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30 March 2016
Regional Elder Justice Task Forces Launched and U.S. Attorney’s Office Selected to ParticipateRead the Press Release
CEDAR RAPIDS, IA – Today the Department of Justice announced the launch of ten regional Elder Justice Task Forces. These regional teams will bring together federal, state and local prosecutors, law enforcement, and other agencies with the primary purpose to coordinate and enhance efforts against nursing homes that provide grossly substandard care to their residents.
United States Attorney Kevin W. Techau stated, “We are excited to participate at the onset of this important initiative. Elder abuse issues will affect most Iowans at some point in their lives and the forming of this task force will further our ongoing efforts to protect some of our district’s most vulnerable citizens.”
“Millions of seniors count on nursing homes to provide them with quality care and to treat them with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery. “Yet, all too often we have found nursing home owners or operators who put their own economic gain before the needs of their residents. These task forces will help ensure that we are working closely with all relevant parties to protect the elderly.”
The Elder Justice Task Forces will include representatives from the United States Attorneys’ Offices, state Medicaid Fraud Control Units, state and local prosecutors’ offices, as well as the Department of Health and Human Services, state Adult Protective Service agencies, Long-Term Care Ombudsman programs, and law enforcement.
“The Department of Justice has a long history of holding nursing homes and long-term care providers accountable when they fail to provide their Medicare and Medicaid residents with even the most basic nursing services to which they were entitled,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “By bringing everyone to the table, we will be able to more effectively and quickly pursue nursing homes that are jeopardizing the health and well-being of their residents.”
Steve Hanson, Special Agent in Charge of the Kansas City Regional Office of U.S. Department of Health and Human Services, Office of Inspector General, stated, “Our office looks forward to working with our law enforcement partners as well as state and local officials to ensure that elderly Iowans receive the appropriate level of care and services they so deserve.”
The ten Elder Justice Task Forces will be launched in the following Districts: Northern District of California, Northern District of Georgia, District of Kansas, Western District of Kentucky, Northern District of Iowa, District of Maryland, Southern District of Ohio, Eastern District of Pennsylvania, Middle District of Tennessee, and the Western District of Washington.
The Elder Justice Task Forces are part of the Department’s larger strategy and commitment to protecting our nation’s seniors through the Department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement and policy activities on elder justice issues and plays an integral role in the Departments’ investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Elder Justice Initiative will be providing litigation support and training to the Elder Justice Task Forces. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
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Project Safe Childhood - Massachusetts Man Sentenced to Federal Prison for Transporting A Minor for Illegal Sexual ActivityRead the Press Release
CONCORD, NEW HAMPSHIRE: Lawrence Marks, 35, of Tewksbury, Massachusetts, appeared in United States District Court today and was sentenced to 12 ½ years in prison after pleading guilty to transportation of a minor in interstate commerce for illegal sexual activity, announced U.S. Attorney Emily Gray Rice.
In November of 2014, the New Hampshire State Police were conducting an investigation into the possible sexual abuse of several children in Franklin, New Hampshire. The investigation led to Lawrence Marks of Tewksbury, Massachusetts whom several witnesses identified as a man seen frequently with one of the minor children. Marks subsequently confessed to taking the child from New Hampshire to Massachusetts on several occasions where he engaged in sexual activity with her.
Marks will be supervised by U.S. Probation for 5 years after his release from prison. He will be required to register as a sex offender in any state in which he lives or works.
The case was investigated by the New Hampshire State Police and the Franklin Police Department in conjunction with the Federal Bureau of Investigation and the Billerica, Massachusetts, Police Department. This case was prosecuted by Assistant United States Attorney Helen Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Postal Worker Sentenced for Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSHUA GRESHAM, age 27, of New Orleans, was sentenced today after previously pleading guilty to theft of mail.
U.S. District Judge Kurt Engelhardt sentenced GRESHAM to 2 years of probation, $750 fine, $300 special assessment and restitution in the amount of $10.
According to Court records, on or about July 9, 2014, GRESHAM, a United States Postal employee, removed $370.00 in cash from three greeting cards while on his postal route.
U.S. Attorney Polite praised the work of the U.S. Postal Service, Office of Inspector General for investigating this matter. Assistant U.S. Attorney G. Dall Kammer is in charge of the prosecution.
Philadelphia Man Charged in Heroin ConspiracyRead the Press Release
PHILADELPHIA – An indictment was filed today charging Jose Ramon Liriano-Compres, 53, of Philadelphia, PA, with one count of conspiracy to distribute heroin and three counts of distribution of heroin, announced United States Attorney Zane David Memeger.
Liriano-Compres and another individual, charged elsewhere, were allegedly part of a heroin conspiracy. According to the indictment, on three separate occasions in June of 2015, Liriano-Compres distributed over 300 grams of heroin in Philadelphia.
If convicted, Liriano-Compres faces a mandatory minimum of 10 years in prison with a maximum possible sentence of life, a $400 special assessment, up to eight years of supervised release, and a potential fine.
This case was investigated by the FBI and the Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Clare Putnam Pozos.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Sentenced to Prison for Role in Ugandan-manufactured Counterfeit Cash SchemeRead the Press Release
PITTSBURGH - A resident of Bethlehem, Pennsylvania, has been sentenced in federal court to 18 months imprisonment, to be followed by three years of supervised release, on his conviction of one count of conspiracy to make, deal, possess, pass, buy, sell, and transfer counterfeit currency both overseas and in the United States and one count of transferring counterfeit currency, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence yesterday on Michael Q. Lin, aka Mr. Casino, 22, of Bethlehem, PA.
Michael Q. Lin, using the online identity of mlin and Mr. Casino, joined a conspiracy to manufacture, deal, possess, pass, and transfer Ugandan-manufactured counterfeit Federal Reserve Notes. He bought counterfeit notes from Willy Clock, the self-proclaimed manufacturer of these counterfeit notes, and he was an active member and contributor to Community-X, a Dark Net website dedicated to the manufacturing, distribution, and passing of these Ugandan-manufactured counterfeit notes. In addition, after this conspiracy ended, Michael Q. Lin had another person ship to him $170 in counterfeit Federal Reserve Notes.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Lin.
Park Hill Man Sentenced to 30 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that RANDALL LEON GIRDNER, age 48, of Park Hill, Oklahoma, was sentenced to 30 months of imprisonment, followed by 3 years of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The charge arose from an investigation by the Oklahoma Highway Patrol and the Federal Bureau of Investigation.
The Indictment alleges that on or about February 14, 2015, within the Eastern District of Oklahoma, the defendant, RANDALL LEON GIRDNER, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Herman Weihrauch, Model Regent, .22 caliber revolver, serial number 32796, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Dean Burris represented the United States.
Palmview Man Convicted of Receiving Child Pornography via the InternetRead the Press Release
McALLEN, Texas – Palmview resident Eduardo Pena, 33, has entered a plea of guilty to one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson.
Pena came to the attention of law enforcement following an investigation which began Nov. 15, 2015, into persons using the Internet to traffic in child pornography. A Homeland Security Investigations (HSI) agent was able to locate and identify Pena as the owner of a computer offering to participate in the receipt of child pornography movies through a peer-to-peer network.
Law enforcement executed a search warrant Jan. 13, 2016, at Pena's Palmview residence, at which time they seized computers and an external storage media device. The forensic examination revealed 49 movies of clearly young children engaged in sexually explicit conduct. These movies included children under the age of 12 engaged in sadistic conduct, bondage and acts of violence.
Pena admitted he downloaded child pornography from the Internet, thereby receiving and possessing the child pornography found on his computer and external storage media.
U.S. District Judge Micaela Alvarez, who accepted the guilty plea, has set sentencing for June 16, 2016, at 2:00 p.m. At that time, Pena faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation conducted by HSI.
This case, prosecuted by Assistant U.S. Attorney Lynn Wang, 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."
Owners of Saul Farms Plead GuiltyRead the Press Release
BOISE - Bernard Saul, 58, of Bliss, Idaho, pleaded guilty today to wire fraud and money laundering, U.S. Attorney Wendy J. Olson announced. Bernard Saul waived his right to indictment and pleaded guilty to a two-count felony information filed by the U.S. Attorney. Yesterday, Roza Saul, 36, the wife of Bernard Saul, pleaded guilty to delivery of a misbranded food product. She pleaded guilty to a one-count misdemeanor criminal information filed by the U.S. Attorney.
According to the plea agreements, Bernard and Roza Saul were co-owners of Saul Farms, marketing as Bliss Seeds LLC. Saul Farms was located in Bliss, Idaho, and produced, handled, and sold alfalfa seeds labeled as “organic,” among other crops.
Under applicable federal regulations, to be sold or labeled as “organic,” an agricultural product generally (i) must have been produced and handled without the use of synthetic chemicals, (ii) must not have been produced on land to which any prohibited substances, including synthetic chemicals, have been applied during the preceding three years, and (iii) must have been produced and handled in compliance with an appropriate organic plan. Also, an entity that intended to sell or label agricultural products as organic first had to be certified as an organic producer or handler according to applicable regulations.
According to the plea agreements, from 2010 through 2015, Bernard Saul annually applied to the Idaho State Department of Agriculture and Nature’s International Certification Services for United States Department of Agriculture organic certifications to produce and handle organic alfalfa seeds on Saul Farms. In the applications, and during site inspections, Bernard Saul represented that Saul Farms grew organic alfalfa seed on between 42 and 81 acres, and produced between 35,000 and 50,000 pounds of organic alfalfa seed per year. During 2010 through 2015, organic alfalfa seed sold for more than one dollar more per pound than conventional, non-organic alfalfa seed.
According to the plea agreements, from 2010 through 2015, Bernard Saul purchased conventional, non-organic alfalfa seed from Andrews Seed, Quarter J Circle Farms, McClintick Farms, and United Seed Services in the following approximate amounts: 66,403 pounds for 2010; 304,891 pounds in 2011; 438,288 pounds in 2012; 545,182 pounds in 2013; 447,218 pounds in 2014; and 334,371 pound for the first nine months of 2015. Bernard Saul knowingly and intentionally misbranded these seeds as “organic” alfalfa seeds, and sold them to customers Albert Lea, Kings Agriseeds, Blue River Hybrid, Byron Seeds, and Foundation Organic at the higher organic price and received the following payments: $182,000 for 2010; $891,661 for 2011; $1,910,583 for 2012; $1,538,763 for 2013; $1,645,910 for 2014; and $921,520 for the first nine months of 2015.
According to the plea agreements, for the years 2010 through 2015, Bernard Saul knowingly and intentionally did not disclose to the United States Department of Agriculture, Idaho State Department of Agriculture and Nature’s International Certification Services Saul Farms’ purchases of conventional, non-organic alfalfa seeds from Andrews Seed, Quarter Circle J Farms, McClintick Farms, and United Seed Services, and Saul Farms’ sales of alfalfa seed – represented as “organic” – to customers Albert Lea, Kings Agriseeds, Blue River Hybrid, Byron Seeds, and Foundation Organic. As a result, these customers paid higher organic alfalfa seed prices and were defrauded of $1,903,727.
