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31 March 2016
West Haven Man Sentenced to 5 Years in Prison for Drug and Gun OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JESSE WRUBEL, 29, of West Haven, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 60 months of imprisonment, followed by three years of supervised release, for trafficking marijuana and unlawfully possessing firearms.
This matter stems from a DEA Task Force investigation that included the use of court-authorized wiretaps, controlled purchases of marijuana and physical surveillance. On June 4, 2013, WRUBEL and Matthew Voloshin were arrested on state charges. Search warrants executed in association with their arrests revealed two loaded handguns and approximately $50,000 that were found at Voloshin’s East Haven residence, and three handguns and approximately 40 pounds of marijuana that were found at an East Haven garage rented by Voloshin. Three of the five firearms were stolen. Law enforcement also seized approximately 20 pounds of marijuana, approximately $15,000 and a loaded nine millimeter rifle from WRUBEL.
On January 30, 2014, a grand jury returned an indictment charging WRUBEL and Voloshin with marijuana and firearm offenses. WRUBEL has been detained since his arrest on February 7, 2014. On November 24, 2015, he pleaded guilty to one count of conspiracy to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.
Voloshin also has been detained since his arrest on February 7, 2014. On June 30, 2015, he pleaded guilty to one count of conspiracy to distribute more than 20 kilograms of marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. On March 30, 2016, he was sentenced to 66 months of imprisonment.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments. The case was prosecuted by Assistant U.S. Attorneys Patrick Caruso and Amy Brown.
Waterbury Tax Preparer Admits Filing Hundreds of False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARCUS FOX, 41, of Waterbury, pleaded guilty today in Hartford federal court to preparing and filing hundreds of false tax returns.
According to court documents and statements made in court, FOX prepared tax returns for individuals in his community, many of whom were associated with a church he attended. From approximately 2009 through 2012, FOX prepared and filed more than 900 tax returns with the U.S. Internal Revenue Service on behalf of clients. A number of tax returns that FOX prepared contained false information, including false childcare credits, education credits, American opportunity credits, itemized deductions, education expenses, charitable contributions, unreimbursed employee business expenses, hobby expenses, and childcare costs. The false returns resulted in clients receiving substantial refunds to which they were not entitled. FOX typically received payment of between $200 and $350 for his tax preparation services.
In addition, beginning in approximately 2011, FOX falsified a number of returns in a manner that allowed FOX to secure a greater payout for himself without his clients' knowledge. FOX would prepare a client tax return with significant falsified credits or expense deductions, which resulted in a fraudulent claim for a substantial refund. The tax return would be e-filed with the IRS with instructions to split payment of the large refund between the client and FOX, with FOX receiving a substantial portion of the payment. FOX would also prepare a second tax return, which he never filed, but instead provided to his client to hide the ongoing scheme.
The government suffered a tax loss of more than $2.2 million as a result of this scheme.
FOX pleaded guilty to two counts of aiding and assisting the filing of a false tax return. He is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on June 23 2016, at which time he faces a maximum term of imprisonment of six years. He also has agreed that he owes restitution in the amount of $2,276,837.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
U.S. Army Specialist Arrested on Federal Child Porn Distribution ChargeRead the Press Release
In San Antonio, a U.S. Army Specialist assigned to Fort Sam Houston remains in federal custody today in connection with the sexual exploitation of minors announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
A federal complaint filed this morning, charges 26–year-old Anthony Quinton Quesinberry with one count of distribution of child pornography. According to the criminal complaint, during a one-week period beginning on February 18, 2016, the defendant transmitted ten posts to random users of the social networking application named YikYak which contained images of child pornography and/or verbiage soliciting minors for sexual contact.
Yesterday, FBI agents executed a search warrant and seized the defendant’s cellphone and desktop computer. A preliminary forensic examination of the phone and computer revealed the presence of child pornography.
Upon conviction, Quesinberry faces up to 20 years in federal prison. A detention hearing for the defendant is expected to occur next week in U.S. Magistrate court in San Antonio.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This investigation continues. It is being conducted by the FBI together with the U.S. Army Criminal Investigative Command at both Fort Sam Houston and Fort Riley, KS. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
Two Hobbs, NM Men Sentenced to Federal Prison for Drug TraffickingRead the Press Release
In Pecos today, 45-year-old Claudio Marques Martinez, Jr., was sentenced to 262 months in federal prison followed by eight years of supervised release for conspiring to transport marijuana from the Big Bend area to Hobbs, NM, for further distribution announced United States Attorney Richard Durbin, Jr., and DEA Special Agent in Charge Will Glaspy, El Paso Division.
In May 2015, Martinez’s co-defendant, 62-year-old Norberto Pando Aranda (aka “Beto”) was sentenced to 240 months in federal prison followed by ten years of supervised release for his role in the marijuana distribution scheme.
According to court records, from December 2012 to May 2013, the defendants recruited drivers to pick up marijuana along the border with Mexico in South Brewster and Presidio, Counties of Texas, and transport it to Hobbs, New Mexico. During the conspiracy, authorities seized over 1,200 kilograms of marijuana attributed to this organization. Five drivers hired by the defendants have been sentenced to federal prison terms ranging from 41 to 60 months.
This joint investigation was conducted by the DEA High Intensity Drug Trafficking Area (HIDTA) Task Force in Alpine, TX, with assistance from the Lea County (NM) Drug Task Force. Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government.
Towson Man Pleads Guilty to Credit Card Fraud Committed While Awaiting Sentencing for Another Fraud SchemeRead the Press Release
Baltimore, Maryland – Jerry Anderson, age 30, of Towson, Maryland, pleaded guilty today to bank fraud and aggravated identity theft arising from a scheme to use a counterfeit credit card to make fraudulent purchases, while he was awaiting sentencing on a previous fraud conviction.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on April 7, 2015, Anderson pleaded guilty to a bank fraud conspiracy and aggravated identity theft related to a scheme to use stolen credit card and other personal information of victims to purchase items, including Apple iPhones, at retail locations in Maryland and elsewhere. The total actual loss resulting from the conspiracy, which operated from at least February to October 2014, was $419,807.14, and the potential loss was over $1.8 million. The conspiracy involved over 250 victims. After his guilty plea, Anderson was released under the supervision of U.S. Pretrial Services. One of the standard conditions of release is that the defendant not commit any new crimes.
Anderson admitted that on June 25, 2015, he purchased four $100 American Express gift cards at a store in Cockeysville, Maryland, using a Visa credit card. Store surveillance depicts Anderson making these purchases. The Visa credit card used in the transaction belongs to “G.B.” After being contacted by law enforcement, the victim advised that that a fraud alert had been placed on the account and that the charges on June 25, 2015 were fraudulent. The victim further advised that he did not give permission to any individual to possess or use his credit card.
On July 3, 2015, Anderson was witnessed by Apple Loss Prevention at an Apple Store in Bethesda, Maryland, purchasing two iPhones totaling $1,375.88 using a combination of gift cards. Specifically, Anderson used the American Express gift cards he fraudulently purchased on June 25, 2015, along with other gift cards, to purchase the phones. The total actual loss as a result of Anderson’s conduct was $1,389.23.
On July 8, 2015, Anderson was ordered to be detained pending sentencing. He remains detained.
U.S. District Judge George L. Russell III has scheduled sentencing for Anderson on July 8, 2016, at 11:30 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary A. Myers, who are prosecuting the case.
Three Louisiana Residents Plead Guilty to Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that STERLING ROBINSON, age 26, of Gretna, DEANDRE ROSE, age 23, and EVERETT ROSS, age 28, both of New Orleans, pled guilty to violations of the Federal Gun Control Act. ROBINSON pled guilty to possession of a firearm in furtherance of narcotics distribution. ROSS and ROSE each pled guilty to possession of firearms by felons.
According to court documents, on October 14, 2014, Gretna police officers were patrolling in the area of Milton and Pratt Streets when they noticed an illegally parked vehicle. As the officers approached the vehicle to issue a citation, they saw a bag of crack cocaine in the passenger door handle. The officers also observed a semi-automatic handgun secured between the passenger seat and the middle console. A short time later, the officers observed ROBINSON, ROSE, ROSS and a female acquaintance approach and attempt to enter the vehicle.
As ROBINSON was removed from the area of the front passenger seat, he resisted arrest and attempted to reach for the bag of crack cocaine. ROSS was removed from the driver’s seat of the vehicle and ROSE was removed from the rear passenger seat. The officers searched the vehicle and two additional handguns were discovered. A Ruger model P85 9mm semi-automatic handgun was found underneath the front of the driver’s seat and accessible to ROSS. A Springfield model XDM, .45-caliber semi-automatic handgun was found underneath the rear of the front passenger’s seat and accessible to ROSE. The initially-observed, Kahr model CW9, 9mm semi-automatic handgun was accessible to ROBINSON. Further investigation revealed that each of the firearms had been reported stolen.
Court records revealed that ROSS and ROSE each had two prior felony convictions in Orleans Parish Criminal District Court. As such, they both were prohibited from possessing firearms by both state and federal law.
ROBINSON faces a maximum term of imprisonment of life, a maximum fine of $250,000 and up to five years of supervised release following any term of imprisonment. ROSS and ROSE face a maximum terms of imprisonment of ten years, a maximum fine of $250,000 and up to three years of supervised release following any term of imprisonment. U.S. District Judge Jane Triche Milazzo scheduled sentencing for June 30, 2016.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New Orleans Division Office in investigating this matter. Assistant United States Attorney Nolan D. Paige, along with former Special Assistant United States Attorney Brian Ebarb, who was assigned from the Orleans Parish District Attorney’s Office are in charge of the prosecution.
Three Liberty County Defendants Sentenced to Federal Prison in Drug and Gun CasesRead the Press Release
Savannah, GA – Daniel Britton, 45, of Midway, Georgia, was sentenced yesterday to 41 months in prison by United States Chief Judge Lisa Godbey Wood after pleading guilty to transporting a firearm to Georgia from another state.
On March 28, 2016, Laron Bruce, 35, of Riceboro, Georgia, was sentenced to 170 months in prison by United States Court Judge William T. Moore, Jr. after pleading guilty to his role in a crack cocaine conspiracy.
Herbert Lewis, 27, of Ludowici, Georgia, was sentenced yesterday to 110 months in prison by Judge Moore after pleading guilty to possessing a stolen firearm. Lewis was in possession of the stolen firearm at the time he was arrested on outstanding warrants from Liberty County.
United States Attorney Edward Tarver stated, “The United States Attorney’s Office remains committed to combating drug and gun related crime throughout the Southern District of Georgia. The prison sentences in these Liberty County cases send a loud and clear message that dealing drugs and committing crimes involving guns will not be tolerated.”
Liberty County Sheriff Steve C. Sikes said, “I appreciate the efforts of the Liberty County Sheriff’s Office deputies during the investigations of these three individuals. Dangerous criminals have been removed from our community through the cooperative efforts of the Liberty County Sheriff’s Office and our partners at the ATF and the GBI. We appreciate their assistance, and that of the U. S. Attorney’s Office in making our county a safer place to live.”
This case was investigated by the ATF, the Georgia Bureau of Investigation, and the Liberty County Sheriff’s Office. Assistant United States Attorneys Charlie Bourne, Thomas Clarkson, Gregory Gilluly, and Scarlett Nokes prosecuted these cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Texas Woman Indicted on Charge of Possession with Intent to Distribute HeroinRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LORI BROADWAY, age 34, Galveston, Texas, was indicted today on one count of possession with the intent to distribute one kilogram or more of heroin.
According to court documents, on January 22, 2016, officers conducting narcotics interdiction at the AMTRAK station in New Orleans identified BROADWAY, a train passenger arriving from Houston, as a possible drug trafficker. After obtaining consent to search BROADWAY’s suitcases, officers seized approximately six kilograms of heroin.
If convicted of the charge, BROADWAY faces a minimum term of imprisonment of ten years, followed by a minimum of five years supervised release, and a fine of $10,000,000.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Louisiana State Police and the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Andre’ Jones is in charge of the prosecution.
Texas Man Pleads Guilty to Drug Conspiracy and MurderRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK FIELDS, age 34, of Texas, pled guilty today to participating in a conspiracy to distribute over 5 kilograms of cocaine hydrochloride and to participation in a murder that took place in League City, Texas that was done in the course of the drug conspiracy.
