 15 years in prison, respectively. U.S. District Judge George L. Russell, III has scheduled sentencing for Jackson and Clea on June 10, 2016; for Elijah Sykes-Bey on June 24, 2016; for Gregory Sykes-Bey on July 9, 2016; for Asim Benns, James Scott and Donte Thornton on July 15, 2016; and for Michael Smith on August 12, 2016.
A total of 35 Cherry Hill gang members have now pleaded guilty. For example, Little Spelman gang member Davon Martin, age 26, admitted to drug dealing and the murders of two UDH gang members and was sentenced to 35 years in prison. UDH member Dominic Evans, a/k/a “FlatLine,” age 25, admitted to drug dealing, two stabbings and to his participation in a murder, and was sentenced to 30 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Coventry Man Admits Role in Steroid Distribution ConspiracyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN KOCH, 49, of Coventry, pleaded guilty today before U.S. District Judge Robert N. Chatigny in Hartford to one count of conspiracy to distribute anabolic steroids.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that Steven Santucci, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. The investigation also revealed that certain members of the conspiracy were distributing prescription pills, including oxycodone, as well as cocaine.
In pleading guilty, KOCH admitted that he conspired with Santucci and others to distribute anabolic steroids.
During the course of the investigation, law enforcement officers seized hundreds of vials of steroids, approximately 600 grams of raw testosterone powder, approximately 350 grams of powder cocaine, and several firearms.
KOCH was arrested on June 4, 2015.
Judge Chatigny scheduled sentencing for July 1, 2016, at which time KOCH faces a maximum term of imprisonment of 10 years and a fine of up to $500,000. KOCH is released on a $100,000 bond.
On December 9, 2015, Santucci pleaded guilty steroid distribution and money laundering offenses. He awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Compliance Officer Admits Rigging Contractor Selection Process for Union City Community Development Agency ProjectsRead the Press Release
NEWARK, N.J. – A compliance officer with the Union City Community Development Agency (UCCDA) today admitted that he manipulated the contractor selection process for federally funded residential rehabilitation and sidewalk replacement projects, causing losses of $40,000 to $95,000, U.S. Attorney Paul J. Fishman announced.
Washington Borgono, 65, of North Bergen, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to Count Two of an indictment charging him with obtaining by fraud, converting and misapplying government funds provided by the UCCDA.
According to documents filed in this case and statements made in court:
Between April 2007 and February 2013, Borgono was a compliance officer at the UCCDA, a local government agency that received grant funds from the U.S. Department of Housing and Urban Development (HUD). Among the programs that the UCCDA operated through this HUD funding were a residential rehabilitation program and a sidewalk replacement program.
From 2007 through 2013, Borgono manipulated the contractor selection process for HUD-funded residential rehabilitation and sidewalk replacement projects through false and misleading bids. Borgono instructed certain contractors, such as Leovaldo Fundora, a contractor in Guttenberg, New Jersey, to obtain and submit higher, phony bids from other contractors in order to improperly award residential rehabilitation and sidewalk replacement projects to the contractors of Borgono’s choice. Borgono also instructed certain contractors, such as Joseph Lado, of Fort Lee, New Jersey, to bid under a certain specified amount on residential rehabilitation and sidewalk replacement projects, to ensure those contractors obtained those projects. At other times, Borgono instructed certain contractors to submit phony higher bids from their own companies, for residential rehabilitation and sidewalk replacement projects, to ensure that certain contractors were awarded the projects. In other instances, Borgono discarded the lowest bid for sidewalk replacement projects to ensure that Borgono’s contractors of choice would be awarded the sidewalk replacement projects. Fundora, Lado, UCCDA Inspector Johnny Garces and Stanley Parzych, a contractor in Jersey City, New Jersey, previously pleaded guilty to criminal charges for their roles in this scheme and await sentencing.
The charge of obtaining by fraud, converting and misapplying government funds carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for July 19, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Barbara R. Llanes and José R. Almonte of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Louis A. Zayas Esq., North Bergen
City of Chicago Building Inspector Charged with Demanding Bribe from Property Owner in Exchange for Allowing Renovations Without a PermitRead the Press Release
CHICAGO — A building inspector for the City of Chicago was arrested today for allegedly demanding a $300 bribe from a property owner in exchange for allowing renovation work without a permit.
ROBERTO URIBE, 55, of Chicago, is charged with attempted extortion for soliciting the bribe from an owner of a two-story building in Chicago, according to a criminal complaint and affidavit filed in U.S. District Court. Unbeknownst to Uribe, the building owner was cooperating with federal authorities and had surreptitiously recorded the bribery demand.
In a recorded conversation on Nov. 9, 2015, Uribe allegedly boasted of his ability to shut down the renovation work unless the owner paid him $300. “What’s going to happen is, if we put a stop on it, it’s going to stop you for six months, seven months,” Uribe told the building owner, according to the complaint. “So now, what’s happening now is you’re gonna give me some appreciation, and you’re gonna hurry up and get this done. And that appreciation is gonna be $300. Now how quickly can you get me my money to keep my mouth shut?”
Federal authorities arrested Uribe this morning. He was released on a personal appearance bond after an initial hearing this afternoon before U.S. Magistrate Judge Sheila Finnegan in Chicago. A status hearing is scheduled for April 26, 2016, at 1:15 p.m.
The attempted extortion charge is punishable by up to 20 years in prison and a $250,000 fine.
The arrest was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph M. Ferguson, Inspector General for the City of Chicago.
Uribe is employed as a Building/Construction Inspector for the City of Chicago Department of Buildings, which enforces the permitting and inspection requirements of the Chicago Building Code. According to the complaint, Uribe initially approached workers performing renovations at the building and asked if they had a permit to work on the front window façade. The workers put Uribe in touch with the building owner, who met with Uribe and learned of the bribery solicitation.
Uribe allegedly told the owner that paying a bribe to avoid a permit would save money and benefit both of them. “This here will stop you for six months and it’ll cost you starting at $3,500 for an architect and plans,” Uribe told the owner in a recorded conversation, according to the complaint. “I’m looking out for you, we’re looking out for each other.”
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Sarah Streicker.
Complaint
Christian County Jail Inmate Pleads Guilty to Tax Fraud Conspiracy Behind BarsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an inmate in the Christian County Jail in Ozark, Mo., pleaded guilty in federal court today to his role in a conspiracy to file fraudulent federal income tax returns while he was incarcerated and awaiting sentencing on another federal conviction.
John Dennis Sedersten, 40, who was an inmate in the Christian County Jail at the time of the offense, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with leading a conspiracy to defraud the government.
Sedersten committed this offense, his fifth federal conviction, while incarcerated as he awaited sentencing on an earlier federal conviction for escaping from custody. Sedersten had walked away from a halfway house in Springfield, Mo., on Aug. 9, 2014. For that offense, he was sentenced on Thursday, March 31, 2016, to five years in federal prison without parole.
Sedersten was at the halfway house as part of his sentence for aggravated identity theft, to which he pleaded guilty in 2013. He was scheduled to be released about five months later, on Dec. 3, 2014. Sedersten also has prior federal convictions related to a counterfeit check-cashing scheme to which he pleaded guilty in 2010. Sedersten also has a 2002 federal felony conviction for counterfeit checks in the District of Nebraska.
By pleading guilty today, Sedersten admitted that, while he was incarcerated, he conspired with others to prepare and submit false federal income tax returns in order to receive refunds to which the conspirators were not entitled. Sedersten’s co-conspirators, who are not identified in court documents, were not inmates of the jail.
Sedersten admitted that he provided his co-conspirators with specific instructions regarding how to complete and file the false federal income tax returns, listing wages not received, federal income tax withholdings that had not been withheld, and false business expenses. Sedersten also provided his co-conspirators with an Employer Identification Number (EIN) under which they could report the false wages and withholdings. Most of the conspirators claimed to have received wages from JDS Enterprises, which is registered to Sedersten.
All false claims but one were halted by the IRS, and the one refund issued was recovered. Today’s plea agreement lists nine false claims filed by eight individuals. The government believes the total amount of the false claims submitted during the course of this conspiracy was $373,372.
Under federal statutes, Sedersten is subject to a sentence of up to 10 years in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation, the Springfield, Mo., Police Department and the U.S. Marshals Service.
Checora Sentenced to 60 Months in Federal Prison for Voluntary Manslaughter ConvictionRead the Press Release
SALT LAKE CITY – Grant Hubert Checora, age 23, of Ft. Duchesne, who pleaded guilty to voluntary manslaughter while within Indian Country in January, will serve 60 months in federal prison. Checora will be on supervised release for 36 months once he finishes his prison sentence. U.S. District Judge Dale Kimball imposed the sentence Monday afternoon in U.S. District Court in Salt Lake City.
As a part of a plea agreement reached in the case, Checora admitted that he killed an individual identified as E.C. on June 11, 2014. The victim, an enrolled member of the Ute Indian Tribe, was killed on the Uintah and Ouray Reservation. Checora admitted that he acted recklessly with extreme disregard for human life by killing E.C., while in a sudden quarrel. Checora is also an enrolled member of the Ute Indian Tribe.
The charges stem from a June 11, 2014, incident in the Little Chicago Community of Fort Duchesne. Bureau of Indian Affairs officers responded to a shooting about 2 a.m. A confrontation between two groups preceded the shooting. The case was investigated by the BIA and the FBI.
Checora was initially indicted on murder in the second degree, two counts of discharge of a firearm in furtherance of a crime of violence and attempt to commit murder while in Indian Country. A felony information charging voluntary manslaughter was filed in connection with the plea agreement reached with federal prosecutors. The charges in the indictment were dismissed at the sentencing hearing Monday.
Kimball recommended that Checora receive vocational rehabilitation and participate in the Tribal Reentry Court when he finishes his federal sentence.
Cape Cod Drug Traffickers Arrested and ChargedRead the Press Release
BOSTON – Thirteen individuals have been charged with federal drug trafficking and firearms charges following an investigation led by the Bureau of Alcohol, Tobacco, Firearms & Explosives. Three face state first-degree murder charges following a State Police and Barnstable Police investigation led by District Attorney Michael O’Keefe.