According to the plea agreements, as a co-owner of Saul Farms, Roza Saul had responsibility and authority to prevent or correct a violation of the Federal Food, Drug and Cosmetic Act, which holds responsible parties strictly liable for introducing misbranded food products into interstate commerce.
Also, according to the plea agreements, Bernard Saul engaged in monetary transactions with the proceeds of the fraudulent sales. From 2012 through 2015, Bernard Saul made the following purchases with the proceeds of the fraudulent sales: a 438-acre parcel of real property in Buhl, Idaho for $1,000,000; a 2012 Coachman Freelander recreational vehicle for $20,000 (partial payment); a 2014 Polar Kraft boat, engine, and trailer for $41,553; 2015 Dodge Ram 2500 Truck for $36,505; and a $90,000 cashier’s check.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and not more than 3 years of supervised release. The charge of money laundering is punishable by up to 10 years in prison, a maximum fine of $250,000, and not more than 3 years of supervised release.
The charge of delivery of a misbranded food product is punishable by up to one year in prison, a maximum fine of $100,000, and not more than one year of supervised release.
Sentencing for Bernard Saul is set for June 7, 2016, before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. Sentencing for Roza Saul is set for June 2, 2016, before U.S. Magistrate Judge Ronald E. Bush.
The case was investigated by the Federal Bureau of Investigation and the United States Department of Agriculture, Office of Inspector General.
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. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Oilpro.Com Founder Charged in Manhattan Federal Court with Hacking into Competitor’s Computer SystemRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DAVID W. KENT, the founder of professional networking website Oilpro.com (“Oilpro”), was arrested for charges relating to computer hacking and wire fraud. The charges stem from KENT’s alleged role in repeatedly hacking into a competitor’s database to steal customer information and attempting to sell Oilpro to the same company whose database KENT had hacked. KENT was arrested by FBI agents in Spring, Texas, this morning and will be presented before U.S. Magistrate Judge Dena Palermo in Houston this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, David Kent hacked into a competitor’s database and stole information from over 700,000 customer accounts. Later he allegedly tried to use the proprietary information to defraud that same company. Thanks to the efforts of our law enforcement partners at the FBI, David Kent will now be held to account for his criminal conduct.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “In this case, a profitable business was sold for approximately $51 million. Allegedly, however, instead of relinquishing control of his former company, subject David Kent continued to illegally access data and information from his former business to help benefit a competing business he formed after the sale. Unauthorized access to a protected computer system is a federal crime. The FBI will investigate and bring to justice criminal actors who commit computer intrusions, whether the unauthorized access is to a personal computer or a corporate server.”
According to the allegations in the Complaint unsealed today in Manhattan federal
court[1]:
In or about March 2000, KENT founded a website (“Website-1”) that provides, among other things, networking services to professionals working in the oil and gas industry. Website-1 allows its members to create profiles, which include personal and professional information. As part of their profiles, members can also upload their resumes. The profiles are contained in a database maintained by Website-1 (the “Members Database”). Members are assigned login credentials (i.e. usernames and passwords) when they create their profiles. Members use these login credentials to access their profiles.
In or around August 2010, KENT sold Website-1 for approximately $51 million to a publicly-traded company headquartered in New York, NY (“Company-1”). KENT entered into an employment agreement with Company-1 and agreed to continue to serve as the President of Website-1 after the acquisition. However, KENT left Website-1 in September 2011 and launched Oilpro in October 2013. Like Website-1, Oilpro provides networking services to professionals working in the oil and gas industry. Oilpro is headquartered in Houston, Texas.
Between October 2013 and February 2016, KENT conspired to access information belonging to Website-1 without authorization and to defraud Company-1. KENT accessed the Website-1 Members Database without authorization and stole customer information, including information from over 700,000 customer accounts. KENT then exploited this information by inviting Website-1’s members to join Oilpro. Similarly, one of Kent’s employees at Oilpro who previously worked for Website-1 (“CC-1”) accessed information in Website-1’s Google Analytics account without authorization and forwarded the information to KENT. In the meantime, KENT attempted to defraud Company-1 by misrepresenting during discussions about a potential acquisition of Oilpro by Company-1 that Oilpro had increased its membership through standard marketing methods.
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KENT, 40, of Spring, Texas, has been charged with one count of conspiracy to commit computer hacking and wire fraud, which carries a maximum term of five years in prison, and one count of wire fraud, which carries a maximum term of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI. Mr. Bharara also thanked the Office of International Affairs and the United Kingdom’s National Cyber Crime Unit (NCCU), and noted that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Sidhardha Kamaraju and Andrew K. Chan are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
North Carolina Man Sentenced on Federal ChargesRead the Press Release
St. Louis, MO – Jordan Gilmore, Wade, North Carolina, was sentenced to 70 months in prison. Gilmore previously pled guilty to recruiting two Kentucky people and driving them to Missouri, Colorado, Indiana, Illinois and other states to steal mail and pass altered checks. He appeared today in St. Louis for sentencing before United States District Judge Ronnie L. White.
According to court documents, on May 11, 2015, Creve Coeur police received a call from Enterprise Bank about a man, later identified as Joseph Coan, who was attempting to pass a stolen check. After receiving a description of the vehicle in which Coan was traveling, the officers effectuated a traffic stop of the vehicle, and located Coan, Megan Adams and Jordan Gilmore, the driver. During the stop, the officers saw a stack of money on the floorboard near Gilmore. When the three individuals were placed under arrest, officers located checks, stolen mail and more than $12,000 cash in the car. During a search of Coan, the officers found an additional $4,000 hidden in his shoe.
Through an interview with Adams, officers learned that the defendants had stayed at a hotel in St. Charles, Missouri, the previous night. They searched the hotel room and located equipment needed to alter stolen checks and stolen mail from which the checks had been obtained. A review of the mail revealed that it had been stolen in the Missouri counties of Lincoln, St. Charles and St. Louis. The account holders of the stolen checks informed the investigators that the checks had been placed in the mail as payment of debts, but the legitimate payees reported that they had not received the mailed items.
Co-defendants Joseph Coan, Alexandria, KY, and Megan Adams, Southgate, KY, have entered guilty pleas to related charges and have been sentenced.
The case was investigated by the United States Postal Inspection Service, the Creve Coeur Police Department and the St. Charles County Police Department. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
New Jersey Man Sentenced for Damaging Employer's ComputersRead the Press Release
PHILADELPHIA - Lars Jepsen, 38, formerly of Deptford, NJ, was sentenced yesterday to five months in prison for hacking his former employer’s computers. He pleaded guilty on October 29, 2015, to knowingly causing damage to a protected computer and knowingly using the means of identification of another person with intent to commit a crime. In addition to the prison term, U.S. District Court Judge Joseph F. Leeson, Jr., ordered three years of supervised release, with the first six months in home confinement, a $3,000 fine, a $200 special assessment, and restitution of $9,500.
Jepsen damaged the computers of his former employer, after he had been fired. He did this using the username and password of another employee that he had acquired while working on that employee’s company computer. Jepsen drove from his New Jersey home to Allentown, PA, where he found an open Internet access point. He used that location to log into the employer’s network with the other employee’s credentials and then disabled the company’s Voice over Internet Protocol (VOIP) telephone network. The company lost its telephone service for several hours.
The case was investigated by the United States Secret Service, and is being prosecuted by Assistant United States Attorney Michael L. Levy.
Muskogee Woman Sentenced to 33 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JAZZ ELLINGTON PIERCE, age 28, of Muskogee, Oklahoma, was sentenced to 33 months of imprisonment, followed by 4 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B).
The Indictment alleged that the defendant and others coordinated and orchestrated the transportation of cocaine from source locations to the Eastern District of Oklahoma and used telephones, cellular and otherwise, to conduct and carry out the organization’s objectives.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Muskogee Police Department, the Muskogee County Sheriff’s Department and the United States Marshal Service.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which she will serve her nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Muskogee Man Sentenced to 87 Months for Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that PAUL BENJAMIN STONE, age 34, of Muskogee, Oklahoma, was sentenced to 87 months imprisonment, followed by 5 years of supervised release for POSSESSION OF CERTAIN MATERIAL INVOLVING THE SEXUAL EXPLOITATION OF MINORS, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The Indictment alleged that between on or about August 1, 2013, and on or about April 16, 2014, in the Eastern District of Oklahoma, the defendant, PAUL BENJAMIN STONE, did knowingly possess and attempt to possess matters which contained visual depictions and the production of said visual depictions involved the use of minors engaging in sexually explicit conduct and had been transported in interstate commerce by computer.
The charges arose from an investigation by the Federal Bureau of Investigation. The defendant pled guilty in September, 2015.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Multi-Year Prison Sentences for Two New Jersey Men Who Extorting Thousands of Dollars from Hudson County ProjectRead the Press Release
NEWARK, N.J. – Two New Jersey men were sentenced to prison today for extorting thousands of dollars in corrupt payments in connection with arranging approvals to provide landfill materials for a Hudson County Improvement Authority (“HCIA”) project, U.S. Attorney Paul J. Fishman announced.
Gerard Pica, 66, of Middletown, New Jersey, and James Castaldo, 60, of Beachwood, New Jersey were sentenced to 35 and 51 months in prison, respectively. Pica previously pleaded guilty before U.S. District Judge Jose L. Linares to Count Four of an indictment charging him with conspiracy to commit extortion under color of official right. Castaldo previously pleaded guilty before Judge Linares to Count One of the indictment charging him with conspiracy to commit extortion under color of official right. Judge Linares imposed both sentences today in Newark federal court.
According to the documents filed in this case and statements made in court:
The HCIA was overseeing the construction of a nine-hole public golf course located at Lincoln Park West in Jersey City, New Jersey (the “LPW project”). As part of its construction, the LPW project required several hundred thousand cubic yards of soil, fill material and crushed stone to be incorporated into the site, as well as to serve as road bedding during the construction of the golf course. As the overseer of the LPW project, one of the functions of the HCIA – either directly or through a designated contractor – was to serve as a gatekeeper for any material to be delivered to the LPW site. It was the HCIA’s responsibility to solicit, evaluate and decide which contractors’ proposals to accept for the provision of soil and fill material for the LPW project.
Castaldo ran Renda Enterprises LLC, which provided interstate transportation and broker services that moved or received recycled waste and other materials. Pica had been employed by the HCIA as an environmental scientist and had the ability to influence the HCIA’s decisions regarding the selection of contractors to provide soil and fill material to the LPW project. An individual referred to in the indictment as “Employee 1” also had authority over the selection of contractors seeking to provide materials for the project site.