According to court records, FIELDS acknowledged the drug conspiracy involved between 50 and 150 kilograms of cocaine hydrochloride and over $1,000,000 in cash that was being distributed in 2015 between Texas and Georgia, via Louisiana. FIELDS also admitted that on July 30, 2015, he participated in the murder of Antonio Martins.
FIELDS will face a sentence of not less than 30 years and not more than life in prison, a fine of not more than $10,000,000, and at least five years of supervised release. U.S. District Judge Carl J. Barbier set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of the United States Drug Enforcement Administration (DEA), the Houston Police Department, the League City Police Department, and the District Attorney’s Office in Galveston, Texas for their cooperation with in bringing FIELDS and several of his co-conspirators to justice. Assistant United States Attorneys Maurice E. Landrieu, Jr. and André G. Jones are in charge of the prosecution.
Tennessee Man Charged with Federal Crimes in Confrontation with Law Enforcement at U.S. CapitolRead the Press Release
WASHINGTON – Larry Russell Dawson, 66, of Antioch, Tenn., was charged today with two federal offenses stemming from a confrontation with law enforcement while he was being screened on Monday, March 28, 2016 at the United States Capitol Visitor Center, announced U.S. Attorney Channing D. Phillips and Matthew R. Verderosa, Chief of the U.S. Capitol Police.
Dawson was charged in a criminal complaint with assaulting, resisting, or impeding certain officers or employees with a dangerous weapon, which carries a statutory maximum of 25 years in prison, and assaulting a federal law enforcement officer with a dangerous weapon, which carries a statutory maximum of 30 years. He is to appear at a later date, yet to be determined, in the U.S. District Court for the District of Columbia.
This case is being investigated by the U.S. Capitol Police with assistance from the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney David Mudd and Special Assistant U.S. Attorney Nathan Charles of the U.S. Attorney’s Office for the District of Columbia.
A criminal complaint is merely a formal charge that a defendant has committed a violation of criminal laws. Every defendant is presumed innocent until, and unless, proven guilty.
Tax Preparer Indicted in Alleged Tax Fraud SchemesRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned a 70-count indictment alleging that Belkis M. Guzman, 47, of Cranston, a former tax preparer employed at El Centro Multiservices in Providence, participated in schemes to prepare false tax returns claiming deductions taxpayers were not entitled to and to file fraudulent tax returns using personal identifying information of others without authorization. It is alleged that the fraudulent tax returns resulted in tax refunds totaling more than $685,000, which were deposited into a bank account controlled by Guzman.
The indictment, which charges Guzman with thirty-three counts of preparing false income tax returns, eight counts of wire fraud, four counts of aggravated identity theft, twenty-three counts of forgery, and one count of theft of government funds, is announced by United States Attorney Peter F. Neronha and Manny J. Muriel, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation.
It is alleged in the indictment that in one scheme, for tax years 2009, 2010, and 2011, Guzman filed at least thirty-three fraudulent tax returns by creating, inflating or falsifying her clients’ dependents, exemptions, tax credits, deductions and expenses, with and without her client’s knowledge.
In a separate scheme, the indictment alleges that Guzman participated in a scheme to use personal identifying information of others without their authorization to file fraudulent tax returns during tax years 2009, 2010, and 2011. It is alleged that tax refunds totaling $686,823.65, obtained through the filing of fraudulent tax returns were deposited into a personal checking account belonging to Guzman.
Belkis Guzman is scheduled to appear in U.S. District Court in Providence for arraignment on April 4, 2016. An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Prior to the return of an indictment against Belkis Guzman, an investigation by IRS Criminal Investigation and the United States Attorney’s Office resulted in federal tax fraud charges to be brought against Leon F. Tejada, 51, of Providence, the operator of El Centro Multiservices. Tejada pleaded guilty on December 18, 2015, to charges of tax fraud and wire fraud.
At the time of his guilty plea, Tejada admitted to the court that during tax years 2009 through 2012, without the knowledge of his clients, he created and falsified clients’ dependents, exemptions, tax credits, deductions, and expenses in order to increase the amount of tax refund due to some of his clients. An investigation by agents from IRS Criminal Investigation and by the United States Attorney’s Office determined that the tax fraud scheme resulted in a loss to the United States of $54,440.
Tejada also admitted to the court that he also devised a scheme to divert some of his clients’ tax refunds through a bank clearing house, at which time, without the knowledge of his clients, a portion of the funds were diverted into his own bank account for his own personal use.
Tejada is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on April 5, 2016.
The cases are being prosecuted by Assistant U.S. Attorney Richard W. Rose.
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belkis_guzman_indictment.pdf
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Southern California Man Brings Methamphetamine and Heroin to Fresno for SaleRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jesus Ramon, 31, of Moreno Valley, charging him with possession of methamphetamine and heroin with the intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ramon negotiated to sell a large quantity of methamphetamine and heroin to purported buyers who were actually Drug Enforcement Administration agents. Ramon brought the drugs to a parking lot located at Jensen and Highway 99 in Fresno where, after agents viewed the drugs, Ramon was arrested. Approximately 45 pounds of methamphetamine and over one kilogram of heroin was seized from the vehicle Ramon arrived in.
This case is the product of an investigation by the Drug Enforcement Administration, Fresno Police Department, and the Fresno Sheriff’s Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Ramon faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
San Antonio Businessman Pleads Guilty to Role in Kickback Scheme Involving Local School District Insurance PlansRead the Press Release
In San Antonio today, 46-year-old independent insurance consultant William O. Haff faces up to five years in federal prison after pleading guilty this afternoon to his role in a kickback/bribery scheme involving local school district insurance plans announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Xavier Rodriguez, Haff pleaded guilty to one count of conspiracy to commit wire fraud. According to court records, The Mullen Pension and Benefit Group LLP (the “Mullen Group”) was a limited partnership that did business in San Antonio and elsewhere. Among other things, the Mullen Group provided insurance and related services to state and local government entities, including school districts and municipalities, on behalf of various insurance companies. The Mullen Group received payment from these insurance companies in the form of commissions, ordinarily a certain percentage of revenue received by the insurance company from a particular contract.
By pleading guilty, Haff admitted that from March 2008, to February 2010, he accepted approximately $64,584 from the Mullen Group in exchange for providing confidential information concerning employee insurance plan Request For Proposals (RFP), including one issued by the Edgewood Independent School District in San Antonio, that was not available to competitors of the Mullen Group. Haff also admitted to accepting money from the Mullen Group for influencing Boards of Trustees for the School Districts to award insurance services contracts to clients of the Mullen Group. In July 2008, Haff accepted $2,500 for his recommendation of a Mullen Group client to the San Antonio ISD Board of Trustees.
“Haff schemed to enrich himself by effectively selling inside information to give the recipients an unfair competitive advantage, and thereby undermine the integrity of the public contracting process,” stated United States Attorney Richard L. Durbin, Jr.
Haff remains on bond pending sentencing scheduled for 1:30pm on July 13, 2016.
This investigation was conducted by special agents from the FBI. Assistant United States Attorneys Mark Roomberg and Joe Blackwell are prosecuting this case on behalf of the Government.
Rocky Hill Man Sentenced to 3 Years in Federal Prison for Trafficking OxycodoneRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NICHOLAS DYBER, 30, of Rocky Hill, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment, followed by five years of supervised release, for trafficking oxycodone. DYBER also was ordered to pay a $40,000 fine.
According to court documents and statements made in court, in 2012, the Drug Enforcement Administration’s New Haven Task Force began investigating an oxycodone trafficking operation headed by DYBER, who formerly resided in West Hartford. The investigation, which included the use of court-authorized wiretaps, controlled purchases of oxycodone, physical surveillance and the use of an undercover officer, revealed that DYBER was being supplied with bulk quantities of oxycodone by Harland Fields of the Bronx, N.Y., and Eduardo Garcia of Modesto, Calif. At times, DYBER paid Brian Vanderpool, of West Hartford, to travel to New York to pick up oxycodone from Fields and transport the pills to DYBER in Connecticut. DYBER distributed the pills he received from Fields and Garcia to customers and other Hartford-area distributors.
DYBER was arrested on October 11, 2013. On February 20, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 10,000 oxycodone pills
Fields, Garcia and Vanderpool also pleaded guilty. On August 21, 2014, Garcia was sentenced to 60 months of imprisonment. On October 27, 2014, Fields was sentenced to 66 months of imprisonment. On November 4, 2014, Vanderpool was sentenced to four months in a halfway house and four years of supervised release.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments. The case was prosecuted by Assistant U.S. Attorney Patrick Caruso.
Rhode Island Man Sentenced to Prison for Trafficking in Counterfeit Viagra from ChinaRead the Press Release
BOSTON – A Pawtucket, R.I. man was sentenced today in U.S. District Court in Boston for trafficking in counterfeit prescription medications.
Ricky Lugo, 49, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to a year and a day in prison and ordered to pay restitution of $104,239. In October 2015, he was charged with four counts of trafficking in counterfeit versions of erectile dysfunction medications, including Pfizer Inc.’s Viagra, Eli Lilly’s Cialis, and Bayer’s Levitra.
From June 2013 to March 2014, Lugo sold counterfeit Viagra, Cialis, and Levitra on Craigslist and in person. Lugo purchased the counterfeit pharmaceuticals from sources outside the United States, including from China. Lugo knew that the goods he was selling were counterfeit, but nonetheless sold and attempted to sell thousands of the tablets.
At today’s sentencing hearing, Judge Gorton said that Lugo’s crime was serious, and that it was important that he be punished as a form of general deterrence to others that might consider selling counterfeit pharmaceuticals on the Internet. Judge Gorton noted that but for the extenuating circumstances of Lugo’s medical condition, he would have sentenced him to a longer term of imprisonment.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Readout of Attorney General Lynch's Meeting with Belgian Deputy Prime Minister and Minister of Security and the Interior Jan JambonRead the Press Release
Attorney General Loretta Lynch and Belgian Deputy Prime Minister and Minister of Security and the Interior Jan Jambon met today at the U.S. Department of Justice in Washington, D.C., and pledged continued support and cooperation between their two countries. The Attorney General and the Deputy Prime Minister discussed cooperation and collaboration in the fight against terrorism.
Plano Anesthesiologist Convicted for Role in Pill Mill Operation is Sentenced to 25 Years in Federal PrisonRead the Press Release
DALLAS — Licensed anesthesiologist, Theodore E. Okechuku, 59, of Plano, Texas, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 300 months in federal prison following his conviction at trial in October 2015 on felony offenses stemming from his role in a pill mill and drug distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Also today, coconspirator Elechi N. Oti, 50, of Augusta, Georgia, who was convicted at trial with Okechuku, was sentenced by Judge Solis to 97 months in federal prison.
Okechuku and Oti were each convicted on one count of conspiracy to unlawfully distribute a controlled substance. Okechuku was also convicted of using, carrying, and brandishing a firearm during and in relation to a drug trafficking crime and conspiring to use, carry, and brandish a firearm during and in relation to a drug trafficking crime.
Two others convicted at trial for their roles in the conspiracy, Emmanuel C. Iwuoha, 52, of Allen, Texas, and Kelvin L. Rutledge, 43, of Dallas, are scheduled to be sentenced next month.
Three co-conspirators, all from Dallas, pleaded guilty before trial. Ignatius O. Ezenagu, 57; David L. Reed, 44; and Jerry K. Reed, 45; each pleaded guilty to one count of conspiracy to unlawfully distribute a controlled substance. Ezenagu, who also pleaded guilty to one count of brandishing a firearm in relation to a drug trafficking crime, was sentenced to serve a total of 70 months in federal prison. David and Jerry Reed are scheduled to be sentenced next month.
The government presented evidence at trial that Okechuku owned and operated, with the assistance of coconspirator Ezenagu, Medical Rehabilitation Clinic (MRC). MRC was initially located at 9304 Forest Lane in Dallas, and then later, the defendants moved MRC to 9205 Skillman Street in Dallas.
MRC operated as a “pill mill,” in that it functioned as a place to unlawfully obtain controlled substances, such as hydrocodone, and not as a medical facility. Okechuku and business manager Ezenagu charged cash only for office visits in exchange for unlawful hydrocodone prescriptions.
The coconspirator drug dealers, including David Reed and his brother Jerry Reed, along with Rutledge, recruited “patients,” often from homeless shelters, and drove them in groups to MRC. On a daily basis, these dealers brought multiple patients at a time to MRC. They would escort the patients into the clinic and coordinate their office visits with Ezenagu.
