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Tuesday 16 February 2016
Tribunal Federal Cierra Las Operaciones De Empresa De Preparación De Declaraciones De Impuestos De Extensión NacionalRead the Press Release
Un tribunal federal en Chicago ordenó a Servicios Latinos Inc. cerrar su empresa de preparación de declaraciones de impuestos en todo el país, anunció hoy el Departamento de Justicia. La orden surge después de que el Departamento de Justicia entablara una demanda civil contra la empresa y sus propietarios, Georgina Lopez, Pamela Miranda y Jorge A. Miranda, en la que alegaba que los demandados falsamente declararon obligaciones tributarias inferiores de sus clientes y exageraron el derecho de sus clientes a reembolsos tributarios. El interdicto también prohíbe a Lopez, Pamela Miranda y Jorge Miranda actuar como preparadores de declaraciones de impuestos federales, ser propietarios u ocuparse de las operaciones de empresas de preparación de declaraciones de impuestos y emplear a preparadores de declaraciones de impuestos. Los demandados aceptaron la presentación del interdicto, pero no admitieron los alegatos en la demanda.
De acuerdo con la demanda, Servicios Latinos atendía en alrededor de 84 locales en hasta 30 estados, con ubicaciones que incluían Kennet Square, Pensilvania; Kansas City, Misuri, y Las Vegas, Nevada. La demandaba alegaba que los empleados de los acusados prepararon declaraciones de impuestos a la renta que:
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Falsamente alegaban tener derecho a créditos tributarios por hijo;
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Falsamente alegaban tener derecho al Crédito Tributario por Ingresos del Trabajo;
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Declaraban categorías de contribuyentes falsas; y
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Declaraban cifras de ingresos y gastos incorrectas.
La demanda alega que Servicios Latinos ha preparado más de 42.000 declaraciones de impuestos a la renta federales desde 2012. El Servicio de Impuestos Internos [Internal Revenue Service (IRS)] estima que la pérdida sufrida por el Tesoro de EE.UU. debido a la conducta de los demandados supera los 4.7 millones de dólares solo para 2014, de acuerdo con la demanda.
El fraude de preparador de declaraciones de impuestos ha sido nombrado uno de los Doce ardides tributarios sucios del Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El IRS tiene en su portal algunos consejos para elegir un preparador de impuestos y ha lanzado un directorio sin cargo de preparadores de declaraciones de impuestos federales. En la última década, la División de Impuestos ha obtenido interdictos contra cientos de preparadores de impuestos inescrupulosos. Existe información sobre estos casos disponible en el portal del Departamento de Justicia. Se encuentra una lista alfabética de personas prohibidas de preparar declaraciones de impuestos y promover ardides tributarios en esta página. Si usted cree que una de las personas o empresas bajo prohibición puede estar violando un interdicto, por favor comuníquese con la División de Impuestos con detalles.
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Topeka Man Sentenced to Federal Prison for Armed RobberyRead the Press Release
TOPEKA, KAN. – A Topeka man was sentenced Tuesday to 43 months in federal prison for taking part in an armed robbery, U.S. Attorney Barry Grissom said.
Zennie Lee Vasser, II, 32, Topeka, Kan., pleaded guilty to one count of aiding and abetting armed robbery. In his plea, he admitted that on June 4, 2014, he was captured on video holding open the door while co-defendant Charles Steele brandished a firearm and forced a store clerk to give him money from the cash drawer of Check Into Cash at 3711 S.W. Plaza Drive in Topeka. Investigators learned that Vasser was present with Steele and Steele’s twin brother, Lamar Steele, planned the robbery. Vasser agreed to enter the store and engage the clerk while Charles Steele committed the robbery. Lamar Steel agreed to drive the getaway car.
Charles Steele is set for sentencing June 6. Lamar Steele is set for sentencing March 14.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Topeka Man Pleads Guilty to Federal Charge of Using A Gun in A RobberyRead the Press Release
KANSAS, KAN. – A Topeka man Tuesday pleaded guilty to a federal charge of using a gun to commit a robbery, U.S. Attorney Barry Grissom said.
Renard Alston, 20, Topeka, Kan., pleaded guilty to one count of using a firearm in a robbery. In his plea, he admitted that on Aug. 28, 2015, he sold a 9 mm pistol with an obliterated serial number for $400 to an undercover informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Then Alston pointed a gun to the informant’s head and ordered the informant to give him everything he had. Alston kept the cash the informant had paid for the gun and took back the 9 mm pistol before fleeing the scene.
Sentencing is set for May 16. He faces a penalty of not less than five years in federal prison and a fine up to $250,000. Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Jared Maag for their work on the case.
Swedish Medical Center Surgical Tech/Technologist Indicted by Federal Grand Jury in Denver on Charges of Tampering with a Consumer Product and Obtaining a Controlled Substance by DeceitRead the Press Release
DENVER – Rocky Allen, age 28, of Denver, a now former surgical tech/technologist at Swedish Medical Center, has been indicted by a federal grand jury in Denver on charges of tampering with a consumer product and obtaining a controlled substance by deceit, U.S. Attorney John Walsh, Food and Drug Administration’s Office of Criminal Investigations’ Kansas City Field Office Special Agent in Charge Catherine Hermsen, and Drug Enforcement Administration (DEA) Special Agent in Charge Barbra Roach announced. Allen is in custody, and will appear at 2:00 p.m. this afternoon for an initial appearance before U.S. Magistrate Judge Kristen L. Mix in Denver where he will be advised of his rights and the charges pending against him.
According to the indictment, on January 22, 2016, Allen, with reckless disregard for the risk that another person will be placed in danger of bodily injury, and under circumstances manifesting extreme indifference to such risk, tampered and attempted to tamper with a consumer product, namely a syringe containing Fentanyl Citrate, by removing the syringe containing Fentanyl Citrate and replacing it with a similar syringe containing other substance. Further, Allen did knowingly and intentionally acquire and obtain a Fentanyl Citrate, a controlled substance, by deception and subterfuge.
As a result of Allen's action, Swedish Medical Center has asked approximately 3,000 patients who had surgery between August 17, 2015 and January 22, 2016 in the main operating rooms and in the orthopedic operating room on October 28, 2015 to be tested for HIV, Hepatitis B and Hepatitis C free of charge. Swedish Medical Center is following the recommendations for testing from the Health Department and the CDC based on the investigations' focus on an injectable medication.
Allen faces one count of tampering with a consumer product. If convicted on that count, he faces not more than 10 years in federal prison, and up to a $250,000 fine. He also faces one count of obtaining a controlled substance by deceit and subterfuge. If convicted on that count, he faces not more than 4 years in federal prison, and up to a $250,000 fine.
The criminal investigation into Allen’s conduct while working at Swedish Medical Center is ongoing. No additional information about the investigation or this case is available at this time.
This case was investigated by the FDA OCI and the DEA with substantial critical assistance from the Englewood Police Department. The defendant is being prosecuted by Assistant U.S. Attorneys Jaime Pena and Anna Edgar.
The charges contained in this indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Santa Fe Man Pleads Guilty to Heroin Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Phillip Lovato, 30, of Santa Fe, N.M., pled guilty this morning in federal court in Albuquerque, N.M., to heroin trafficking and firearms charges, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and New Mexico State Police Lt. Scott McFaul, the Commander of the HIDTA Region III Drug Task Force.
Lovato was arrested by the FBI on Feb. 10, 2015, on a criminal complaint charging him with distributing heroin, possessing heroin with intent to distribute, using and carrying firearms in furtherance of drug trafficking crimes, and being a felon in possession of a firearm and ammunition. According to the criminal complaint, Lovato sold heroin to a person working with law enforcement on Oct. 23, 2014 and Nov. 4, 2014. It also alleged that Lovato unlawfully possessed more than 40 grams of heroin and a firearm on Nov. 17, 2014, and more than 670 grams of heroin on Feb. 6, 2015. It also charged him with being a felon in possession of firearm on Feb. 10, 2015.
On Feb. 25, 2015, a federal grand jury returned a seven-count indictment against Lovato charging him with two counts of distributing heroin, two counts of possession of heroin with intent to distribute, two counts of being a felon in possession of firearms and ammunition, and one count of using and carrying a firearm in furtherance of a drug trafficking crimes. According to the indictment, Lovato committed these crimes in Santa Fe County.
Today Lovato entered guilty pleas to two counts of possession of heroin with intent to distribute, one count of using a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm. In his plea agreement, Lovato admitted selling heroin from a residence on Alta Vista Street in Santa Fe on Nov. 17, 2014. On that day, Lovato was carrying a black backpack which contained heroin and a semi-automatic pistol that he used to protect the drugs he was carrying and the proceeds from his drug sales. Lovato admitted that after completing several drug transactions at the Alta Vista Street residence, he got into a pickup truck to go to another location where he intended to continue selling heroin. When the truck was stopped by law enforcement officers, Lovato admitted that he had heroin in the truck, and the officers seized 40 grams of heroin and the semi-automatic pistol from Lovato’s backpack.
Lovato admitted in his plea agreement that he subsequently acquired another firearm and additional heroin and resumed selling heroin in and around Santa Fe, storing his heroin and cash proceeds in a storage facility in Santa Fe. On Feb. 6, 2015, law enforcement officers executed a search warrant on the storage facility where they seized 665 grams of heroin and $49,242 in proceeds from Lovato’s heroin deals.
Lovato was arrested on Feb. 10, 2015, outside a residence in Santa Fe. Lovato admitted that before his arrest, he left a semi-automatic handgun inside the residence. Following Lovato’s arrest, law enforcement officers seized the handgun when they executed a consensual search of the residence. Lovato acknowledged knowing that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Under the terms of the plea agreement, Lovato will be sentenced to ten years in federal prison to be followed by at least four years of supervised release. The plea agreement also requires Lovato to forfeit the two firearms seized from him during the investigation of the case. He also must forfeit the $49,242 seized from his storage unit in Feb. 2016. Lovato remains in federal custody pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Santa Fe office of the FBI and the HIDTA Region III Drug Task Force, and is being prosecuted by Assistant U.S. Attorney Timothy S. Vasquez.
The HIDTA – High Intensity Drug Trafficking Area – Program is a program of the White House Office National Drug Control Policy (ONDCP) that facilitates cooperation among federal, state, local and tribal law enforcement to foster intelligence sharing and to support the execution of effective enforcement operations aimed at dismantling drug trafficking organization in critical drug trafficking regions of the United States. The HIDTA Region III Narcotics Task Force is comprised of the New Mexico State Police, the Santa Fe County Sheriff’s Office and the Santa Fe Police Department.
Lovato, who has two prior drug trafficking convictions and an aggravated assault conviction, is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Santa Fe County, under this initiative.
This case also is being 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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Rochester Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Brandon McNeal, 24, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to commit sex trafficking of a minor. The charge carries a maximum penalty of life in prison and a fine of $250,000.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that McNeal conspired with others to recruit a minor female, knowing she was under the age of 18, to engage in commercial sex acts. Between July and August of 2015, the defendant had a minor female working for him as a prostitute. McNeal posted ads for the female on Backpage.com, an internet classified advertising website. The defendant also arranged for her to meet her customers at a Motel 6 and he paid for the hotel room.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation's Child Exploitation Task Force, which includes the Rochester Police Department, the Monroe County Sheriff’s Office, and Immigration and Customs Enforcement, Homeland Security Investigations.
Sentencing is scheduled for May 16, 2016 at 3:00 p.m. before Judge Geraci.
Rigby Man Pleads Guilty to Illegal Gun Possession and Trafficking MethRead the Press Release
POCATELLO - Brian Kim Southam, 36, of Rigby, Idaho, pleaded guilty today to unlawful possession of a firearm and possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Southam was indicted by a federal grand jury in Pocatello on September 22, 2015.
According to the plea agreement, Southam admitted that on August 3, 2015, he unlawfully possessed four handguns, including a Taurus .380 caliber pistol, a Sig Sauer .45 caliber pistol, a Canik55 9mm pistol, and a Ruger .22 caliber pistol. He also admitted that he possessed with intent to distribute more than 1,200 grams of actual methamphetamine, recovered from his storage unit. The defendant was prohibited from possessing firearms due to a previous felony conviction for possession of a controlled substance in Bannock County, Idaho. Madison County Sheriff's deputies arrested the defendant on August 3, 2015, after he was found in possession of a vehicle reported stolen out of Butte, Montana.