From August 2010 through November 2011, Pica, Castaldo and others schemed to obtain payments from certain contractors in exchange for Pica and Employee 1’s assistance in getting approval for certain companies to provide materials for the LPW project.
Pica admitted that he arranged to obtain corrupt payments from “Individual 3,” the owner of a recycling business in Bayonne, New Jersey. Pica admitted using his authority at the HCIA to ensure that Individual 3 and Individual 3’s company received approval to provide Class B materials, including crushed stone, for the LPW project. As part of the agreement, Individual 3 would pay Castaldo a fee – $2 per cubic yard of fill and soil material delivered to the site – for the benefit of Pica, Castaldo and Employee 1. Pica admitted receiving approximately $6,600 in December 2010 as a partial payment of his share. In addition, Pica admitted to creating a fraudulent invoice from a separate company which he owned for monies purportedly owed to him by Renda Enterprises. Pica admitted that he accepted a check for $6,000 from Renda Enterprises in April 2011, knowing that this amount was further payment of his share which he extorted from Individual 3.
Castaldo admitted that in early 2011, he met with Pica and a person referred to in the indictment as “Individual 1,” who was the owner of a full service environmental consulting firm seeking authorization to dump soil and fill material at the LPW site. Castaldo admitted that he, Pica and Individual 1 agreed upon the amount per cubic yard that Individual 1 would have to pay in return for Pica’s assistance in ensuring Individual 1 would receive authorization to dump the material at the LPW site. Castaldo acknowledged that in July 2011, Renda Enterprises received two payments totaling more than $8,600 as corrupt payments for allowing Individual 1 to dump more than 2,600 cubic yards of fill materials at the LPW site.
In addition to the prison terms, Judge Linares sentenced both Pica and Castaldo to three years of supervised release. They are also jointly responsible for restitution of $53,861.
U.S. Attorney Fishman credited special agents from the FBI, under direction of Special Agent in Charge Timothy Gallagher in Newark and special agents with the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem, for the investigation.
The government is represented by Assistant U.S. Attorney Mark McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel:
Pica: Edward Plaza, Esq., Newark
Castaldo: Matthew J. Heagen, Toms River
Mount Vernon Tax Preparer Charged with 50 Counts of Aiding and Assisting Preparation of False and Fraudulent Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced today the unsealing of a 50-count Indictment of tax preparer SAMUEL GENTLE on charges relating to his false and fraudulent preparation of individual income tax returns for his clients. According to the Indictment, the loss from GENTLE’s conduct exceeded $630,000. GENTLE was arraigned today in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy. The case is assigned to U.S. District Judge Cathy Seibel.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Samuel Gentle abused his position of trust as a tax preparer by systematically assisting taxpayers in filing false and fraudulent returns. Today’s charges underscore our commitment to pursuing and prosecuting individuals who seek to enable and encourage tax fraud.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “About 60 percent of American taxpayers use tax professionals to prepare their tax returns. Fortunately, most tax professionals are reputable and prepare accurate and honest returns for their clients. IRS Criminal Investigation is responsible for investigating unscrupulous tax return preparers and, working with the United States Attorney’s Office, seeing that they are prosecuted. I stress the importance of choosing your preparer carefully. Ask him or her questions about your return and use your common sense in evaluating the answers you receive.”
According to the allegations contained in the Indictment[1]:
GENTLE operated a tax preparation business called GenGen, Inc., located in Mount Vernon, New York. From 2009 through 2012, GENTLE’s business prepared and submitted to the IRS, on average, 3,400 tax returns each year. Some of these tax returns were false and fraudulent in that they contained various inflated deductions for business expenses and gifts to charity.
As part of the investigation of this matter, an undercover IRS agent posed as a client of GENTLE’s. During the operation, the agent provided GENTLE with a Form W-2 showing income from wages. Despite being provided no records to support any other deductions, GENTLE included false and fraudulent deductions for business expenses and gifts to charity on the tax return he prepared for the undercover agent. GENTLE’s inclusion of these false and fraudulent deductions caused the return to fraudulently claim a refund.
* * *
GENTLE, 59, of Mount Vernon, New York, is charged with 50 counts of aiding and assisting the preparation of false and fraudulent U.S. individual income tax returns, each of which carries a maximum sentence of three years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised IRS-Criminal Investigation for their outstanding work in the investigation.
This matter is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon and Jennifer Beidel are in charge of the case.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Missouri Woman Charged in Carjacking Conspiracy for Multi-State Crime SpreeRead the Press Release
BIRMINGHAM – A federal grand jury today returned conspiracy and armed carjacking charges against the surviving member of a Missouri couple that was sought for crimes in four states earlier this year before being apprehended in a hail of gunfire in Florida in February, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
An eight-count indictment filed in U.S. District Court charges BRITTANY NICOLE HARPER, 30, of Joplin, Mo., with one count of conspiracy to transport a stolen vehicle across state lines, two counts of transporting a stolen vehicle across state lines, three counts of carjacking and two counts of brandishing a gun during a crime of violence.
The indictment states that the purpose of the conspiracy was for Harper and “her co-conspirator to unlawfully obtain vehicles, by whatever means necessary,” including acts of violence, and then to use the stolen vehicles as transportation between various states. The indictment refers throughout to Harper’s co-conspirator, but does not name him.
Harper was arrested in Milton, Fla., on Feb. 5, after a face-off with police in which her co-conspirator was shot and killed. She faces state charges in Florida.
“Anyone who chooses to move from state to state, repeatedly and violently taking whatever they want along the way and threatening the lives of innocent people, has to know that the criminal rampage will not last long,” Vance said. “Law enforcement will catch up to them.”
The indictment describes a 10-day, four-state crime spree by Harper and her male companion that began in Webb City, Mo., on Jan. 26, when the couple took a 2009 Cadillac on a test drive from a dealership and never returned. Highlights of the crime spree, as outlined in the indictment, are as follows:
Before arriving in Alabama, the couple burglarized a home in Missouri, where they parked the stolen Cadillac in the garage and stole a 2007 Chevrolet Trailblazer parked at the home.
The couple’s first crime in Alabama is listed as a theft at the Walmart in Bessemer on Jan. 30, before the couple drove the Trailblazer to Tuscaloosa, where they forced a motel clerk at gunpoint into the backseat of the 2011 Volkswagen Jetta he had driven to work. Harper and her companion drove the Jetta to Hoover, where they tried, unsuccessfully, on Jan. 31, to take a Camaro from a McDonald’s employee, and then released the motel clerk in Vestavia Hills.
Soon after releasing the clerk, Harper’s companion entered a home on Monte Vista Drive in Vestavia Hills, where he encountered one of the home owners and his minor children. The co-conspirator put a gun to the man’s neck and began forcing him toward the garage, but the man got free and went for help. The co-conspirator then forced the man’s wife at gunpoint into the homeowners’ 2010 Ford Edge and drove away.
Harper and her companion released the woman near the Grandview Medical Center on Cahaba River Road in Birmingham, and then drove the stolen Ford Edge to Perry County, Ga.
The indictment lists other crimes in Georgia and Florida before Harper’s arrest on Feb. 5 following a high-speed chase through neighborhoods in Milton, Fla., after police confronted the couple.
The other crimes listed as part of the conspiracy, but not individually charged in the indictment, include the robbery and kidnapping of a convenience store clerk in Perry, Ga., on Feb. 1, the robbery of Alvin’s Island beach shop in Destin, Fla., on Feb. 3, and the robbery of a shoe store and a home invasion and carjacking, all in Pensacola, Fla., on Feb. 4.
The FBI investigated the case, which Assistant U.S. Attorneys John B. Felton and Erica W. Barnes are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Mississippi Woman Pleads Guilty in Terrorism InvestigationRead the Press Release
WASHINGTON – Jaelyn Delshaun Young, 20, of Starkville, Mississippi, pleaded guilty today in the Northern District of Mississippi to conspiring to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi and Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division.
Young pleaded guilty before Chief U.S. District Judge Sharion Aycock of the Northern District of Mississippi to conspiring with Muhammad Oda Dakhlalla to provide material support to ISIL. Dakhlalla pleaded guilty to the same charge on March 13, 2016. Young was remanded to the custody of the U.S. Marshals Service to await sentencing, which will be scheduled at a later date.
The investigation was conducted by the FBI’s Jackson Division Joint Terrorism Task Force and the Washington Field Office. The case is being prosecuted by Assistant U.S. Attorneys Clay Joyner and Bob Norman of the Northern District of Mississippi and Trial Attorney Rebecca Magnone of the National Security Division’s Counterterrorism Section.
Miami Attorney Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Angel Garcia-Oliver (49, Miami) today pleaded guilty to conspiracy to commit bank and wire fraud. He faces a maximum penalty of 30 years in federal prison.
According to the plea agreement, Garcia-Oliver was the principal of Garcia-Oliver & Mainieri, P.A., a law firm located in Coral Gables. Tribute Residential, LLC, which was owned by a co-conspirator, owned and sold multiple communities. Garcia-Oliver, or employees working at his direction, served as settlement agents and conducted dozens of real estate closings for condominium units owned by Tribute, including Cypress Pointe in Orlando and the Villas at Lakeside in Oviedo.
To attract buyers to these communities, co-conspirators advertised that Tribute would pay the mortgage and homeowners= association dues for the buyer during the first two years of occupancy. In addition, buyers were promised that renters, who would pay rent that would equal the mortgage and HOA payments, were ready to live in the units. Other incentives, at times, included upfront cash for the buyers to close on the unit and/or kickbacks to buyers after closing. In each of these transactions, the HUD-1 Settlement Statement contained falsified information regarding the down payment actually paid by the buyers.
In order to conceal from the mortgage lenders that Tribute, or entities controlled by other co-conspirators, provided the cash to close and other undisclosed incentives to buyers, Garcia-Oliver formed CSF Management LLC. CSF’s bank accounts received monies from Tribute. Those funds were eventually paid to the buyers and entities controlled by other co-conspirators. The fact that co-conspirators were paying the cash to close, and other incentives to the buyers through CSF, was not disclosed to the lenders on the HUD-1 Settlement Statement.
In order to conceal from the mortgage lenders that Tribute was paying undisclosed leaseback payments (“kickbacks”) to buyers, Garcia-Oliver formed Southeast Administration Group, LLC. He used the Southeast Administration bank accounts to pay kickbacks to borrowers, which were also not disclosed to the mortgage lenders.
The losses suffered by the mortgage lenders that are attributable to Garcia-Oliver’s conduct exceed $8.25 million.
This case was investigated by the Federal Bureau of Investigation, the Florida Office of Financial Regulation, and the Federal Housing Finance Agency - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Vincent Chiu and Special Assistant United States Attorney Chris Poor.