Often, dealers filled out patient information for the recruits they brought to the clinic. Dealers paid cash for the office visits of their patients, and handed the money to their patients before they entered the clinic, gave it to them in MRC’s waiting room, or paid the employees directly. MRC had a caged cash room where people would pay for the office visit with money provided by the dealers, by handing the money through an opening in the bars to a clinic employee. Large amounts of cash, often more than $5,000, passed through the clinic’s drug trafficking business on a daily basis.
Okechuku and Ezenagu conspired to employ armed security guards to protect the business, its employees, and the dealers. These armed security guards displayed and brandished various firearms on their waists for all to see in order to deter violence by the “patients” and to protect the illicit drug money from robbery.
Okechuku rarely saw patients, but delegated that task to licensed physician assistant and coconspirator Oti or to Emmanuel Iwuoha, who held no medical or nursing license in Texas, but acted as a doctor, using Okechuku’s signature and DEA prescription authority. In fact, at MRC, Okechuku, Oti, and Iwuoha were referred to as “Doctor,” regardless of medical license.
Oti, Iwuoha, and at times, Okechuku, would do little to no physical examination and prescribe controlled substances, including hydrocodone, a Schedule III controlled substance at the time. Patient visits were short and they would normally leave with a 30-day prescription (120 pills) or more of hydrocodone, along with other prescriptions. Okechuku, Oti, and Iwuoha diagnosed the majority of the patients with back pain, regardless of their true condition. Hydrocodone was prescribed regardless of a patient’s need, or lack thereof.
Once the patients received the prescriptions at MRC, the coconspirator dealers would drive the groups of patients to various pharmacies to get the prescriptions filled. The dealers would also furnish the money to pay for the narcotics. Sometimes, the dealers did not need the patients to pick up the prescriptions as some pharmacies gave the hydrocodone directly to the dealers. After the prescriptions were filled, the patients gave the pills to the dealers, who then sold the pills on the street for a profit.
The FBI, Dallas Police Department and Mesquite Police Department investigated. Assistant U.S. Attorneys Kate Pfeifle and Russ Fusco, and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay prosecuted.
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Pennsylvania Man Convicted in Tax Fraud SchemeRead the Press Release
A federal jury sitting in the Eastern District of Pennsylvania returned a guilty verdict today against an Aldan, Pennsylvania, man on charges related to a tax fraud scheme, announced the Department of Justice.
Jean Baptiste Alvarez, aka Alex, 43, was found guilty of conspiracy to defraud the United States with respect to false claims, aggravated identity theft and misuse of social security numbers. U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for July 26.
Alvarez faces a statutory mandatory minimum sentence of at least two years in prison with a maximum possible sentence of 24 years in prison, up to three years of supervised release, a possible fine and a $500 special assessment.
According to evidence presented at trial, Alvarez unlawfully provided to Peterson Rene, charged elsewhere, the personal identifying information (PII) of hundreds of real persons. Specifically, Alvarez sold Rene patient information labeled “census sheets” that were created by and kept in the normal course of business, at the Kirkbride Center health care facility in Philadelphia, where the defendant worked. These “census sheets” list PII of patients, including names, social security numbers and dates of birth. From 2012 through 2015, Alvarez and Rene conspired with others to use the stolen identifying information on tax returns for the purpose of obtaining payment of false, fictitious and fraudulent tax refunds.
The case was investigated by IRS-Criminal Investigation, the FBI and the Office of Inspector General-Social Security Administration. It is being prosecuted by Assistant U.S. Attorney Terri A. Marinari and Trial Attorney Ann M. Cherry of the Justice Department’s Tax Division.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Orange County man convicted of smuggling Asian songbirds into the U.S.Read the Press Release
LOS ANGELES – A Los Angeles federal jury has convicted a Garden Grove man of smuggling Asian songbirds into the United States concealed in his suitcase at Los Angeles International Airport (LAX).
Can Thanh Nguyen, 63, was found guilty Thursday of importing and bringing Asian songbirds into the United States in violation of federal law.
Nguyen, who had a long history of international travel, landed at LAX April 20 of last year. At a U.S. Customs and Border Protection (CBP) kiosk, Nguyen stated he was not carrying any animals or animal/wildlife products. However, he was subsequently referred by a CBP officer to a secondary agricultural inspection point. While Nguyen was in that inspection area, CBP personnel discovered 27 Asian songbirds that had been carefully concealed in his suitcase. The birds were hidden in cages wrapped in foil or newspaper underneath a layer of foil and clothing to avoid detection. Special agents from the U.S. Fish and Wildlife Service and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) responded to investigate.
“This case demonstrates my office’s commitment to prosecute those who criminally exploit wildlife that is threatened with potential extinction,” said United States Attorney Eileen M. Decker. “The Environmental and Community Safety Crimes Section in my Office is dedicated to protecting endangered species and our eco-system.”
Eleven of the Asian songbirds birds found in Nguyen’s suitcase were identified as Chinese Hwamei, Garrulax canorus, a type of Asian songbird which is protected under the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES). Two of the birds found in the suitcase were already dead, and several others died shortly after.
“This verdict should serve as a warning for individuals who are cashing in by trafficking and selling exotic wildlife that they will be held accountable for their crimes,” said Joseph Macias, special agent in charge for Los Angeles HSI. “Their greed and reckless disregard causes incalculable harm to our environment.”
“One of the highest priorities of the U.S. Fish and Wildlife Service Office of Law Enforcement is to investigate individuals and companies that are involved in the unlawful commercial trafficking and smuggling of protected animals and plants here and around the world,” Said Jill Birchell, special agent in charge of the regional office of the U.S. Fish and Wildlife Service. “This investigation demonstrates our commitment to pursue those who violate fish and wildlife laws for commercial gain as well as those that drive the illegal bird trade nationally and internationally.”
Nguyen’s sentencing is set for June 27. He faces a statutory maximum sentence of 20 years in federal prison.
In addition to HSI and the U.S. Fish and Wildlife Service, CBP, and the U.S. Department of Agriculture provided substantial assistance with the case.
Orange County Man Pleads Guilty to Shooting Laser Pointer at Orange County Sheriff’s Department HelicopterRead the Press Release
SANTA ANA, California – A Santa Ana man pled guilty today to intentionally aiming a laser pointer at a law enforcement helicopter.
Mario Deleon Lopez, 35, pled guilty before United States District Judge Andrew J. Guilford. Lopez’s sentencing was set for July 18 at which time he will face a statutory maximum sentence of five years in prison.
On the evening of November 14, 2015, tactical flight deputies with the Orange County Sheriff’s Department were patrolling over Santa Ana when their helicopter was struck with the beam of a laser, according to investigators. The pilots reported that their aircraft was struck multiple times with a green laser that illuminated the helicopter’s cockpit.
Following the alleged laser attacks, the deputies, along with the Santa Ana Police Department, successfully tracked the source of the laser to a suspect located in the backyard of a residence in Santa Ana. Police on the ground responded to the residence and took Lopez into custody on state charges of pointing a laser at an aircraft. Lopez subsequently posted bail and was released from local custody while the federal investigation continued and culminated with the filing of the indictment.
“This defendant created a dangerous situation for the pilot of the helicopter as well as other innocent bystanders on the ground,” said United States Attorney Eileen M. Decker. “This crime was senseless, but the prosecution highlights the excellent skills and training of the helicopter pilot and the law enforcement team that was able to identify and arrest this defendant.”
This investigation into Lopez was conducted by the Orange County Sheriff’s Department, the Santa Ana Police Department and the FBI.
Reports of laser attacks have increased dramatically in recent years as laser devices have become more affordable and widely available to the public. In addition, technology has improved the effectiveness of laser devices, with a resulting increase in the potential safety hazards for pilots operating aircraft, as well as their passengers and crew. Such safety hazards include temporary distraction and impaired vision, which is particularly dangerous during the critical takeoff or landing phase of flight. California consistently leads the nation in reports of laser attacks. According to the Federal Aviation Administration, which compiles statistics on the number of laser strikes in the United States, 3,960 laser attacks were reported nationwide in 2013.
Northern California Man Who Choked Woman on an Airplane Convicted of AssaultRead the Press Release
LOS ANGELES – A Northern California man has been convicted of a federal assault charge for choking and hitting a fellow passenger on a flight from Los Angeles to San Francisco.
Lawrence Wells, Jr., 54, of Richmond, California, was convicted by a jury yesterday afternoon in United States District Court of federal misdemeanor assault.
According to the evidence at trial, Wells and the victim were passengers on board Southwest Airlines flight 2010 from Los Angeles to San Francisco on October 18 last year. Wells was seated directly behind the victim. The flight was scheduled to take off from Los Angeles International Airport at 7:10 p.m. but was delayed both in boarding and on the tarmac. While the flight was on the tarmac, the victim reclined her seat. Wells summoned a flight attendant and angrily pointed at the victim’s reclined seat. The flight attended instructed the victim to return her seat to the upright position.
The flight did not actually take off until 10:30 p.m. A few minutes after the flight left Los Angeles, the victim reclined her seat again. At that time, Wells reached around the victim’s chair and choked her for five to ten seconds. He also punched her in the head with a closed fist. The pilot returned the flight to LAX.
“Defendant’s violent reaction to the frustrations of air travel was beyond the bounds of civilized behavior,” said United States Attorney Eileen M. Decker. “The victim was fortunate that she did not suffer greater injuries, because she had no way to defend herself from this defendant’s attack.”
The victim testified that, as a result of the assault, she suffered a concussion and experienced persistent nausea, dizziness, headaches, neck pain, loss of appetite, significant anxiety, and ringing in her ear, among other symptoms. The jury, however, acquitted the defendant of the felony count of assault causing serious bodily injury.
After Wells’ conviction yesterday, United States District Judge R. Gary Klausner set sentencing for June 27, 2016. At that time, defendant will face a statutory maximum sentence of six months in federal prison.
This case was investigated by the Federal Bureau of Investigation.
New Jersey Resident Indicted for Obstructing the Internal Revenue Laws and Theft of Public MoneyRead the Press Release
A grand jury returned an indictment on March 23, which was unsealed yesterday, charging a Jersey City, New Jersey, resident with one count of corruptly endeavoring to obstruct the internal revenue laws and one count of theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the indictment, Derrick M. Madison, placed hundreds of telephone calls to the Internal Revenue Service’s (IRS) electronic payment system in an attempt to fraudulently obtain credit for hundreds of millions of dollars in fictitious and fraudulent tax payments to the IRS he did not actually make. As part of his scheme, Madison received a U.S. Treasury check in the amount of $170,681.22 based on one such fraudulent overpayment to the IRS, which he deposited into his bank account. Madison was arrested on the charges March 28.
If convicted, Madison faces a total statutory maximum sentence of three years in prison and a $250,000 fine on the charge of obstructing the IRS and 10 years in prison and a $250,000 fine on the theft of public money charge. A trial date has not yet been scheduled.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Eric Powers and Jeffrey Bender of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Navajo Man from Shiprock Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Harrison Cambridge, 56, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to an abusive sexual contact charge. Under the terms of his plea agreement, Cambridge will be sentenced within the range of 30 to 42 months in federal prison followed by a term of supervised release to be determined by the court. Cambridge will also be required to register as a sex offender after he completes his prison sentence.
Cambridge was arrested in Dec. 2015, on a criminal complaint alleging that he sexually abused a Navajo child under the age of 12 on Dec. 20, 2015, on the Navajo Indian Reservation in San Juan County, N.M.
Cambridge was indicted on Jan. 14, 2016, and charged with abusive sexual contact of a child under the age of 12. During today’s change of plea hearing, Cambridge entered a guilty plea to the indictment. Cambridge remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case was prosecuted by Assistant U.S. Attorney Joseph Spindle as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Milwaukee Area Couple Sentenced to Prison for Roles in False Federal Tax Return and Identity Theft FraudRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that on March 31, 2016, Vladimir Sonin (age: 48) of Bayside was sentenced before Judge J.P. Stadtmueller on charges of aiding and abetting mail fraud and aggravated identity theft, in connection with Sonin’s role in a scheme to use stolen identities to file false federal tax returns demanding fraudulent refunds. Sonin was sentenced to 58 months in federal prison, 24 of which were mandatory and consecutive, three years’ supervised release, and was also ordered to pay $308,499 in restitution.