Thirteen Cape Cod residents affiliated with the Nauti street gang and drug trafficking organization were charged with federal drug and firearm violations. One individual was charged in a separate, related complaint with possession of a firearm by a felon. In addition, the Cape and Islands District Attorney’s Office charged three individuals with the murder of Christine Santos Ferreira.
In October 2015, law enforcement initiated an effort to address the rising opiate epidemic in Massachusetts and on Cape Cod in particular. Barnstable and Bristol counties each have an overdose death rate of 16-20 per 100,000 people, which is the highest in Massachusetts and exceeds the national average. As alleged in the federal criminal complaint, Denzel Chisholm and Christopher Wilkins, along with the other charged defendants, are responsible for a significant quantity of the heroin that has been distributed on Cape Cod. The investigation led to the state murder charges against Denzel Chisholm, Shannelle Chisholm and Tyrone Gomes.
According to state and federal criminal complaints, Ferreira was found shot and stabbed numerous times in the east bound rest area between Exits 6 and 7 on Route 6 in Barnstable on Sept. 19, 2015. Investigators believe that Chisholm orchestrated the murder of Ferreira in retaliation for her testimony against a fellow member of the Nauti street gang in 2011.
According to the federal criminal complaint, Chisholm and Wilkins pooled money and purchased heroin from a common source, which they then distributed to their customers who included Oliver Hamilton, Brooke Cotell, Shaun Miller, Tyrone Gomes, Stephanie Davis, Anthony Hall, and Benjamin Roderick, for further distribution.
According to the affidavit, in February 2016, Wilkins and Chisholm began distributing heroin tinted “blue” due to the “cut” put in the heroin, which was later seized from multiple sources on Cape Cod, indicating its widespread distribution. The complaint describes the lengths that Chisholm and Wilkins went to in order to shield themselves from law enforcement detection. Chisholm allegedly employed a girlfriend, Eelyese Mateo, to deliver heroin and store it at her Hyannis home. Chisholm and Wilkins also stored and sold heroin from a stash house operated by Bethanne Hutchings. On March 12, 2016, Chisholm left Hutchings a sample of heroin at her home for her to try. That night, Hutchings overdosed, was found unresponsive by local authorities, and was administered Narcan which ultimately saved her life.
In addition to heroin trafficking, it is further alleged that Wilkins, Chisholm and their co-conspirators possessed and used firearms. In March 2016, investigators intercepted telephone calls in which Benjamin Roderick, a heroin customer of Wilkins, offered to trade a .38 caliber firearm to Wilkins for 10 grams of heroin. Wilkins agreed to the deal, but just before they were to meet, law enforcement officers stopped Roderick’s vehicle and recovered the firearm. In a related complaint, Matthew Monroe was charged with possession of a firearm by a felon after he sold an Uzi semi-automatic rifle to a cooperating witness in a Hyannis hotel room.
The following defendants were charged in a federal criminal complaint with:
Conspiracy to distribute and possess with intent to distribute heroin:
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Denzel Chisholm, aka “Den” and “Din,” 26, of Barnstable;
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Christopher Wilkins, aka “Degree” and “Half Circle,” 29, of Hyannis;
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Tyrone Gomes, 31, of Hyannis;
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Eelyese Mateo, aka “El Chapo,” 20, of Hyannis;
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Bethanne Hutchings, 50, of Hyannis;
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Oliver Hamilton, 26, of Hyannis;
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Stephanie Davis, 21, of Harwich; and
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Anthony Hall, aka “Nova,” 31, of Sandwich.
Possession of heroin with the intent to distribute:
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Brooke Cotell, 22, of Hyannis;
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Shaun Miller, aka “Shizz” and “Shizz Miller,” 31, of Hyannis; and
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Jason Mello, 27, of Barnstable.
Conspiracy to possess a firearm in furtherance of a drug trafficking offense:
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Benjamin Roderick, aka “B Dot,” 26, of Hyannis; and
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Christopher Wilkins.
The following defendant was charged in a related federal criminal complaint with:
Possession of a firearm by a felon:
1. Matthew Monroe, 25, of Barnstable.
The defendants will appear in U.S. District Court in Boston. Gomes and Chisholm will appear in federal court after first being arranged and charged with related murder charges in Massachusetts state court. Gomes was previously in custody.
The charge of conspiracy to distribute and possess with intent to distribute heroin and possession with the intent to distribute heroin provides a sentence of no greater than 20 years in prison, up to a lifetime of supervised release and a fine of $1,000,000. The charge of conspiracy to possess a firearm in furtherance of a drug trafficking offense provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The Cape and Islands District Attorney’s Office charged the following defendants in a criminal complaint with:
First degree murder:
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Denzel Chisholm;
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Shannelle Chisholm, 26, of Mashpee; and
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Tyrone Gomes
United States Attorney Carmen M. Ortiz; Cape and Islands District Attorney Michael O’Keefe; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Barnstable County Sheriff James M. Cummings; Bristol County Sheriff Thomas Hodgson; Barnstable Police Chief Paul MacDonald; Yarmouth Police Chief Frank Frederickson; and U.S. Marshal John Gibbon for the District of Massachusetts made the announcement today. The federal cases are being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics and Money Laundering Unit. The state cases are being prosecuted by the Cape & Islands District Attorney’s Office.The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
For information on the state charges, please contact First Assistant District Attorney Michael A. Trudeau, First Assistant District Attorney Brian S. Glenny or Assistant District Attorney Tara L. Miltimore at the Cape & Islands District Attorney’s Office.
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California Woman Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
BOISE - Jassmine Pettaway, 27, of Inglewood, California, pleaded guilty today to wire fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Pettaway was indicted by a federal grand jury in Boise on October 14, 2015.
According to the court proceedings, Pettaway admitted that she agreed to travel to Idaho for the purpose of making fraudulent purchases. Pettaway admitted that she and her co-defendant made at least eight fraudulent purchases from at least four different retail stores, in the amount of at least $20,225.86. Two of those purchases were made at the Nike Factory Store in Meridian for $8,087.95 and $10,116.59. Law enforcement recovered a fake Michigan driver’s license, at least 19 counterfeit credit cards, and at least 45 gift cards.
Wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release. Aggravated identity theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, and a fine up to $250,000.
Sentencing is set for June 15, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Meridian Police Department, the Boise Police Department, and the U.S. Secret Service (USSS).
California CPA Sentenced to 57 Months in Prison for Defrauding New Jersey Religious Center, California Non-Profit Out of More Than $4 MillionRead the Press Release
NEWARK, N.J. – A California CPA was sentenced today to 57 months in prison for abusing his positions at a worship center in New Jersey and a non-profit in California to steal more than $4 million, U.S. Attorney Paul J. Fishman announced.
Donald Gridiron, 51, of Pomona, California, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of wire fraud and one count of filing a false tax return. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
A religious facility located in Rahway, New Jersey, hired Gridiron based, in part, on his connections with individuals in the religious community as well as his standing within that community. The religious facility agreed to pay Gridiron a monthly salary and reimburse him for reasonable expenses related to his work. In addition, Gridiron was the treasurer for a non-profit entity registered in California.
Gridiron used his employment with the worship center and his status with the non-profit to illegally syphon money without their consent or authorization. In total, Gridiron transferred more than $4 million to accounts he controlled. Gridiron then used the funds for his own use, including mortgage payments, luxury car payments and gambling expenses. Gridiron also failed to report this income on his tax returns, including $950,000 he stole during the 2011 tax year.
In addition to the prison term, Judge McNulty sentenced Gridiron to three years of supervised release and ordered him to pay restitution of approximately $5.16 million ($4,815,964 to the worship center, including $200,000 to insurers who have paid the worship center; and $348,450 to the foundation.)
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and law enforcement officers of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Candace Hom Esq., Newark, New Jersey
CEO of Venture Capital Firm Pleads Guilty to Fraud ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JOSEPH McANDREW, 74, of Pawcatuck, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from his misuse of client funds.
According to court documents and statements made in court, McANDREW was the Chief Executive Officer and Managing Partner of Wall Street Venture Capital Ltd. (“WSVC”), which offered lending and brokerage services to prospective clients who were seeking to raise money for business ventures. McANDREW required each client who retained WSVC’s services to pay upfront fees of approximately $30,000, which he falsely represented would be used solely for expenses incurred in raising money on the clients’ behalf. In truth, McANDREW used the upfront fees he received from WSVC’s clients for personal expenditures, including to purchase stocks and pay personal credit card charges.
In total, McANDREW stole $317,628 from clients of WSVC who believed their money would be used to secure financing on their behalf. None of these clients ever received financing through WSVC.
Wire fraud carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
McANDREW is released on a $25,000 bond.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Christopher W. Schmeisser.
Bank Employee Pleads Guilty to $213,000 TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman pleaded guilty in federal court today to embezzling more than $213,000 from Bank of America.
Elisha Nicole Araiza, 35, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to embezzlement by a bank employee.
Araiza was employed by Bank of America on May 17, 2004, and worked as a financial analyst in the Special Assets Group on the Small Business Accounts Team. Her duties included contacting small business borrowers to arrange payments on past due loans, and in that regard she had authority to negotiate settlements, create payment plans, and forgive portions of the debts owed.
Araiza admitted that she had been experiencing overdrafts in her personal bank account for about a year when, in July 2011, she deposited a bank customer’s money order into her own account. Thereafter, the diversion of client checks to Araiza’s personal accounts continued until March 19, 2015, at which point the embezzlement was detected by Bank of America.
Bank of America found 121 diverted loan payment checks totaling $213,090 deposited into Araiza’s personal account.
Under federal statutes, Araiza is subject to a sentence of up to 30 years in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the U.S. Secret Service.
Attorney General Loretta E. Lynch Statement on Planned Departure of Acting Associate Attorney General Stuart F. DeleryRead the Press Release
Attorney General Loretta E. Lynch released the following statement Tuesday on the departure, effective April 14, of Acting Associate Attorney General Stuart F. Delery:
“For over seven years – since the very first day of the Obama Administration – Stuart Delery has been an indispensable source of wisdom, leadership and inspiration at the Department of Justice, working relentlessly to make the ideals of equal opportunity and equal justice a reality for all. He has proven himself a superlative lawyer and a dynamic force for progress, both within the department and far beyond it. Stuart was involved in many of the department’s most consequential cases and programs, and he invariably brought both skill and passion to a wide range of critical issues.