The charge of unlawful possession of a firearm is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release. The charge of possession with intent to distribute 1,200 grams of methamphetamine is punishable by 10 years to life in prison, a maximum fine of $10,000,000.00, and up to five years of supervised release.
Sentencing is set for May 20, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Madison County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case was prosecuted by an Assistant U.S. Attorney in Pocatello, with sentencing handled by the new Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho. The Eastern Idaho Special Assistant U.S. Attorney was hired to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 11 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Removed Alien Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH - A resident of Mexico, has been indicted by a federal grand jury in Pittsburgh on a charge of reentry of removed alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Javier Morales-Bautista, 35, of Mexico as the sole defendant.
According to the indictment, the defendant, who was previously removed from the United States on Nov. 27, 2013 and Sept. 20, 2014, was found in Butler County, Pennsylvania, on Dec. 26, 2015 without having applied for or received permission to reenter the United States from the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 10 years in prison, three years supervised release, and a fine of $250,000 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 Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Registered Sex Offender Sentenced to More Than 20 Years in Prison for Transporting Minor Across State Lines for SexRead the Press Release
NEWARK, N.J. – A Mercer County, New Jersey, man was sentenced to 255 months in prison for transporting an underage boy across state lines for the purpose of engaging in sexual activity, U.S. Attorney Paul J. Fishman announced.
Jayme Shannon, 53 of East Windsor, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with interstate transportation of a minor for illicit purposes and doing so while being a registered sex offender. Judge Salas imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
In September 2013, Shannon met a 15-year-old boy in the internet chat room “Chatavenue.com,” and continued to communicate with the victim in September and October 2013.
On Oct. 14, 2013, Shannon arranged to meet the victim at the Skyview Motel in Fort Lee, New Jersey. After renting a motel room that morning, Shannon drove from New Jersey to New York, where he picked up the victim. Shannon then drove the victim from New York to the Skyview Motel and engaged in sexual conduct with the victim. Shannon was arrested later that day when Fort Lee police officers found him with the victim inside the motel.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi; the Bergen County Prosecutor’s Office, under the direction of Acting Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Ron Bar-Nadav Esq. and Benjamin Morton Esq., Hackensack, New Jersey
Reggie Rucker charged for using charitable donations to pay gambling debts, personal expensesRead the Press Release
Reggie Rucker was charged in federal court for allegedly using charitable donations to anti-violence groups he led to pay his gambling debts and personal expenses, including mortgage payments, meals, and entertainment, law enforcement officials said.
He was also charged with lying to the FBI during when questioned about his alleged diversion of charitable funds.
Rucker, 68, of Warrensville Heights and a former professional football player with the Cleveland Browns, was charged in a criminal information with one count of wire fraud and one count of making false statements to law enforcement.
“Reggie Rucker misused his celebrity and position in the community to dupe some of our most important local foundations and generous citizens,” said Acting U.S. Attorney Carole Rendon. “He stole from the very violence interrupters he so publically claimed to support. In one breath he begged generous donors to save Amer-I-Can and the Peacemakers Alliance, and in the next he stole that money to support his lifestyle and his gambling junkets in Cleveland, Florida, and Las Vegas, using the charity's account as his own ATM.”
“Mr. Rucker used his position of trust to help fund his gambling habits and personal expenses, and ultimately, he betrayed those that supported his work in the community,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The FBI will continue to work with our partners to identify and hold accountable those who chose to commit such fraud.”
Rucker served as executive director of Amer-I-Can Cleveland (Amer-I-Can), a nonprofit organization located in Shaker Heights. Rucker also served as president of the Cleveland Peacemakers Alliance (CPA), a collaboration of community organizations that employed outreach workers to resolve conflicts in Cleveland. Rucker solicited charitable contributions and deposited them into Amer-I-Can’s bank account, according to the information.
From 2011 through February 11, 2015, Rucker diverted funds intended to support Amer-I-Can and CPA for his personal use and in excess of any compensation he was entitled to receive. Rucker wrote checks to himself and made withdrawals from the Amer-I-Can bank account in amounts and frequencies unrelated to the work he performed, but rather dictated by his own personal financial needs, including to pay his mortgage, entertainment, meals, travel, groceries, and dry cleaning, according to the information.
In furtherance of his scheme, Rucker falsely told current and prospective donors that Amer-I-Can had an independent board of directors to provide oversight when it did not. Rucker also filed documents under the penalties of perjury with the Internal Revenue Service that significantly understated the amount of money he took from the Amer-I-Can bank account. He also falsely claimed to certain actual and prospective donors, “I do not have a salary with Amer-I-Can,” and “We don’t have any contracts that pay me…”, according to the information.
Rucker withdrew approximately $48,000 at casino ATMs in Tampa, Las Vegas, and Cleveland, from the Amer-I-Can bank account from 2011 to 2015, including over $35,000 in 2014 alone. He also paid multiple gambling debts he incurred at a Las Vegas casino totaling $65,000 using money donated to Amer-I-Can and CPA for charitable purposes, according to the information.
In January 2013, when an employee of a Cleveland-area foundation (identified in the charges as Foundation 1) informed Rucker that “The Board (of Foundation 1) has awarded $150,000…for Peacemakers Alliance. Congrats!!!”, Rucker forwarded the email to a Las Vegas casino that he owed $20,000, stating “this is my non profit and they were a little behind getting me my money. I will not actually have this in my hands for 10 days, maybe 14 . . . I like to keep communication open so that I don’t get into any trouble. Can they work with me on this?” On March 5, 2013, Amer-I-Can received $58,751.52 of Foundation 1’s charitable funds, and on March 12, 2013, Rucker wrote a check for $20,000, funded in part by Foundation 1’s donation to Amer-I-Can, to the Las Vegas Casino to pay his gambling debt, according to the information.
In January 2014, after receiving $47,500 from a donor identified in the information as Foundation 2, Rucker wrote himself two checks totaling $40,000 from the Amer-I-Can bank account, and used a portion of this money to pay an outstanding gambling debt of $25,000 to a Las Vegas casino, according to the information.
In September 2014, Rucker incurred a $20,000 debt at a Las Vegas casino. Between November 18 and December 1, 2014, Rucker wrote himself checks totaling approximately $21,200 from the Amer-I-Can bank account and paid the Las Vegas casino $15,000 of his debt. In January 2015, after Amer-I-Can received $47,500 from Foundation 2, Rucker wrote himself a check for $10,000 and paid the remaining $5,000 he owed the Las Vegas casino, according to the information.
Rucker repeatedly solicited grants and donations from foundations, corporations and executives, but failed to disclose his diversion of charitable funds. For example, on November 19, 2014, Amer-I-Can received $10,000 from an entity identified as Foundation 4. The next day, Rucker wrote himself a check for $10,000, but later submitted a report to Foundation 4 that stated: “We appreciated the bridge support granted to us by [Foundation 4], it was helpful in being able to assist high risk and gang affiliated youth. The continued support of [Foundation 4] will be instrumental…,” according to the information.
Rucker also repeatedly cited CPA outreach workers’ lack of pay to justify his requests for additional funds, but did not disclose his personal use of charitable funds. For example, Rucker solicited funds from Foundation 1, which provided approximately $2.45 million to CPA between 2011 and 2015, by claiming that CPA workers “believe they are being disrespected and taken advantage of . . . I can’t hold them together much longer. We have come too far, put too much into this . . . None of us has money!”, according to the information.
This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Miranda Dugi following an investigation by the Federal Bureau of Investigation.
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 information 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.
Poplar Grove Woman Charged in Stolen Identity Fraud SchemeRead the Press Release
ROCKFORD — A Poplar Grove, Ill. resident was indicted in federal court in Rockford on charges of mail fraud, aggravated identity theft, and access device fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
According to the indictment, SHAMEKA CARR filed fraudulent tax returns using stolen identities. Carr directed the anticipated tax refunds to prepaid debit cards and to federal income tax refund checks. She caused those items to be mailed to addresses that she had access to in Rockford, Ill. and surrounding areas. Carr used the cards and checks to enrich herself.
Each count of mail fraud carries a maximum sentence of 20 years in prison. Access device fraud carries a maximum sentence of 15 years in prison. Each count of aggravated identity theft carries a mandatory sentence of two years in prison. In addition, each count carries potential fines and restitution.
Acting Assistant Attorney General Ciraolo commended special agents of the United States Postal Service and IRS-Criminal Investigation and the Boone County Sheriff’s Department, who investigated the case, and Trial Attorneys Michael C. Boteler and John T. Mulcahy of the Tax Division, who are prosecuting the case.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Parkersburg felon sentenced for Federal drug and gun crimesRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man was sentenced today to two years and three months in federal prison for distribution of heroin and crack, and for being a felon in possession of a firearm, announced Acting United States Attorney Carol Casto. James Miller Johnson, III, 27, previously pleaded guilty in September 2015 to the federal drug and gun charges.
Johnson admitted that on August 14, 2014, he sold heroin and crack in Parkersburg to a confidential informant working with law enforcement. When Johnson was arrested on the drug charge near Vienna on November 19, 2014, law enforcement found Johnson with a Colt .45 Gold Cup National Match semiautomatic pistol. Johnson was prohibited from possessing any firearm under federal law because of a 2009 felony conviction in Logan County, Ohio, for drug possession.
The Parkersburg Narcotics Task Force, the Vienna Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Pair Indicted for Using Internet Dating Site for Wire Fraud SchemeRead the Press Release
Oklahoma City, Oklahoma – Today, a federal grand jury has indicted KEN EJIMOFOR EZEAH, 33, from Nigeria, and AKUNNA BAIYINA EJIOFOR, 31, a resident of Houston, Texas, for conspiracy to commit wire fraud and wire fraud, announced Mark Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to the indictment, defendants and their co-conspirators would use false profile information to open user accounts on online dating web sites and contact other users under the guise of forming an online relationship. Instead, it is alleged, the contact was actually for the purpose of attempting to scam money from other users by claiming to be successful financial advisors or affiliated with charitable causes.
It is alleged the defendants used telephone calls, cell phone text messages, and messages through the dating web site in order to further the illusion that a genuine relationship was developing. As the online relationship progressed, it is alleged, the defendants would make inquiries about their potential victim’s finances and investments and claim to have inside information, such as knowledge that the victim’s investment firm was under investigation by government authorities or was financially unsound. Ultimately, it is alleged, the defendants would use these false claims to persuade the victims that their money or investments were unsafe and cause the victims to wire money to the defendants. In reality, it is alleged, the defendants kept the victim’s money for themselves. Specifically, the indictment alleges that the defendants used this scheme to cause one victim from Oklahoma City to wire $500,000 on May 11, 2015, and another $501,000 on May 14, 2015, from her bank account to Barclays Bank in London.
Ezeah and Ejiofor were been charged by criminal complaint and were arrested in Houston, Texas, on January 27, 2016.
If convicted, Ezeah and Ejiofor each face up to 20 years in prison and a $250,000 fine. The public is reminded that the indictment is merely an accusation and that the defendants are presumed innocent unless and until proven guilty. Reference is made to court records for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Tim Ogilvie.
PTC Inc. Subsidiaries Agree to Pay More Than $14 Million to Resolve Foreign Bribery ChargesRead the Press Release
Two subsidiaries of Massachusetts software company PTC Inc. entered into a non-prosecution agreement and agreed to pay a $14.54 million penalty today to resolve the government’s investigation into whether the companies improperly provided recreational travel to Chinese government officials in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
According to admissions made in the resolution documents, Parametric Technology (Shanghai) Software Company Ltd. and Parametric Technology (Hong Kong) Ltd. (collectively, PTC China), through local business partners, arranged and paid for employees of various Chinese state-owned enterprises to travel to the United States, ostensibly for training at PTC Inc.’s headquarters in Massachusetts, but primarily for recreational travel to other parts of the United States, including New York, Los Angeles, Las Vegas and Hawaii. PTC China paid a total of more than $1 million through its business partners to fund these trips, while during the same time period, PTC China entered into more than $13 million in contracts with the Chinese state-owned entities. Company employees typically accompanied the Chinese officials on these trips. PTC China admitted that the cost of these recreational trips was routinely hidden within the price of PTC China’s software sales to the Chinese state-owned entities whose employees went on the trips.