Mexican National Pleads Guilty to Unlawful Transfer of Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MEINARDO ALONSO-CASTILLO, age 30, a citizen of Mexico, pled guilty today to a one-count Bill of Information for the unlawful transfer of identification documents.
ALONSO-CASTILLO faces five years imprisonment, followed by five years of supervised release, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentence for July 13, 2016.
According to court documents, from or about September 10, 2015 through December 9, 2015, ALONSO-CASTILLO transferred, without lawful authority, a means of identification of another person, to wit, Social Security cards, with the intent to commit, or to aid or abet, or in connection with, unlawful activity that constitutes social security fraud.
U.S. Attorney Polite praised the work of the Department of Homeland Security Investigations and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican National Pleads Guilty to Unlawful Transfer of Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MEINARDO ALONSO-CASTILLO, age 30, a citizen of Mexico, pled guilty today to a one-count Bill of Information for the unlawful transfer of identification documents.
ALONSO-CASTILLO faces five years imprisonment, followed by five years of supervised release, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentence for July 13, 2016.
According to court documents, from or about September 10, 2015 through December 9, 2015, ALONSO-CASTILLO transferred, without lawful authority, a means of identification of another person, to wit, Social Security cards, with the intent to commit, or to aid or abet, or in connection with, unlawful activity that constitutes social security fraud.
U.S. Attorney Polite praised the work of the Department of Homeland Security Investigations and Immigration and Customs Enforcement Agencies in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican National Pleads Guilty to Federal Gun ChargeRead the Press Release
POCATELLO - Juan Carlos Sepulveda-Castro, 31, a citizen of Mexico, pleaded guilty today to one count of possession of a firearm by a prohibited person, U.S. Attorney Wendy J. Olson announced. Sepulveda-Castro was indicted by a federal grand Jury in Pocatello on February 23, 2016.
According to the plea agreement, Idaho Falls police arrested Sepulveda-Castro after a report that he had threatened several others with a gun during a dispute. Officers found a loaded, Sig Sauer Model 522, .22 caliber, assault-style rifle that Sepulveda-Castro admitted to possessing. The defendant is prohibited from possessing firearms because he is an alien illegally and unlawfully in the United States.
The charge of unlawful possession of a firearm is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and up to three years of supervised release. The government is seeking forfeiture of the firearm the defendant illegally possessed.
Sentencing is set for June 22, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by Idaho Falls Police, U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case was prosecuted by the new Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho. The Eastern Idaho Special Assistant U.S. Attorney was hired to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 11 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Martinsville Man Sentenced for Illegal ReentryRead the Press Release
DANVILLE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Martinsville, Virginia man who was convicted of illegally reentering the United States after being previously deported.
Ruben Canela-Nunuez, of Martinsville, Va., previously pled guilty to one count of illegal reentry of a removed alien. Tuesday in the District Court for the Western District of Virginia in Danville, Canela-Nunez was sentenced to eight months in federal prison.
“Upholding the nation’s immigration laws is an important part of the work of the United States Attorney’s Office,” United States Attorney John P. Fishwick Jr. said today.
According to evidence presented at previous hearings by Assistant United States Attorney C. Patrick Hogeboom III, Canela-Nunez was arrested in Martinsville, Va. in July 2015 and was found to have illegally reentered the United States after being deported on multiple occasions, including his removal from Hidalgo, Texas in January 2015.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement. Assistant United States Attorney C. Patrick Hogeboom III and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Liverpool Man and Syracuse Woman Indicted for Sexual Exploitation of Three Children Under the Age of FiveRead the Press Release
SYRACUSE, NEW YORK – Jason Kopp, 40, of Liverpool, New York and Emily Oberst, 23, of Syracuse, New York were indicted for conspiracy to sexually exploit a child, sexual exploitation of a child, distribution of child pornography, and possession of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
The 28 count indictment charges Kopp and Oberst with one count of conspiracy to sexually exploit a female born in 2014 and two counts of sexual exploitation of that child. The indictment also charges Kopp, individually, with eight counts of sexual exploitation of children, nine counts of distribution of child pornography, and two counts of possession of child pornography. Kopp is accused of producing and distributing images depicting a female born in 2014 and a male born in 2013. As for Oberst, the indictment charges her, individually, with two counts of sexual exploitation of children and four counts of distribution of child pornography. Oberst is accused of producing and distributing images depicting a female born in 2014 and another female born in 2011.
Upon conviction, Kopp and Oberst would face a mandatory minimum sentence of fifteen years and a maximum sentence of thirty years imprisonment, on the conspiracy charge as well as each count of sexual exploitation of a child. On each count of distribution of child pornography, if convicted, Kopp and Oberst are subject to a mandatory minimum sentence of five years and a maximum sentence of twenty years imprisonment. If convicted of possession of child pornography, Kopp would face a maximum sentence of twenty years imprisonment on each charge. In addition, all of the charges provide for a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender.
Kopp and Oberst were previously arrested pursuant to criminal complaints and arrest warrants filed on Saturday, March 19, 2016. On that day, Kopp and Oberst appeared before United States Magistrate Judge Baxter in Syracuse, New York and were detained without bail.
United States Attorney Hartunian said: "The indictment alleges criminal conduct that is unspeakable – the sexual exploitation and abuse of the most vulnerable members of our society, our very young children. We will seek to have the defendants held accountable to the fullest extent of the law. We commend the Federal Bureau of Investigation, the District of Columbia
Metropolitan Police Department-FBI Child Exploitation Task Force, and the New York State Police for the investigation which led to these charges, and appreciate the assistance of Onondaga County District Attorney William J. Fitzpatrick and his staff in pursuing justice for the victims and their families."
"Today's charges are the result of the combined efforts of several law enforcement agencies that are committed to ending the sexual exploitation of our most innocent citizens," said Special Agent in Charge Andrew W. Vale. "Our children deserve to be safe from alleged predators such as Kopp and Oberst, and the FBI will continue to work tirelessly with our law enforcement partners to stop and ultimately prevent such evil acts."
The charges in the indictments are merely accusations. The defendants are presumed innocent until proven guilty.
This case is being investigated by FBI Albany Division (Syracuse Resident Agency), the District of Columbia Metropolitan Police Department-Federal Bureau of Investigation ("MPD-FBI") Child Exploitation Task Force (Washington Field Office), and the New York State Police and is being prosecuted by Assistant U.S. Attorneys Lisa Fletcher and Robert Levine.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Lackawanna Woman Pleads Guilty to Distribution of Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Charisma Royster, 25, of Lackawanna, NY, pleaded guilty to possession with intent to distribute, and distribution of, crack cocaine before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Edward H. White, who is handling the case, stated that on September 15, 2014, the defendant sold a quantity of crack cocaine to a confidential informant working with officers of the Lackawanna Police Department. Subsequent analysis confirmed the presence of crack cocaine.
Royster is one of 18 defendants arrested in a drug trafficking operation that included sales made in and near the Gates Housing Project in Lackawanna. She is the sixth defendant to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge.
Sentencing will be scheduled at a later date.Kansas Man Pleads Guilty to Robbing Bank in Prairie VillageRead the Press Release
KANSAS CITY, KAN. – A Kansas man pleaded guilty Wednesday to robbing a bank in Prairie Village, U.S. Attorney Barry Grissom said.
Tarone Hollins, 41, Kansas City, Mo., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Oct. 22, 2015, he robbed the Community America Credit Union at 7620 State Line Road in Prairie Village, Kan. After surveillance of the robbery was made public, eleven callers to the Greater Kansas City Crime Stoppers identified Hollins as the robber.
Sentencing will be set for a later date. Both parties have agreed to recommend five years in federal prison. Grissom commended the Prairie Village Police Department, the FBI, and Assistant U.S. Attorney Tris Hunt for their work on the case.
Justice Department Reaches Agreement with City of Newark, New Jersey, to Reform Police Department’s Unconstitutional PracticesRead the Press Release
The Justice Department announced today it has reached a comprehensive settlement with the city of Newark, New Jersey, that will bring wide-ranging reforms and changes to the Newark Police Department (NPD). The agreement, which is subject to court approval, resolves the department’s findings that NPD has engaged in a pattern or practice of unconstitutional stops, searches, arrests, use of excessive force and theft by officers in violation of the First, Fourth and 14th Amendments. The proposed consent decree also resolves the department’s findings that NPD’s law enforcement practices had a disparate impact on minorities in Newark.
The Justice Department’s findings were announced in July 2014 following a comprehensive investigation into the NPD started in May 2011. The investigation also found that this pattern of constitutional violations has eroded public confidence in the police. As a result, public safety suffers and the job of delivering police services was more difficult and more dangerous.
“This agreement holds the potential to make Newark a national model for constitutional, effective and accountable community policing in the 21st century,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice looks forward to working closely with the city as we implement this agreement and begin to change policies, improve systems and rebuild trust between Newark police officers and the residents they serve.”
“The men and women who wear the uniform of the Newark Police Department bring enormous dedication, integrity and pride to their jobs every day,” said U.S. Attorney Paul Fishman of the District of New Jersey. “At the same time, the department is challenged in fundamental ways and has engaged in a pattern and practice of unconstitutional policing in a broad range of areas. And it is also clear that the Police Department’s relationship with the people of the city has suffered dramatically from the combination of those practices. Community trust has deteriorated, and that in turn has compromised the effectiveness of the Department. Today we are taking a major step toward breaking that cycle.”
Under the consent decree, the city of Newark and NPD will implement comprehensive reforms in 12 substantive areas. The agreement ensures that:
- NPD will improve officer training to ensure that officers develop the necessary technical and practical skills required to carry out NPD directives consistently.
- NPD will revise search and seizure policies, training and supervision to ensure that all stops, searches and arrests are conducted in accordance with the Constitution and in a manner that takes into account community priorities.
- NPD will integrate bias-free policing principles into all levels of the organization, including comprehensive training of officers and supervisors.
- NPD will reform use of force policies, including requirements for using de-escalation techniques whenever possible and appropriate, prohibiting retaliatory force and ensuring mandatory reporting and investigation standards following use of force.
- NPD will deploy in-car and body-worn cameras to promote accountability, instill community confidence and improve law enforcement records.
- NPD will implement measures to prevent theft of property by officers, including robust reporting and complete accounting of property or evidenced seized.
- Office of Professional Standards investigators will be appropriately qualified and trained. Investigations of civilian complaints will be conducted in an objective, thorough and timely manner.
- Newark will create a civilian oversight entity to give voice to and pursue concerns of its residents.
- NPD will develop protocols for conducting compliance reviews and integrity audits.
- NPD will implement steps to ensure that the disciplinary process is fair and consistent.
- NPD will improve records management and early intervention systems and collect data on all uses of force and investigatory stops, searches and arrests, and develop a protocol for the comprehensive analysis of the data. The information will be publicly reported.
- NPD will strengthen its public information programs to ensure that members of the public are informed of NPD’s progress toward reform.