“Across all of his efforts – from launching the department’s Servicemembers and Veterans Initiative, to implementing the Supreme Court’s landmark ruling in United States v. Windsor, to leading unprecedented actions to address financial fraud and consumer safety – Stuart has been dedicated, above all, to making a meaningful difference in the lives of Americans who need our help and deserve our attention. We can all take pride in the many ways he has helped to make this country more fair, more equal and more just. I am grateful for his distinguished record of service, and I wish him the very best in the next steps of his already illustrious career.”
Anchorage Man sentenced to 126 months in prison for armed robbery crimeRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage man has been sentenced by U.S. District Judge Ralph R. Beistline to serve 126 months in prison for his role in robbing a local business with a stolen assault rifle.
Miguel J. Batista, 28, previously pled guilty to interference with commerce by robbery and to brandishing and carrying a firearm during a crime of violence. As part of his guilty plea, Batista admitted that he twice stole assault rifles from the Eagle River Walmart, ultimately stealing nine total rifles. He then used one of those assault rifles to rob Party Time Liquor Store in Anchorage.
According to Special Assistant U.S. Attorney Erin Bennett, who prosecuted the case, Batista pointed the assault rifle at several people inside the store and made a cashier give him the money from the registers. After leaving the store, he went around to the back of the building and pointed the gun at another employee. He made the employee hand over his cell phone and car keys and then drove away in the employee’s car.
During the sentencing hearing, the government noted that Batista had a great impact on this community by unleashing a number of assault rifles, stealing from businesses, and terrifying six individuals by pointing his assault rifle at them.
Judge Beistline stated that Batista had made his own problems the problems of this community. He also noted the terrible impact that Batista had on the life of the cashier by robbing her at gunpoint. In pronouncing the sentence, Judge Beistline focused on the seriousness of the offenses but also spoke of the need for people like Batista – an admitted drug user – to get treatment for their addiction.
U.S. Attorney Loeffler commended the work of the Bureau of Alcohol, Tobacco, and Firearms (ATF) and the Anchorage Police Department (APD), who investigated the case. Since 2007, the Municipality of Anchorage has partnered with the U.S. Attorney’s Office to address drug and violent crime issues within the city. Ms. Bennett is a municipal prosecutor assigned to prosecute drug and violent crime cases in federal court.
21 Defendants Charged with Fraudulently Enabling Hundreds of Foreign Nationals to Remain in the United States Through Fake ‘Pay to Stay’ New Jersey CollegeRead the Press Release
“College” Created as Part of Homeland Security Investigations Sting Operation
Twenty-one brokers, recruiters and employers from across the United States who allegedly conspired with more than 1,000 foreign nationals to fraudulently maintain student visas and obtain foreign worker visas through a “pay to stay” New Jersey college were arrested this morning by federal agents, U.S. Attorney Paul J. Fishman for the District of New Jersey announced.
The defendants (see chart below) were arrested in New Jersey and Washington by special agents with U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) and charged in 14 complaints with conspiracy to commit visa fraud, conspiracy to harbor aliens for profit and other offenses. All the defendants, with the exception of Yanjun Lin aka Aimee Lin, 25, of Flushing, New York, will appear today before U.S. Magistrate Judge Steven C. Mannion of the District of New Jersey in Newark, New Jersey, federal court. Lin will appear before U.S. Magistrate Judge Karen L. Strombom in the Western District of Washington federal court.
“‘Pay to Stay’ schemes not only damage our perception of legitimate student and foreign worker visa programs, they also pose a very real threat to national security,” U.S. Attorney Fishman said. “Today’s arrests, which were made possible by the great undercover work of our law enforcement partners, stopped 21 brokers, recruiters and employers across multiple states who recklessly exploited our immigration system for financial gain.”
“While the United States fully supports international education, we will vigorously investigate those who seek to exploit the U.S. immigration system,” said Director Sarah R. Saldaña for ICE. “As a result of this operation, HSI special agents have successfully identified and closed a gap in the student visa system and have arrested 21 individuals alleged to be amongst the system’s most egregious violators.”
“Individuals engaged in schemes that would undermine the remarkable educational opportunities afforded to international students represent an affront to those who play by the rules,” said Special Agent in Charge Terence S. Opiola for ICE Homeland Security Investigations. “These unscrupulous individuals undermine the integrity of the immigration system. Our special agents are committed to addressing, identifying fraud in order to better protect the system as a whole.”
According to the complaints unsealed today and statements made in court:
The defendants, many of whom operated recruiting companies for purported international students, were arrested for their involvement in an alleged scheme to enroll foreign nationals as students in the University of Northern New Jersey, a purported for-profit college located in Cranford, New Jersey (UNNJ). Unbeknownst to the defendants and the foreign nationals they conspired with, however, the UNNJ was created in September 2013 by HSI federal agents.
Through the UNNJ, undercover HSI agents investigated criminal activities associated with the Student and Exchange Visitor Program (SEVP), including, but not limited to, student visa fraud and the harboring of aliens for profit. The UNNJ was not staffed with instructors or educators, had no curriculum and conducted no actual classes or education activities. The UNNJ operated solely as a storefront location with small offices staffed by federal agents posing as school administrators.
UNNJ represented itself as a school that, among other things, was authorized to issue a document known as a “Certificate of Eligibility for Nonimmigrant (F-1) Student Status - for Academic and Language Students,” commonly referred to as a Form I-20. This document, which certifies that a foreign national has been accepted to a school and would be a full-time student, typically enables legitimate foreign students to obtain an F-1 student visa. The F-1 student visa allows a foreign student to enter and/or remain in the United States while the student makes normal progress toward the completion of a full course of study in an SEVP accredited institution.
During the investigation, HSI special agents identified hundreds of foreign nationals, primarily from China and India, who previously entered the U.S. on F-1 non-immigrant student visas to attend other SEVP- accredited schools. Through various recruiting companies and business entities located in New Jersey, California, Illinois, New York and Virginia, the defendants then enabled approximately 1,076 of these foreign individuals – all of whom were willing participants in the scheme – to fraudulently maintain their nonimmigrant status in the U.S. on the false pretense that they continued to participate in full courses of study at the UNNJ.
Acting as recruiters, the defendants solicited the involvement of UNNJ administrators to participate in the scheme. During the course of their dealings with undercover agents, the defendants fully acknowledged that none of their foreign national clients would attend any actual courses, earn actual credits, or make academic progress toward an actual degree in a particular field of study. Rather, the defendants facilitated the enrollment of their foreign national clients in UNNJ to fraudulently maintain student visa status, in exchange for kickbacks, or “commissions.” The defendants also facilitated the creation of hundreds of false student records, including transcripts, attendance records and diplomas, which were purchased by their foreign national conspirators for the purpose of deceiving immigration authorities.
In other instances, the defendants used UNNJ to fraudulently obtain work authorization and work visas for hundreds of their clients. By obtaining this authorization, a number of defendants were able to outsource their foreign national clients as full-time employees with numerous U.S.-based corporations, also in exchange for commission fees. Other defendants devised phony IT projects that were purportedly to occur at the school. These defendants then created and caused to be created false contracts, employment verification letters, transcripts and other documents. The defendants then paid the undercover agents thousands of dollars to put the school’s letterhead on the sham documents, to sign the documents as school administrators and to otherwise go along with the scheme.
All of these bogus documents created the illusion that prospective foreign workers would be working at the school in some IT capacity or project. The defendants then used these fictitious documents fraudulently to obtain labor certifications issued by the U.S. Secretary of Labor and then ultimately to petition the U.S. government to obtain H1-B visas for non-immigrants. These fictitious documents were then submitted to the U.S. Customs and Immigration Services (USCIS). In the vast majority of circumstances, the foreign worker visas were not issued because USCIS was advised of the ongoing undercover operation.
In addition, starting today, HSI Newark is coordinating with the ICE Counterterrorism and Criminal Exploitation Unit (CTCEU) and the SEVP to terminate the nonimmigrant student status for the foreign nationals associated with UNNJ, and if applicable, administratively arrest and place them into removal proceedings.
The chart below outlines the charges for each defendant. The charges of conspiracy to commit visa fraud and making a false statement each carry a maximum potential penalty of five years in prison and a $250,000 fine. The charges of conspiracy to harbor aliens for profit and H1-B Visa fraud each carry a maximum penalty of 10 years in prison and $250,000 fine.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement, under the leadership of Director Saldaña; HSI Newark, under the leadership of Special Agent in Charge Opiola; U.S. Immigration and Customs Enforcement, Counterterrorism and Criminal Exploitation Unit, under the leadership of Unit Chief Robert Soria; U.S. Citizenship and Immigration Services, Fraud Detection and National Security Section, under the leadership of Associate Director Matthew Emrich; the Student and Exchange Visitor Program, under the leadership of Deputy Assistant Director Louis M. Farrell; U.S. Citizenship and Immigration Services, Vermont Service Center, Security Fraud Division, under the leadership of Associate Center Director Bradley J. Brouillette; U.S. Department of State, Bureau of Consular Affairs, Office of Fraud Prevention Programs, under the leadership of Director Josh Glazeroff; and the FBI, Joint Terrorism Task Force, under the leadership of Timothy Gallagher in Newark, for their contributions to the investigation.
He also thanked the Accrediting Commission of Career Schools and Colleges (ACCSC), under the leadership of Executive Director Michale S. McComis, and the New Jersey Office of Higher Education, under the leadership of Secretary of Higher Education Rochelle R. Hendricks, for their assistance. In addition, U.S. Attorney Fishman thanked the New Jersey Motor Vehicle Commission and the New York State Department of Motor Vehicles, as well as the U.S. Attorney’s Offices for the Central District of California, Eastern District of New York, Eastern District of Virginia, Southern District of New York, Central District of Illinois, Peoria Division, and the Northern District of Georgia for their help.