As part of the non-prosecution agreement, PTC China agreed to pay the criminal penalty, to continue to cooperate with the department, to enhance its compliance program and to periodically report to the department on the implementation of its enhanced compliance program. The department reached this resolution based on a number of factors. Among other factors, PTC China did not receive voluntary disclosure credit or full cooperation credit because, at the time of its initial disclosure, it failed to disclose relevant facts that it had learned in connection with a prior internal investigation and did not disclose those facts until the department uncovered additional information independently and brought them to PTC China’s attention. By the conclusion of the investigation, however, the companies had provided to the department all relevant facts known to them, including information about individuals involved in the FCPA misconduct.
In a related matter, PTC Inc. reached a settlement today with the U.S. Securities and Exchange Commission (SEC) under which it agreed to pay $11,858,000 in disgorgement plus $1.764 million in prejudgment interest. Thus, the approximately $28 million in combined penalty and disgorgement far exceeds the $13 million in contracts associated with the improper payments.
The FBI’s Boston Field Office investigated the case. Trial Attorney Aisling O’Shea of the Criminal Division’s Fraud Section prosecuted the case. The U.S. Attorney’s Office of the District of Massachusetts and the SEC also provided assistance during the investigation.
Ohio man sentenced to Federal prison for role in Detroit-to-Huntington heroin schemeRead the Press Release
HUNTINGTON, W.Va. – A South Point, Ohio, man who participated in a heroin conspiracy in 2014 and 2015 was sentenced today in federal court, announced Acting United States Attorney Carol Casto. Dustin S. Barton, 19, was sentenced to a year and a day in federal prison after previously pleading guilty to distributing heroin. Barton was the seventh participant in the drug scheme to be sentenced.
From the summer of 2014 to January 2015, Barton participated in a conspiracy led by Kenneth E. Baxter that transported heroin from Detroit to Huntington for distribution. Once in Huntington, Barton assisted Sean L. Gist and Ramone L. Wells by transporting heroin to various locations and distributing heroin to customers when directed by Gist and Wells. On January 28, 2015, Barton met with a confidential informant at Harris Riverfront Park in Huntington and distributed heroin to the informant on behalf of Gist.
Multiple defendants have been convicted of drug offenses as a result of the investigation. Those sentenced to federal prison include Baxter, who was sentenced to seven years and three months; Coty S. Richardson, who was sentenced to five years and ten months; Gist, who was sentenced to five years and three months; Wells, who was sentenced to four years; and Pricilla Lee Dylan, who was sentenced to two years and nine months. Paul A. Roberts, Jr., was sentenced to five years of probation for assisting the group in securing a residence to conduct drug deals.
Also as part of this drug investigation, Warren G. Howard, Jr., pleaded guilty in December 2015 to distributing heroin. Howard faces up to 20 years in federal prison and a $1 million fine when he is sentenced on March 7, 2016.
The Huntington FBI Drug Task Force, the United States Postal Service, the West Virginia State Police, and the Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Ohio Man Convicted for Engaging in Child Exploitation EnterpriseRead the Press Release
A federal jury found a Hamilton, Ohio, man guilty of one count of engaging in a child exploitation enterprise, one count of conspiracy to advertise child pornography and one count of conspiracy to distribute child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield, Illinois, Division made the announcement.
Evidence at trial established that Jason Gmoser, 36, acted as a member and co-administrator of an Internet website through which Gmoser and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. The website’s users also employed advanced technological means in order to undermine law enforcement’s attempts to identify them.
Gmoser was arrested on Oct. 16, 2014, following a court-authorized search of his home in Hamilton. A forensic examination of computers and devices seized pursuant to that search found he was in possession of millions of files depicting the sexual exploitation of children. Sentencing is scheduled for June 13, 2016.
The FBI’s Springfield Field Office and the FBI’s Violent Crimes against Children Section, Major Case Coordination Unit and Digital Analysis and Research Center led the investigation of this case. Trial Attorney Keith Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Elly Peirson of the Central District of Illinois prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New Hampshire Man Found Guilty of Domestic Violence and Firearm Charges Arising Out of Saco Home InvasionRead the Press Release
Contact: Darcie N. McElwee
James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 280-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Gregory Owens, 59, of Londonderry, New Hampshire, was found guilty today by a jury in U.S. District Court of interstate domestic violence and discharging a firearm during and in relation to a crime of violence in connection with a home invasion shooting in Saco, Maine on December 18, 2014.
According to court records, on that date, Owens drove from New Hampshire to Maine intending to kill his wife who was an overnight guest at the home of friends living in Saco. During the home invasion, Owens shot his wife and the male home owner with a 9mm pistol. Both survived their injuries.
Owens faces up to 20 years in prison on the interstate domestic violence charge because the jury found that life threatening bodily injury occurred and no less than ten years and up to life on the firearm charge, which must be served consecutively. He also faces a $250,000 fine on each count.
The investigation was conducted by the Saco Police Department; the Maine and New Hampshire State Police; the Federal Bureau of Investigation; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Middletown Man Admits Robbing 6 Connecticut BanksRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MATTHEW DRAGONE, 31, of Middletown, waived his right to indictment and pleaded guilty today in New Haven federal court to one count of bank robbery and admitted that he robbed or attempted to rob a total of seven Connecticut banks last summer.
According to court documents and statements made in court, DRAGONE robbed the Webster Bank at 145 Highland Avenue in Cheshire on August 12, the TD Bank at 1127 Farmington Avenue in Berlin on August 13, the Liberty Bank at 151 Main Street in Deep River on August 17, the TD Bank at 25 Wells Road in Wethersfield on August 31, the Webster Bank at 377 Cromwell Avenue in Rocky Hill on September 9 (attempt), the Liberty Bank at 357 Main Street in Durham on September 3, and the TD Bank at 184 Clinton Road in Killingworth on September 11. During each of the robberies, DRAGONE, wearing a baseball cap and dark sunglasses and holding a cellphone to his ear, presented a teller with a bank-style bag affixed with a note that demanded money.
On September 16, 2015, a search of DRAGONE’s residence revealed clothing and sunglasses consistent with those worn during the Durham robbery on September 3, as well as a bank-style bag consistent with the one used during several of the bank robberies.
DRAGONE was arrested on September 18, 2015, and is released on a $50,000 bond. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on May 13, 2016, at which time he faces a maximum term of imprisonment of 20 years.
This investigation has been conducted by the FBI, the Connecticut State Police and the Middletown, Cheshire, Berlin, Wethersfield, and Rocky Hill Police Departments, with the assistance of the Connecticut Department of Emergency Services and Public Protection, Division of Scientific Services. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Mexican National Sent to Prison for Importing Nearly $2 Million in MethRead the Press Release
McALLEN, Texas – A 43-year-old Mexican national has been ordered to federal prison following his conviction of importing 75 kilograms of methamphetamine into the country hidden within a load of squash and cactus, announced U.S. Attorney Kenneth Magidson. Daniel Salvador Gomez-Reyes pleaded guilty Oct. 29, 2015.
Today, U.S. District Judge Randy Crane handed Gomez-Reyes a 72-month sentence, noting the significant weight of the methamphetamine that Gomez-Reyes brought into the United States. As an illegal alien, Gomez-Reyes is expected to face deportation proceedings following his release from prison.
On March 31, 2015, Daniel Salvador Gomez-Reyes was intercepted by federal agents while was driving a semi-truck loaded with squash and cactus into the Pharr port of entry from Mexico. Upon investigation, federal agents soon discovered 75 kilograms of methamphetamine hidden within false compartments in the pallets under the produce. Gomez-Reyes admitted he picked up the narcotics-laden produce under suspicious circumstances in Mexico and that he knew he was importing controlled substances into the U.S.
The estimated value of the load of methamphetamine is estimated to be approximately $1.98 million.
Gomez-Reyes will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by Homeland Security Investigations and Customs and Border Protection. Assistant U.S. Attorneys David A. Lindenmuth and Alexandro Benavides are prosecuting the case.
Los Ranchos Woman Sentenced for Robbing Bank in Albuquerque in March 2015Read the Press Release
ALBUQUERQUE – Denise Romero, 28, of Los Ranchos, N.M., was sentenced in federal court today to 37 months in prison for robbing the New Mexico Bank & Trust branch located on 4th Street NW in Albuquerque, N.M., in March 2015. She will be on supervised release for three years after completing her prison sentence. Romero also was ordered to pay full restitution to the bank.
Romero was arrested on March 20, 2015, on a criminal complaint alleging that she robbed the New Mexico Bank & Trust branch on March 16, 2015. According to the complaint, Romero approached the bank teller with a note to the teller suggesting that Romero had a gun. Romero used the money from the bank robbery to bail her boyfriend out of jail.
Romero was indicted on April 14, 2015, and charged with bank robbery. On Aug. 11, 2015, Romero pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo.
Las Vegas man sentenced for participation in drug trafficking and money laundering conspiracies violationsRead the Press Release
Anchorage, Alaska –U.S. Attorney Karen L. Loeffler announced that, on Feb. 12, 2016, a Las Vegas man was sentenced by U.S. District Judge Sharon L. Gleason to 13 years in prison for his participation in a drug trafficking conspiracy involving methamphetamine and a related money laundering conspiracy.
Billy “Red Dollaz” Cooks, 38, of Las Vegas, Nevada, previously pled guilty to conspiring with his co-defendant and girlfriend, E’lala Frank, also of Las Vegas, and others to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine. Cooks also pled guilty to conspiring with Frank to launder the illicit proceeds from his drug trafficking activity.
According to Assistant U.S. Attorney Timothy D. Edmonds, who handled the sentencing hearing, United States Postal Inspectors in Anchorage intercepted a suspicious package sent from Las Vegas to an address in Anchorage on Jan. 22, 2014. Once a drug detecting canine positively indicated for the presence of controlled substances inside the package, Inspectors obtained a search warrant for the parcel. Inside, Inspectors found what was ultimately determined to be 443.5 grams of methamphetamine. At that time, Inspectors removed the methamphetamine from the package, replaced it with an imitation substance, and prepared to deliver the package to the recipient address.
The next day, on Jan. 23, 2014, in a joint operation between the Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), and United States Postal Inspection Service (USPIS), investigators conducted surveillance at the parcel’s recipient address, as an undercover Inspector delivered the package to the residence. The package was accepted at the door by a man identified as Dawud Johnson of Anchorage. Shortly after receiving the package, Johnson departed the residence in a vehicle and was followed by investigators. Minutes later, investigators observed Johnson throw the package out of the window of his vehicle. Johnson was arrested shortly thereafter at a nearby shopping center.
A subsequent review of Johnson’s telephone records revealed communication between Johnson and “Red Dollaz” in the days leading up to the shipment of the package of methamphetamine from Las Vegas to Johnson in Anchorage. Further investigation confirmed that “Red Dollaz” was Billy Cooks. Review of Johnson’s phone records also uncovered communication between Johnson and Cooks regarding a bank transaction involving a Wells Fargo bank account in Frank’s name. Investigator’s review of these records, as well as banking information for Frank’s account, indicated that Johnson deposited cash into the account that was subsequently withdrawn at an ATM in Henderson, Nevada, near Las Vegas. Continued investigation into banking records, bank security footage, and security footage from the United States Postal Service confirmed that Frank had mailed the package of methamphetamine on Cooks’ behalf and that Cooks, Johnson, and Frank had moved various amounts of money through Frank’s bank account.
Johnson previously received a sentence of 15 years in prison for his participation in this scheme.
In sentencing Cooks, Judge Gleason commented that she felt Cooks’ drug trafficking activity was primarily motivated not by the defendant’s own addiction, as the defendant suggested, but by greed. Judge Gleason also reflected for some time about the extremely damaging effects of methamphetamine on the Anchorage community, characterizing the defendant’s drug trafficking offense as a particularly troubling one. Judge Gleason also held Cooks responsible for getting Frank involved in facilitating the laundering of his drug trafficking proceeds.
“Trafficking in methamphetamine is not a victimless crime,” said First Assistant U.S. Attorney Kevin R. Feldis. “Meth can be highly addictive and highly damaging to the human brain. Nobody should be allowed to profit by doing harm to others and to the community, and their sentence reflects that fact.”
In announcing the sentence, U.S. Attorney Loeffler commended the work of the DEA, IRS, and USPIS, who jointly investigated the case.