Sonin’s sentencing followed the sentencing of his wife, Natalya Sonina (age: 44), on March 22, 2016, by Judge Stadtmueller, for her participation in the same fraud scheme. Natalya Sonina was sentenced to 39 months in federal prison, 24 of which are mandatory and consecutive, three years’ supervised release, and was ordered to pay $308,499 in restitution along with her husband Vladimir Sonin.
Vladimir Sonin pleaded guilty to the federal charges on November 18, 2015, and Natalya Sonina pleaded guilty to those same charges on November 24, 2015. Records filed in court indicate that the couple participated in a scheme to defraud with others from approximately January 1, 2013 until May 13, 2015, which included stealing money from the IRS and various state treasuries through electronically filed fraudulent tax returns claiming a tax refund in the names of identity theft victims. The couple also received by mail unauthorized access devices issued by financial institutions in the names of identity theft victims, and then caused the IRS and various state treasuries to electronically place stolen tax refunds onto those unauthorized access devices. The scheme also included stealing hundreds of thousands of dollars from unidentified victims who paid to remove a “ransomware” virus that had frozen these persons’ computers. Finally, the couple used those unauthorized access devices at ATMs and transferred a majority of the scheme proceeds to individuals in the Ukraine.
This case was jointly investigated by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service and the United States Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Stephen A. Ingraham.
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Middletown Woman Indicted for Health Care FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that China Scott, age 45, of Middletown, Pennsylvania was indicted yesterday by a federal grand jury in Harrisburg for Health Care Fraud.
According to United States Attorney Peter Smith, between November 2015 and January 2016, Scott provided home health care services to a disabled individual through her employment at Cool Waters, a home health care agency located in Dauphin County. Scott allegedly failed to notify the agency that she is an excluded person, meaning that no payment could be made by a federal health care benefit program for services provided by her due to two previous health care fraud convictions.
The investigation was conducted by the U.S. Department of Health and Human Services and prosecution is assigned to Christy H. Fawcett.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mexican National Pleads Guilty to Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OMAR RICO-ALMANZA, age 34, a citizen of Mexico, plead guilty today to a one-count Indictment for violations of the Federal Gun Control Act.
According to the indictment, on or about November 5, 2015, RICO-ALMANZA, an alien present illegally in the United States, was found in possession of a SCCY Model CPX-2, 9mm semi-automatic pistol.
RICO-ALMANZA faces a maximum term of imprisonment of ten years, followed by three years of supervised release, a fine of $250,000, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Mexican National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that BERNARDO RAMIREZ-VARGAS, age 33, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, RAMIREZ-VARGAS was previously removed from the United States on June 30, 2011. RAMIREZ-VARGAS was later found in the Eastern District of Louisiana on January 25, 2016 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
RAMIREZ-VARGAS faces a maximum term of imprisonment of twenty (20) years, as well as a fine of $250,000. U.S. District Court Judge Carl J. Barbier set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mediapolis Man Sentenced to Prison for Receiving Child PornographyRead the Press Release
DAVENPORT, IA – On March 30, 2016, Thomas James McLaughlin, 48, of Mediapolis, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 84 months in prison for receiving child pornography, announced Acting United States Attorney Kevin E. VanderSchel. Hansen was ordered to serve ten years of supervised release following his prison term, comply with the sex offender registry requirement in the state he lives, and to pay $100 towards the Crime Victims’ Fund. McLaughlin was also ordered to forfeit the electronic devices involved in the offense.
McLaughlin pleaded guilty to receiving child pornography on October 26, 2015. According to the plea agreement, on August 10, 2014, a search warrant was executed at McLaughlin’s Mediapolis residence and electronic devices were seized. A forensic examination of those devices concluded there were 5,251 images and 271 videos containing minors engaged in sexually explicit conduct dating from May 2013 through July 2014.
This matter was investigated by the Des Moines County Sheriff’s Department, Iowa Internet Crimes Against Children Task Force, The National Center for Missing and Exploited Children, and the Iowa Division of Criminal Investigation, Cyber-Crime Unit. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.
Media AdvisoryRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office is hosting a native-Iowan author and historian who will detail a subchapter of the state’s rich history of tolerance and acceptance, when it provided a safe haven to refugees fleeing Nazi-occupied Europe during World War II. The Scattergood Hostel located in a then-closed Quaker boarding school near West Branch was that safe haven. The author will discuss this rich history and compare and contrast it to the current mass migration of refugees occurring in Europe fleeing war, poverty and ecological disaster from the Middle East.
United States Attorney Kevin W. Techau will introduce the speaker, Dr. Michael Luick-Thrams. Another planned speaker, Dr. Guenter “George” Krauthamer, is a retired Rutgers University Professor. He will tell via a SKYPE connection about his family’s fleeing Europe and their life at the Scattergood Hostel.
Also available for viewing and parked in front of the Federal Courthouse will be a BUS-eum that contains exhibits reflecting Iowa’s rich cultural history. For details, see: http://roots.traces.org/at-home-in-the-heartland
EVENT DETAILS
When: Monday, April 4, 2016
Where: Cedar Rapids Federal Courthouse (Jury Assembly Room), 111 7th Ave. SE
Time: 1:00 – 2:00 p.m. (speaker presentation); 1:00 – 4 p.m. (BUS-eum tour)
The media interested in attending must contact the office to confirm attendance. Contact information is listed above.
A press release and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Marissa Man Pleads Guilty to Firearm OffenseRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Joshua J. Doty, 28, Marissa, Illinois, plead guilty to Possession of a Firearm by a Previously Convicted Felon in federal court today. The offense took place in Monroe County on July 1, 2015. Sentencing is scheduled for July 8, 2016.
Doty faces a sentence of up to 10 years in federal prison, a $250,000 fine, or both such fine and imprisonment, up to 3 years’ supervised release to follow imprisonment, and a $100 special assessment. Doty agreed to the forfeiture of the firearm he pleaded guilty to possessing.
Court documents establish that on July 1, 2015, the Illinois Department of Corrections, accompanied by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted a parole compliance check at the Doty residence. During the compliance check, a New England Firearms Co., Inc., 20 gauge shotgun was found in a bedroom closet used by Doty. Doty acknowledged knowing that the firearm was at the residence and that he could not lawfully possess a firearm as a convicted felon.
Information leading to the charges against Joshua J. Doty was obtained in an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the case was prosecuted by Assistant United States Attorney Kit R. Morrissey.
Man, Woman Indicted for Armed Bank Robberies, Hold-ups at KC BusinessesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., and a Basehor, Kan., man have been indicted by a federal grand jury for two armed bank robberies and a series of armed robberies at three Kansas City, Mo., businesses.
Terry D. Jacobs, 46, of Kansas City, Mo., and Jayme L. Wilson, 26, of Basehor, Kan., were charged in a seven-count superseding indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, March 30, 2016. The superseding indictment replaces an indictment returned on Feb. 3, 2016, adding Wilson as a co-defendant and including additional charges.
The superseding indictment alleges that Jacobs and Wilson stole $3,950 at gunpoint from UMB Bank, 13813 E. 39th Street, Independence, Mo., on Dec. 29, 2015. Jacobs and Wilson are also charged with aiding and abetting each other to brandish a firearm – a Jimenez Arms 9mm pistol – during this crime of violence. Jacobs, who has a prior felony conviction, is also charged with being a felon in possession of a firearm.
The superseding indictment also alleges that Jacobs and Wilson stole $3,788 at gunpoint from UMB Bank, 1800 Grand Blvd., Kansas City, Mo., on Dec. 23, 2015.
In addition to the bank robberies, Jacobs is charged with three armed robberies at Kansas City, Mo., businesses: the Burger King at 3441 Main St. on Dec. 22, 2015; the Family Dollar Store at 3726 Broadway on Dec. 21, 2015; and the Taco Bell at 123 E. Linwood Blvd. on Dec. 20, 2015.
The federal indictment also contains a forfeiture allegation, which would require Jacobs and Wilson to forfeit to the government any property obtained from the proceeds of the alleged offenses, including $8,116, which represents the total amount of money stolen in the robberies.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Independence, Mo., Police Department, the Kansas City, Mo., Police Department and the FBI.
Man Pleads Guilty in Prescription Fraud SchemeRead the Press Release
CONCORD – United States Attorney, Emily Gray Rice announced today that Geoffrey McIntosh, 36, pleaded guilty today in the United States District Court Judge to conspiracy to distribute, and possess with intent to distribute, oxycodone.
According to documents that were filed in United States District Court and statements in the plea proceeding, McIntosh and others passed dozens of false prescriptions for OxyContin pills at pharmacies in the Manchester and Nashua areas. McIntosh arranged for runners to pass these fraudulent prescriptions at pharmacies. The runners would then provide the pills to McIntosh in exchange for pills or cash. McIntosh would then sell the pills or have others sell them on his behalf. During the investigation, law enforcement officers identified over 100 fraudulent prescriptions for OxyContin, which were filled in 2009 and 2010.
A sentencing hearing has been scheduled for July 1, 2016. The statutory maximum prison term for the crime charged is 20 years. The court will sentence McIntosh after it has had an opportunity to review a presentence report prepared by the United States Probation & Pretrial Services Office.
The case was investigated by the Drug Enforcement Administration, with assistance from other law enforcement agencies, including the Nashua Police Department, Manchester Police Department, Merrimack Police Department, and the New Hampshire State Police. The case was prosecuted by Assistant United States Attorney John J. Farley.
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Man Arrested Responding to Ad to Have Sex with 13-Year-Old Girl Faces More Than 15 Years in PrisonRead the Press Release
LOS ANGELES - A man who responded to an Internet advertisement to have sex with a young girl has been arrested and now faces more than 15 years in prison.
Joshua Paul Crouch, 28, of San Pedro, was arrested Wednesday in San Pedro and charged Thursday with attempted sex-trafficking of a minor. This is one of the first prosecutions in Los Angeles under a recent change to the federal sex-trafficking statute.
According to the affidavit filed in support of the criminal complaint in the case, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and other law enforcement agencies, posted an online advertisement on the Internet using coded language in a ruse offering sex with young girls. The advertisement used catch words such as “daddy,” “petite,” and “young.” Crouch responded to the advertisement and was told by an undercover law enforcement agent that one of the girls advertised was “Cassie,” a 13-year-old girl. Crouch sought to have oral sex with “Cassie” in exchange for $60. Crouch chose "Cassie" instead of a 15-year-old girl who was also offered by the undercover agent. Crouch followed the directions provided by the undercover agent and was arrested when he arrived at “Cassie’s” hotel room. No actual minors were at risk or involved in the operation.
“Human trafficking is modern-day slavery and victimizes large numbers of women and children,” said United States Attorney Eileen M. Decker. “This case demonstrates that law enforcement has changed its approach in combatting human trafficking, by now focusing on customers and commercial sex traffickers and by treating the women and children as crime victims. This defendant is one of the first individuals charged in Los Angeles under this federal statute, but he will not be the last.”
If convicted of the charge contained in the criminal complaint, Crouch would face a mandatory minimum sentence of 15 years of imprisonment and a statutory maximum sentence of life.
“Individuals who pay for sex with minors are contributing in no small way to the current epidemic of teen and child sex-trafficking,” said Joseph Macias, special agent in charge for HSI Los Angeles. “The coercion of minors into prostitution is unconscionable under any circumstances. We intend to hold the perpetrators accountable for their actions, which rob the underage victims in these cases of their youth and their innocence.”
Crouch made an initial appearance Thursday in U.S. District Court in Los Angeles and was ordered released on bond.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
This case was investigated by HSI’s Human Trafficking Group, the Los Angeles Police Department, the Los Angeles Sheriff's Department, and the U.S. Department of State.
Lovington, New Mexico Man Sentenced to Federal Prison for Assault on Law Enforcement OfficialsRead the Press Release
In Pecos today, a federal judge sentenced a Lovington, NM, man to 300 months in federal prison for a crime spree during which five law enforcement officials were assaulted, announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
In addition to the prison term, Chief United States District Judge Orlando Garcia ordered that 29–year-old Enrique Sanchez Quiroga be placed on supervised release for a period of three years after completing his prison term.
On November 2, 2015, Quiroga pleaded guilty to one count each of conspiracy to impede or injure officers; assaulting, resisting or impeding officers; unlawful transport of firearms; transportation of stolen firearms; receipt of stolen firearms; use of a firearm during a crime of violence; and, transportation of a stolen motor vehicle.