The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit and Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
Defendant Name
Age
Residence
Charges
Jun Shen aka Jeanette Shen
32
Levittown, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Jiaming Wang aka Celine Wang,
34
Los Angeles, California
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Philip Junlin Li
33
Los Angeles, California
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Zitong Wen aka Kate Wen
27
Rowland Heights, California
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Chaun Kit Yuen aka Alvin Yuen
24
Rowland Heights, California
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Ting Zue aka Tiffany Xue
28
Flushing, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Yanjun Lin aka Aimee Lin
25
Flushing, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Zheng Zhang aka Vicky Zhang
26
New York, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Xue Yong Liu aka Jack Liu
29
New York, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Minglu Li aka Vivian Lee
36
Los Angeles, California
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Jason Li aka Jason Liu aka Fen Lee
43
Flushing, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Tajesh Kodali
44
Edison, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Jyoti Patel
34
Franklin Park, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Shahjadi M. Parvin aka Sarah Patel
54
Hackensack, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Narendra Singh Plaha
44
Hillsborough, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Sanjeev Sukhija
35
North Brunswick, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Harpreet Sachdeva
26
Somerset, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Avinash Shankar
35
Bloomington, Illinois
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Karthik Nimmala
32
Smyrna, Georgia
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Govardhan Dyavarashetty aka Vardhan Shetty
35
Avenel, New Jersey
– H1-B Visa fraud
– False statements
– Conspiracy to harbor aliens for profit
Syed Qasim Abbas aka Qasim Reza aka Nayyer
41
Brooklyn, New York
– H1-B Visa fraud
– False statements
– Conspiracy to harbor aliens for profit
21 Defendants Charged with Fraudulently Enabling Hundreds of Foreign Nationals to Remain in the United States Through Fake ‘Pay to Stay’ New Jersey CollegeRead the Press Release
“College” created as part of Homeland Security Investigations sting operation
NEWARK, N.J. - Twenty-one brokers, recruiters, and employers from across the United States who allegedly conspired with more than 1,000 foreign nationals to fraudulently maintain student visas and obtain foreign worker visas through a “pay to stay” New Jersey college were arrested this morning by federal agents, New Jersey U.S. Attorney Paul J. Fishman announced.
The defendants (see chart below) were arrested in New Jersey and Washington by special agents with U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) and charged in 14 complaints with conspiracy to commit visa fraud, conspiracy to harbor aliens for profit, and other offenses. All the defendants, with the exception of Yanjun Lin, will appear today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. Lin will appear before U.S. Magistrate Judge Karen L. Strombom in the Western District of Washington federal court.
“‘Pay to Stay’ schemes not only damage our perception of legitimate student and foreign worker visa programs, they also pose a very real threat to national security,” U.S. Attorney Fishman said. “Today’s arrests, which were made possible by the great undercover work of our law enforcement partners, stopped 21 brokers, recruiters and employers across multiple states who recklessly exploited our immigration system for financial gain.”
“While the United States fully supports international education, we will vigorously investigate those who seek to exploit the U.S. immigration system,” said ICE Director Sarah R. Saldaña. “As a result of this operation, HSI special agents have successfully identified and shut down multiple operations which have abused the student visa program.”
“Individuals engaged in schemes that would undermine the remarkable educational opportunities afforded to international students represent an affront to those who play by the rules. These unscrupulous individuals undermine the integrity of the immigration system,” said ICE Homeland Security Investigations Special Agent in Charge Terence S. Opiola. “Our special agents are committed to addressing, identifying fraud in order to better protect the system as a whole.”
According to the complaints unsealed today and statements made in court:
The defendants, many of whom operated recruiting companies for purported international students, were arrested for their involvement in an alleged scheme to enroll foreign nationals as students in the University of Northern New Jersey, a purported for-profit college located in Cranford, New Jersey (UNNJ). Unbeknownst to the defendants and the foreign nationals they conspired with, however, the UNNJ was created in September 2013 by HSI federal agents.
Through the UNNJ, undercover HSI agents investigated criminal activities associated with the Student and Exchange Visitor Program (SEVP), including, but not limited to, student visa fraud and the harboring of aliens for profit. The UNNJ was not staffed with instructors or educators, had no curriculum, and conducted no actual classes or education activities. The UNNJ operated solely as a storefront location with small offices staffed by federal agents posing as school administrators.
UNNJ represented itself as a school that, among other things, was authorized to issue a document known as a “Certificate of Eligibility for Nonimmigrant (F-1) Student Status - for Academic and Language Students,” commonly referred to as a Form I-20. This document, which certifies that a foreign national has been accepted to a school and would be a full-time student, typically enables legitimate foreign students to obtain an F-1 student visa. The F-1 student visa allows a foreign student to enter and/or remain in the United States while the student makes normal progress toward the completion of a full course of study in an SEVP accredited institution.
During the investigation, HSI special agents identified hundreds of foreign nationals, primarily from China and India, who previously entered the U.S. on F-1 non-immigrant student visas to attend other SEVP- accredited schools. Through various recruiting companies and business entities located in New Jersey, California, Illinois, New York, and Virginia, the defendants then enabled approximately 1,076 of these foreign individuals – all of whom were willing participants in the scheme – to fraudulently maintain their nonimmigrant status in the U.S. on the false pretense that they continued to participate in full courses of study at the UNNJ.
Acting as recruiters, the defendants solicited the involvement of UNNJ administrators to participate in the scheme. During the course of their dealings with undercover agents, the defendants fully acknowledged that none of their foreign national clients would attend any actual courses, earn actual credits, or make academic progress toward an actual degree in a particular field of study. Rather, the defendants facilitated the enrollment of their foreign national clients in UNNJ to fraudulently maintain student visa status, in exchange for kickbacks, or “commissions.” The defendants also facilitated the creation of hundreds of false student records, including transcripts, attendance records, and diplomas, which were purchased by their foreign national conspirators for the purpose of deceiving immigration authorities.
In other instances, the defendants used UNNJ to fraudulently obtain work authorization and work visas for hundreds of their clients. By obtaining this authorization, a number of defendants were able to outsource their foreign national clients as full-time employees with numerous U.S.-based corporations, also in exchange for commission fees. Other defendants devised phony IT projects that were purportedly to occur at the school. These defendants then created and caused to be created false contracts, employment verification letters, transcripts, and other documents. The defendants then paid the undercover agents thousands of dollars to put the school’s letterhead on the sham documents, to sign the documents as school administrators, and to otherwise go along with the scheme.
All of these bogus documents created the illusion that prospective foreign workers would be working at the school in some IT capacity or project. The defendants then used these fictitious documents fraudulently to obtain labor certifications issued by the U.S. Secretary of Labor and then ultimately to petition the U.S. government to obtain H1-B visas for non-immigrants. These fictitious documents were then submitted to the U.S. Customs and Immigration Services (USCIS). In the vast majority of circumstances, the foreign worker visas were not issued because USCIS was advised of the ongoing undercover operation.
In addition, starting today, HSI Newark is coordinating with the ICE Counterterrorism and Criminal Exploitation Unit (CTCEU) and the SEVP to terminate the nonimmigrant student status for the foreign nationals associated with UNNJ, and if applicable, administratively arrest and place them into removal proceedings.
The chart below outlines the charges for each defendant. The charges of conspiracy to commit visa fraud and making a false statement each carry a maximum potential penalty of five years in prison and a $250,000 fine. The charges of conspiracy to harbor aliens for profit and H1-B Visa fraud each carry a maximum penalty of 10 years in prison and $250,000 fine.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement, under the leadership of Director Sarah R. Saldaña; HSI Newark, under the leadership of Special Agent in Charge Terence S. Opiola; U.S. Immigration and Customs Enforcement, Counterterrorism and Criminal Exploitation Unit, under the leadership of Unit Chief Robert Soria; U.S. Citizenship and Immigration Services, Fraud Detection and National Security Section, under the leadership of Associate Director Matthew Emrich; the Student and Exchange Visitor Program, under the leadership of Deputy Assistant Director Louis M. Farrell; U.S. Citizenship and Immigration Services, Vermont Service Center, Security Fraud Division, under the leadership of Associate Center Director Bradley J. Brouillette; U.S. Department of State, Bureau of Consular Affairs, Office of Fraud Prevention Programs, under the leadership of Director Josh Glazeroff; and the FBI, Joint Terrorism Task Force, under the leadership of Timothy Gallagher in Newark, for their contributions to the investigation.
He also thanked the Accrediting Commission of Career Schools and Colleges (ACCSC), under the leadership of Executive Director Michale S. McComis, and the N.J. Office of Higher Education, under the leadership of Secretary of Higher Education Rochelle R. Hendricks, for their assistance. In addition, U.S. Attorney Fishman thanked the N.J. Motor Vehicle Commission and the New York State Department of Motor Vehicles, as well as the U.S. Attorney’s Offices for the Central District of California, Eastern District of New York, Eastern District of Virginia, Southern District of New York, Central District of Illinois, Peoria Division, and the Northern District of Georgia for their help.
The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit, and Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
Defendant Name
Age
Residence
Charges
Jun Shen, a/k/a “Jeanette Shen”
32
Levittown, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Jiaming Wang, a/k/a “Celine Wang,”
34
Los Angeles, California
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Philip Junlin Li
33
Los Angeles, California
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Zitong Wen, a/k/a “Kate Wen”
27
Rowland Heights, California
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Chaun Kit Yuen, a/k/a “Alvin Yuen”
24
Rowland Heights, California
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Ting Zue, a/k/a “Tiffany Xue”
28
Flushing, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Yanjun Lin, a/k/a “Aimee Lin”
25
Flushing, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Zheng Zhang a/k/a “Vicky Zhang”
26
New York, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Xue Yong Liu a/k/a “Jack Liu”
29
New York, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Minglu Li, a/k/a “Vivian Lee”
36
Los Angeles, California
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Jason Li, a/k/a “Jason Liu,” “Fen Lee”
43
Flushing, New York
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Tajesh Kodali
44
Edison, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Jyoti Patel
34
Franklin Park, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Shahjadi M. Parvin, a/k/a “Sarah Patel”
54
Hackensack, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Narendra Singh Plaha
44
Hillsborough, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Sanjeev Sukhija
35
North Brunswick, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Harpreet Sachdeva
26
Somerset, New Jersey
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Avinash Shankar
35
Bloomington, Illinois
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Karthik Nimmala
32
Smyrna, Georgia
– Conspiracy to commit visa fraud
– Conspiracy to harbor aliens for profit
Govardhan Dyavarashetty, a/k/a “Vardhan Shetty”
35
Avenel, New Jersey
– H1-B Visa fraud
– False statements
– Conspiracy to harbor aliens for profit
Syed Qasim Abbas a/k/a “Qasim Reza,” and “Nayyer”
41
Brooklyn, New York
– H1-B Visa fraud
– False statements
– Conspiracy to harbor aliens for profit
4 April 2016
Wellesley Executive Sentenced to Prison for Million-Dollar EmbezzlementRead the Press Release
BOSTON – The former controller of a Cambridge-based technology company was sentenced in U.S. District Court today for embezzling $1 million from the company.