Newark and the Department of Justice have jointly proposed Peter Harvey to lead the team of experts that will monitor the city’s compliance with the agreement. Harvey is a former New Jersey Attorney General, and has experience under a Justice Department consent decree in the New Jersey State Police Case. He brings a deep understanding of issues specific to New Jersey and Newark and has direct experience overseeing organizational change and law enforcement reforms. Harvey will propose a team of local and nationally-recognized experts who are all committed to ensuring effective and constitutional policing, subject to the approval of the city and the Justice Department.
The investigation was conducted jointly by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the District of New Jersey. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information about the U.S. Attorney’s Office of the District of New Jersey, please visit http://www.justice.gov/usao/nj.
NPD Consent Decree
NPD Complaint
NPD Fact Sheet
SPL Police Accomplishments
Justice Department Reaches Agreement with City of Newark, New Jersey, to Reform Police Department’s Unconstitutional PracticesRead the Press Release
NEWARK, N.J. – The Justice Department announced today it has reached a comprehensive settlement with the city of Newark, New Jersey, that will bring wide-ranging reforms and changes to the Newark Police Department (NPD). The agreement, which is subject to court approval, resolves the department’s findings that NPD has engaged in a pattern or practice of unconstitutional stops, searches, arrests, use of excessive force and theft by officers in violation of the First, Fourth and 14th Amendments. The proposed consent decree also resolves the department’s findings that NPD’s law enforcement practices had a disparate impact on minorities in Newark.
The Justice Department’s findings were announced in July 2014 following a comprehensive investigation into the NPD started in May 2011. The investigation also found that this pattern of constitutional violations has eroded public confidence in the police. As a result, public safety suffers and the job of delivering police services was more difficult and more dangerous.
“This agreement holds the potential to make Newark a national model for constitutional, effective, and accountable community policing in the 21st century,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice looks forward to working closely with the city as we implement this agreement and begin to change policies, improve systems and rebuild trust between Newark police officers and the residents they serve.”
“The men and women who wear the uniform of the Newark Police Department bring enormous dedication, integrity, and pride to their jobs every day,” Paul Fishman, U.S. Attorney for the District of New Jersey, said. “At the same time, the department is challenged in fundamental ways and has engaged in a pattern and practice of unconstitutional policing in a broad range of areas. And it is also clear that the Police Department’s relationship with the people of the city has suffered dramatically from the combination of those practices. Community trust has deteriorated, and that in turn has compromised the effectiveness of the Department. Today we are taking a major step toward breaking that cycle.”
Under the consent decree, the city of Newark and NPD will implement comprehensive reforms in 12 substantive areas. The agreement ensures that:
- NPD will improve officer training to ensure that officers develop the necessary technical and practical skills required to carry out NPD directives consistently.
- NPD will revise search and seizure policies, training and supervision to ensure that all stops, searches and arrests are conducted in accordance with the Constitution and in a manner that takes into account community priorities.
- NPD will integrate bias-free policing principles into all levels of the organization, including comprehensive training of officers and supervisors.
- NPD will reform use of force policies, including requirements for using de-escalation techniques whenever possible and appropriate, prohibiting retaliatory force and ensuring mandatory reporting and investigation standards following use of force.
- NPD will deploy in-car and body-worn cameras to promote accountability, instill community confidence and improve law enforcement records.
- NPD will implement measures to prevent theft of property by officers, including robust reporting and complete accounting of property or evidenced seized.
- Office of Professional Standards investigators will be appropriately qualified and trained. Investigations of civilian complaints will be conducted in an objective, thorough and timely manner.
- Newark will create a civilian oversight entity to give voice to and pursue concerns of its residents.
-
NPD will develop protocols for conducting compliance reviews and integrity audits.
-
NPD will implement steps to ensure that the disciplinary process is fair and consistent.
-
NPD will improve records management and early intervention systems and collect data on all uses of force and investigatory stops, searches and arrests, and develop a protocol for the comprehensive analysis of the data.The information will be publicly reported.
-
NPD will strengthen its public information programs to ensure that members of the public are informed of NPD’s progress toward reform.
Newark and the Department of Justice have jointly proposed Peter Harvey to lead the team of experts that will monitor the city’s compliance with the agreement. Harvey is a former New Jersey Attorney General, and has experience under a Justice Department consent decree in the New Jersey State Police Case. He brings a deep understanding of issues specific to New Jersey and Newark and has direct experience overseeing organizational change and law enforcement reforms. Harvey will be assisted by a variety of local and nationally-recognized experts who are all committed to ensuring effective and constitutional policing.
The investigation was conducted jointly by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the District of New Jersey. For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt. For more information about the U.S. Attorney’s Office of the District of New Jersey, please visit http://www.justice.gov/usao/nj.
Jury Convicts Iowa Man of Racially Motivated Hate Crime for Attacking an African-American ManRead 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 today after a three-day trial in the Northern District of Iowa.
Randy Metcalf, 40, of Dubuque, Iowa, was convicted of one count of committing a federal hate crime. The verdict was returned this afternoon following about three hours of jury deliberations.
The evidence at trial showed that on Jan. 12, 2015, Metcalf assaulted an African-American male at the Northside Bar in Dubuque 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 of the victim’s race, 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.
“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 Justice Department’s 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.”
“Racially motivated acts of violence have no place in our state or country,” said U.S. Attorney Kevin W. Techau of 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.”
Sentencing before Chief U.S. District Judge Linda R. Reade of the Northern District of Iowa will be scheduled at a later date. Metcalf faces a maximum sentence of 10 years in prison, a $250,000 fine, a $100 special assessment and three years of supervised release following any imprisonment. He remains in custody of the U.S. Marshals pending sentencing.
The case was investigated by the Dubuque Police Department and the FBI. The case is being jointly prosecuted by Assistant U.S. Attorney Anthony Morfitt of the Northern District of Iowa and Trial Attorney Christopher Perras of the Civil Rights Division’s Criminal Section.
Jury Convicts Doctor of Home Health Care FraudRead the Press Release
HOUSTON – A federal jury sitting in Houston has returned guilty verdicts against Dr. Warren Dailey, 68, on five counts related to health care fraud following a three-day-trial, announced U.S. Attorney Kenneth Magidson. The jury deliberated for approximately three hours this afternoon before finding Dailey guilty of conspiracy to commit health care fraud, two counts of false statements relating to health care matters, one count of conspiracy to pay and receive health care kickbacks and one count of payment and receipt of health care kickbacks.
At trial, the jury heard that from approximately 2009 through 2012, Dailey was a physician specializing in family practice in Houston and defrauded Medicare by authorizing Medicare beneficiaries for home health care when such services were not needed. The evidence at trial demonstrated Dailey conspired with a home health care owner here in Houston and agreed to sign Medicare authorization forms certifying services in exchange for a monthly flat fee from the home health owner. Dailey signed hundreds of authorization forms for beneficiaries that would falsely certify the patients were homebound, that home health was medically necessary and that the beneficiaries were under his care. Medicare paid the home health owner approximately $913,620 for home health services Dailey referred.
U.S. District Judge David Hittner presided over the trial and has set sentencing for June 23, 2016. At that time, Dailey faces a maximum of 10 years in federal prison as well as a possible $250,000 fine.
Previously released on bond, Dailey was remanded to custody pending sentencing.
The charges are a result of the investigative efforts of the U.S. Department of Health and Human Services -Office of Inspector General, Office of Investigations and the FBI. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Tina Ansari prosecuted the case.
Jemez Pueblo Man Sentenced to Life Imprisonment for Federal Felony Murder ConvictionRead the Press Release
ALBUQUERQUE – Gavin Yepa, 31, a member and resident of Jemez Pueblo, N.M., was sentenced today in federal court in Albuquerque, N.M., to life imprisonment on his felony murder conviction. The sentence was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division.
Yepa was arrested on Jan. 3, 2012, on a criminal complaint charging him with killing a 38-year-old Navajo woman during a sexual assault that took place at Yepa=s residence on Jemez Pueblo on the night of December 28, 2011. Yepa previously had been arrested on related tribal charges on Dec. 28, 2011, and remained in tribal custody until his arrest on the federal criminal complaint.
In Jan. 2012, a federal grand jury indicted Yepa on a felony murder charge alleging that the victim died as the result of an aggravated sexual assault by Yepa. Trial of the case was delayed by interlocutory appeals. The trial commenced on July 27, 2015, and concluded Aug. 7, 2015, when the jury returned a guilty verdict on the sole count of the indictment.
The evidence at trial established that Yepa met the victim in San Ysidro, N.M., on the evening of Dec. 28, 2011, and took her to his residence. Shortly before midnight, Yepa contacted tribal officials and reported that there was a woman in his home who was not breathing. When Yepa escorted the officials into his residence, they observed a large amount of blood on the floor throughout the house and found the victim’s nude body, which was covered with blood, in a bedroom.
The investigation revealed that the victim had been brutally sexually assaulted with three items, all of which were found at the crime scene. DNA analysis confirmed that the victim’s blood was on all three items.
“Native American women experience violence, including domestic violence, dating violence, sexual assault, stalking and murder, at rates dramatically higher than other women in this country. This is a cycle of violence that cannot be tolerated and must end,” said U.S. Attorney Damon P. Martinez. “The U.S. Attorney’s Office is committed to improving the safety of women in our tribal communities by working with tribal governments to decrease the number of Native American women who fall victim to violence; to strengthen the capacity of tribal governments to respond to violent crimes and support victims; and to ensure that perpetrators like Gavin Yepa are held accountable for their crimes and are removed from the community.”
“No one in this country deserves to be a victim of violence. Unfortunately, violence in our Native American communities ravages families, harming mothers, daughters and sisters. They and their loved ones depend on us for justice. Today’s sentencing sends a strong message the FBI and our partners will vigorously pursue justice for each and every victim, especially those who suffer unspeakable crimes and can no longer speak for themselves,” said FBI Special Agent in Charge Terry Wade. “The FBI appreciates the U.S. Attorney's Office's aggressive prosecution in this case, and we thank Jemez Pueblo and the New Mexico State Police for their assistance.”
This case was investigated by the Albuquerque office of the FBI with assistance from the Jemez Pueblo Tribal Officials, the Jemez Pueblo Tribal Police Department and the Crime Scene Unit of the New Mexico State Police. Assistant U.S. Attorneys Niki Tapia-Brito and Linda Mott prosecuted the case.
The prosecution of this case was part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Jackson Businessman Pleads Guilty to FraudRead the Press Release
A Jackson party store owner was sentenced today to 30 months in prison after pleading guilty to a fraud scheme to burn down his store to collect insurance proceeds, U.S. Attorney Barbara L. McQuade announced today
McQuade was joined in the announcement by Robin Shoemaker, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearm, and Explosives (ATF), Marlon Miller, Special Agent in Charge, Homeland Security, Immigration and Customs Enforcement, and Director Matthew Heins, Jackson Police Department.