According to court records, during the early morning hours on December 14, 2015, near Sierra Blanca, TX, a U.S. Border Patrol agent attempted to stop a vehicle whose occupants included Quiroga, along with Hobbs, NM residents Maritza Navarrette Mota, age 23, and Sayra Baeza, age 26. The trio failed to yield and began firing shots from their stolen vehicle at the Border Patrol agent and a second Border Patrol agent who had joined in the pursuit. The trio ultimately abandoned the stolen vehicle and ran into the desert. Law enforcement, which by now also included Texas Department of Public Safety troopers and an officer with the Texas Department of Wildlife, continued to pursue the defendants on foot. Mota and Baeza eventually surrendered while Quiroga continued firing his weapon at law enforcement authorities. Ultimately, Quiroga was subdued after being shot several times by law enforcement during the pursuit.
According to court records, the arrests of the defendants served as the end of a crime spree which began approximately five days prior in New Mexico where there were reports of a stolen firearm, a stolen vehicle and a burglary of a department store had occurred.
On February 16, 2016, U.S. District Judge Lee Yeakel sentenced Mota and Baeza to 144 months and 128 months in federal prison, respectively, for their roles in the criminal activity.
This case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Border Patrol, and Texas Department of Public Safety, with the assistance of the El Paso County Attorney’s Office. Assistant United States Attorney James J. Miller, Jr. prosecuted this case on behalf of the Government.
Lincoln Man Sentenced for Possession with Intent to Distribute Methamphetamine and Gun ChargeRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 31, 2016, Jamie Dean Lewis, 29, of Lincoln, was sentenced to five years and ten months (70 months) for possession with the intent to distribute five grams or more of methamphetamine and five years (60 months) using, carrying, or possessing a firearm during or in furtherance of a drug trafficking crime. The sentence for the firearm offense must run consecutive to the sentence for the drug conviction. Following the prison term, Lewis will serve five years on supervised release.
On May 28, 2015, officers contacted Lewis, who had an outstanding warrant, at a Lincoln convenience store. Lewis attempted to run from the officers and, as he ran, he discarded a bag. He was taken into custody after a short foot pursuit. Officers found 18 grams of actual/pure methamphetamine on Lewis’s person along with cash, a methamphetamine pipe, and a scale with crystalline residue. The bag which Lewis had discarded during the foot pursuit was located and in the bag officers found a 9mm pistol with a full magazine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lancaster County Man Indicted on Child Pornography ChargesRead the Press Release
PHILADELPHIA - Jeremy Hachey, 23, of Lititz, PA, was charged today by Indictment with receipt and possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a mandatory minimum sentence of five years in prison, with a maximum possible sentence of 40 years, mandatory minimum of five years of supervised release, a possible fine, and $10,200 special assessment.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Jennifer B. Jordan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Justice Department Warns Public to Beware of Fraudulent Tax Return Preparers and Tax Scheme Promoters, Urges Taxpayers to Pay Federal Income Taxes on Time and in FullRead the Press Release
With tax season in full swing, the Justice Department urged the public today to avoid dishonest tax-return preparers who fleece their customers and illegally drain the U.S. Treasury. Noting that every taxpayer is ultimately responsible for the contents of his or her own return, Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division also warned the public to be wary of anyone who guarantees a refund or who claims to sell a sure-fire way to reduce your taxes.
Dishonest Return Preparers Cost Their Clients and the United States
U.S. taxpayers filed approximately 150 million returns in 2014. According to statistics available from the Treasury Inspector General for Tax Administration, the Internal Revenue Service (IRS) identified more than 2.1 million of those returns that claimed fraudulent refunds totaling more than $15.7 billion. As in past years, the IRS has designated return preparer fraud as one of 2016’s “Dirty Dozen” tax scams to avoid during return filing season. In 2015, the Tax Division permanently shut down more than 35 fraudulent tax-return preparers located all over the United States. The defendants in those cases spanned the spectrum from large-scale return preparation franchises to small, independent return preparers.
“Every year, thousands of federal income tax returns are prepared by people who care much more about making a quick buck than about preparing accurate returns,” said Acting Assistant Attorney General Ciraolo. “Most tax return preparers are honest. But some preparers who charge clients a percentage of their tax refund intentionally prepare false returns to increase their clients’ refund, and thus their own fees. Likewise, some preparers who charge by the form will intentionally prepare incorrect forms that their clients don’t need in order to increase their compensation. Taxpayers might think that they’re getting a good deal on their taxes, or that as long as someone else prepares the return, they’re not responsible. They’re wrong. Taxpayers who have their return prepared incorrectly are required to pay the tax they owe, or pay back the refund they weren’t entitled to get. These clients might also owe interest and penalties, which can be substantial. Fortunately, there are red flags that taxpayers can look for and avoid when choosing a return preparer.”
Your refund should never be deposited directly into a preparer’s bank account.
In United States v. Elton L. Barnes, No. 2:14-cv-05621 (C.D. Cal.), the court barred a return preparer who caused other people’s tax returns to be deposited to bank accounts in his name.
Never sign a blank return or a blank form, or sign a return or a form without reading it first.
By law, a return preparer must provide a client with a completed copy of the return no later than the time the customer is asked to sign the return. In United States v. Syed N. Ahmed et al., No. 2:15-cv-11461 (E.D. Mich.), the United States alleged that the defendants’ Liberty Tax Service franchises asked customers to sign blank forms that stated that the customers had non-existent businesses, which were then used to maximize the customer’s refund. Although the defendants did not admit to the allegations in the complaint, they agreed to an order from a federal court permanently shutting down the stores.
Don’t use a preparer who mischaracterizes your expenses.
In United States v. Lawrence Preston Siegel, No. 3:15-00643 (S.D. Cal.), the defendant prepared returns that falsely characterized personal purchases as deductible expenses. For instance, one customer’s return deducted purchases at Tiffany & Co., Louis Vuitton, and Royal Caribbean Cruise Lines as “medical expenses.” The court permanently barred Siegel from preparing tax returns or providing tax advice for compensation.
Do not use a preparer who fabricates business expenses or deductions, or who claims bogus credits to which you are not entitled, such as the Earned Income Tax Credit, the child care credit, or the education credit.
One of the most common dishonest return-preparation practices is to prepare returns that include non-existent businesses, sometimes based on a client’s hobbies. In 2015, for example, federal courts shut down tax return preparers in Kahului, Hawaii; Appleton, Wisconsin; and Chicago, Illinois, who fabricated supposed “businesses” for their clients. Federal courts have also ordered return preparers in Miami, Florida, and Memphis, Tennessee to submit to third-party monitoring at their own expense to make sure they are not preparing returns with fraudulent “businesses.”
Some other fraudulent schemes and practices that have been stopped through injunction orders entered by federal courts throughout the country include:
- Fabricating fake Form W-2 (Wage and Tax Statement) information;
- Claiming bogus education and first-time homebuyer credits;
- Claiming phony child and dependent care credits or residential energy credits;
- Claiming fraudulent fuel tax credits;
- Falsely exempting foreign earned income;
- Inflating unreimbursed employee business expense deductions; and
- Fraudulently inflating or decreasing a client’s income or deductions to maximize the Earned Income Tax Credit.
In January 2016, a federal court in Orlando, Florida entered a preliminary injunction against Jason Stinson, who ran a series of tax return preparer storefronts under the name “Nation Tax Services,” requiring him to shut down the stores pending resolution of the case. As part of its explanation for why it was ordering Stinson’s stores to shut down in the middle of the case, the court said that Stinson’s business “exposes . . . [his] customers to individual tax liability. Both the Government and Stinson’s customers will suffer irreparable harm if an injunction is not granted. Moreover, it is in the public’s best interest to protect vulnerable customers from the inaccurate preparation of their taxes, not to deplete Government resources, and to maintain the public trust in the tax system.” The case is United States v. Jason Stinson et al., No. 6:14-cv-1534 (M.D. Fla.).
The IRS advises taxpayers who ask a tax professional to prepare their return to be careful in the professional they select. The IRS offers some basic tips and guidelines to assist taxpayers in choosing a reputable tax professional and is also offering taxpayers a number of instructional YouTube videos to help them prepare their own taxes for the upcoming filing season. Several options, including free assistance with preparation and electronic filing for the elderly and individuals making $50,000 or less, are available to help taxpayers prepare for the current tax season and receive their refunds as easily as possible.
Tax Division Sues to Shut Down Promoters of Fraudulent Tax Schemes
In addition to return preparers who deliberately falsify returns, the Tax Division targets those who peddle schemes that purportedly reduce taxes—but in fact rely on false statements or financial sleight-of-hand.
In United States v. Wayne Reeves et al., No. 12-cv-1916 (D. Nev.), the court found that defendants Wayne Reeves and Diane Vaoga advised their clients “to set up sham trusts and have their wages directed into accounts for those trusts as a way to improperly reduce their tax liability.” They advised their clients that the income the clients received from the trusts was “nontaxable and did not need to be reported on tax returns.” The court further found that Reeves prepared tax returns that “willfully attempted to understate his clients’ correct tax liabilities,” and that Vaoga assisted him in doing so. In January 2015, the court permanently barred both Reeves and Vaoga from preparing returns or giving tax advice to others.
In November 2015, the Tax Division sued to shut down an alleged tax scheme based on a purported solar energy generation facility in Utah. The case is United States v. RaPower-3 LLC et al., No. 2:15-cv-00828 (D. Utah). The United States’ complaint alleges that the defendants purportedly sell “solar thermal lenses” to customers, and tell their customers that they are entitled to claim depreciation expenses and the solar energy credit for the lenses—even though the defendants allegedly know or have reason to know that their customers are not in the business of producing and selling solar energy and that the defendants’ purported solar energy facilities do not actually produce solar energy in a manner that meets the Internal Revenue Code’s requirements for claiming the credit.
And in the same month, in United States v. James Tarpey et al., No. 2:15-cv-00072 (D. Mont.), the Tax Division sued to shut down an alleged timeshare donation scheme. According to the United States’ complaint in that case, the defendants have their customers give rights in a timeshare to “Donate for a Cause,” a tax-exempt entity operated by Tarpey. The complaint alleges that the customers receive an appraisal that grossly overvalues the donated timeshare rights and use that appraisal to claim a large charitable donation deduction, even when the true market value of the timeshare right is a small fraction of the appraised value.
“The Tax Division is committed to stopping those who promote fraudulent tax shelters and other schemes or who prepare false returns,” Acting Assistant Attorney General Ciraolo said. “Along with our colleagues at the IRS, we will find dishonest preparers and fraudulent tax-scheme promoters and work to shut them down. We will hold accountable those who willfully assist taxpayers to file false returns. And in appropriate cases, we will prosecute them. But everyone can help stop fraud and protect our public finances. Pay attention to your tax return and make sure that it’s right. If you think that a tax return preparer is deliberately preparing incorrect returns, or you suspect someone is selling a phony tax-loss scheme, report that person to the IRS.”
The IRS website has information about how to report a dishonest return preparer, as well as information about how to report other types of tax fraud. The Justice Department’s website has a list of tax-return preparers and tax-scheme promoters whom the courts have shut down.
In addition to the civil enforcement through injunctions that stop their illegal actions, many return preparers and promoters also face prosecution. Examples of those investigations can be found for fiscal years 2014 and 2015.
Justice Department Warns Public to Beware of Fraudulent Tax Return Preparers and Tax Scheme Promoters, Urges Taxpayers to Pay Federal Income Taxes on Time and in FullRead the Press Release
Washington – With tax season in full swing, the Justice Department urged the public today to avoid dishonest tax-return preparers who fleece their customers and illegally drain the U.S. Treasury. Noting that every taxpayer is ultimately responsible for the contents of his or her own return, Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division also warned the public to be wary of anyone who guarantees a refund or who claims to sell a sure-fire way to reduce your taxes.
Dishonest Return Preparers Cost Their Clients and the United States
U.S. taxpayers filed approximately 150 million returns in 2014. According to statistics available from the Treasury Inspector General for Tax Administration, the Internal Revenue Service (IRS) identified more than 2.1 million of those returns that claimed fraudulent refunds totaling more than $15.7 billion. As in past years, the IRS has designated return preparer fraud as one of 2016’s “Dirty Dozen” tax scams to avoid during return filing season. In 2015, the Tax Division permanently shut down more than 35 fraudulent tax-return preparers located all over the United States. The defendants in those cases spanned the spectrum from large-scale return preparation franchises to small, independent return preparers.