Kansas Man Pleads Guilty to Defrauding InvestorsRead the Press Release
KANSAS, KAN. – An Overland Park man pleaded guilty Tuesday to defrauding investors in his businesses, U.S. Attorney Barry Grissom said.
Richard Ballard, 67, Overland Park, Kan., pleaded guilty to one count of wire fraud. In his plea, he admitted that he diverted $99,649 from companies he owned and used the investment proceeds for his personal benefit.
From March 2007 to September 2008 approximately 18 individuals or couples invested approximately $1.2 million into Ballard’s business ventures, including CRB Group, LLC; CRB Springwater, LLC; CRB Biosoft, LLC; CRB Holdings, LLC; and JHS Foods, LLC. He solicited working capital from investors for CRB Springwatter, LLC, to develop environmentally friendly bottled water and CRB Biosoft, LLC, to produce environmentally friendly pet chews.
Ballard wired a total of $125,000 from an account in New York to an account he controlled in Kansas. In the next few days, he engaged in 20 debit transactions totaling $99,649 by which he diverted corporate proceeds to other companies that he owned and used the investment proceeds for his personal benefit.
Sentencing is set for May 16. The parties have agreed to recommend 27 months in federal prison and restitution to be determined by the court.
Grissom commended the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.
Justice Department Settles Employment Discrimination Lawsuit Against City of Chicago Police DepartmentRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with the city of Chicago to resolve allegations that the Chicago Police Department (CPD) discriminated against entry-level police officer applicants on the basis of national origin, in violation of Title VII of the Civil Rights Act of 1964.
In a joint motion filed today in the U.S. District Court for the Northern District of Illinois, the Justice Department and the city requested that the court enter a provisional order that sets forth the terms of the settlement agreement, including more than $2 million in back pay, a number of priority hires and pension benefits. The motion also asks the court to schedule a fairness hearing, an opportunity provided by Title VII for those affected by the proposed agreement to comment on the settlement.
The proposed settlement, once approved by the district court, will resolve the complaint filed on Feb. 5, 2016. In that complaint, the Justice Department alleged that during its 2006 hiring cycle, the city used a 10-year continuous U.S. residency requirement to screen entry-level police officer applicants. The department further alleged that the residency requirement disproportionately removed applicants born outside of the United States from consideration in the hiring process and was not related to the job. Title VII prohibits discrimination in employment on the basis of race, color, sex, national origin or religion, whether the discrimination is intentional or involves the use of employment practices that have a disparate impact and are not job related and consistent with business necessity. This settlement is distinct from the department’s investigation into allegations concerning the Chicago Police Department’s methods of policing and its practices with respect to the use of force; that investigation remains ongoing.
“When brave men and women aspire to serve their communities as police officers, hiring procedures must evaluate the skills they need on the job, not where they come from or what they look like,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This agreement avoids costly litigation, provides relief for job applicants who suffered from discrimination and helps the Chicago Police Department refocus on fair hiring practices going forward.”
“Removing unlawful barriers to employment continues to be a top priority of the EEOC,” said Director Julianne Bowman of the EEOC’s Chicago District. “We are pleased that the successful collaboration between the Justice Department and the EEOC removed one such barrier and produced positive results for those who were unjustly denied police officer positions in the Chicago Police Department.”
Chicago no longer uses the 10-year continuous U.S. residency requirement challenged by the department. In addition to back pay and priority hiring relief for some applicants, the settlement agreement would require the city to evaluate whether its current five-year continuous U.S. residency requirement complies with Title VII and to provide Title VII compliance training to personnel involved in Chicago Police Department hiring. All priority hires must meet the city’s lawful selection criteria for qualified entry level police officers.
The case was brought by Trial Attorneys Valerie Meyer, Kathleen Lawrence and Carol Wong of the Civil Rights Division’s Employment Litigation Section. Enforcement of federal employment discrimination laws is a top priority for the Justice Department. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Chicago Proposed Consent Judgment
Irving Man Man Sentenced to 17 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS —Javier Gallegos, 49, of Irving, Texas, was sentenced this afternoon by U.S. District Judge Sam A. Lindsay to 204 months (17 years) in federal prison, following his guilty plea in October 2015 to one count of transportation of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
After serving his sentence, Gallegos will be referred to U.S. Immigration officials for deportation proceedings.
According to documents filed in the case, the investigation began in December 2014 when a detective with the Plano Police Department, working in an undercover capacity, noticed that a computer with a specific IP address was making files, with names indicative of child pornography, available for sharing. Between December 5 and December 6, 2014, the detective downloaded 30 files, including 27 videos, of child pornography depicting the sexual abuse of minor children.
Law enforcement executed a search warrant at Gallegos’s home in March 2015, and Gallegos, who was home at the time, admitted that for approximately two years, he had used a file-sharing program on the Internet to obtain child pornography. A forensic analysis of Gallegos’s laptop computer revealed that Gallegos had used the file-sharing program to share approximately 234 files and that the majority of those files had names consistent with child pornography. The forensic analysis further revealed that Gallegos had 25 videos of child pornography on his laptop computer and thumb drive, with some depicting sadistic and/or violent content.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Plano Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on February 12, 2016 and entering pleas of Not Guilty were:
- SALVADOR ANDAYA CURIEL, a 28-year-old resident of California, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, CURIEL faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations. PACER Case Reference. 15-01
Appearing before U.S. Magistrate Lynch in Missoula on February 11, 2016 and entering pleas of Not Guilty were:
- RICHARD CHARLES SAARI, a 32-year-old resident of East Helena, appeared on charges of sexual exploitation of children, and receipt of child pornography. If convicted of the most serious charge contained in the indictment, SAARI faces 30 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation, Internet Crimes Against Children Task Force, Helena Police Department, Lewis and Clark County Sheriff’s Office, East Helena Police Department, Homeland Security Investigations and Montana Division of Criminal Investigation. PACER Case Reference. 16-01
Appearing before U.S. Magistrate Johnston in Great Falls on February 10, 2016 and entering pleas of Not Guilty were:
- JEROME DALE FOLLET, SR., a 26-year-old resident of Poplar, appeared on charges of felony child abuse. If convicted of the charge contained in the indictment, FOLLET faces 10 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 16-12
- RAMON TROY WHITE BEAR, a 22-year-old resident of Poplar, appeared on charges of assault resulting in serious bodily injury. If convicted of the charge contained in the indictment, WHITE BEAR faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice. PACER Case Reference. 16-08
Appearing before U.S. Magistrate Johnston in Great Falls on February 9, 2016 and entering pleas of Not Guilty were:
- PAUL OLDCHIEF, a 36-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, OLDCHIEF faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-11
- DEREK JAMES RIGHT HAND, an 18-year-old resident of Browning, appeared on charges of aggravated sexual abuse. If convicted of the charge contained in the indictment, RIGHT HAND faces life in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-13
Appearing before U.S. Magistrate Ostby in Billings on February 9, 2016 and entering pleas of Not Guilty were:
- GENE ANDREW TUFTON, a 44-year-old resident of Dagmar, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, TUFTON faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation and the HIDTA . PACER Case Reference. 16-05
Appearing before U.S. Magistrate Ostby in Billings on February 5, 2016 and entering pleas of Not Guilty were:
- EDWARD LEE DONNES, a 53-year-old resident of Belgrade, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, DONNES faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 16-12
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Illinois Woman Charged in Stolen Identity Tax Fraud SchemeRead the Press Release
A Poplar Grove, Illinois resident was indicted by a federal grand jury today on six counts of mail fraud, six counts of aggravated identity theft and one count of access device fraud, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
According to the indictment, Shameka Carr filed fraudulent tax returns with the Internal Revenue Service (IRS) in the names of individuals whose identities she had stolen. Carr is alleged to have directed the IRS to issue the tax refunds requested on these fraudulent returns in the form of prepaid debit cards and U.S. Treasury checks, both of which were mailed to addresses she had access to in Rockford, Illinois, and surrounding areas. It is further alleged that Carr used the debit cards and U.S. Treasury checks for her personal benefit.
If convicted, Carr faces a statutory maximum sentence of 20 years in prison for each mail fraud count, 15 years in prison for the charge of access device fraud and a mandatory sentence of two years in prison for each count of aggravated identity theft, which would be in addition to any other term of imprisonment she receives. Carr also faces potential fines and restitution.
An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo commended the U.S. Postal Inspection Service, IRS Criminal Investigation and the Boone County Sheriff’s Department, who investigated the case and Trial Attorneys Michael C. Boteler and John T. Mulcahy of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Husband & Wife Indicted for Conspiracy to Commit Mail Fraud by Filing Fraudulent Alien Income Tax ReturnsRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that a federal grand jury in Greenville returned an Indictment charging, PERFECTO RUANO, 56, and WALDA LUNA, 45, both of Wallace, North Carolina, of conspiracy to commit mail fraud by filing fraudulent income tax returns with the United States Department of Treasury. LUNA was also charged with three counts of filing false personal income tax returns, two counts of mail fraud and two counts of aggravated identity theft. According to the Indictment, LUNA falsely claimed two individuals as her dependents and failed to report all of her business income.
Thomas J. Holloman, IRS Special Agent in Charge of the Charlotte field office, said "tax refund fraud is a serious crime, and while the conduct detailed in the Indictment is an allegation, it outlines a complex, criminal scheme to defraud the Internal Revenue Service and the hard working American taxpayers.
“Tax fraud is an outrage to hard-working Americans everywhere who fulfill their obligation to society by paying their fair share,” said Special Agent in Charge of Homeland Security Investigations Atlanta Field Office Nick S. Annan. “Criminals who attempt to cheat the system and steal from law-abiding citizens will continue to be a major priority for HSI.”
According to the criminal complaint filed on January 5, 2016, RUANO and LUNA used post office boxes and physical addresses controlled by them to obtain more than one million dollars in fraudulent refunds from the Internal Revenue Service (IRS) through a program designed for individuals earning income in the United States, who are not eligible to obtain social security numbers but can obtain an Individual Tax Identification Number (ITIN). An ITIN can be obtained from the IRS by presenting original or certified copies of foreign identification documents to include passports, birth certificates and school records. The ITIN applicant must also establish a tax purpose, which is usually satisfied by filing an income tax return reflecting income earned in the United States by that individual. Dependents claimed on those returns, which are not eligible for a SSN, may also obtain an ITIN.
LUNA, who owned and operated a retail store in Wallace, had been licensed by the North Carolina Commission of Banks to cash checks. According the the criminal complaint, between January 2009 and May 2012, 2,760 U.S. Treasury refund checks with a total face value of $12,104,825.90 were deposited into a bank account controlled by the defendants. During this same time frame, LUNA withdrew $11,888,300 in cash by writing checks to cash.
On or about May 2014, the couple was stopped by the Arkansas State Police as they were driving west on Interstate 40. The police found $1,789.520 in cash in the vehicle. Most of the cash had been wrapped into nine large bundles and hidden in two safes and a cardboard box. The following day, the Duplin County Sheriff’s Office observed, in the couple’s Wallace residence, three empty cardboard boxes partially wrapped in packing tape consistent in shape and size to the bundles of currency seized from the vehicle in Arkansas. The Duplin County deputies also seized documents from their residence consistent with use for tax preparation services, foreign identification documents issued by the Republic of Honduras and Guatemala to individuals other than RUANO and LUNA, and over 300 ITIN letters issued by the IRS to individuals other than RUANO and LUNA. A laptop computer was seized from LUNA’S retail store, which contained tax files for fraudulent ITIN returns filed with the IRS. Refund checks were issued for 75 of these fraudulent ITIN returns and were deposited into the couple’s bank account.
The maximum penalty the couple can receive for the conspiracy charge is 20 years’ imprisonment. LUNA faces additional penalties for the other charges, including two mandatory minimum sentences of two years for each of the aggravated identity theft charges. The Indictment also seeks forfeiture of the monies seized in Arkansas, several tracts of land owned by the defendants in Duplin County and a money judgment of at least $2,944,799. United States Magistrate Judge Robert Jones previously ordered the couple detained pending trial.
The Internal Revenue Service – Criminal Investigations has led the investigation of this case with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, and the Duplin County Sheriff’s Office.