Rajinder Singh, 25, formerly of Jackson, Michigan was sentenced by U.S. District Judge Judith Levy in Ann Arbor, Michigan. Judge Levy also ordered Singh to pay restitution in the amount of $10,000.
According to court records, Singh admitted that in May 2014, he conspired with others to intentionally set fire to his business, Robinson’s Party Store, located at 1233 S. West Avenue, Jackson, Michigan. The object of the conspiracy was to obtain the insurance proceeds for the business. Singh agreed to pay the men to set the fire. In pleading guilty to charges of conspiracy to commit malicious use of fire, wire fraud, misleading communication to hinder investigation of a federal offense and immigration document fraud, Singh admitted to making a fraudulent claim to his insurance company. Singh also admitted that he lied to a police detective by falsely stating that the fire was likely racially motivated on the mistaken belief that he is an "Arab." Singh filed a claim with his insurance company seeking payment of at least $400,000 for the damage to his building, the inventory lost in the fire and lost business income.
A month after the fire, Singh, prepared, or caused to be prepared, a Department of Homeland Security Form N-400 (Application for Naturalization) in an attempt to become a naturalized United States citizen. Several questions on the form required Singh to disclose his entire criminal history, even crimes for which he had not been charged. In response to those questions, Singh answered falsely when asked if he had ever committed, assisted in committing or attempted to commit a crime or offense for which he had not be arrested. Singh signed the form under penalty of perjury and mailed it to the U.S. Citizenship and Immigration Services offices.
“Committing any fraud scheme harms victims, but intentionally setting a fire creates a danger to public safety and firefighters that far exceeds the financial loss,” McQuade said. “This defendant attempted to exploit laws designed to protect people from hate crimes.”
“Arson for profit is not a victimless crime. Our communities as a whole become the victims because arson destroys property and places and increases economic burden on our communities”, said ATF Special Agent in Charge S. Robin Shoemaker. “ATF is committed to the investigation and prevention of arson and arson for profit schemes. I would also like to thank the Jackson Police and Fire Departments, Homeland Security, Immigration and Customs and the Eastern district of the United States Attorney’s Office.”
“Rajinder Singh sentence reflects his selfish actions of setting his business on fire to collect insurance money and used race to fuel his lie. He placed peace officers and firemen lives in danger, in the name of greed,” said Marlon V. Miller, special agent in charge of HSI Detroit. “HSI remains committed to working with our law enforcement partners to investigate and expose fraudulent activities regardless of the scheme.”
“This case is another outstanding example of interagency cooperation leading to conviction of Mr. Singh for his criminal activity in the City of Jackson, stated Chief Heins. "The ongoing partnership between the Jackson Police Department, ATF, and U.S. Attorney’s Office is invaluable in a case of this nature. Jackson Police Department Detectives Holly Rose and Gary Schuette were instrumental in bringing this case to the forefront.”
McQuade thanked the agents of ATF for their investigation of the case. She also thanked the Jackson Police Department for assisting in the investigation
The case was prosecuted by Assistant U.S. Attorneys John O’Brien and Shane Cralle.
Indianapolis Businessman pleads guilty in fraud schemeRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that Angel Marchena Suazo, 41, Indianapolis, pled guilty to theft of federal government funds before U.S. District Judge William T. Lawrence.
“When someone files fraudulent tax returns, in essence, they steal from all Americans,” said Minkler. “This office will always pursue tax thieves and as the deadline approaches for all of us to pay our taxes, those who choose to steal Treasury funds should be watching over their shoulder.”
Marchena Suazo owned Don Angel Multiservices, LLC, which purported to provide tax services and check cashing services in Indianapolis. The Internal Revenue Service-Criminal Investigation determined that between July 2012 and April 2013, Marchena Suazo cashed approximately 800 stolen or fraudulent tax refund checks through his business, depositing approximately $2.9 million in his business accounts. Marchena would typically withdraw most of these funds to pay the sources of the stolen or fraudulent refund checks. He would keep approximately 15 percent of the proceeds for his services in cashing the checks.
Starting around January 2014, Marchena Suazo began submitting fraudulent tax returns himself. In all, he submitted approximately 100 fraudulent returns in an attempt to obtain approximately $227,000 in unearned refunds from the IRS. In total, he only received approximately $21,000 as the IRS caught most of these fraudulent tax returns and denied payment.
As part of Marchena Suazo’s plea agreement, he will be ordered by the court to pay full restitution for the criminal tax loss of approximately $2,900,000.
“With tax season upon us, I want to assure the American taxpayers that IRS Criminal Investigation has made refund fraud and identity theft a top priority,” said Acting Special Agent in Charge Darrell Waldon. “We will continue to aggressively pursue the criminals who would steal from the American taxpayer. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible just as we have done with this multi-state stolen identity theft fraud ring, involved in procuring bogus checks.”
According to Assistant United States Attorney Winfield D. Ong, who is prosecuting the case for the government, the offense is punishable by a maximum sentence of ten (10) years imprisonment, a $250,000 fine, and three (3) year supervised release following any term of imprisonment. No date for sentencing has been set.
Hillsville Man Sentenced on Bank Fraud, Tax ChargesRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the sentencing of a Hillsville man on a bank fraud charge and tax evasion charge.
Robert Donald Morgan III, 44, of Hillsville, Va., previously pled guilty to one count of bank fraud and one count of conspiracy to willfully fail to pay taxes. Tuesday in the United States District Court for the Western District of Virginia in Abingdon, Morgan was sentenced to six months imprisonment and ordered to pay $284,796 in restitution.
“This defendant betrayed his duties as a bookkeeper and accountant for his own personal gain,” United States Attorney John P. Fishwick said today. “I am grateful to the agents and investigators who worked hard to bring this defendant to justice.”
“Today’s sentencing serves as a reminder that committing fraud is inexcusable and IRS-CI is committed to working with the United States Attorney’s Office to bring culpable individuals to justice,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.
According to evidence presented at previous hearings by Assistant United States Attorney Jennifer R. Bockhorst, between April 2013 and March 2015, Morgan executed a scheme to defraud Grayson National bank through a series of false representations. Morgan has admitted that while working as a bookkeeper and accountant for Company A, he fraudulently caused checks to be deposited into his own personal bank account without authority. In all, Morgan fraudulently obtained $66,776.
In addition, Morgan, and others, at Company A, devised and executed a scheme in which a portion of some employees’ salaries would be in cash and therefore lessening the payroll tax burden owed by Company A.
The investigation of the case was conducted by agents of the Internal Revenue Service, the United States Secret Service, and the Virginia State Police. Assistant United States Attorney Jennifer R. Bockhorst prosecuted the case for the United States.
Harvey Woman Pleads Guilty to Conspiracy to Receive Illegal KickbacksRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ELESHIA WILLIAMS, age 45, of Harvey, pled guilty today to one count of conspiracy to receive illegal kickbacks.
On March 12, 2015, WILLIAMS was indicted along with 19 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud.
According to court documents, WILLIAMS was a marketer for Abide Home Health Care Services, Inc. (Abide), a Louisiana home health agency. WILLIAMS contacted an Abide employee to confirm that the person she fraudulently referred for home health was a Medicare beneficiary. Once it was determined the referred individual was a Medicare beneficiary, an Abide co-conspirator scheduled a physician visit, usually with an Abide House Doctor – also a co-conspirator – well knowing that the individual referral to Abide was by a Marketer, instead of the beneficiary’s own health care professional.
WILLIAMS faces a maximum term of five years imprisonment, followed by three years of supervised release and a $250,000 fine. U.S. District Judge Susie Morgan set sentencing for September 21, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
Gibsonton Couple Pleads Guilty to Stolen Identity Refund Fraud ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Ynessa Brown and Thelonius Robertson today pleaded guilty to conspiring to commit tax fraud and aggravated identity theft. Each faces a maximum penalty of five years in federal prison for the conspiracy charge, to be followed by two years in federal prison for the identity theft charge. Robertson and Brown have agreed to make full restitution and pay a money judgment of $767,398, the proceeds of the conspiracy.
According to court documents, between January 2012 and June 2013, Brown and Robertson used stolen identities to electronically file false and fraudulent tax returns. Many of those false tax returns were filed jointly, in two names, and in many cases, one or both victims was deceased.
Brown and Robertson directed the refunds from the fraudulent filings to debit cards, many in other people’s names. The debit cards were sent directly to Brown and Robertson, as well as to their friends and family, and to vacant addresses. Brown and Robertson spent the fraudulently obtained tax refund money at various retail locations and also obtained cash via ATM withdrawals. In total, Brown and Robertson filed false tax returns requesting more than $2.7 million from the IRS.
This case was brought as part of the Tampa Bay Identity Theft Alliance, an initiative dedicated to combating the scheme of using stolen identities to file fraudulent federal income tax refund claims. It was investigated by the Hillsborough County Sheriff’s Office and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Kelley C. Howard-Allen is prosecuting the case.
Former President of North Carolina Board of Funeral Service and His Business Partner Sentenced to Prison for Tax FraudRead the Press Release
The former President of the North Carolina Board of Funeral Service and his business partner were sentenced to prison yesterday for their involvement in a conspiracy to defraud the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
Kenneth Dale Stainback, 62, of Burlington, North Carolina, the secretary of McClure Funeral Service (McClure) and former president of the North Carolina Board of Funeral Service, was sentenced to 14 months in prison and three years of supervised release. Stephen Ray Smith, 60, of Mebane, North Carolina, the president of McClure, was sentenced to six months in prison and three years of supervised release. The court ordered both defendants to pay $158,530.11 in restitution to the IRS for the corporate tax loss. The court also ordered Stainback and Smith to pay $12,213 and $116, respectively, in restitution to the IRS for their individual tax loss. The court also ordered Stainback and Smith to pay $8,000, respectively, in fines.
According to court documents and statements in court, Stainback and Smith conspired to defraud the United States by filing false corporate tax returns for McClure. Stainback, Smith and another co-conspirator bought McClure in 2004 and began diverting gross receipts from the business and omitting that income from the corporation’s tax returns. The co-conspirators opened a checking account at Mid-Carolina Bank for the purpose of diverting funds from McClure, including commission checks payable from insurance providers and checks from clients for payment of services. The co-conspirators wrote checks to themselves from this account, with Stainback and Smith receiving the vast majority of the diverted funds. Stainback also opened another bank account at SunTrust Bank, which he used to embezzle additional funds from McClure without the knowledge of his co-conspirators. The co-conspirators also pocketed cash payments from clients of McClure. To conceal discovery of their scheme, the co-conspirators deleted and altered invoices in the business’s accounting system. Even after they were aware that the IRS was conducting an examination of the business, Stainback and Smith continued to divert funds from McClure.