“Every year, thousands of federal income tax returns are prepared by people who care much more about making a quick buck than about preparing accurate returns,” said Acting Assistant Attorney General Ciraolo. “Most tax return preparers are honest. But some preparers who charge clients a percentage of their tax refund intentionally prepare false returns to increase their clients’ refund, and thus their own fees. Likewise, some preparers who charge by the form will intentionally prepare incorrect forms that their clients don’t need in order to increase their compensation. Taxpayers might think that they’re getting a good deal on their taxes, or that as long as someone else prepares the return, they’re not responsible. They’re wrong. Taxpayers who have their return prepared incorrectly are required to pay the tax they owe, or pay back the refund they weren’t entitled to get. These clients might also owe interest and penalties, which can be substantial. Fortunately, there are red flags that taxpayers can look for and avoid when choosing a return preparer.”
Your refund should never be deposited directly into a preparer’s bank account.
In United States v. Elton L. Barnes, No. 2:14-cv-05621 (C.D. Cal.), the court barred a return preparer who caused other people’s tax returns to be deposited to bank accounts in his name.
Never sign a blank return or a blank form, or sign a return or a form without reading it first.
By law, a return preparer must provide a client with a completed copy of the return no later than the time the customer is asked to sign the return. In United States v. Syed N. Ahmed et al., No. 2:15-cv-11461 (E.D. Mich.), the United States alleged that the defendants’ Liberty Tax Service franchises asked customers to sign blank forms that stated that the customers had non-existent businesses, which were then used to maximize the customer’s refund. Although the defendants did not admit to the allegations in the complaint, they agreed to an order from a federal court permanently shutting down the stores.
Don’t use a preparer who mischaracterizes your expenses.
In United States v. Lawrence Preston Siegel, No. 3:15-00643 (S.D. Cal.), the defendant prepared returns that falsely characterized personal purchases as deductible expenses. For instance, one customer’s return deducted purchases at Tiffany & Co., Louis Vuitton, and Royal Caribbean Cruise Lines as “medical expenses.” The court permanently barred Siegel from preparing tax returns or providing tax advice for compensation.
Do not use a preparer who fabricates business expenses or deductions, or who claims bogus credits to which you are not entitled, such as the Earned Income Tax Credit, the child care credit, or the education credit.
One of the most common dishonest return-preparation practices is to prepare returns that include non-existent businesses, sometimes based on a client’s hobbies. In 2015, for example, federal courts shut down tax return preparers in Kahului, Hawaii; Appleton, Wisconsin; and Chicago, Illinois, who fabricated supposed “businesses” for their clients. Federal courts have also ordered return preparers in Miami, Florida, and Memphis, Tennessee to submit to third-party monitoring at their own expense to make sure they are not preparing returns with fraudulent “businesses.”
Some other fraudulent schemes and practices that have been stopped through injunction orders entered by federal courts throughout the country include:
-
Fabricating fake Form W-2 (Wage and Tax Statement) information;
-
Claiming bogus education and first-time homebuyer credits;
-
Claiming phony child and dependent care credits or residential energy credits;
-
Claiming fraudulent fuel tax credits;
-
Falsely exempting foreign earned income;
-
Inflating unreimbursed employee business expense deductions; and
- Fraudulently inflating or decreasing a client’s income or deductions to maximize the Earned Income Tax Credit
In January 2016, a federal court in Orlando, Florida entered a preliminary injunction against Jason Stinson, who ran a series of tax return preparer storefronts under the name “Nation Tax Services,” requiring him to shut down the stores pending resolution of the case. As part of its explanation for why it was ordering Stinson’s stores to shut down in the middle of the case, the court said that Stinson’s business “exposes . . . [his] customers to individual tax liability. Both the Government and Stinson’s customers will suffer irreparable harm if an injunction is not granted. Moreover, it is in the public’s best interest to protect vulnerable customers from the inaccurate preparation of their taxes, not to deplete Government resources, and to maintain the public trust in the tax system.” The case is United States v. Jason Stinson et al., No. 6:14-cv-1534 (M.D. Fla.).
The IRS advises taxpayers who ask a tax professional to prepare their return to be careful in the professional they select. The IRS offers some basic tips and guidelines to assist taxpayers in choosing a reputable tax professional and is also offering taxpayers a number of instructional YouTube videos to help them prepare their own taxes for the upcoming filing season. Several options, including free assistance with preparation and electronic filing for the elderly and individuals making $50,000 or less, are available to help taxpayers prepare for the current tax season and receive their refunds as easily as possible.
Tax Division Sues to Shut Down Promoters of Fraudulent Tax Schemes
In addition to return preparers who deliberately falsify returns, the Tax Division targets those who peddle schemes that purportedly reduce taxes—but in fact rely on false statements or financial sleight-of-hand.
In United States v. Wayne Reeves et al., No. 12-cv-1916 (D. Nev.), the court found that defendants Wayne Reeves and Diane Vaoga advised their clients “to set up sham trusts and have their wages directed into accounts for those trusts as a way to improperly reduce their tax liability.” They advised their clients that the income the clients received from the trusts was “nontaxable and did not need to be reported on tax returns.” The court further found that Reeves prepared tax returns that “willfully attempted to understate his clients’ correct tax liabilities,” and that Vaoga assisted him in doing so. In January 2015, the court permanently barred both Reeves and Vaoga from preparing returns or giving tax advice to others.
In November 2015, the Tax Division sued to shut down an alleged tax scheme based on a purported solar energy generation facility in Utah. The case is United States v. RaPower-3 LLC et al., No. 2:15-cv-00828 (D. Utah). The United States’ complaint alleges that the defendants purportedly sell “solar thermal lenses” to customers, and tell their customers that they are entitled to claim depreciation expenses and the solar energy credit for the lenses—even though the defendants allegedly know or have reason to know that their customers are not in the business of producing and selling solar energy and that the defendants’ purported solar energy facilities do not actually produce solar energy in a manner that meets the Internal Revenue Code’s requirements for claiming the credit.
And in the same month, in United States v. James Tarpey et al., No. 2:15-cv-00072 (D. Mont.), the Tax Division sued to shut down an alleged timeshare donation scheme. According to the United States’ complaint in that case, the defendants have their customers give rights in a timeshare to “Donate for a Cause,” a tax-exempt entity operated by Tarpey. The complaint alleges that the customers receive an appraisal that grossly overvalues the donated timeshare rights and use that appraisal to claim a large charitable donation deduction, even when the true market value of the timeshare right is a small fraction of the appraised value.
“The Tax Division is committed to stopping those who promote fraudulent tax shelters and other schemes or who prepare false returns,” Acting Assistant Attorney General Ciraolo said. “Along with our colleagues at the IRS, we will find dishonest preparers and fraudulent tax-scheme promoters and work to shut them down. We will hold accountable those who willfully assist taxpayers to file false returns. And in appropriate cases, we will prosecute them. But everyone can help stop fraud and protect our public finances. Pay attention to your tax return and make sure that it’s right. If you think that a tax return preparer is deliberately preparing incorrect returns, or you suspect someone is selling a phony tax-loss scheme, report that person to the IRS.”
The IRS website has information about how to report a dishonest return preparer, as well as information about how to report other types of tax fraud. The Justice Department’s website has a list of tax-return preparers and tax-scheme promoters whom the courts have shut down.
In addition to the civil enforcement through injunctions that stop their illegal actions, many return preparers and promoters also face prosecution. Examples of those investigations can be found for fiscal years 2014 and 2015.
-
Justice Department Warns Public to Beware of Fraudulent Tax Return Preparers and Tax Scheme Promoters, Urges Taxpayers to Pay Federal Income Taxes on Time and in FullRead the Press Release
Washington – With tax season in full swing, the Justice Department urged the public today to avoid dishonest tax-return preparers who fleece their customers and illegally drain the U.S. Treasury. Noting that every taxpayer is ultimately responsible for the contents of his or her own return, Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division also warned the public to be wary of anyone who guarantees a refund or who claims to sell a sure-fire way to reduce your taxes.
Dishonest Return Preparers Cost Their Clients and the United States
U.S. taxpayers filed approximately 150 million returns in 2014. According to statistics available from the Treasury Inspector General for Tax Administration, the Internal Revenue Service (IRS) identified more than 2.1 million of those returns that claimed fraudulent refunds totaling more than $15.7 billion. As in past years, the IRS has designated return preparer fraud as one of 2016’s “Dirty Dozen” tax scams to avoid during return filing season. In 2015, the Tax Division permanently shut down more than 35 fraudulent tax-return preparers located all over the United States. The defendants in those cases spanned the spectrum from large-scale return preparation franchises to small, independent return preparers.
“Every year, thousands of federal income tax returns are prepared by people who care much more about making a quick buck than about preparing accurate returns,” said Acting Assistant Attorney General Ciraolo. “Most tax return preparers are honest. But some preparers who charge clients a percentage of their tax refund intentionally prepare false returns to increase their clients’ refund, and thus their own fees. Likewise, some preparers who charge by the form will intentionally prepare incorrect forms that their clients don’t need in order to increase their compensation. Taxpayers might think that they’re getting a good deal on their taxes, or that as long as someone else prepares the return, they’re not responsible. They’re wrong. Taxpayers who have their return prepared incorrectly are required to pay the tax they owe, or pay back the refund they weren’t entitled to get. These clients might also owe interest and penalties, which can be substantial. Fortunately, there are red flags that taxpayers can look for and avoid when choosing a return preparer.”
Your refund should never be deposited directly into a preparer’s bank account.
In United States v. Elton L. Barnes, No. 2:14-cv-05621 (C.D. Cal.), the court barred a return preparer who caused other people’s tax returns to be deposited to bank accounts in his name.
Never sign a blank return or a blank form, or sign a return or a form without reading it first.
By law, a return preparer must provide a client with a completed copy of the return no later than the time the customer is asked to sign the return. In United States v. Syed N. Ahmed et al., No. 2:15-cv-11461 (E.D. Mich.), the United States alleged that the defendants’ Liberty Tax Service franchises asked customers to sign blank forms that stated that the customers had non-existent businesses, which were then used to maximize the customer’s refund. Although the defendants did not admit to the allegations in the complaint, they agreed to an order from a federal court permanently shutting down the stores.
Don’t use a preparer who mischaracterizes your expenses.
In United States v. Lawrence Preston Siegel, No. 3:15-00643 (S.D. Cal.), the defendant prepared returns that falsely characterized personal purchases as deductible expenses. For instance, one customer’s return deducted purchases at Tiffany & Co., Louis Vuitton, and Royal Caribbean Cruise Lines as “medical expenses.” The court permanently barred Siegel from preparing tax returns or providing tax advice for compensation.
Do not use a preparer who fabricates business expenses or deductions, or who claims bogus credits to which you are not entitled, such as the Earned Income Tax Credit, the child care credit, or the education credit.
One of the most common dishonest return-preparation practices is to prepare returns that include non-existent businesses, sometimes based on a client’s hobbies. In 2015, for example, federal courts shut down tax return preparers in Kahului, Hawaii; Appleton, Wisconsin; and Chicago, Illinois, who fabricated supposed “businesses” for their clients. Federal courts have also ordered return preparers in Miami, Florida, and Memphis, Tennessee to submit to third-party monitoring at their own expense to make sure they are not preparing returns with fraudulent “businesses.”
Some other fraudulent schemes and practices that have been stopped through injunction orders entered by federal courts throughout the country include:
-
Fabricating fake Form W-2 (Wage and Tax Statement) information;
-
Claiming bogus education and first-time homebuyer credits;
-
Claiming phony child and dependent care credits or residential energy credits;
-
Claiming fraudulent fuel tax credits;
-
Falsely exempting foreign earned income;
-
Inflating unreimbursed employee business expense deductions; and
-
Fraudulently inflating or decreasing a client’s income or deductions to maximize the Earned Income Tax Credit.