Honduran National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JEYSEE BARAHONA-FLORES, age 30, a native of Honduras, was sentenced today on a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
U.S. District Judge Jane Triche Milazzo sentenced BARAHONA-FLORES to time served, which was five months. According to court documents, on October 6, 2015, the defendant was encountered by federal agents outside of a residence in Kenner. BARAHONA-FLORES had previously been removed from the United States on September 23, 2011.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Fort Pierce Resident and Three Time Convicted Felon Sentenced to 70 months in Prison for Possession of Sawed-off Shotgun and AmmunitionRead the Press Release
Ezra L. Ealy, 21, a convicted felon, was sentenced to 70 months in prison for possessing a sawed off shotgun and ammunition while on the streets of Fort Pierce by U.S. District Court Judge Kenneth A. Marra, sitting in Fort Pierce.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, and Diane Hobley-Burney, Chief, Fort Pierce Police Department (FTPPD), made the announcement.
Ealy, a Fort Pierce resident, was charged by indictment with being a felon in possession of a firearm and ammunition on July 13, 2015, in violation of Title 18, United States Code, Section 922(g)(1). Ealy faced a maximum statutory penalty of ten years in prison.
According to the allegations contained in court filings and detention hearing testimony, on July 13, 2015, an ATF Special Agent and a FTPPD Detective responded to a radio call of shots being fired by a large bearded male with a shotgun in the area of 31st & Avenue F in Fort Pierce, Florida. Upon arrival, the law enforcement officers observed Ealy, who fit the description, running away from the site of the call. During their pursuit, the agents observed Ealy stop, and open and close the lid of a recycling bin. Thereafter, agents recovered a sawed off Winchester 12 gauge shotgun in the trash bin. After his apprehension, agents recovered two (2) unspent Winchester shotgun shells from Ealy’s pocket, and one spent shotgun shell from the chamber of the shotgun. Fingerprints also linked Ealy to the shotgun.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
Mr. Ferrer commended the investigative efforts of ATF and the Fort Pierce Police Department. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Myers Man Sentenced for Check-Kiting Bank Fraud SchemeRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Roger Eugene Hagood (44, Fort Myers) to four years in federal prison for bank fraud. As part of the sentence, the Court also entered a money judgment in the amount of $677,722, the proceeds of the fraud. Hagood pleaded guilty on November 17, 2015.
According to court documents, Hagood operated Coral Palm Auto Sales, a used car dealership. Coral Palm Auto Sales received financing through a third-party lender to purchase automobiles. Vehicle titles were provided as security to procure the loans, and loan payments were made using proceeds from the vehicle sales. Once each loan was paid in full, the third-party lender would release the vehicle titles used to secure the loan back to Coral Palm Auto Sales.
In November and December 2011, Hagood engaged in a check-kiting scheme by writing 13 checks, totaling $1,592,121, on his business checking account, made payable to the third-party lender, knowing that the account lacked sufficient funds to cover the checks. As a result, the third-party lender wrote new loan checks on its account made payable to Coral Palm Auto Sales. Hagood’s scheme caused two federally insured banks to suffer a total loss of $1,037,770.01.
On March 29, 2015, Hagood attempted to surreptitiously dispose of 20 banker’s boxes containing records and documents pertaining to Coral Palm Auto Sales by throwing them in a dumpster located more than a mile from his residence. A video surveillance camera partially captured Hagood attempting to dispose of the boxes. The boxes were retrieved by the Lee County Sheriff’s Office and turned over to the FBI. A portion of the records and documents that Hagood tried to destroy were responsive to a federal subpoena previously served on him earlier that month.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Former Employee of U.S. Contractor in Afghanistan Sentenced on Bribery and Structuring Conspiracy ChargesRead the Press Release
SHERMAN, Texas – A former government contractor employee was sentenced to 46 months in prison today for his role in a bribery scheme involving a federal program in Afghanistan and conspiracy to structure financial transactions to avoid currency transaction reporting requirements.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney John M. Bales, Eastern District of Texas, the Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Division and Inspector General Ann Calvaresi Barr of the U.S. Agency for International Development (USAID) made the announcement.
George E. Green, 58, of Carrollton, Texas, who worked at International Relief and Development Inc. (IRD) in Afghanistan, was sentenced by U.S. District Judge Marcia A. Crone of the Eastern District of Texas.
According to his plea agreement, Green served as IRD’s director of contracts, procurement and grants in connection with a cooperative agreement between USAID and IRD to strengthen economic stabilization and promote long-term agricultural development in specific areas of Afghanistan. Green admitted that in March and April 2012, he solicited and received a $51,000 bribe from a representative of an Afghan company that provided agriculture-related products and that sought subcontracts from IRD. Between May and August 2012, after he returned to Texas, he attempted to conceal the bribe proceeds by conspiring with others to make cash deposits of less than $10,000 each into his bank and credit card accounts to circumvent the financial institutions’ mandatory cash reporting requirements, he admitted.
SIGAR, the FBI and USAID’s Office of Inspector General investigated the case. Former Special Trial Attorney Mark H. Dubester and Trial Attorney Michael T. O’Neill of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Kevin McClendon of the Eastern District of Texas assisted with the prosecution.
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Former Employee of U.S. Contractor in Afghanistan Sentenced on Bribery and Structuring Conspiracy ChargesRead the Press Release
A former government contractor employee was sentenced to 46 months in prison today for his role in a bribery scheme involving a federal program in Afghanistan and conspiracy to structure financial transactions to avoid currency transaction reporting requirements.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John M. Bales of the Eastern District of Texas, the Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Division and Inspector General Ann Calvaresi Barr of the U.S. Agency for International Development (USAID) made the announcement.
George E. Green, 58, of Carrollton, Texas, who worked at International Relief and Development Inc. (IRD) in Afghanistan, was sentenced by U.S. District Judge Marcia A. Crone of the Eastern District of Texas, who also ordered the defendant to forfeit $51,000.
According to his plea agreement, Green served as IRD’s director of contracts, procurement and grants in connection with a cooperative agreement between USAID and IRD to strengthen economic stabilization and promote long-term agricultural development in specific areas of Afghanistan. Green admitted that in March and April 2012, he solicited and received a $51,000 bribe from a representative of an Afghan company that provided agriculture-related products and that sought subcontracts from IRD. Between May and August 2012, after he returned to Texas, he attempted to conceal the bribe proceeds by conspiring with others to make cash deposits of less than $10,000 each into his bank and credit card accounts to circumvent the financial institutions’ mandatory cash reporting requirements, he admitted.
SIGAR, the FBI and USAID’s Office of Inspector General investigated the case. Former Special Trial Attorney Mark H. Dubester and Trial Attorney Michael T. O’Neill of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Kevin McClendon of the Eastern District of Texas assisted with the prosecution.
Florida Man Sentenced to 25 Years in Prison for Methamphetamine and Gun ChargesRead the Press Release
BOISE – Michael Angelo Sapp, 40, of Pensacola, Florida, was sentenced today in United States District Court to 300 months in prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine and unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Sapp to forfeit a firearm and $6,000 in drug proceeds. Sapp was convicted by a federal jury on November 20, 2015, after a three-day trial.
According to evidence presented at trial and at his sentencing hearing, Sapp, who was then living in Meridian, Idaho, was involved in a high speed chase the night of December 23, 2014. Meridian police officers attempted to stop him after he was reported as an intoxicated driver who hit a pole at the McDonald’s drive thru located at 195 E. Central in Meridian. During the chase that followed, Sapp reached speeds of 90 miles per hour, drove in the wrong lane and ran several red lights. Officers finally stopped him near Meridian and Chinden roads. The jury found that Sapp possessed with the intent to distribute 174 grams of pure methamphetamine, which was found in his vehicle. The jury also found him guilty of possessing a .380 semi-automatic pistol. Sapp had previously been convicted in the state of Florida of grand theft firearm, burglary, grand theft of more $10,000, grand theft of $300-500, possession of a firearm by convicted felon, burglary of an unoccupied conveyance, pawnbroker transaction fraud, dealing in stolen property by trafficking, fraud upon secondary metals recyclers, grand theft of a firearm, and grand theft. At the time of his arrest, he was wanted on felony warrants out of the state of Florida, and had fled the state to avoid arrest.
Judge Lodge found that Sapp obstructed justice by committing perjury at trial and by attempting to unlawfully influence witnesses. Sapp also received a sentencing enhancement for creating a substantial risk of death or serious bodily injury to other persons in the course of fleeing from law enforcement.
The case was investigated by the Meridian Police Department, the Ada County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Federal Monitor Finds Seattle Police Department’s Crisis Intervention Efforts in Initial Compliance with Consent Decree RequirementsRead the Press Release
Federal Monitor Merrick Bobb filed an assessment today that finds that the Seattle Police Department’s (SPD) new crisis intervention policies, training and operations to engage people in crisis are in initial compliance with the crisis intervention provisions of the court-ordered agreement with the Department of Justice. The federal monitor filed the ninth of 15 formal assessments with the U.S. District Court and concluded that “there has been a real, tangible, and objective change in the way Seattle police are interacting, compassionately and with an eye towards treatment, with those in crisis.”
Specifically, the formal assessment found:
(1) SPD is dispatching its now large and trained cadre of crisis intervention-trained officers to crisis events in the great majority of instances;
(2) initial data indicates that officers use force against individuals in crisis less than two percent of the time and, when they do use force, 80 percent of the time they use the lowest level of force – and did not once use the highest level of force – even in high-risk situations;
(3) over the past two years, all officers have received some level of crisis intervention training, which has been approved by the Department of Justice, the monitor and the federal court and developed in collaboration with the Crisis Intervention Committee (CIC), an all-voluntary interagency advisory committee composed of the region’s leading mental and behavioral health experts, social service providers, clinicians, community advocates, academics, other law enforcement agencies, the judiciary and members of SPD;
(4) a sufficient number of officers appear to be stationed throughout the city, and on all watches, to provide coverage for crisis incidents;
(5) SPD has institutionalized attention to crisis intervention work by establishing and funding the CIT Program, implementing training and data collection processes, and continuing to take the lead in maintaining the CIC; and
(6) SPD is making strong efforts to guide people in crisis into the social service system, as opposed to arresting and jailing them.
“As we have seen across the country, interactions between police officers and people in crisis, particularly those with mental illness, are a critical issue facing police today,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Without proper policies and training, these interactions have too often led to force being used against individuals in crisis, at times with disastrous results for both the officers and the individual. We have also seen that, without effective programs in place, individuals with mental illness or other disabilities are being unnecessarily arrested and jailed, impairing effective treatment and overburdening our jails. The Seattle Police Department has made tremendous progress in addressing these issues, and it is quickly becoming a model for departments across the nation.”
“Police officers in Seattle are expected to make 10,000 contacts with people in crisis this year, and each of those encounters presents real and unique challenges to public safety and officer safety,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “In the past, many interactions with people in crisis resulted in force being used, but organizational and operational changes around crisis intervention, including training officers and empowering them to use discretion and de-escalation, are making a real difference. SPD has embraced best practices and are approaching and resolving crisis situations in ways that increase safety and reduce the use of force.”
The overall purpose of the assessment was to determine whether specially trained officers are being dispatched to incidents involving individuals in crisis, appropriately leading interactions with individuals in crisis and minimizing the need to use force against these individuals (for example through de-escalation techniques). In addition, the monitoring team assessed efforts that underlie the SPD’s ability to effectively meet certain requirements of the consent decree, including: adequately training officers; providing sufficient staffing in the field; maintaining the CIC to help drive a thoughtful and collaborative crisis intervention process; ensuring the ability to properly dispose of crisis incidents, including with attempted referrals to the social service system or arrest where appropriate; and maintaining a data tracking system to provide an ongoing feedback loop to system improvement and accountability.
Contrasting the approach to policing those in crisis prior to the consent decree – when SPD, like many other departments, had “no consistent, unified approach to crisis events” – the monitor found that SPD “ha[d] created a full-fledged crisis intervention program that is successfully being woven into the SPD organization.”
The full assessment is attached.
Previous assessments
Information about the previous assessments can be found here:
- First four assessments relating to use of force reporting and investigations: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-initial-compliance-requirements-relating-reporting
- Fifth assessment covering the Force Review Board: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-department-s-force-review-board-initial-compliance-consent
- Sixth assessment concerning the Office of Professional Accountability: http://www.justice.gov/usao-wdwa/pr/assessment-seattle-police-department-s-office-professional-accountability-filed-court
- Seventh and eight assessments covering public confidence and community trust: http://www.justice.gov/usao-wdwa/pr/assessments-public-confidence-and-community-trust-seattle-police-department-filed-court
Upcoming assessments
The next assessments to be filed in March include assessments of SPD’s Early Intervention System and three uses of force-related assessments covering officer uses of force, use of force data and officer activity level.