Andy Kim, 44, of Wellesley, was sentenced by U.S. District Court Judge F. Dennis Saylor, IV to 18 months in prison and year of supervised release. In December 2015, Kim pleaded guilty to two counts of wire fraud.
Kim worked at the company from 2004 until he was fired in July 2015 after the discovery of the theft. Kim stole $500,000 from the company on two separate occasions, once in July 2014 and again in June 2015. On both occasions, Kim had access to the company’s checking account. He disguised the transactions as transfers of capital to the company’s owner, fabricated records that purported to document legitimate capital transfers, and then planted those records in the company’s files.
On both occasions, Kim wired the money to a bank account belonging to a Massachusetts real-estate investment company. After the July 2014 transfer, the real estate company forwarded the funds to Kim’s personal bank account. In the second fraudulent transfer, Kim arranged for the money to be wired to the real estate company, and then invested the funds on his behalf.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. This case was prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
Webb City Man Sentenced for Stolen FireworksRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Webb City, Mo., man was sentenced in federal court today for stealing commercial fireworks.
Stephen Grimmett, 51, of Webb City, was sentenced by U.S. District Judge Beth Phillips to five years in federal prison without parole. The court also ordered Grimmett to pay $498 in restitution.
On April 17, 2015, Grimmett pleaded guilty to stealing explosives and to being a felon in possession of explosives. Grimmett stole more than 250 pounds of explosive materials – commercial grade fireworks – from Liberty Pyrotechnics, LLC, in June 2014.
Grimmett admitted that he and co-defendant Christopher Ransom, 41, of Alba, Mo., used a power drill to remove the screws from the sheet metal paneling to gain access to the building where Libery Pyrotechnics stored fireworks. Grimmett and Ransom loaded the fireworks into Ransom’s mini-van and drove to a gas station at Range Line Road and Zora in Joplin, Mo., where they split up the fireworks and parted ways.
According to court documents, Grimmett attempted to sell these items to others who would lack the proper training, skill, or facilities, to safely store and utilize these very dangerous items.
Grimmett has prior felony convictions for possession of a controlled substance and possession of a chemical with intent to manufacture a controlled substance. These felony convictions make it illegal for him to possess any explosive materials.
Ransom has also pleaded guilty and was sentenced on Sept. 9, 2015, to time served.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Newton County, Mo., Sheriff’s Department.
United States to Auction James “Whitey” Bulger PossessionsRead the Press Release
BOSTON – The U.S. Marshals Service will auction items belonging to James “Whitey” Bulger and Catherine Greig on June 24-26th at the Boston Convention and Exhibition Center. U.S. Marshal John Gibbons and U.S. Attorney Carmen Ortiz made the announcement today.
“The U.S. Marshals Service will execute the order signed by Judge Casper. Our goal is to maximize the proceeds of the auction to compensate the victims of Bulger’s brutal crimes,” said Marshal Gibbons.
“We are pleased that we will soon be auctioning a significant portion of Bulger's and Greig's personal possessions, which will mark another milestone in the course of their successful prosecutions,” said U.S. Attorney Carmen M. Ortiz. “Although the proceeds we obtain will never be enough to make up for the harm the victims and their families have suffered, it is our hope that this process and the restitution we will be able to distribute as a result of the auction will give some relief to the victims and families in this case."
Pursuant to a court order signed today by U.S. District Court Judge Denise J. Casper, the U.S. Marshals Service will be conducting a sale of the forfeited items of James Bulger and Catherine Greig.
The U.S. Marshals entered into an agreement with the Boston Convention and Exhibition Center to host the auction, which will include items seized from the couple’s Santa Monica apartment, and other possessions in the government’s custody. The auction will be open to the public and the items will be available simultaneously through an online auction. A list of auction items will be made available at a later date.
Marshal Gibbons, U.S. Attorney Ortiz and the U.S. Marshals Service Asset Forfeiture Division made the announcement today.
U.S. Customs and Border Protection Officers Arrest Atlanta Man Attempting to Smuggle Marijuana to the Virgin IslandsRead the Press Release
St. Thomas, USVI – Bert Donadelle, Jr., 25, made his initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged in a complaint with possession with intent to distribute marijuana, United States Attorney Ronald W. Sharpe announced. Donadelle was released on an unsecured $10,000 bond and to the third-party custody of his mother pending further proceedings.
According to the complaint, on Sunday, April 3, 2016, at the Cyril E. King Airport, St. Thomas, Virgin Islands, a U.S. Customs and Border Protection (CBP) K-9 detected narcotics in a checked bag belonging to Donadelle, who had arrived on a Delta Airlines flight from Atlanta. CBP officers examined the contents of the bag, resealed it, and placed it on the carousel for retrieval. Donadelle retrieved the bag, and a second checked bag bearing his name, from the baggage claim area. CBP officers seized and field tested a total of approximately eight kilograms of marijuana from Donadelle’s bags.
Under federal law if convicted of possession with intent to distribute marijuana, Bailey faces a maximum of five years in prison and a $250,000 fine. This case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Kim L. Chisholm.
United States Attorney Sharpe reminds the public that a Complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Two Charleston men plead guilty to Federal drug trafficking crimesRead the Press Release
CHARLESTON, W.Va. – Two Charleston drug dealers entered guilty pleas today in federal court, announced Acting United States Attorney Carol Casto. Dushawn D. Williams, 39, pleaded guilty to distribution of crack. In a separate prosecution, Alan Alexander Clark, 33, pleaded guilty to distribution of heroin.
Williams admitted that on July 24, 2015, he sold approximately an ounce of crack to a confidential informant working with law enforcement in exchange for $1,600. The drug deal occurred in the parking lot of the Dollar General store in Cross Lanes. Williams faces up to 20 years in federal prison and a $1 million fine when he is sentenced on July 13, 2016.
In a separate drug prosecution, Clark admitted that on July 29, 2015, he sold approximately half a gram of heroin to a confidential informant. The drug deal took place at the Rite Aid Pharmacy at 406 Washington Street, West, in Charleston. Clark faces up to 20 years in federal prison and a $1 million fine when he is sentenced on July 5, 2016.
The investigations of Williams and Clark were conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney John J. Frail is in charge of the prosecution of Williams. The Williams plea hearing was held before United States District Judge Thomas E. Johnston. Assistant United States Attorney Clint Carte is handling the prosecution of Clark. The Clark plea hearing was held before United States District Judge John T. Copenhaver, Jr.
These cases were prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and other drugs in communities across the Southern District.
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Tucson Tax Preparer Sentenced to 21 Months in Prison for Submitting 90 Returns Seeking over $651,000 in False CreditsRead the Press Release
TUCSON, Ariz. – Today, Jose Jesus Gonzalez, 48, of Tucson, Ariz., was sentenced by U.S. District Judge James A. Soto to 21 months of imprisonment. Gonzalez previously had pleaded guilty to willfully filing a false individual income tax return. He was ordered to pay over $255,000 in restitution and separately was ordered to pay a $17,488 fine.
Gonzalez doing business as Gonzalez Insurance and Tax Services, operated offices in Tucson from 2004 through 2009 and in Phoenix from 2009 through 2010. During the 2008 tax year, Gonzalez e-filed 90 income tax returns seeking a total of $651,500 in false claims for the First Time Home Buyer Credit. The Internal Revenue Service disallowed a portion of the claims but paid $620,000 in false claims to taxpayers which the IRS is attempting to recover.
The investigation in this case was conducted by the Internal Revenue Service - Criminal Investigation. The prosecution was handled by Sandra M. Hansen, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-13-00575
RELEASE NUMBER: 2016-028_Gonzalez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tolerance and Acceptance in the Heartland: An Examination of History’s LessonsRead the Press Release
CEDAR RAPIDS, IA – Today the United States Attorney’s Office traveled back in history to examine a time when Iowans demonstrated unfettered tolerance and acceptance by inviting refugees fleeing Nazi-occupied Europe during World War II to find a safe haven on the prairies. The program was held at the Federal Courthouse and was offered to encourage a reawakening of that tolerance and acceptance in order to overcome the disruption to our society that can be caused by our holding on to prejudices and fears.
United States Attorney Kevin W. Techau invited the Director of the non-profit organization TRACES Center for History and Culture, Dr. Michael Luick-Thrams, to share his research into refugees fleeing war-torn Europe who found safety in the American heartland and to mark its relevance to events in the world today.
Techau noted that, “The lessons history teaches us concerning the tolerance and acceptance practiced nearly 70 years ago is equally relevant today. Intolerance directed toward those who practice different religions and have a different skin color or sexual orientation is contrary to our strong and long-held cultural heritage of welcoming immigrants and of actively recognizing equality among people.”
An Iowa native, author and historian, Dr. Luick-Thrams spends part of each year in Dresden, Germany, overseeing another non-profit history and cultural center. He shared the story of the Scattergood Hostel located near West Branch, Iowa, during the war years (1939-1943). During this time Iowans welcomed 185 European refugees escaping Hitler’s reach. Luick-Thrams suggested that this glimpse into history offers redeeming stories of positive, inspiring acts of kindness and selflessness and should be viewed today with reflection.
Also speaking was a former Scattergood refugee, Guenter “George” Krauthamer, a retired Rutgers University Professor. He spoke via conference call about his family’s story of their flight from Nazi Germany in 1942.
Dr. Luick-Thrams offered his special insights on this extraordinary time in Iowa history and current events occurring in Europe. He also discussed the mass migration in the spring and summer of 2015 as refugees fleeing war, poverty and ecological disaster arrived in Europe seeking a safe haven from the myriad conflicts wracking the Middle East. Luick-Thrams watched as German neighbors, students, friends and relatives reacted to those uninvited newcomers. Today, he offered his personal perspective on how the refugee crisis will change Germany—and, indeed, Europe—forever.