In January 2016, a federal court in Orlando, Florida entered a preliminary injunction against Jason Stinson, who ran a series of tax return preparer storefronts under the name “Nation Tax Services,” requiring him to shut down the stores pending resolution of the case. As part of its explanation for why it was ordering Stinson’s stores to shut down in the middle of the case, the court said that Stinson’s business “exposes . . . [his] customers to individual tax liability. Both the Government and Stinson’s customers will suffer irreparable harm if an injunction is not granted. Moreover, it is in the public’s best interest to protect vulnerable customers from the inaccurate preparation of their taxes, not to deplete Government resources, and to maintain the public trust in the tax system.” The case is United States v. Jason Stinson et al., No. 6:14-cv-1534 (M.D. Fla.).
The IRS advises taxpayers who ask a tax professional to prepare their return to be careful in the professional they select. The IRS offers some basic tips and guidelines to assist taxpayers in choosing a reputable tax professional and is also offering taxpayers a number of instructional YouTube videos to help them prepare their own taxes for the upcoming filing season. Several options, including free assistance with preparation and electronic filing for the elderly and individuals making $50,000 or less, are available to help taxpayers prepare for the current tax season and receive their refunds as easily as possible.
Tax Division Sues to Shut Down Promoters of Fraudulent Tax Schemes
In addition to return preparers who deliberately falsify returns, the Tax Division targets those who peddle schemes that purportedly reduce taxes—but in fact rely on false statements or financial sleight-of-hand.
In United States v. Wayne Reeves et al., No. 12-cv-1916 (D. Nev.), the court found that defendants Wayne Reeves and Diane Vaoga advised their clients “to set up sham trusts and have their wages directed into accounts for those trusts as a way to improperly reduce their tax liability.” They advised their clients that the income the clients received from the trusts was “nontaxable and did not need to be reported on tax returns.” The court further found that Reeves prepared tax returns that “willfully attempted to understate his clients’ correct tax liabilities,” and that Vaoga assisted him in doing so. In January 2015, the court permanently barred both Reeves and Vaoga from preparing returns or giving tax advice to others.
In November 2015, the Tax Division sued to shut down an alleged tax scheme based on a purported solar energy generation facility in Utah. The case is United States v. RaPower-3 LLC et al., No. 2:15-cv-00828 (D. Utah). The United States’ complaint alleges that the defendants purportedly sell “solar thermal lenses” to customers, and tell their customers that they are entitled to claim depreciation expenses and the solar energy credit for the lenses—even though the defendants allegedly know or have reason to know that their customers are not in the business of producing and selling solar energy and that the defendants’ purported solar energy facilities do not actually produce solar energy in a manner that meets the Internal Revenue Code’s requirements for claiming the credit.
And in the same month, in United States v. James Tarpey et al., No. 2:15-cv-00072 (D. Mont.), the Tax Division sued to shut down an alleged timeshare donation scheme. According to the United States’ complaint in that case, the defendants have their customers give rights in a timeshare to “Donate for a Cause,” a tax-exempt entity operated by Tarpey. The complaint alleges that the customers receive an appraisal that grossly overvalues the donated timeshare rights and use that appraisal to claim a large charitable donation deduction, even when the true market value of the timeshare right is a small fraction of the appraised value.
“The Tax Division is committed to stopping those who promote fraudulent tax shelters and other schemes or who prepare false returns,” Acting Assistant Attorney General Ciraolo said. “Along with our colleagues at the IRS, we will find dishonest preparers and fraudulent tax-scheme promoters and work to shut them down. We will hold accountable those who willfully assist taxpayers to file false returns. And in appropriate cases, we will prosecute them. But everyone can help stop fraud and protect our public finances. Pay attention to your tax return and make sure that it’s right. If you think that a tax return preparer is deliberately preparing incorrect returns, or you suspect someone is selling a phony tax-loss scheme, report that person to the IRS.”
The IRS website has information about how to report a dishonest return preparer, as well as information about how to report other types of tax fraud. The Justice Department’s website has a list of tax-return preparers and tax-scheme promoters whom the courts have shut down.
In addition to the civil enforcement through injunctions that stop their illegal actions, many return preparers and promoters also face prosecution. Examples of those investigations can be found for fiscal years 2014 and 2015.
-
Jury Finds Man Guilty of Racially Motivated Hate CrimeRead the Press Release
A man who stomped on and kicked the head of an African American man because of the victim’s race was convicted by a jury on March 30, 2016, after a three-day trial in federal court in Cedar Rapids.
Randy Metcalf, age 40, from Dubuque, Iowa, was convicted of one count of committing a federal hate crime. The verdict was returned following about three hours of jury deliberations.
The evidence at trial showed that on January 12, 2015, Metcalf assaulted an African American male at the Northside Bar in Dubuque, Iowa, by stomping on and kicking his head as the victim lay barely conscious on the floor of the bar. Metcalf assaulted the victim and was then pushed away from him by another person in the bar, but then returned to kick and stomp the victim in the head again. The evidence further showed that he assaulted this man because he was African American and that Metcalf had been using racial slurs in reference to the man over the course of the night prior to the assault. Metcalf also displayed a swastika tattoo to other people who were in the bar prior to the assault and bragged about having burned crosses.
“Racially motivated acts of violence have no place in our state or country,” said Kevin W. Techau United States Attorney for the Northern District of Iowa. “This office is committed to vigorously prosecuting federal laws prohibiting violent acts of hate and protecting the civil rights of the citizens of Iowa.”
“Hate violence violates the fundamental promise of equal protection for all that defines a free and tolerant society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “As this conviction shows, the Department of Justice will continue to aggressively prosecute hate crimes to ensure that we safeguard the rights of victims and hold perpetrators accountable.”
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Metcalf remains in the custody of the United States Marshal pending sentencing. Metcalf faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case was investigated by the Dubuque Police Department and the Federal Bureau of Investigation. The case is being jointly prosecuted by Assistant United States Attorney Anthony Morfitt and Trial Attorney Christopher Perras of the Justice Department’s Civil Rights Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-1032.
Follow us on Twitter @USAO_NDIA.
Jury Convicts Springfield Man for Enticement of a MinorRead the Press Release
Urbana, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced that a jury convicted Jeffrey Parkhurst, 59, of the 1100 block of Reynolds St., Springfield, Ill., today for attempted enticement of a minor. The jury deliberated for approximately 26 minutes before returning the verdict. Sentencing has been scheduled for Aug. 1, 2016, before U.S. District Judge Colin S. Bruce.
During the trial, which began on Tuesday, Mar. 29, the government presented evidence to establish that in July 2015, Parkhurst used the Internet and a cellular telephone to knowingly attempt to entice an individual he believed to be a minor to engage in illegal sexual activity.
Parkhurst was arrested on Jul. 27, 2015, in Decatur, Ill. and charged initially by state authorities. He has remained in custody since his arrest. The defendant was remanded to the custody of the U.S. Marshals Service on Sept. 18, 2015.
The statutory penalty for attempted enticement of a minor is 10 years to life in prison plus a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Elly M. Peirson. The charges are the result of an investigation by the Decatur Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigations in cooperation with the Macon County State’s Attorney.
The 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 the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Joplin Man Sentenced to 27 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for sexually abusing a 7-year-old victim to produce child pornography.
Joseph William Colvin, 26, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 27 years in federal prison without parole. The court also sentenced Colvin to spend the rest of his life on supervised release following incarceration.
On Oct. 13, 2015, Colvin pleaded guilty to the sexual exploitation of a child. Colvin admitted that he sexually abused a 7-year-old victim from April 20 through July 10, 2014, and recorded video of the abuse with his cell phone. He also admitted to taking two videos of the abuse, which investigators found on his cell phone.
According to court documents, Colvin was also in possession of child pornography that he downloaded from the Internet. Law enforcement officers seized Colvin’s laptop computer, an external hard drive and a cell phone, which must be forfeited to the government.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Jasper County, Mo., Sheriff’s Department and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jonesville Man Sentenced on Murder for Hire ChargesRead the Press Release
ABINGDON, VIRGINIA – A Jonesville, Virginia man, who previously pled guilty to attempting to hire someone to murder a Pennington Gap Police Officer, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon on a pair of related federal charges, United States Attorney John P. Fishwick Jr. announced.
Harold Wayne Owen, 49, of Jonesville, Va., pled guilty in 2015 to one count of the use of a facility of interstate commerce to commit murder for hire and one count of possessing a firearm in furtherance of a crime of violence and using a firearm during and in relation to a crime of violence.
Today in District Court, Owen was sentenced to 248 months in federal prison and three years of supervised release thereafter.
“Mr. Owen tried to have one of the brave men who protect our communities murdered for simply doing his job,” United States Attorney John P. Fishwick Jr. said today. “Every day, men and women all across this country put on a uniform to serve and protect their communities. It’s an honorable and oftentimes dangerous job. This case should show that we will do whatever we can to protect those officers when their lives are threatened in any way.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, Owen attempted to hire an individual [ATF-CI] to kill a Pennington Gap, Virginia police officer whom Owens held a grudge against for previously administering a field sobriety test to Owen during a traffic stop for driving under the influence.
Beginning on December 15, 2014, Owen approached ATF-CI and said he was waiting for a $100,000 insurance settlement and asked if ATF-CI wanted to do something for him for $20,000. Owen said he would tell ATF-CI more about the job later. The next day, Owen told ATF-CI there was a police officer working for the Pennington Gap Police Department who had been harassing him and he wanted something done. On December 17, 2014, Owen called ATF-CI and gave him a detailed physical description of the police officer (which matched an officer working for the department at the time) and further stated that a picture of the intended target could be found in the newspaper. Owen told ATF-CI he could not possess a firearm because he was a felon but said he could provide a .223 rifle to use for the job, which again Owen said would pay $20,000.
On January 6, 2015, ATF-CI met with Owen at his residence to again discuss the plan to be paid $20,000 to murder a Pennington Gap police officer. During that meeting, Owen again described the officer and talked about how the ticket he wrote Owen ruined him. ATF-CI mentioned that he was a felon and could not purchase a firearm, Owen stated that he, too, was a felon but could “take care of everything you need.” The two men talked about staging an alibi for Owen during the time the murder was to take place and the type of firearm that would be used for the murder. At one point during the conversation, AFT-CI asked Owen if killing the officer was worth it. Owen said no, but “I’m a grudge keeping fu**er.” Owen said he did not know where the officer lived but could find out. ATF-CI said he wanted to be sure the officer he killed was the right one, Owen said he did too because he couldn’t afford to pay ATF-CI to kill two police officers.
On January 14, 2015, Owen met with ATF-CI and told him he expected his insurance claim money to be paid in the next thirty to sixty days. For killing the Pennington Gap Police Office, Owen told ATF-CI he would pay him $12,000 if he received a $100,000 insurance check, $15,000 if he received $115,000 and $20,000 if he received more than $130,000. Owen also told ATF-CI that he would get him a .223 rifle, 308 rifle or a hand gun. Owen said if AFT-CI was going to use a rifle, there was a water tower they could sit in with a straight view of the Pennington Gap Police Department.
On February 7, 2015, Owen facilitated the sale of a firearm, an AK-47 style rifle, from a third party, to ATF-CI, for use in the murder for hire plot to kill the Pennington Gap Police Officer.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lee County Sheriff’s Office and the Pennington Gap Police Department. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Iron Mountain and Recall Holdings Agree to Divest Records Management Assets as a Condition to Proceed with TransactionRead the Press Release
Divesture Protects Competition and Consumers in 15 Metropolitan Areas
The Department of Justice’s Antitrust Division announced today that it will require Iron Mountain Inc. to divest records management assets in 15 metropolitan areas in order to proceed with its $2.6 billion acquisition of Recall Holdings Ltd. The Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed acquisition and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
Iron Mountain and Recall both offer records management services – storing, protecting and organizing large volumes of hard-copy records at secure, off-site locations – in many cities across the United States. To address the division’s competitive concerns, the parties will divest records management assets in the following 15 metropolitan areas where they are two of the three largest providers of these services and there are few, if any, significant remaining competitors: Detroit; Kansas City, Missouri; Charlotte, North Carolina; Durham, North Carolina; Raleigh, North Carolina; Buffalo, New York; Tulsa, Oklahoma; Pittsburgh; Greenville/Spartanburg, South Carolina; Nashville, Tennessee; San Antonio, Texas; Richmond, Virginia; San Diego; Atlanta; and Seattle.
“Iron Mountain’s proposed acquisition of Recall would have harmed records management customers in 15 metropolitan areas by dramatically reducing competition in these markets,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “As a result of today’s settlement, these customers will continue to enjoy the fruits of competition – lower prices and higher quality services.”