“As Messrs. Stainback and Smith have learned, cheating the IRS and stealing from the U.S. Treasury brings serious penalties, including prison, fines and the potential loss of professional licenses,” said Acting Assistant Attorney General Ciraolo. “Taxpayers who think they can skim funds from their own businesses and conceal their criminal conduct by falsifying records underestimate the ability of the IRS and Department of Justice to detect, investigate and prosecute these crimes.”
During the 2009 through 2012 fiscal years, Stainback, Smith and the other co-conspirator diverted more than $419,000 from McClure. Because the co-conspirators also deleted and falsified invoices, the amount diverted underestimates the amount the co-conspirators excluded from the corporate tax returns. The co-conspirators caused a corporate tax loss of $158,530.11 and additional individual tax loss based on their failure to report the diverted funds on their individual income tax returns.
Acting Assistant Attorney General Caroline D. Ciraolo and U.S. Attorney Ripley Rand commended special agents of IRS – Criminal Investigation who investigated the case, and Assistant U.S. Attorney Clifton T. Barrett of the Middle District of North Carolina and Trial Attorney Kathryn A. Kimball of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former President of North Carolina Board of Funeral Service and His Business Partner Sentenced to Prison for Tax FraudRead the Press Release
The former President of the North Carolina Board of Funeral Service and his business partner were sentenced to prison yesterday for their involvement in a conspiracy to defraud the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
Kenneth Dale Stainback, 62, of Burlington, North Carolina, the secretary of McClure Funeral Service (McClure) and former president of the North Carolina Board of Funeral Service, was sentenced to 14 months in prison and three years of supervised release. Stephen Ray Smith, 60, of Mebane, North Carolina, the president of McClure, was sentenced to six months in prison and three years of supervised release. The court ordered both defendants to pay $158,530.11 in restitution to the IRS for the corporate tax loss. The court also ordered Stainback and Smith to pay $12,213 and $116, respectively, in restitution to the IRS for their individual tax loss. The court also ordered Stainback and Smith to pay $8,000, respectively, in fines.
According to court documents and statements in court, Stainback and Smith conspired to defraud the United States by filing false corporate tax returns for McClure. Stainback, Smith and another co-conspirator bought McClure in 2004 and began diverting gross receipts from the business and omitting that income from the corporation’s tax returns. The co-conspirators opened a checking account at Mid-Carolina Bank for the purpose of diverting funds from McClure, including commission checks payable from insurance providers and checks from clients for payment of services. The co-conspirators wrote checks to themselves from this account, with Stainback and Smith receiving the vast majority of the diverted funds. Stainback also opened another bank account at SunTrust Bank, which he used to embezzle additional funds from McClure without the knowledge of his co-conspirators. The co-conspirators also pocketed cash payments from clients of McClure. To conceal discovery of their scheme, the co-conspirators deleted and altered invoices in the business’s accounting system. Even after they were aware that the IRS was conducting an examination of the business, Stainback and Smith continued to divert funds from McClure.
“As Messrs. Stainback and Smith have learned, cheating the IRS and stealing from the U.S. Treasury brings serious penalties, including prison, fines and the potential loss of professional licenses,” said Acting Assistant Attorney General Ciraolo. “Taxpayers who think they can skim funds from their own businesses and conceal their criminal conduct by falsifying records underestimate the ability of the IRS and Department of Justice to detect, investigate and prosecute these crimes.”
During the 2009 through 2012 fiscal years, Stainback, Smith and the other co-conspirator diverted more than $419,000 from McClure. Because the co-conspirators also deleted and falsified invoices, the amount diverted underestimates the amount the co-conspirators excluded from the corporate tax returns. The co-conspirators caused a corporate tax loss of $158,530.11 and additional individual tax loss based on their failure to report the diverted funds on their individual income tax returns.
Acting Assistant Attorney General Caroline D. Ciraolo and U.S. Attorney Ripley Rand commended special agents of IRS – Criminal Investigation who investigated the case, and Assistant U.S. Attorney Clifton T. Barrett of the Middle District of North Carolina and Trial Attorney Kathryn A. Kimball of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Finance Director of Pit River Tribe Indicted for Tax Evasion, Failure to File a Tax Return, and Theft from the Pit River TribeRead the Press Release
SACRAMENTO, Calif. — Kenley Black, 41, formerly of Burney, California, was arrested today at his home in Ft. Defiance, Arizona on charges of tax evasion, failure to file income taxes, and embezzlement and theft from a tribal organization, United States Attorney Benjamin B. Wagner announced.
A federal grand jury returned a 25-count indictment on Thursday, March 24, 2016, against Kenley, who served as the the Finance Director for the Pit River Tribe from 2009 to 2013. Black is not a member of the Pit River Tribe.
According to court documents, while employed as Finance Director, Black earned over $810,000 yet did not file income taxes and evaded paying over $225,000 in taxes. He is charged with five counts of tax evasion and five counts of failure to file income taxes. Additionally, he is charged with 15 counts of embezzlement and theft from a tribal organization for embezzling $81,578 from the Pit River Tribe in 2012 and 2013.
This case is the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Justin Lee is prosecuting the case.
If convicted, Black faces a maximum statutory penalty of five years in prison and a $100,000 fine for each count of tax evasion. Additionally, Black faces up to one year in prison for each count of failure to file a tax return and up to five years in prison for each count of theft from a tribal organization. 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.
Former Employee of the Scottsville Baptist Church Sentenced to 18 Months in Prison for Embezzling Church FundsRead the Press Release
Ordered to pay $274, 846 in restitution
Paid personal expenses with the funds
BOWLING GREEN, Ky. – United States Attorney John E. Kuhn, Jr. today announced the sentencing of an Allen County, Kentucky, woman to18 months in prison for committing three counts of wire fraud, and was ordered to pay $274,846 restitution to her former employer, the Scottsville (Kentucky) Baptist Church.
“The 18 month prison term imposed by Judge Stivers, reflects the seriousness of these offenses and the callous nature of the crime,” stated U.S. Attorney John Kuhn. “While the less fortunate turn to the church for life’s necessities, Patricia Barlow stole from the church to satisfy her greed.”
Barlow, age 49, was a secretary at the Scottsville Baptist Church (SBC), located at 301 East Main Street, in Scottsville, Kentucky, and on numerous occasions made unauthorized wire transfers to pay for personal expenses using SBC funds. The scheme to defraud SBC began in January of 2011, and lasted until SBC discovered the fraud in the spring of 2015. Three of the alleged wire transfers were made on January 1, 2007, in the amount of $512.29; January 14, 2011, in the amount of $1,400; and a wire transfer of $425.00 on January 28, 2015.
Barlow’s criminal conduct was not a one-time lapse in judgment. Barlow’s six-figure scheme involved scores of fraudulent checks, bogus credit card charges, thefts of cash donations, and false accounting entries submitted time and again over the course of four years. Moreover, Barlow did not steal from the church to pay for a family emergency, or because of an addiction to drugs or gambling. Rather, Barlow stole over $274,000 from the SBC for luxuries she and her family otherwise could not legitimately afford, such as vacations, jewelry, clothes, and trips to beauty salons.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the United States Secret Service and Scottsville (Kentucky) Police Department.
Former EMI Owners Sentenced for Multi-Million Dollar Fraud SchemeRead the Press Release
Springfield, Ill. – Brothers Joel and Eric Andrews, former principal owners of Environmental Management of Illinois, Inc. (EMI), Springfield, Ill., were sentenced today to three years and two and one-half years, respectively, in federal prison for a scheme that defrauded the Illinois Environmental Protection Agency of millions of dollars. Co-defendant Michael Keebler, who bought the business in 2006, was sentenced in August 2015 to five years in prison for the scheme, which, over a period of 12 years, from 2001 to 2013, swindled money from a fund administered by Illinois EPA to clean up sites contaminated by leaking underground storage tanks.
U.S. District Judge Sue E. Myerscough allowed both men to remain on bond until they report to the federal Bureau of Prisons in July 2016. Following their release from prison, both were ordered to serve the first 12 months of a three-year term of supervised release under home confinement.
Joel Andrews, 47, of New Berlin, Ill., Eric Andrews, 52, of Shipman, and Michael Keebler, 42, of Sherman, each share, jointly and severally, in the court’s order to pay restitution of no more than $13.36 million to the Illinois EPA minus any offsets agreed to by the government. Thus far, the three defendants have posted $6.2 million with the court toward the total amount of restitution ordered, and any of their remaining assets, including EMI, are subject to forfeiture proceedings by the government.
Joel and Eric Andrews each pled guilty on Mar. 2, 2015, to one count of conspiracy to commit mail fraud. Keebler entered pleas of guilty on Feb. 27, 2015, to two counts of conspiracy to commit mail fraud.
The U.S. EPA has a cooperative agreement with the State of Illinois to administer the UST (underground storage tanks) program. IEPA and the Illinois Office of the State Fire Marshal share administration of the UST fund which assists tank owners and operators with the cleanup costs of petroleum leaks from USTs. The State Fire Marshal administers the preventative and permitting aspects of the program. If there is a spill or leak, IEPA is responsible for oversight of the cleanup investigation and the corrective action, in order to clear the property for use again. State taxes and fees paid on the purchase of gasoline fund the Leaking UST (LUST) program.
Joel Andrews founded EMI in 1997 and served as president, and Eric Andrews joined in 1999 as vice-president. In April of 2001, professional engineer Michael Keebler joined the firm. In 2006, the firm was sold to Michael Keebler, who remained as the firm’s principal owner and president.
The environmental consulting firm, located at 1154 N. Bradfordton Road, Springfield, worked with property owners to clean up sites contaminated by petroleum leaks, spills, or overfills from underground storage tanks. The firm then sought reimbursement of its costs to remediate the land from a fund administered by a designated section within Illinois EPA.
According to plea agreements filed by the parties and during court hearings, each of the men admitted that they conspired to defraud the LUST fund by artificially inflating expenses they incurred in remediating property. For example, agreements were made with vendors to submit two invoices for certain services; one that listed the actual costs of the service provided and the payment to be made by EMI, and a second invoice which inflated the amount of work performed and supplies used, the amount charged for the work, or both. The inflated invoice would then be provided to Illinois EPA for reimbursement. Certain vendors were also paid a reduced rate, but EMI misrepresented to the Illinois IEPA that they had been paid full price. At other times, invoices were created or existing invoices modified to reflect a higher charge than was actually paid before they were submitted to IEPA for reimbursement.
The case was prosecuted by First Assistant U.S. Attorney Patrick D. Hansen. The charges resulted from a two-year investigation by the Federal Bureau of Investigation and the U.S. Environmental Protection Agency, Criminal Investigation Division.
Former Blackstone Woman Pleads Guilty to Stealing Customers’ Personal InformationRead the Press Release
BOSTON – A former Blackstone woman pleaded guilty today in U.S. District Court in Boston in connection with her role in a scheme to steal personal information from clients of her former employer.