Those attending the program came away with a greater appreciation of the proud cultural heritage we share as Iowans—the heritage of inclusiveness and tolerance. And, more importantly, a concrete example that the challenges the world faces today might be better served by examining history’s lessons.
Follow the office on Twitter @USAO_NDIA.
Three Plead Guilty in Portland Area Drug Conspiracy CaseRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Scot Stolkner, 42, of Gray, Maine, Angela Green, 34, of South Portland, Maine, and Jonathan Day, 41, of Portland, pleaded guilty on April 1, 2016 in U.S. District Court to conspiring to distribute and possess with the intent to distribute controlled substances, including heroin, fentanyl, and alpha-pyrrolidinovalerophenone (a-PVP), commonly known as a “bath salt.”
According to court records, from about August through late December 2014, Stolkner obtained heroin from out-of-state sources and had others transport it to Maine and sell it to his customers. During the conspiracy, Green transported heroin and fentanyl for Stolkner and she, Day, and others sold it for Stolkner.
In about April 2015, Stolkner began obtaining a-PVP from a Chinese source. Stolkner placed online orders and wired money to the supplier. The supplier sent a-PVP to the addresses Stolkner provided. Once the a-PVP was in Maine, Green, Day, and others sold it for Stolkner.
The defendants face up to 20 years in prison, a $1,000,000 fine and between three years and life on supervised release. They will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration, with the assistance of the Maine Drug Enforcement Agency.
Stamford Man Pleads Guilty to Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that WAYNE ALEXANDER, also known as “Uncle Easy,” 50, of Stamford, pleaded guilty today in Hartford federal court to one count of possession with intent to distribute and distribution of cocaine base (“crack cocaine”).
According to court documents and statements made in court, between February 2015 and April 2015, law enforcement conducted three controlled purchases of crack cocaine, totaling approximately 130 grams, from ALEXANDER.
ALEXANDER was arrested on a federal criminal complaint on May 11, 2015. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on May 30, 2016, at which time he faces a maximum term of imprisonment of 20 years.
This matter has been investigated by the Federal Bureau of Investigation’s Bridgeport Safe Streets Task Force Drug Enforcement Administration, Bridgeport Police Department and Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
St. Thomas Resident Pleads Guilty to Transporting Minor for SexRead the Press Release
St. Thomas, USVI-Jennifer Bowen-Dodoo, 51, pleaded guilty on Friday, April 1, 2016, in District Court on St. Thomas to one count of transportation of a minor for sex, United States Attorney Ronald W. Sharpe announced today.
According to the plea agreement, Bowen-Dodoo admitted that she aided and abetted an adult male to transport her minor daughter for the purpose of sexual activity. District Court Judge Curtis V. Gomez remanded Bowen-Dodoo into the custody of the United States Marshals Service. Sentencing is scheduled for August 4, 2016. Bowen-Dodoo faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. She also faces a fine of up to $250,000.
"Sex trafficking is a deplorable crime, especially when it involves underage victims who are particularly vulnerable," said Ricardo Mayoral, Acting Special Agent in Charge of Homeland Security Investigations (HSI) San Juan and U.S. Virgin Islands. “Prostituting young girls is a growing threat worldwide, and we encourage anyone with information about this activity to call law enforcement. Your call could save a girl from sexual slavery.”
Suspected child exploitation or missing children cases may be reported to the National Center for Missing and Exploited Children via its toll-free 24–hour hotline at 202-514-5678 or Homeland Security Investigations at (340) 693-2250.
The case was investigated by HSI, the Virgin Islands Police Department, and the Virgin Islands Department of Human Services. It is being prosecuted by Assistant United States Attorney Everard E. Potter.
Springfield Sex Offender Sentenced to 15 Years for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a prior sex offender in Springfield, Mo., was sentenced in federal court today for receiving and distributing child pornography.
Gary Thomas Sheldon, 52, of Springfield, was sentenced by U.S. District Judge Beth Phillips to 15 years and eight months in federal prison without parole. The court also ordered Sheldon to serve the rest of his life on supervised release following incarceration.
On Nov. 9, 2015, Sheldon pleaded guilty to receiving and distributing child pornography over the Internet. Sheldon, a registered sex offender, was previously convicted in federal court of possessing child pornography in January 2001.
According to court documents, law enforcement officers received a cybertip from the National Center for Missing and Exploited Children, which had received the tip from an adult pornography Web site where Sheldon had uploaded an image of child pornography. Law enforcement officers executed a search warrant at Sheldon’s residence on July 15, 2015. Sheldon’s desktop computer and cell phone were seized, and investigators discovered images of child pornography on both devices.
Sheldon admitted to law enforcement officers that he downloaded at least 100 images of child pornography over the Internet. He also admitted that he had two e-mail addresses and a Facebook account he had not reported on his sex offender registry, although he was required to do so.
While this offense was occurring, according to court documents, Sheldon was on probation for failing to register as a sex offender.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Missouri State Highway Patrol and the Southwest Missouri Cybercrime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Singapore Man Extradited to United States in Connection with Plot Involving Exports to Iran of U.S. Components Later Found in Bombs in IraqRead the Press Release
Defendant Extradited from Indonesia
Lim Yong Nam, aka Steven Lim, 42, a citizen of Singapore, has been extradited from Indonesia to stand trial in the District of Columbia on charges of taking part in a conspiracy that allegedly caused thousands of radio frequency modules to be illegally exported from the United States to Iran, at least 16 of which were later found in unexploded improvised explosive devices (IEDs) in Iraq.
The extradition was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia, Director Sarah Saldaña of the U.S. Immigration and Customs Enforcement (ICE), Executive Assistant Director Michael Steinbach of the FBI’s National Security Branch and Under Secretary Eric L. Hirschhorn of the Commerce.
Lim had been detained in Indonesia since October 2014 in connection with a U.S. request for extradition. He is to make his initial appearance at 1:30 p.m. EDT before Magistrate Judge Deborah A. Robinson of the District of Columbia. Lim was indicted on June 23, 2010, and faces one count of conspiracy to defraud the United States, one count of smuggling, one count of illegal export of goods from the United States to Iran, one count of making false statements to the United States government and one count of making false statements to law enforcement.
“The indictment alleges that Lim conspired to defraud the United States and defeat our export controls by sending U.S.-origin components to Iran instead of their stated final destination of Singapore,” said Assistant Attorney General Carlin. “Several of those components ultimately ended up in unexploded improvised devices in Iraq. This case, including the successful extradition of Lim, demonstrates our efforts to vigorously pursue and bring to justice those who threaten our national security.”
“Thanks to the efforts of law enforcement here and abroad, Lim Yong Nam will now appear in an American courtroom to face charges involving the illegal export of sensitive technology,” said U.S. Attorney Phillips. “As alleged in the indictment, the parts at issue here wound up in Iran and then on the battlefields in Iraq. The extradition of this defendant demonstrates our commitment to aggressively investigating and prosecuting those who violate our export controls and threaten our nation’s security.”
“Improvised explosive devices (IEDs) have injured or killed thousands of military service members overseas,” said Director Saldaña. “The U.S.-made products Lim is accused of illegally exporting were found in several of the devices used against America’s warfighters. After a long investigative process, Lim is back on U.S. soil to answer for his actions.”
“The illegal export of restricted U.S. technology is extremely harmful to our national security,” said Executive Assistant Director Steinbach. “In this case the technology had lethal applications and was used in improvised explosive devices in Iraq which endangered U.S. and coalition forces. This investigation was a coordinated effort by many agency partners and shows our determination to identify and bring to justice all those who steal sensitive technology.”
“The extradition of Lim Yong Nam highlights the significant cooperation of U.S. law enforcement agencies and our international partners to pursue and prosecute those who pose a threat to our national security, especially to U.S. service members overseas,” said Under Secretary Hirschhorn. “I commend the outstanding efforts of all of the agencies involved in the case.”
According to a superseding indictment that was returned against Lim and other defendants on Sept. 15, 2010, IEDs were the major source of American combat casualties in Iraq. The conspiracy alleged in the indictment involved radio frequency modules that have several commercial applications, including in wireless local area networks connecting printers and computers in office settings. These modules include encryption capabilities and have a range allowing them to transmit data wirelessly as far as 40 miles when configured with a high-gain antenna. These same modules also have potentially lethal applications. Notably, during 2008 and 2009, coalition forces in Iraq recovered numerous modules, all made by the same Minnesota firm, that had been utilized as part of the remote detonation system for IEDs.
The superseding indictment alleges that between June 2007 and February 2008, Lim and others caused 6,000 modules to be purchased and illegally exported from the Minnesota-based company through Singapore, and later to Iran, in five shipments, knowing that the export of U.S.-origin goods to Iran was a violation of U.S. law. In each transaction, Lim and others made misrepresentations and false statements to the Minnesota firm that Singapore was the final destination of the goods. Similarly, according to the superseding indictment, Lim and others caused false documents to be filed with the U.S. government, in which they claimed that Singapore was the ultimate destination of the modules. At the time of these activities, Lim and others were allegedly communicating with one another about U.S. laws prohibiting the export of U.S.-origin goods to Iran. However, in November 2009, Lim told U.S. authorities that he had never participated in illicit exports to Iran, the superseding indictment alleges.
The superseding indictment alleges that several of the 6,000 modules the defendants routed from Minnesota to Iran were later discovered by coalition forces in Iraq, where the modules were being used as part of IED remote detonation systems. In May 2008, December 2008, April 2009 and July 2010, coalition forces found at least 16 of these modules in unexploded IEDs recovered in Iraq, the indictment alleges.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
This investigation was jointly conducted by ICE Homeland Security Investigations (HSI) special agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce’s Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, the Treasury Department’s Office of Foreign Assets Control and the Justice Department’s Office of International Affairs, particularly the Justice Department Attaché in the Philippines, as well as the FBI and HSI Attachés in Jakarta and Singapore.
U.S. law enforcement authorities thanked the governments of Singapore and Indonesia for the substantial assistance that was provided in the investigation of this matter.