The transaction is also being reviewed by the Australian Competition and Consumer Commission, the United Kingdom’s Competition & Markets Authority and the Canadian Competition Bureau. The department cooperated closely with them throughout the course of its investigation, with frequent contact between the agencies.
Iron Mountain is a Delaware corporation headquartered in Boston. Iron Mountain is the largest records management company in the United States, providing document storage and related services throughout the nation. For fiscal year 2014, Iron Mountain reported worldwide revenues of approximately $3.1 billion.
Recall is an Australian company headquartered in Norcross, Georgia. As the second-largest records management company in the United States, Recall provides document storage and related services throughout the nation. Recall’s worldwide revenues for fiscal year 2014 were approximately $836.1 million.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed final judgment upon finding that it serves the public interest.
Interstate Stalker Pleads Guilty in San AntonioRead the Press Release
In San Antonio, 57-year-old Gabriel Robert Caggiano of Los Angeles, CA, faces up to five years in federal prison after pleading guilty to stalking a former employer and his wife who reside in San Antonio announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Xavier Rodriguez, Caggiano pleaded guilty to one count of stalking. According to court records, in 2008, Caggiano was employed a television station in Corpus Christi, TX. Caggiano was ultimately terminated from his employment at the station
By pleading guilty, Caggiano admitted that from March 15, 2015 until August 26, 2015, he repeatedly used voicemails, text messaging, social media and the U.S. Mail to retaliate against his victims. In those communications, Caggiano threatened physical violence against his victims as well as to embarrass, humiliate and cause substantial emotional distress to his victims by destroying the reputation of his former employer and his wife.
On November 12, 2015, Caggiano was arrested in Los Angeles. On November 24, 2015, Judge Rodriguez revoked Caggiano’s bond. He remains in federal custody. Sentencing is scheduled for 1:30pm on July 13, 2016.
This investigation was conducted by the FBI in San Antonio and Los Angeles. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
Gang Member Pleads Guilty to Stolen Firearm and Ammunition ChargeRead the Press Release
Contact Person: Stacey D. Haynes (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Anthony Leroy Doctor, a/k/a “Amp,” age 26, of Columbia, South Carolina plead guilty today in federal court. Doctor plead guilty to being in possession of a stolen firearm and ammunition, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2). United States District Judge Mary Geiger Lewis of Columbia accepted the plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court established that shortly before midnight on June 7, 2015, Doctor and others became involved in a disturbance in the parking lot outside a nightclub located in a strip mall at Broad River Road and Rushmore Road in Columbia. Doctor was armed with a firearm and when confronted by club security, Doctor left the premises and discarded the firearm in some bushes along a parking lot behind a restaurant across from the club. Later, Doctor returned to the bushes and attempted to retrieve the firearm, but was asked to leave the premises by the restaurant security. Doctor continued to return to search the bushes and while Doctor was looking for the firearm in the bushes, a deputy with the Richland County Sheriff’s Department arrived in response to the restaurant’s call about a suspicious person in their parking lot. When asked what he was doing, Doctor, without turning around, replied that he was looking for his gun. Doctor then turned around and noticed that the security guard had been joined by the Richland County deputy. Doctor, who was intoxicated, was placed in investigative detention while deputies searched for the firearm. Deputies called a K-9 to the scene. The K-9 performed an article search and retrieved the firearm from the bushes where Doctor had been searching earlier. Doctor, an admitted gang member, was placed under arrest for state weapon charge and disorderly conduct. The firearm, a Taurus 9mm handgun was loaded with one round of 9mm ammunition, and had previously been stolen in the fall of 2014 from a vehicle in Aiken. The case was referred to federal authorities for prosecution as Doctor, who was on state probation at the time, is prohibited under federal law from possessing firearms and/or ammunition based upon his prior state felony convictions, which include carjacking, assault and battery with intent to kill, strong arm robbery, and possession of a firearm by a person convicted of a violent crime.
Doctor faces a maximum of 10 years imprisonment and/or a fine of $250,000 on the stolen firearm/ammunition charge. Doctor stipulated and agreed to imposition of the maximum 10 years imprisonment sentence as part of his federal plea agreement.
The case was investigated by the Richland County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Fugitive Extradited from Lebanon to Face Money Laundering ChargesRead the Press Release
PHILADELPHIA – Karim Messaoud, 47, a foreign national of Senegal and Morocco, made his initial appearance today after being extradited from Lebanon to the United States, announced United States Attorney Zane David Memeger.
In 2005, a federal grand jury handed up a 36-count indictment charging Messaoud with one count of conspiracy to launder monetary instruments, and 35 counts of laundering of monetary instruments. Messaoud fled the United States shortly after his indictment. U.S. District Court Judge Paul S. Diamond will preside over the trial. No date has yet been set.
According to the indictment, from April 2000 through September 2002 Messaoud illegally transferred monies through Western Union and other sources. At the time he committed these acts, Messaoud believed he was doing so for drug dealers, and that the funds were the proceeds of their drug trafficking. Messaoud structured the transfers in smaller amounts and in ficitious names to evade United States reporting requirements and to conceal the true source of the funds, and directed his co-conspirator to do the same. There were 24 illegal transactions by Messaoud totalling $337,500, and between Messaoud and his co-conspirator, a grand total of $407,500 in funds that were illegally transferred.
The extradition of this fugitive was a complex process that involved collaboration between the United States Attorney’s Office in the Eastern District of Pennsylvania and the Department of Justice, Office of International Affairs in Washington D.C., the Federal Bureau of Investigation, the United States Marshal Service, and the Lebanese government.
This case was investigated by the Federal Bureau of Investigation and U.S. Immigration and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty.
Four Plead Guilty to Running Puerto Rican ID Theft RingRead the Press Release
CINCINNATI – Four defendants have pleaded guilty in U.S. District Court to charges related to an identity theft ring operated with Puerto Rican birth certificates and Social Security cards.
Oris Mercedes Baez Ramirez, 50, of Hamilton, Ramon E. Fuentes Morillo, 50, of Puerto Rico, and Cipriano Diaz, 39, of Cincinnati, and Chilango Zuniga, 40, of Hamilton, all pleaded guilty to charges related mail and wire fraud and aggravated identity theft.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Division, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS), Marlon V. Miller, Special Agent in Charge, Homeland Security Investigations (HSI), and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General, announced the pleas entered into before U.S. District Susan J. Dlott.
According to court documents, beginning at least as early as April 2014 and continuing until July 2015, the defendants conspired to enrich themselves by trafficking in Puerto Rican birth certificates and Social Security cards. Some document sets were issued to real people and some were illegally manufactured using the names and information of real people.
The defendants tried to avoid detection by using fake names on the document packages they sent via Priority or Express Mail to various addresses. They wired money to and from Puerto Rico in order to purchase more documents to then sell at a profit.
Ramirez pleaded guilty on January 20 to one count of conspiracy to commit mail and wire fraud and four counts of aggravated identity theft.
Morillo pleaded guilty on February 23 to one count of conspiracy to commit mail and wire fraud, four counts of aggravated identity theft and one count of money laundering.
Diaz pleaded guilty yesterday to one count of conspiracy to commit mail and wire fraud, two counts of aggravated identity theft and one count of money laundering.
Zuniga also pleaded guilty yesterday to one count of conspiracy to commit mail and wire fraud.
Conspiracy to commit mail and wire fraud and money laundering are crimes punishable by up to 20 years in prison. Each count of aggravated identity theft carries a mandatory two year addition to sentences for the underlying felony offense.
Nine individuals were indicted in total in this case. The other co-defendants include:
Jorge Roblero, 35, of Cincinnati
Kathya Roblero, 50, of Cincinnati
Esmeralda Hernandez Cervantes, 36, of Cincinnati
Susana Angiolina Urena, 45, of Hamilton
Fernano Evelio Velasquez-Morales, 32, of Cincinnati
Acting U.S. Attorney Glassman commended the cooperative investigation of this case by law enforcement, as well as Assistant United States Attorney Jessica W. Knight and Cincinnati Branch Chief Emily N. Glatfelter, who are representing the United States in this case.
Fort Smith Woman Sentenced to 14 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Adelina Magana Fernandez, aka Adenlina Magana Hernandez, age 28, of Fort Smith, was sentenced this week to 168 months in federal prison followed by five years of supervised release on one count of Aiding and Abetting Distribution of More than five (5) Grams of Methamphetamine. She was also ordered to pay a $7,500.00 fine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
Adelina Fernandez was arrested by the DEA on October 13, 2015, indicted by a federal grand jury on October 28, 2015, and pleaded guilty to the charge in November, 2015.
Luis Calderon-Fernandez pleaded guilty to the same charges as Magana-Fernandez in February, 2016 and is currently awaiting sentencing.
This case was investigated by the Springdale Police Department and the Drug Enforcement Administration. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Former Wilkes-Barre Towing Contractor Charged with Mail Fraud and Filing A False Income Tax ReturnRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Leo Glodzik, age 45, of Wilkes-Barre has been charged in a Criminal Information filed today in the United States District Court in Scranton with Mail Fraud, Being a Felon in Possession of a Firearm, and Subscribing to a False Federal Income Tax Return.
According to United States Attorney Peter Smith, the charges, in part, arose as a result of a towing contract Glodzik’s firm, LAG Transport, Inc. (LAG), had with the City of Wilkes-Barre for the exclusive rights to tow all vehicles as requested by the City, and/or the Wilkes-Barre Police Department, and/or the city’s agents. The contract began in January 2005 and was ended in June 2013, after disclosures of complaints from residents related to LAG’s towing practices.
According to the charges in the Criminal Information, LAG towed vehicles throughout Wilkes-Barre as the result of accidents, police incidents or vehicle abandonment. Vehicles were towed to locations owned and controlled by Glodzik.
Glodzik allegedly devised a scheme to defraud lawful owners of the vehicles by charging excessive towing and storage fees for LAG’s services or intentionally hindering the owners’ access to their vehicles in a way that resulted in additional fees. This allegedly resulted in owners signing over title to vehicles to LAG or Glodzik to discharge the fees.
Glodzik then allegedly gained ownership of the vehicles through use of abandonment procedures administered by the Pennsylvania Department of Motor Vehicle (PennDot) to transfer ownership from registered owners to LAG. Forms were submitted to PennDot, using the U.S. Postal Service.
The forms submitted to PennDot stated that vehicles had a value of less than $500, when, in fact, the values were greater. This resulted in Glodzik being able to avoid legal advertisement of abandoned vehicles and payments to the Commonwealth of Pennsylvania of money received for vehicles sold at auctions that were above and beyond Glodzik’s own business costs.
As a result of the scheme, Glodzik allegedly enriched himself by unlawfully taking ownership of vehicles to which he was not entitled and using intentional misrepresentations to reduce his own expenses and costs.
The fraud scheme is set out in a mail fraud charge in the Criminal Information relating to a vehicle for which a notice of declaration of abandonment was mailed to PennDot in April 2011.
Glodzik is charged in the Criminal Information with Federal Income Tax Fraud, specifically, the filing of a federal tax return for 2008, in which he claimed zero taxable income, when, in fact, his actual taxable income for that year was allegedly $408,618.
The Criminal Information also charges Glodzik with being a convicted felon in possession of a firearm. The charge was part of an Indictment of Glodzik previously returned by a federal grand jury in Scranton in April 2015. The discovery of the firearms was pursuant to searches by agents of the Federal Bureau of Investigation and Internal Revenue Service Investigations.
The charges are the result of investigations by the Scranton Office of the Federal Bureau of Investigation, the Internal Revenue Service Investigations, and the Pennsylvania State Police into local government practices and contracting in Luzerne County. Prosecution is assigned to Assistant United States Attorneys Michelle Olshefski and John Gurganus.
Glodzik was also previously charged in the April 2015 federal indictment with bank fraud in connection with activities of the Wilkes-Barre City Employees Federal Credit Union. A former Wilkes-Barre City police officer and a former credit union employee were charged and pleaded guilty in that investigation. The government has agreed to dismiss the bank fraud charge against Glodzik as part of a plea agreement in the Criminal Information filed today. The agreement is subject to the approval of the court. No date has been scheduled for the entry of Glodzik’s plea.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under the mail fraud federal statute is 20 years of imprisonment. The firearm charge is punishable by up to 10 years’ imprisonment, and the maximum penalty for the tax charge is three years’ imprisonment. Each crime is also punishable by a term of supervised release following imprisonment, and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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