Seattle Monitor's Assessment
Federal Monitor Finds Seattle Police Department's Crisis Intervention Efforts in Initial Compliance with Consent Decree RequirementsRead the Press Release
SEATTLE – Federal Monitor Merrick Bobb filed an assessment today that finds that the Seattle Police Department’s (SPD) new crisis intervention policies, training and operations to engage people in crisis are in initial compliance with the crisis intervention provisions of the court-ordered agreement with the Department of Justice. The federal monitor filed the ninth of 15 formal assessments with the U.S. District Court and concluded that “there has been a real, tangible, and objective change in the way Seattle police are interacting, compassionately and with an eye towards treatment, with those in crisis.”
Specifically, the formal assessment found:
(1) SPD is dispatching its now large and trained cadre of crisis intervention-trained officers to crisis events in the great majority of instances;
(2) initial data indicates that officers use force against individuals in crisis less than two percent of the time and, when they do use force, 80 percent of the time they use the lowest level of force – and did not once use the highest level of force – even in high-risk situations;
(3) over the past two years, all officers have received some level of crisis intervention training, which has been approved by the Department of Justice, the monitor and the federal court and developed in collaboration with the Crisis Intervention Committee (CIC), an all-voluntary interagency advisory committee composed of the region’s leading mental and behavioral health experts, social service providers, clinicians, community advocates, academics, other law enforcement agencies, the judiciary and members of SPD;
(4) a sufficient number of officers appear to be stationed throughout the city, and on all watches, to provide coverage for crisis incidents;
(5) SPD has institutionalized attention to crisis intervention work by establishing and funding the CIT Program, implementing training and data collection processes, and continuing to take the lead in maintaining the CIC; and
(6) SPD is making strong efforts to guide people in crisis into the social service system, as opposed to arresting and jailing them.
“As we have seen across the country, interactions between police officers and people in crisis, particularly those with mental illness, are a critical issue facing police today,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Without proper policies and training, these interactions have too often led to force being used against individuals in crisis, at times with disastrous results for both the officers and the individual. We have also seen that, without effective programs in place, individuals with mental illness or other disabilities are being unnecessarily arrested and jailed, impairing effective treatment and overburdening our jails. The Seattle Police Department has made tremendous progress in addressing these issues, and it is quickly becoming a model for departments across the nation.”
“Police officers in Seattle are expected to make 10,000 contacts with people in crisis this year, and each of those encounters presents real and unique challenges to public safety and officer safety,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “In the past, many interactions with people in crisis resulted in force being used, but organizational and operational changes around crisis intervention, including training officers and empowering them to use discretion and de-escalation, are making a real difference. SPD has embraced best practices and are approaching and resolving crisis situations in ways that increase safety and reduce the use of force.”
The overall purpose of the assessment was to determine whether specially trained officers are being dispatched to incidents involving individuals in crisis, appropriately leading interactions with individuals in crisis and minimizing the need to use force against these individuals (for example through de-escalation techniques). In addition, the monitoring team assessed efforts that underlie the SPD’s ability to effectively meet certain requirements of the consent decree, including: adequately training officers; providing sufficient staffing in the field; maintaining the CIC to help drive a thoughtful and collaborative crisis intervention process; ensuring the ability to properly dispose of crisis incidents, including with attempted referrals to the social service system or arrest where appropriate; and maintaining a data tracking system to provide an ongoing feedback loop to system improvement and accountability.
Contrasting the approach to policing those in crisis prior to the consent decree – when SPD, like many other departments, had “no consistent, unified approach to crisis events” – the monitor found that SPD “ha[d] created a full-fledged crisis intervention program that is successfully being woven into the SPD organization.”
The full assessment is attached.
Previous assessments
Information about the previous assessments can be found here:
- First four assessments relating to use of force reporting and investigations: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-initial-compliance-requirements-relating-reporting
- Fifth assessment covering the Force Review Board: http://www.justice.gov/usao-wdwa/pr/monitor-finds-seattle-police-department-s-force-review-board-initial-compliance-consent
- Sixth assessment concerning the Office of Professional Accountability: http://www.justice.gov/usao-wdwa/pr/assessment-seattle-police-department-s-office-professional-accountability-filed-court
- Seventh and eight assessments covering public confidence and community trust: http://www.justice.gov/usao-wdwa/pr/assessments-public-confidence-and-community-trust-seattle-police-department-filed-court
Upcoming assessments
The next assessments to be filed in March include assessments of SPD’s Early Intervention System and three use of force-related assessments covering officer uses of force, use of force data and officer activity fifth_systemic_assessment-crisis_intervention.pdf (1.98 MB)level.
Federal Court Shuts Down Nationwide Tax Preparation BusinessRead the Press Release
A federal court in Chicago has ordered Servicios Latinos Inc. to close its nationwide tax preparation business, the Justice Department announced today. The order comes after the Justice Department filed a civil lawsuit against the business and its owners, Georgina Lopez, Pamela Miranda and Jorge A. Miranda, alleging that the defendants falsely understated their customers’ tax liabilities or overstated their customers’ entitlement to a tax refund. The injunction also prohibits Lopez, Pamela Miranda and Jorge Miranda from acting as federal tax preparers, owning or operating tax preparation businesses and employing tax preparers. The defendants agreed to entry of the injunction, but did not admit the allegations in the complaint.
According to the complaint, Servicios Latinos operated out of approximately 84 stores in as many as 30 states, with locations including Kennet Square, Pennsylvania; Kansas City, Missouri; and Las Vegas, Nevada. The complaint alleged that the defendants’ employees prepared income tax returns that:
- Falsely claim child tax credits;
- Falsely claim the Earned Income Tax Credit;
- Claim incorrect filing statuses; and
- Report incorrect income and expense figures.
The complaint alleges that Servicios Latinos has prepared more than 42,000 federal income tax returns since 2012. The Internal Revenue Service (IRS) has estimated that the loss to the U.S. Treasury from the defendants’ conduct exceeds $4.7 million for 2014 alone, according to the complaint.
Return preparer fraud has been named 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.
Eighteen Individuals Sentenced for Running Stolen U.S. Treasury Checks and Identity Theft RingRead the Press Release
Eighteen defendants have been sentenced in a large, stolen U.S. Treasury check and identity theft ring. The defendants ran an elaborate scheme that obtained stolen checks, manufactured fake Georgia driver’s licenses to use in cashing the stolen checks, and opened credit card accounts in the names of unsuspecting victims.
“Fraud and identity theft crimes are a growing problem in our community,” said U.S. Attorney John Horn. “These crimes have long-lasting effects on the victims, destroy credit ratings and deprive victims of benefit checks they often desperately need. For many, it can take years to undo the damage caused by these schemes.”
“The federal prison sentences handed down to this aggressive and organized theft ring are the direct result of the efforts of a large group of committed and dedicated investigators and prosecutors that clearly saw the level of victimization to individuals, corporations, and even the U.S. government. The FBI is proud of the role that it played in bringing this case forward for the successful prosecution that now holds these individuals fully accountable for their criminal actions,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges and other information presented in court: From approximately June 2012 until September 2014, the defendants worked together to obtain and cash U.S. Treasury checks stolen from the U.S. Mail. The checks were originally issued to people entitled to the federal funds, including taxpayers receiving refunds, retired federal employees receiving pension benefits, military families, and Social Security beneficiaries receiving Social Security and disability payments.
The defendants played different roles in the scheme: Defendants Erica Willis, Dexter Willis, Sayeed Valdez and Antonio Slatton sold stolen checks to other defendants. Check purchasers, including Hussain Abdullah, Asad Abdullah, Hudhayfah Abdullah and Hafid Abdur-Rabbani, were frequent customers of the check sellers and purchased checks by either paying 25% of the check’s face value or splitting the proceeds from the check with the supplier. After purchasing the stolen checks, the defendants would pay identification manufacturers like Ibrahim Abdur-Rabbani and Khalil Majeed to make fake Georgia driver’s licenses matching the names and addresses of the victims, but containing photos of “check runners.” In exchange for a fee, the “check runners” would use the fake driver’s licenses to cash the stolen checks at retail locations throughout the Atlanta metropolitan area, such as Wal-Mart and Publix.
As part of the investigation, FBI and other law enforcement agents worked with a confidential informant, which put them in a position to recover the stolen checks and false identifications. During the investigation, the government reimbursed the stores that agreed to help in the investigation by cashing the stolen checks, thus aiding law enforcement in identifying the members of the scheme.
In a separate credit card fraud scheme, defendants Asad Abdullah, Mikal Majeed, Sayeed Valdez and Billie Cosby, obtained and used counterfeit identification documents to pose as real Sam’s Club members. After presenting the fraudulent documents at various Sam’s Club locations in Georgia, Tennessee, and Alabama, the defendants obtained replacement store credit cards in the names of the victims, which the defendants then used to buy gift cards, gas, groceries, and other items at various Sam’s Club and Wal-Mart locations.
In total, the defendants defrauded the federal government, Wal‑Mart, and Sam’s Club of close to $1,000,000.
The defendants were indicted by a federal grand jury on September 11, 2014. All were convicted by either guilty plea or trial, and all but one has been sentenced. The defendants, and their charges and sentences are as follows:
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Asad Abdullah, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, aggravated identity theft and conspiracy to commit credit card fraud. He pleaded guilty and was sentenced to seven years, eight months in months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $72,182.12
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Erica Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. She was convicted at trial and was sentenced to three years in months in prison to be followed by three years of supervised release.
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Hussain Abdullah, 34, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years, eight months, followed by three years supervised release and 100 hours of community service.
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Hudhayfah Abdullah, 32, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to three years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $7,325.00.
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Hafid Abdur-Rabbani, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,684.30.
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Ibrahim Abdur-Rabbani, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to three years, seven months in prison to be followed by three years of supervised release.
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Khalil Majeed, 35, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft. He pleaded guilty and was sentenced to four years, ten months in prison to be followed by three years of supervised release.
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Ali Al-Amin, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds, theft of government funds, and aggravated identity theft after pleading guilty. He was sentenced to three years, seven months in prison to be followed by three years of supervised release.
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Zakariyah Abdullah, 35, of Atlanta, Georgia, was convicted of aggravated identity theft and using a passport belonging to another after pleading guilty. He was sentenced to three years, two months in prison to be followed by three years of supervised release.
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Sayeed Valdez, 38, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after he pleaded guilty. He was sentenced to two years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $55,623.17.
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Antonio Slaton, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to one year in prison to be followed by three years of supervised release.
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Cory Howell, 43, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to three months in prison to be followed by three years of supervised release.
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Damion Davis, 31, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after entering a guilty plea. His sentencing is scheduled for April 8, 2016.
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Dexter Willis, 36, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to five years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $118,199.16
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JoAnn Drigo, 37, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. She was sentenced to three years’ probation.
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Muhajid Ahmad, 33, of Atlanta, Georgia, was convicted of conspiracy to commit theft of government funds after pleading guilty. He was sentenced to three years of probation.
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Billee Cosby, 34, of Atlanta, Georgia, was convicted of conspiracy to commit credit card fraud after pleading guilty. She was sentenced to four months of a combination of community and home confinement, three years of probation and ordered to pay restitution in the amount of $5,635.47.
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Mikal Majeed, 33, of Atlanta, Georgia, was convicted of aggravated identity theft after pleading guilty. He was sentenced to three years in prison to be followed by one year of supervised release, and ordered to pay restitution in the amount of $50,929.34.
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Jasmine Proctor, 20, of Atlanta, Georgia, was convicted of interfering with the U.S. Mail after pleading guilty. She was sentenced to 18 months of probation.
This case was investigated by the Federal Bureau of Investigation. Investigative assistance in this case was provided by the following federal agencies: Federal Air Marshal Service; United States Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms, and Explosives; IRS-Criminal Investigations; United States Secret Service; United States Postal Service; and the Department of Homeland Security. The following state and local agencies also assisted: Georgia Bureau of Investigation; Georgia Office of Consumer Protection; Georgia Department of Corrections; Atlanta Police Department; Woodstock Police Department; Fulton County Sheriff’s Office; Henry County Police Department; Gwinnett County Police Department; Dunwoody Police Department; Brookhaven Police Department; Sandy Springs Police Department; DeKalb County Police Department, and Chamblee Police Department.