The prosecution is being handled by Assistant U.S. Attorney Ari Redbord of the District of Columbia and Trial Attorney Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.
Lim et al Superseding Indictment
Singapore Man Extradited to United States in Connection with Plot Involving Exports to Iran of U.S. Components Later Found in Bombs in IraqRead the Press Release
WASHINGTON – Lim Yong Nam, aka Steven Lim, 42, a citizen of Singapore, has been extradited from Indonesia to stand trial in the District of Columbia on charges of taking part in a conspiracy that allegedly caused thousands of radio frequency modules to be illegally exported from the United States to Iran, at least 16 of which were later found in unexploded improvised explosive devices (IEDs) in Iraq.
The extradition was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia, Director Sarah Saldaña of U.S. Immigration and Customs Enforcement (ICE), Executive Assistant Director Michael Steinbach of the FBI’s National Security Branch, and Under Secretary of Commerce Eric L. Hirschhorn.
Lim had been detained in Indonesia since October 2014 in connection with a U.S. request for extradition. He is to make his initial appearance at 1:30 p.m. today in federal court in the District of Columbia, where he was indicted on June 23, 2010. Lim faces one count of conspiracy to defraud the United States, one count of smuggling, one count of illegal export of goods from the United States to Iran, one count of making false statements to the United States government and one count of making false statements to law enforcement.
“The indictment alleges that Lim conspired to defraud the United States and defeat our export controls by sending U.S.-origin components to Iran instead of their stated final destination of Singapore,” said Assistant Attorney General Carlin. “Several of those components ultimately ended up in unexploded improvised devices in Iraq. This case, including the successful extradition of Lim, demonstrates our efforts to vigorously pursue and bring to justice those who threaten our national security.”
“Thanks to the efforts of law enforcement here and abroad, Lim Yong Nam will now appear in an American courtroom to face charges involving the illegal export of sensitive technology,” said U.S. Attorney Phillips. “As alleged in the indictment, the parts at issue here wound up in Iran and then on the battlefields in Iraq. The extradition of this defendant demonstrates our commitment to aggressively investigating and prosecuting those who violate our export controls and threaten our nation’s security.”
“Improvised explosive devices (IEDs) have injured or killed thousands of military service members overseas. The U.S.-made products Mr. Lim is accused of illegally exporting were found in several of the devices used against America’s warfighters,” said ICE Director Saldaña. “After a long investigative process, Mr. Lim is back on U.S. soil to answer for his actions.”
“The illegal export of restricted U.S. technology is extremely harmful to our national security,” said Executive Assistant Director Steinbach of the FBI's National Security Branch. “In this case the technology had lethal applications and was used in improvised explosive devices in Iraq which endangered U.S. and coalition forces. This investigation was a coordinated effort by many agency partners and shows our determination to identify and bring to justice all those who steal sensitive technology.”
“The extradition of Lim Yong Nam highlights the significant cooperation of U.S. law enforcement agencies and our international partners to pursue and prosecute those who pose a threat to our national security, especially to U.S. service members overseas,” said Under Secretary Hirschhorn. “I commend the outstanding efforts of all of the agencies involved in the case.”
According to a superseding indictment that was returned against Lim and other defendants on Sept. 15, 2010, IEDs were the major source of American combat casualties in Iraq. The conspiracy alleged in the indictment involved radio frequency modules that have several commercial applications, including in wireless local area networks connecting printers and computers in office settings. These modules include encryption capabilities and have a range allowing them to transmit data wirelessly as far as 40 miles when configured with a high-gain antenna. These same modules also have potentially lethal applications. Notably, during 2008 and 2009, coalition forces in Iraq recovered numerous modules made by the Minnesota firm that had been utilized as part of the remote detonation system for IEDs.
The superseding indictment alleges that between June 2007 and February 2008, Lim and others caused 6,000 modules to be purchased and illegally exported from the Minnesota-based company through Singapore, and later to Iran, in five shipments, knowing that the export of U.S.-origin goods to Iran was a violation of U.S. law. In each transaction, Lim and others made misrepresentations and false statements to the Minnesota firm that Singapore was the final destination of the goods. Similarly, according to the superseding indictment, Lim and others caused false documents to be filed with the U.S. government, in which they claimed that Singapore was the ultimate destination of the modules. At the time of these activities, Lim and others were allegedly communicating with one another about U.S. laws prohibiting the export of U.S.-origin goods to Iran. However, in November 2009, Lim told U.S. authorities that he had never participated in illicit exports to Iran, the superseding indictment alleges.
The superseding indictment alleges that several of the 6,000 modules the defendants routed from Minnesota to Iran were later discovered by coalition forces in Iraq, where the modules were being used as part of IED remote detonation systems. In May 2008, December 2008, April 2009 and July 2010, coalition forces found at least 16 of these modules in unexploded IEDs recovered in Iraq, the indictment alleges.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
This investigation was jointly conducted by ICE Homeland Security Investigations (HSI) special agents in Boston and Los Angeles; FBI agents in Minneapolis, and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, the Treasury Department’s Office of Foreign Assets Control, and the Office of International Affairs in the Justice Department’s Criminal Division, particularly the Justice Department Attaché in the Philippines, as well as the FBI and HSI Attachés in Singapore.
U.S. law enforcement authorities thanked the governments of Singapore and Indonesia for the substantial assistance that was provided in the investigation of this matter.
The prosecution is being handled by Assistant U.S. Attorney Ari Redbord of the District of Columbia and Trial Attorney Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.
SeaWorld Manager Accused of Embezzling $750,000Read the Press Release
Assistant U.S. Attorney Emily W. Allen (619) 546-9738
NEWS RELEASE SUMMARY – April 4, 2016
SAN DIEGO – Former SeaWorld San Diego manager Wilfred David Joseph Jobin-Reyes (known as “Sebastian Jobin”) was arraigned today in San Diego on wire fraud charges relating to an elaborate eight-year embezzlement scheme he orchestrated while working as a Show Producer at the marine mammal park.
Jobin-Reyes is charged with stealing more than $750,000 from SeaWorld by creating fake invoices from a fictitious company, then using his management position to approve their payment. He diverted the money to bank accounts he secretly controlled, and then withdrew cash or spent the proceeds on restaurants, plane tickets, hotels, and shopping.
As alleged in the complaint and other court documents unsealed today, Jobin-Reyes created a fake merchandise company, “SJ Merchandise,” which he registered with the Secretary of State but didn’t use to conduct any real business. He adopted the fictitious alias “John Caldwell” to communicate with SeaWorld, in order to conceal his ownership and control of the company. After uncovering the fraud, SeaWorld investigators discovered that Jobin-Reyes had used his work computer to create more than 100 fake invoices for goods that were never actually delivered to SeaWorld, including “wildlife animal bookmarks,” “sea creature rings,” “purple shiny ornaments,” and “poinsettia in pots.” Many of the invoices Jobin-Reyes created were for amounts just under the $10,000 threshold that resulted in limited review by his managers. SeaWorld unwittingly paid Jobin-Reyes more than $750,000 before discovering the fraud in early 2015.
“We are dedicated to protecting our local businesses and institutions from corruption inside and out,” said U.S. Attorney Laura E. Duffy. “We will root out and prosecute business insiders who abuse the trust of their employers and the community.”
U.S. Secret Service Special Agent in Charge David Murray said, “Today’s arraignment demonstrates that the U.S. Secret Service is dedicated to protecting our local communities and businesses against these types of fraudulent financial schemes, and will continue to collaborate with its law enforcement partners to target and arrest individuals who use U.S. financial institutions as part of their criminal activity.”
“IRS-Criminal Investigation is committed to working with our law enforcement partners to lend our financial expertise to trace the money, whatever the source, including embezzlement funds,” said IRS-CI Acting Special Agent in Charge Anthony J. Orlando. “We will protect American businesses and institutions from insiders who abuse positions of trust to commit this type of financial fraud.”
Jobin-Reyes was arrested in Dallas, Texas on March 12, 2016, and made his initial appearance there. On March 15, 2016, U.S. Magistrate Judge Paul D. Stickney of the Northern District of Texas found that Jobin-Reyes posed a serious risk of flight, and ordered him detained pending trial. He was brought to San Diego for his initial appearance in this district today. Jobin-Reyes’s next court appearance is for a detention hearing on Thursday, April 7 at 10:00 a.m. before U.S. Magistrate Judge Bernard G. Skomal.
DEFENDANT:
Wilfred David Joseph Jobin-Reyes Age: 47 San Diego, CA
CHARGES
Wire Fraud, in violation of 18 U.S.C. § 1343
Maximum Penalties: 20 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
AGENCIES
United States Secret Service
Internal Revenue Service Criminal Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Rindge Man Sentenced for Tax Evasion in Connection with Fraudulent Investment OperationRead the Press Release
CONCORD, N.H. – Aaron E. Olson, 41, of Rindge, New Hampshire, was sentenced to 60 months in prison for tax evasion in United States District Court for the District of New Hampshire, announced United States Attorney Emily Gray Rice.
From 2007 through 2010, Olson was the sole proprietor of an investment business known as AEO Associates (AEO). In December of 2010, Olson formed KMO Associates LLC (KMO), an investment business that was registered in Massachusetts. Olson ran both operations from an office in Jaffrey, New Hampshire. Olson used AEO and later KMO to obtain approximately $27.8 million from individuals and organizations ostensibly to invest on their behalf. Olson was not licensed as an investment broker in New Hampshire or in any other jurisdiction and he did not register AEO and KMO with the State of New Hampshire as investment businesses.
Olson used approximately $2.6 million of the investors’ money for his personal benefit and used some of the investors’ money to make fraudulent “earnings” payments to other investors. To conceal this conduct, Olson sent investors fictitious earnings statements that falsely showed significant earnings in their accounts.
Olson also filed false and fraudulent joint individual tax returns with the IRS in which he attempted to evade or defeat taxes he owed based on his income from the fraudulent investment operation. Among other things, Olson failed to report the gross receipts and expenses associated with the operation of AEO and KMO and he failed to issue Forms 1099 with the Internal Revenue Service summarizing investors’ annual gains and losses. In total, Olson fraudulently understated the income taxes he owed for the four years by more than $664,000.
Olson pleaded guilty to four counts of attempted tax evasion on March 9, 2015. As part of a Plea Agreement, he agreed to pay restitution to the defrauded investors in lieu of paying the taxes he owes to the United States. A restitution hearing is scheduled on May 26, 2016.
This case is being investigated by the office of Criminal Investigations for the Internal Revenue Service in conjunction with the New Hampshire Bureau of Securities Regulation and is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.
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Project Safe Childhood - Plainfield Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: John Martin Favor, 49, of Plainfield, New Hampshire, pled guilty in the United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
An investigation conducted by the New Hampshire Internet Crimes Against Children (NH ICAC), the Hinsdale, New Hampshire Police Department, and Homeland Security Investigations Manchester revealed that an individual was uploading images of child pornography to an online bulletin board from the defendant’s Plainfield, New Hampshire residence. A federal search warrant was issued and executed in September 2015. Law enforcement ultimately discovered hundreds of videos and images of child pornography on Favor’s personal computer.
Favor is scheduled for sentencing in July 2016. The charges to which he pleaded guilty carry a statutory maximum sentence of 10 years in prison. The court will determine Favor’s actual sentence after it has had an opportunity to review a presentence investigation report prepared by the United States Probation and Pretrial Services Office.
The investigation in this case was a collaborative effort between federal, state, and local authorities, which included Homeland Security Investigations Manchester, the New Hampshire Internet Crimes Against Children Task Force, the Police Departments of Hinsdale, Hampton, Plainfield, Rochester, and Portsmouth, New Hampshire, as well as the New Hampshire State Police.
The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led, in each district, by the United States Attorney’s Office, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Pittsburgh Man Indicted on Charges Relating to the Killing of a Federal WitnessRead the Press Release
PITTSBURGH – A federal grand jury today returned a second superseding indictment charging Price Montgomery with witness tampering crimes relating to the killing of federal witness Tina Crawford and the attempt to kill another witness on August 22, 2014.
The charges were announced by United States Attorney for the Western District of Pennsylvania David J. Hickton, Special Agent in Charge Sam Rabadi of the Bureau of Alcohol Tobacco, Firearms and Explosives, Assistant Special Agent in Charge David Battiste of the Drug Enforcement Administration; Assistant Special Agent in Charge Ed Wirth of the Internal Revenue Service-Criminal Investigation, Pennsylvania Attorney General Kathleen Kane and Pittsburgh Police Chief Cameron McLay.
“With staunch determination we have endeavored to identify and charge the person responsible for the murder of Tina Crawford that August afternoon just minutes before she was scheduled to be interviewed at our office,” stated U.S. Attorney Hickton. “Today’s indictment demonstrates our unwavering commitment to seek justice for Tina and her family and shows we will use every tool available to pursue criminals who seek to intimidate and inflict harm on witnesses.”
“We will use every resource we have at our disposable to target those criminals who threaten or commit acts of violence against witnesses. Retaliation against witnesses will not be tolerated,” said ATF Special Agent in Charge Rabadi. “Witnesses are integral to the investigative process, the judicial process, and to justice. ATF will work with our Federal, State and local law enforcement partners to investigate, charge and prosecute those who retaliate against witnesses to the fullest extent of the law.”
“The joint investigation targeting Price Montgomery and his co-defendants involved a significant amount of heroin and firearms,” said Gary Tuggle, the Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Field Division. “Montgomery’s alleged involvement in the murder of Tina Crawford and the shooting of another witness are horrific crimes, especially when they involve a witness. We will remain vigilant in pursuing cases against individuals that seek to tamper with witnesses.”
IRS-CI Asst. Special Agent in Charge Wirth added, “Today’s indictment demonstrates IRS-Criminal Investigation’s commitment to the pursuit of justice wherever the trail might lead us. We will work with our law enforcement partners to conduct a thorough investigation that incorporates all aspects of an individual’s illegal activity and hold him accountable for his actions.”
The 10-count second superseding indictment named Montgomery, 35, (currently incarcerated); James Perrin, 37, (currently incarcerated); Charles Cook, 49, of Pittsburgh, PA; and Andre Avent, 38, of Homestead, PA, as the defendants.
According to the second superseding indictment, from April 2013, and continuing to June 2014, in the Western District of Pennsylvania and elsewhere, Montgomery and Perrin conspired to distribute one kilogram or more of heroin. The indictment also charges that on June 8, 2014, Montgomery and Perrin, who both have prior felony convictions, possessed 16 firearms in furtherance of that drug trafficking crime. Federal law prohibits a convicted felon from possessing firearms. Montgomery, Cook and Avent are charged with conspiring to commit money laundering. The second superseding indictment returned today further charges Montgomery with tampering with a witness by killing a person (victim: Tina Crawford), use of a firearm resulting in death (victim: Tina Crawford), tampering with a witness by attempting to kill that witness (victim: Patsy Crawford) and use of a firearm in relation to attempting to kill a witness (victim: Patsy Crawford).
The indictment also contains forfeiture allegations seeking cash, vehicles and jewelry involved in the commission of these offenses and constituting proceeds of these offenses.
The law provides for a mandatory minimum sentence of life in prison for Montgomery. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000 or both for Perrin. Cook and Avent face a maximum total sentence of not more than 20 years in prison, a fine of $500,000, or both. 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 United States Attorneys Gregory J. Nescott and Shaun E. Sweeney are prosecuting this case on behalf of the government.
The Western Pennsylvania offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, the U.S. Marshals Service, along with the Pennsylvania Office of the Attorney General and the Pittsburgh Bureau of Police, conducted the investigation leading to the charges in this case.
A second superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Penn Hills Man Pleads Guilty in Cross-Country Cocaine Trafficking SchemeRead the Press Release
PITTSBURGH - A Penn Hills resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Gregory Price, 39, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Gregory Price was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for Aug. 10, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Gregory Price.
Owners of Virginia Beach Cake Shop Plead Guilty to Money Laundering, Drug and Tax ChargesRead the Press Release
NORFOLK, Va. – Vernon Michael Norvell, 43, and his wife, Cheron Johnson, 31, of Portsmouth, both pleaded guilty today to various drug, tax, and money laundering crimes. Norvell pleaded guilty to conspiring to distribute of cocaine and conspiracy to commit money laundering. Johnson pleaded guilty to money laundering and making a false statement in a tax filing.
According to court documents, Norvell was a kilogram level cocaine dealer that regularly conducted transactions at his home in the Crystal Lake neighborhood of Portsmouth, at his cake business, “G’s Cake Shop – Cake For All Occasions” in Virginia Beach, and at a Food Lion parking lot off Airline Boulevard, in Portsmouth. One confidential source regularly purchased ounce quantities of cocaine for $1,350 to $1,500 over the course of several years. Another source purchased in excess of five kilograms, often paying $46,000 per kilogram. At times, Norvell was accepting between $60,000 and $70,000 a week for cocaine. On five occasions from October 2014 to July 2015, the DEA, in partnership with the Chesapeake and Portsmouth Police Department, conducted controlled purchases of cocaine and crack from Norvell.
According to court documents, Norvell and Johnson used the proceeds of his cocaine distribution to purchase a home in the Crystal Lake neighborhood of Portsmouth, several automobiles, expensive clothing and other material items. The real estate purchase was one way the couple concealed the cocaine proceeds. While the home appraised for $315,000, they purchased it for $160,000, yet they made over $80,000 in payments before and after the closing, $14,000 of which was in cash.
In addition to the drug and money laundering crimes and according to court documents, from 2012 to 2014, Norvell and Johnson reported a combined adjusted gross income of $157,916, yet during that same period they deposited $926,854, including $338,860 in cash, into nearly a dozen bank accounts, including one off shore account located in Curaҫao. From January 2011 through August 2015 the couple deposited $468,500 in cash into their accounts.
Both Norvell and Johnson will be sentenced on June 22. Norvell faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison, while Johnson faces a maximum sentence of 20 years in prison. 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; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge of Drug Enforcement Administration (DEA) Washington Field Division; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation, made the announcement after the pleas were accepted by U.S. Magistrate Judge Douglas E. Miller. The case is being prosecuted by Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla.
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 Nos. 2:16-cr-48 (Johnson) and 2:16-cr-49 (Norvell).
Operator of Ohio Anti-Aging Skincare Company Indicted for Obstructing Internal Revenue Service and Filing False Income Tax ReturnsRead the Press Release
A federal grand jury returned an indictment on March 22, which was unsealed today, charging the operator of an anti-aging skincare company in Dayton, Ohio, with one count of corruptly endeavoring to impair and impede the Internal Revenue Service (IRS), two counts of aiding and assisting in the preparation of false income tax returns and five counts of filing false income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, James L. Wright of Germantown, Ohio, controlled the financial and business operations of B&P Company Inc., a fourth-generation family business that has manufactured and sold skincare products, including a wrinkle reduction product called Frownies, since approximately 1889. It is alleged that beginning in 1997, Wright used a series of entities that he established and controlled to divert money from B&P Company to his personal use and the use of his family members. Wright caused the preparation and filing with the IRS of false tax returns for B&P Company for the years 2008 and 2009 that claimed deductions for payments that Wright made or caused to be made from the company for his mother’s apartment rent and utilities and the apartment rent of one of his daughters. Wright is also alleged to have filed false tax returns for another entity, The Remnant Inc., on which he claimed deductions for personal expenses – including expenses related to his personal residence, rent for an apartment for one of his daughters and automobile expenses. The indictment further charges him with filing false personal income tax returns for the years 2008, 2009 and 2010 on which he underreported his income.
Among the entities that Wright used to obstruct the IRS was Fore Fathers Foundation, a private foundation that Wright established in 2003. Wright is alleged to have used Fore Fathers Foundation, which was funded with donations from B&P Company and another entity that Wright controlled, to pay his children’s private high school and college tuition. Wright filed income tax returns in the name of the foundation for the years 2008 and 2009 that failed to disclose that the foundation made payments for his children’s educational expenses. Wright is also alleged to have submitted documents to the educational institutions on which he concealed his involvement with Fore Fathers Foundation.
Wright was arrested on March 30. If convicted, Wright faces a statutory maximum sentence of three years in prison and a $250,000 fine on each count of the indictment.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.