Assistant U.S. Attorneys Nekia Hackworth and Kim S. Dammers, along with DOJ Trial Attorney Hans Miller prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Chiropractor Sentenced for Obstructing Investigation of Health Care Fraud Involving D.C. Medicaid ProgramRead the Press Release
WASHINGTON – Rehman Mirza, 43, a chiropractor who practiced in Suitland, Md., was sentenced today to seven months in prison and an additional six months in home confinement after earlier pleading guilty to obstructing a criminal health care fraud investigation, announced U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Mirza, of Woodbridge, Va., pled guilty in May 2015 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Ketanji Brown Jackson, who found Mirza’s conduct “egregious” and held that he had “abused a position of public trust.” In addition to prison and home confinement, the Court ordered Mirza to pay $48,450 in restitution to the D.C. Medicaid program and to perform 40 hours of community service.
The underlying fraud involved D.C. Medicaid payments for home care services to be performed by personal care aides, working for home care agencies. Personal care aides, also known as PCAs, are supposed to assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, keeping track of medication, and so forth. In order to be covered for such benefits, the beneficiaries must get prescriptions from physicians or advanced practice registered nurses. D.C. Medicaid only reimburses for home care services if a physician determines after a physical examination that the beneficiary has functional limitations impairing activities of daily living. The prescriptions, also known as “intakes,” dictate the frequency and duration of the services to be provided. The prescriptions are translated later into plans of care, which also must be signed by the physician.
In the District of Columbia, a typical prescription, or “intake,” calls for eight hours of personal care services per day for five days per week, or eight hours per day for seven days per week. Over the six-month time span authorized by such a prescription, D.C. Medicaid would pay between $16,952 and $23,732 for personal care services provided to one beneficiary.
Mirza is licensed as a chiropractor in Maryland and Virginia, but is not licensed as a chiropractor in the District of Columbia, and is not licensed as a physician. He worked at Capital Health LLC, d/b/a Capitol Health Chiropractic in Suitland, Md. He was not authorized to prescribe personal care services, and he was not enrolled as a provider in D.C. Medicaid.
The scheme: According to a statement of offense, signed by the government as well as the defendant, Mirza and others carried out a scheme to defraud the D.C. Medicaid program from approximately November 2012 through at least June 2013. Personal care aides, working for at least seven home care agencies, brought hundreds of D.C. Medicaid beneficiaries to Mirza, and after brief examinations, Mirza wrote prescriptions and plans of care, listing himself and signing as the “ordering physician” even though he was not a physician and was not legally or medically qualified and could not determine whether the services were medically necessary.
Seeing D.C. Medicaid beneficiaries and signing their intakes and plans of care became Mirza’s primary source of income. Mirza initially was paid $125 for each D.C. Medicaid beneficiary brought to his office by a personal care aide, but he later increased the size of the cash payments to $200. Mirza’s prescriptions, or “intakes,” typically included a diagnosis such as “chronic severe back pain” and called for services for eight hours a day, seven days a week, for six months. The personal care aides would insist that Mirza write the name of the PCA on the intake before it was sent to the home care agency; it was understood this was so the personal care aides would receive their kickback from the home care agency for each D.C. Medicaid beneficiary the PCA brought to Mirza and then to the home care agency.
During the course of the fraud scheme, Mirza signed hundreds of prescriptions and plans of care, and in exchange collected at least $48,450 in cash payments from personal care aides. Home care agencies used Mirza’s prescriptions and plans of care to support and justify their claims for payment to Medicaid – even though the paperwork was invalid on its face because it was not prescribed or signed by a physician as required.
The obstruction: When Mirza was approached by the FBI in his office and questioned about his role, he denied he had any involvement with Medicaid. After the agents served Mirza with a subpoena for his patient files and other documents, the agents told Mirza they planned to interview his office assistant. After the agents left, Mirza offered to drive his assistant home. During that car ride, Mirza attempted to obstruct the government’s investigation, by attempting to influence his 22-year-old assistant’s statements to the FBI, telling the assistant not to use certain words, encouraging and suggesting that she not be fully truthful, and ensuring that their stories would match so that Mirza would not be “implicated” by his assistant. For example, Mirza tried to convince his assistant they had nothing to do with Medicaid and instructed the assistant not to say the word “Medicaid” at least ten times during the course of their 45-minute conversation.
This investigation was conducted by the FBI’s Washington Field Office.
This case is being prosecuted by Assistant U.S. Attorney Ted Radway, and was investigated by Assistant U.S. Attorney Radway and former Special Assistant U.S. Attorney Dangkhoa Nguyen. Assistance was provided by Paralegal Specialist Corinne Kleinman.
The FBI has set up a hotline number to report suspected incidents of Medicaid fraud: 855-281-1242. People can also provide information by e-mail to [email protected].
Numerous agencies are participating in the broader investigation into Medicaid fraud, including the U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Secret Service; the Medicaid Fraud Control Unit of the District of Columbia’s Office of the Inspector General; the Social Security Administration, Office of Inspector General; the Internal Revenue Service-Criminal Investigation; the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI); the Office of Labor Racketeering and Fraud Investigations, Office of Inspector General, Department of Labor; and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office.
Cary Man Sentenced to 84 Months for Interstate Transportation of Women in Support of ProstitutionRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced TONY OBRIEN WILLIAMS, 29, of Cary, was sentenced by Senior United States District Judge Malcolm J. Howard to 84 months imprisonment followed by 10 years of supervised release.
On November 9, 2015, WILLIAMS pleaded guilty to Interstate Transportation for Prostitution and Use of the Internet to Promote Prostitution. According to the investigation, in January 2013, following the receipt of information that individuals in the Cary, North Carolina, area
were utilizing ads in the escort section on www.backpage.com (Backpage) to promote prostitution, the Cary Police Department (CPD) began conducting undercover operations in an effort to identify the individuals responsible. The investigation determined that from at least February 2012 to January 2015, WILLIAMS ran a prostitution operation from various hotels in North Carolina, Virginia, and Georgia. During this time frame, WILLIAMS recruited and employed several women whose prostitution services were advertised on Backpage. WILLIAMS used verbal threats, violence, and narcotics to maintain control over the women working for him and to force them to continue in prostitution. To limit their contact with family and friends and other external influences, WILLIAMS took away their identification cards and cell phones.
Investigation of this case was conducted by the Cary Police Department, and U.S. Immigrations and Customs Enforcement Homeland Security Investigations. Assistant United States Attorneys Barbara Kocher and Erin Blondel prosecuted the case of the government.
British Virgin Islands Man Arrested on Charges of Alien SmugglingRead the Press Release
St. Thomas, USVI - Ashemba Frett, 22, of Tortola, British Virgin Islands, made his initial appearance before U.S. Magistrate Judge Ruth Miller after being charged in a complaint with encouraging and inducing aliens to illegally enter the United States, United States Attorney Ronald W. Sharpe announced today. Judge Miller released Frett to the custody of a third-party custodian and ordered him to post a $10,000 unsecured bond.
According to the complaint, on February 14, 2016, the United States Coast Guard (USCG) conducted a safety stop on a vessel in U.S. waters. The vessel was operated by Frett and an unidentified individual who jumped overboard prior to the vessel being stopped. A Haitian national and a national from the Dominican Republic were on-board the vessel. Neither the Haitian nor the Dominican Republic national possessed documents to lawfully enter the United States.
Under federal law if convicted of illegally encouraging and inducing aliens to enter the United States, Frett faces a maximum of five years in prison and a $250,000 fine, and in the case of a violation in which the offense was done for the purpose of private financial gain, not more than 10 years’ imprisonment. This case is being investigated by U.S. Customs and Border Protection (CBP) Air and Marine Operations (AMO), the USCG and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
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.
Albuquerque Woman Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Amanda Andrea Wyatt, 26, of Albuquerque, N.M., pleaded guilty today in federal court to a methamphetamine trafficking charge.
Wyatt was arrested on a criminal complaint after the DEA seized approximately 2.9 kilograms (6.38 pounds) of methamphetamine from her during an interdiction investigation at the Amtrak Train Station in Albuquerque on Oct. 18, 2015. The methamphetamine was contained in a large bundle that was concealed underneath Wyatt’s clothing. Wyatt was subsequently indicted on Nov. 5, 2015, and charged with possession of methamphetamine with intent to distribute.
During today’s hearing, Wyatt pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. In entering the guilty plea, Wyatt admitted that on Oct. 18, 2015, she possessed methamphetamine, which was wrapped in bundles and strapped to her midsection while traveling through Albuquerque on the Amtrak train. She further admitted that she was to be paid $3,000.00 to transport the narcotics to Kansas City, Mo.
At sentencing, Wyatt faces a maximum penalty of 20 years in federal prison. Her sentencing hearing has not yet been scheduled.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Edward Han.
Albuquerque Man Sentenced to Ten Years for Armed Robbery Spree of Albuquerque-Area Businesses in Summer of 2014Read the Press Release
ALBUQUERQUE – Jose Rodriguez, 23, of Albuquerque, N.M., was sentenced today in federal court for violating the Hobbs Act and firearms laws by robbing eight businesses involved in interstate commerce at gunpoint. Rodriguez was sentenced to ten years in prison followed by three years of supervised release.
The sentence was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Chief Gorden Eden, Jr., of the Albuquerque Police Department.
Rodriguez was charged in March 2015, in a four-count indictment alleging that he robbed two Albuquerque-area businesses that were engaged in interstate commerce. It further alleged that Rodriguez brandished firearms during each of the two robberies. Rodriguez was arrested on April 22, 2015, after he was transferred to federal custody from state custody where he was being held on related state charges which were later dismissed in favor of federal prosecution.
Rodriguez entered a guilty plea on October 1, 2015, to a nine-count felony information charging him with violating the Hobbs Act and federal firearms laws. The first eight counts of the information charged Rodriguez with interfering with interstate commerce by robbing the following eight businesses between June 2014 and Aug. 2014:
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Papa John’s Pizza on Gibson Blvd. SE in Albuquerque on June 29, 2014;
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Twisters on Gibson Blvd SW in Albuquerque on July 5, 2014;
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Flowers Bakery on Gibson Blvd. SE in Albuquerque on July 14, 2014;
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Pump-N-Save gas station on Menaul Blvd. NE in Albuquerque on July 17, 2014;
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Krispy Kreme on Wyoming Blvd NE in Albuquerque on July 30, 2014;
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M&M Gas Station on Coors Blvd. NW in Albuquerque on Aug. 5, 2014;
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Phillips 66 Gas Station on Coors Blvd. NW in Albuquerque on Aug. 6, 2014;
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Church’s Chicken on Central Ave NW in Albuquerque on Aug. 7, 2014.
The ninth count of the information charged Rodriguez with brandishing a firearm during a crime of violence, specifically, the robbery of the Church’s Chicken on Aug. 7, 2014. In addition, in his plea agreement, Rodriguez admitted that he used a firearm, which he brandished at employees of the businesses he robbed, during seven of the eight robberies.
According to court filings, Rodriguez is addicted to heroin and claimed that he robbed people at gunpoint to feed his addiction.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office.
The case was prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei Rodriguez as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
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Albany County Man Sentenced to 80 Years for Sexually Exploiting A MinorRead the Press Release
ALBANY, NEW YORK - Robert C. McCoy, age 56, of Glenmont and Selkirk, NY, was sentenced today to 80 years in prison following his conviction in August 2015 for sexual exploitation of a minor and other child exploitation crimes.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division.
On August 6, 2015, a jury found McCoy guilty after a four-day trial. The evidence demonstrated that between 2012 and 2014, McCoy produced sexually explicit images of a minor. McCoy was also found guilty of possessing child pornography and committing a felony offense involving a minor while already a registered sex offender.
"McCoy’s sentence reflects the heinousness of his crimes," stated U.S. Attorney Richard S. Hartunian. "His prosecution is the result of the work we do every day with our federal agencies and the police to investigate and prosecute those who prey on our community’s children."
"Predators like Mr. McCoy endanger our community," said Special Agent in Charge Andrew Vale. "The damage inflicted on their victims can never be undone. While we do not have the power to restore a child’s innocence, we do have the power to ensure that Mr. McCoy and those of his ilk are held accountable for their unspeakable crimes."
In addition to imposing a sentence of 80 years of imprisonment, U.S. District Judge Mae A. D’Agostino also ordered McCoy to serve a lifetime term of supervised release, to begin after his release from prison.
This case was investigated by the Town of Bethlehem Police Department and the FBI, with assistance from the New York State Police. The case was prosecuted by Assistant United States Attorney Lisa Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, and Assistant United States Attorney Emily Farber.
Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
15 Charged in Federal Gun CasesRead the Press Release
CINCINNATI – A federal grand jury has charged 15 individuals with federal gun charges in separate indictments returned in Cincinnati. The cases are part of an anti-violence initiative involving a focus from local, state and federal law enforcement to combat gun violence in the city.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Donald J. Soranno, Special Agent in Charge, ATF, Columbus Field Division, Cincinnati Police Chief Eliot Isaac, Hamilton County Sheriff Jim Neil, Hamilton County Prosecutor Joseph T. Deters, Hamilton Police Chief Craig Bucheit, Lockland Police Chief Jim Toles, Norwood Police Chief William Kramer, Harrison Police Chief Charles Lindsey and Springfield Township Police Chief Robert Browder announced the indictments.
The 15 defendants represent the first group of alleged habitual offenders indicted as part of the initiative. The strategy includes a committed focus from federal, state and local law enforcement agencies to identify those individuals who consistently use firearms to commit crimes, who habitually possess illegal firearms, and who present a clear threat to the safety of the community.
A list of those charged is attached.
U.S. Attorney Stewart commended the investigation of this case by law enforcement, and Assistant United States Attorneys Christy Muncy, Timothy Oakley and Anthony Springer, who are prosecuting the cases.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Name
Age
City of Residence
Charges
Dennis Hicks
30
Cincinnati
1 count possession of firearm as a convicted felon
Steven Ivery
30
Cincinnati
1 count possession of firearm as a convicted felon
Willie Jackson
25
Hamilton
1 count possession of firearm as a convicted felon
Jarvis Levy, Jr.
35
Cincinnati
5 counts possession with intent to distribute heroin and cocaine, 2 counts possession of a firearm as a convicted felon, 1 count possession of firearm in furtherance of an offense
Donte Martin
28
Cincinnati
1 count possession of firearm as a convicted felon
Donell McCreagh
55
Cincinnati
1 count possession of firearm as a convicted felon
Nicholas Metz
34
Cincinnati
1 count possession of firearm as a convicted felon
Jeno Moore
25
Cincinnati
1 count of possession with intent to distribute heroin, 1 count of possession of firearm in furtherance of an offense, 1 count possession of firearm as convicted felon
Alvin Palmer
25
Cincinnati
1 count possession of firearm as a convicted felon
Keno Phillips
41
Cincinnati
1 count possession with intent to distribute cocaine, 1 count possession of firearm as a convicted felon, 1 count possession of firearm in furtherance of an offense
Brian Simms
33
Hamilton
1 count possession of firearm as a convicted felon
Ronald Steele
25
Cincinnati
1 count possession of stolen firearm, 1 count possession of firearm as a convicted felon
Oscar Torbert
27
Cincinnati
1 count of possession with intent to distribute heroin, 1 count of possession of firearm in furtherance of an offense, 1 count possession of firearm as convicted felon
Terrance Williams
28
Cincinnati
1 count possession of stolen firearm, 1 count possession of firearm as a convicted felon
Steven Young
31
Cincinnati
1 count possession of firearm as a convicted felon
Possession of a firearm by a convicted felon
18 U.S.C. § 922(g)
5-20 years in prison
$250,000 fine
Up to a lifetime of supervised release
18 U.S.C. § 922(g)(1)
Up to 10 years in prison
$250,000 fine
Up to 3 years supervised release
Possession with intent to distribute
21 U.S.C §§ 841(a)(1) and 841(b)(1)(C)
Up to 20 years in prison
At least 3 years supervised release
$1 million fine
Possession of a firearm in furtherance of an offense
18 U.S.C. § 924(c)(1)
At least 5 years consecutive in prison
$250,000 fine
5 years supervised release
Possession of a stolen firearm
18 U.S.C. § 922(j)
Up to 10 years in prison
$250,000 fine
Up to 3 years supervised release
Saturday 13 February 2016
Two Mail Thieves Sentenced to 34 Months and 12 Months, Respectively, forRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that JON MICHAEL MAPOTE VILLENA, age 29, of Mangilao, and ANNALIN MARIE PEREZ ALDAN, age 20, of Dededo, were sentenced on February 12, 2016, before District Judge Alex R. Munson, in the U.S. District Court of Guam. VILLENA received 34 months imprisonment with a three year supervised release term. ALDAN received 12 months and one day imprisonment with a three year supervised release term. The pair were also ordered to pay over $12,000 in restitution to their victims and ordered to forfeit proceeds of their crimes. Their sentences follow convictions for access device fraud and aggravated identity theft.
In June and July 2015, VILLENA and ALDAN, engaged in a crime spree, burgling several United States Post Offices in Guam. The defendants stole undelivered United States Mail from over
30 different post office boxes. A First Hawaiian Bank MasterCard debit card belonging to a postal customer was among the items of stolen United States Mail. VILLENA and ALDAN then used that debit card to purchase goods, including Apple electronics, at local and national retailers all over Guam.U.S. Attorney Alicia A.G. Limtiaco stated, “The United States Attorney’s Office, along with our law enforcement partners, will vigorously pursue those who vandalize and obstruct the operations of the United States Postal Service. We will also aggressively pursue and prosecute those who would victimize the residents of Guam through identity theft.”
This incident was investigated by the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Mohammad Khatib.
Attorney General Lynch and Solicitor General Verrilli Statements on the Passing of Supreme Court Justice Antonin ScaliaRead the Press Release
Attorney General Loretta E. Lynch and Solicitor General Donald B. Verrilli Jr. released the following statements regarding the passing of Supreme Court Justice Antonin Scalia:
“Justice Antonin Scalia was, and will always be remembered as, one of the most influential and eloquent Justices ever to serve on the U.S. Supreme Court,” said Attorney General Lynch. “His indomitable conviction and his fierce intelligence left a lasting imprint – not just on the way the Supreme Court resolves cases, but on the legal landscape that he helped to transform. A lion of American law has left the stage, and it is up to all of us – every American – to keep our national constitutional dialogue as lively and as learned as he left it.”
“I am saddened by the passing of Justice Antonin Scalia,” said Solicitor General Verrilli. “He was a great jurist and a great man who served the Court and the country with honor and distinction. We will miss him very much. On behalf of my colleagues in the Office of the Solicitor General, I extend our deepest condolences to Mrs. Scalia and to the rest of his family.”
Friday 12 February 2016
Windermere Man Sentenced for Stealing Money from Former NBA Basketball Player and Defrauding the IRSRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced John A. White (40, Windermere) to four years and nine months in federal prison for wire fraud and filing a false tax-related document. A federal jury found him guilty on September 2, 2015. The Court will decide at a later date the amount of restitution White owes and the proceeds he must forfeit.
According to evidence presented at trial, from 2006 through 2012, White was employed as the personal assistant to NBA basketball player Gilbert J. Arenas, who has since retired from professional basketball. During calendar years 2008 through 2011, White stole approximately $2,188,170 from Arenas by making unauthorized online banking money transfers from one of Arenas’s bank accounts, into three different bank accounts that White controlled. White spent these funds on his own personal expenses, including mortgage payments for his home in Windermere, and the purchase of a Ferrari and a Range Rover. White also filed false joint income tax returns with the IRS for each of these years. In these tax returns, he and his wife never reported more than $60,000 in gross income, when in fact their joint income was significantly greater, due to the money White had stolen from Arenas.
White’s false tax returns caused a tax loss of approximately $621,144 to the IRS.
This case was investigated by the Internal Revenue Service - Criminal Investigation, with assistance from the United States Secret Service. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Wichita Massage Parlor Owner Charged in Sex Trafficking CaseRead the Press Release
WICHITA, KAN. – The owner of a Wichita massage parlor was charged Friday in federal court with harboring a Chinese woman who worked as a prostitute, U.S. Attorney Barry Grissom said.
Samir F. Elias, 60, Wichita, Kan., is charged with one count of transporting an alien who is in the United States unlawfully, one count of harboring an alien who is in the United States unlawfully, one count of harboring an alien for the purpose for prostitution and two counts of money laundering.
The charges allege Elias was the owner of GiGi’s Elite Massage, which operated at 357 N. Hillside in Wichita after moving from a previous location at 6611 E. Central. Elias employed a Chinese woman who used the name Angel. An undercover vice detective with the Wichita Police Department arrested the woman after she offered to perform sexual services during a massage.
Investigators learned that:
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The woman lived at the massage parlor or at times at Elias’ home.
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She usually worked seven days a week.
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She had no formal training in how to give a massage.
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Patrons paid $40 for 30 minutes and $60 for an hour of massage. She paid Elias $10 of the fee for the $40 massage and $20 of the fee for the $60 massage. She was allowed to keep her tips.
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The woman was convicted in Wichita municipal court on a charge of sale of sexual relations. She is appealing the conviction.If convicted, she faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on counts 1, 2 and 3, and a maximum penalty of 20 years and a fine up $500,000 on counts 4 and 5.
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The Wichita Police Department and Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Utica Woman Pleads Guilty to Marriage FraudRead the Press Release
SYRACUSE, NEW YORK – Emina Baltic, 27, of Utica, New York, pled guilty today in federal court in Syracuse to marriage fraud, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations (HSI), Syracuse, New York.
As part of her guilty plea, Baltic admitted that she married a citizen of Serbia on December 22, 2011, for the purpose of assisting him in obtaining permanent residency in the United States. Baltic further admitted that she never intended to establish a life with her husband and that she was paid more than $17,000 for entering into the fraudulent marriage.
Emina Baltic will be sentenced on June 17, 2016 in federal court in Syracuse by Chief District Judge Glenn T. Suddaby. She faces a maximum sentence of up to five years in prison and a fine of up to $250,000. Sentences are imposed by a judge based upon the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case was investigated by HSI, and is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
United States Reaches $8 Million Settlement Agreement with CVS for Unlawful Distribution of Controlled SubstancesRead the Press Release
Baltimore, Maryland – CVS Pharmacy, Inc. (CVS) has agreed to pay $8 million to the United States to resolve allegations that its Maryland pharmacies violated the Controlled Substances Act (CSA) by dispensing controlled substances pursuant to prescriptions that were not issued for a legitimate medical purpose.
The settlement agreement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
“Pharmacies that dispense controlled substances have a duty ensure that prescriptions they fill were issued for legitimate medical purposes,” said U.S. Attorney for the District of Maryland Rod J. Rosenstein. “Doctors and pharmacists are the gatekeepers of the effort to prevent the abuse and diversion of pharmaceutical drugs for non-medical purposes.”
“The abuse of prescription drugs has rampantly spread throughout our communities,” stated DEA Special Agent in Charge Karl C. Colder. “This abuse has directly resulted in the escalation of heroin addiction and related overdoses. Today’s settlement sends a clear message to all pharmacies that it is essential to dispense controlled substances in compliance with DEA’s record keeping requirements. DEA is dedicated to combat the prescription drug abuse problem in Maryland and throughout the country and to hold nationwide chains, like CVS, accountable.”
The CSA authorizes the United States to seek civil penalties for a pharmacy’s failure to fulfill its corresponding responsibility to dispense only those prescriptions that have been issued for a legitimate medical purpose by a health care provider acting in the usual course of professional practice. Knowingly filling an illegitimate prescription subjects a pharmacy to civil penalties under the CSA.
According to the settlement agreement, CVS acknowledged that between 2008 and 2012 certain CVS pharmacy stores in Maryland dispensed controlled substances, including oxycodone, fentanyl and hydrocodone, in a manner not fully consistent with their compliance obligations under the CSA and related regulations. This included failing to comply with a pharmacist’s liability to ensure the controlled substance prescriptions were issued for a legitimate medical purpose. This settlement caps off an investigation that began as part of the DEA’s crackdown on prescription drug abuse in Maryland.
U.S. Attorney Rod J. Rosenstein commended the DEA’s Office of Diversion Control, Baltimore Division for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas F. Corcoran, who handled the case.