Jasmine Banks, 29, pleaded guilty to one count of conspiracy to commit identity theft and access device fraud. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for June 22, 2016.
In 2014, Banks was a customer service employee for Mercer, Inc., in Norwood, and assisted customers with retirement plans that were administered by Mercer. In connection with her work, she had access to detailed account information and personally identifiable information (PII) for customers’ accounts. From February 2014 through April 2014, Banks accessed Mercer account information at her computer and provided the names, addresses, and bank account of approximately 270 Mercer account holders to one of her co-conspirators via email and text message. In many cases, she also provided dates of birth and social security numbers. In addition, Banks selected 401(k) accounts with large balances and sent the co-conspirator detailed account access information for four of them. Based on the information Banks provided, a fraudulent withdrawal of $23,485 was made from one of the retirement accounts.
Mercer fully cooperated with law enforcement to prevent further account breaches and withdrawals.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney David J. D’Addio of Ortiz’s Cybercrime Unit.
Former Arkansas DHS Employee Pleads Guilty to Accepting Bribes and Conspiracy in Scheme to Steal USDA Funds Intended to Feed Hungry ChildrenRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that former DHS employee Gladys Waits, 36, of Little Rock, pled guilty to one count of conspiring to commit wire fraud and one count of receipt of a bribe in connection with USDA funds intended to feed children in low income areas during the school year and summer.
Today’s plea hearing took place in Little Rock before United States District Judge James M. Moody, Jr., who will sentence Waits at a later date.
The United States Department of Agriculture (USDA) funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. USDA also funds the Summer Food Service Program. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding program, and they are reimbursed for the eligible meals they serve.
Waits worked for DHS, and her responsibilities included processing applications from sponsors who applied to participate in the feeding programs, determining their eligibility, and approving their proposed feeding site(s).
According to the facts read at the hearing, three other co-defendants, Jacqueline Mills, Kattie Jordan and Dorothy Harper, were sponsors of feeding programs from in or about January 2012 to in or about August 2014. Mills was a sponsor and had approved sites in cities including Helena and Marianna, Arkansas. Mills’ programs received more than $2.5 million in federal funds from DHS. Jordan was a sponsor through Save Our Youth and Save Our Community, which had approved sites in cities including Dermott, Dumas, Eudora, and Lake Village, Arkansas. Jordan’s programs received more than $3.5 million in federal funds from DHS. Harper was a sponsor for the feeding programs through Kingdom Land Youth Outreach Ministries which had approved sites in cities including England, Keo, Allport, Tucker, Toltec, Coy and Altheimer, Arkansas and Harper’s program received more than $1.3 million in federal funds from DHS.
Waits was responsible for approving the feeding programs for Mills, Jordan, and Harper at various times from in or about January 2012 to in or about August 2014. Mills and Jordan made bribe payments to Waits. Some bribes were made directly by checks made payable to Gladys Waits or indirectly through payments to her relatives. Mills made some bribe payments via check to Anthony Waits. Harper also made cash payments to Anthony Waits. Anthony Waits is the husband of Gladys Waits.
In exchange for these bribe payments, Gladys Waits, knowing that these sponsors would submit inflated claims, would still approve their applications, which contained the location of the sites and the maximum number of children who would be fed at each site.
During the time described in the Indictment, Mills, Jordan, and Harper all submitted inflated claims for reimbursement to DHS. They claimed that more children were fed at their sites than were actually fed. Because their applications had been approved for a specified number of sites and a specified number of children who could be fed at the sites, inflated claims were approved and paid by DHS without further scrutiny. Gladys Waits also helped Mills, Jordan, and Harper avoid DHS’s detection of the fraud.
Jordan pled guilty to conspiracy to commit wire fraud in connection with the feeding programs and was sentenced to 63 months in prison on March 15, 2016.
Also, according to the facts read at the change of plea, Anthony Waits recruited additional sponsors to participate in the feeding programs. These sponsors gave a percentage of the money received from the feeding programs to Anthony Waits. Christopher Nichols, the Anthony Waits’ nephew, and Reuben Nims, Anthony Waits’ brother-in-law, are two of the recruited sponsors who received payments for inflated claims. Gladys Waits approved those sponsors’ applications. Nichols and Nims have pled guilty in connection with fraud in the feeding programs.
Gladys Waits is the seventh person to plead guilty (see chart below) concerning the theft of USDA feeding program funds for children. The amount of fraud these seven people have admitted to exceeds $5.3 million. Previous charges filed in this investigation detail alleged fraud involving over $10.5 million in USDA feeding program funds.
The statutory penalty for conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release. The statutory penalty for accepting bribes is not more than 10 years, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris, Allison W. Bragg, and Cameron McCree. If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Pled guilty, awaiting sentencing
**Kattie Jordan (4:15-cr-00250-JM) —$3.6 million fraud
Francine Leon (4:16-cr-00010-JM) —$1 million fraud
Chris Nichols (4:15-cr-00045-JLH —$333,000 fraud
Erica Warren and Alexis Young (DHS employee) (4:16-cr-015-BSM) —$253,000 fraud
Reuben Nims (4:15-cr-00199-JM) —$182,000 fraud
** sentenced to 63 months’ incarceration, 3 years supervised release on March 15, 2016.
Indicted, awaiting trial
Anthony Waits (4:15-cr-00250-JM)
Tonique Hatton (DHS employee) (4:15-cr-00250-JM)
Jacqueline Mills (4:15-cr-00250-JM)
Dorothy Harper (4:15-cr-00250-JM)
Maria Nelson (4:15-cr-000246-JLH)
Mike Lee (4:15-cr-00149-BSM)
Trial date — May 16, 2016
Trial date — June 6, 2016
Trial date – August 29, 2016
Five California Residents Plead Guilty to Defrauding Homeowners in Nationwide Home Loan Modification ScamRead the Press Release
ALEXANDRIA, Va. – Five California men have pleaded guilty for their roles in a nationwide home loan modification scam that defrauded over 400 homeowners out of over $3.8 million.
Roscoe Umali, 38; Jefferson Maniscan, 34; Raymund Dacanay, 47; Isaac Perez, 33; and Joshua Johnson, 36, all resided in the greater Los Angeles area.
According to statements of facts filed with their plea agreements, from at least October 2012 through September 2014, the defendants and their co-conspirators targeted struggling homeowners and made a series of misrepresentations to induce those homeowners to make payments of thousands of dollars in exchange for supposed home loan modification assistance. Operating under the names of fictional companies like “Equity Restoration Group,” the defendants falsely held themselves out as a non-profit organization or as affiliated with a real government program, the “Home Affordable Modification Program” (HAMP), designed to help homeowners at risk of foreclosure. Through mass mailings, phone calls, faxes, and emails with their victims, the defendants convinced homeowners to send them “reinstatement fees” and to make several monthly “trial mortgage payments” to the conspiracy, rather than to the homeowners’ lenders. The defendants then did nothing to help modify any mortgages. Instead, they used the victims’ payments for their own personal benefit and to further the fraud scheme.
This scam victimized over 400 individuals and families nationwide, resulting in a total loss of over $3.8 million. It also resulted in many victims losing their homes, despite the victims’ efforts to modify their mortgages and continue to make payments on their loans.
The defendants were indicted on Oct. 22, 2015, and each faces a maximum penalty of 20 years in prison. Umali, Maniscan, and Dacanay will be sentenced on June 23, while Perez and Johnson will be sentenced on July 7. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program; and Robert Wemyss, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service, made the announcement after the pleas were accepted by Senior U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Samantha P. Bateman and James P. Gillis are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15cr301.
Federal Judge Sentences South Carolina Man to Prison for Unlawful Possession of A FirearmRead the Press Release
CHARLOTTE, N.C. – A South Carolina man was sentenced today to 52 months in prison for a firearms violation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term handed down by U.S. District Judge Max O. Cogburn, Jr., Buster Marshall, 44, of Fort Mill, S.C. was also ordered to serve a three-year term of supervised release. Marshall pleaded guilty in November 2015 to one count of unlawful possession of a firearm. Marshall’s previous felony convictions prohibit him from possessing a firearm.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Chief Rob Hunter of the Matthews Police Department; Sheriff Eddie Cathey of the Union County Sheriff’s Office; and Chief J. Bryan Gilliard of the Monroe Police Department.
According to filed court documents and statements made in court, on March 25, 2015, Marshall confronted his ex-girlfriend at the parking lot of a fast food restaurant located in Matthews, N.C. Court records show that when the woman refused to speak with Marshall, he pulled out a revolver, pointed it at her and pulled back the hammer. When Marshall’s ex-girlfriend called 9-1-1, Marshall drove off in his car. According to court records, law enforcement attempted to pull over Marshall’s vehicle, but Marshall eluded the officers driving at high speed, eventually striking another vehicle in Monroe, N.C. Court records indicate that after hitting the other car, Marshall fled from law enforcement on foot with the silver revolver tucked in his waistband. Marshall then unsuccessfully tried to take another vehicle and he was arrested by law enforcement shortly thereafter.
Marshall has been in federal custody since July 2015 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF, the Matthews Police Department, the Union County Sheriff’s Office and the Monroe Police Department. Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecutions.
Federal Judge Revokes U.S. Citizenship of Man Charged with Concealing His Criminal HistoryRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that U.S. District Judge Max O. Cogburn, Jr. revoked the U.S. citizenship of a man charged with concealing his criminal history on his naturalization application. Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (ICE/HSI) in Georgia and the Carolinas joins U.S. Attorney Rose in making today’s announcement.
Wilson Rene Cagua-Anzules, 34, of Charlotte, pleaded guilty in July 2015 to one count of making false and misleading statements during the application process to become a United States citizen. Yesterday, Judge Cogburn sentenced Cagua-Anzules to a year of probation stemming from that conviction and granted the government’s motion to revoke the defendant’s American citizenship. The defendant was also ordered to return to the government his certificate of naturalization, his American passport, his voting card and any other documents evidencing American citizenship. The Court also ordered that Cagua-Anzules must leave the United States voluntarily on or before Friday, April 8, 2016, or otherwise be arrested by immigration agents.
According to the sentencing hearing and court documents filed in the case, Cagua-Anzules was born in Ecuador in 1982, and entered the United States in 1999 as a lawful permanent resident. In June 2010, Cagua-Anzules filed an application for naturalization, and answered “No” on the application form’s question, “Have you ever committed a crime or offense for which you were not arrested?” In February 2011, Cagua-Anzules’ naturalization application was approved, following an oral interview with a United States Citizenship and Immigration Services (USCIS) officer. Cagua-Anzules received his certificate of naturalization in March 2011.
According to court records, on or about February 15, 2012, Cagua-Anzules pleaded guilty in Mecklenburg County Superior Court to one count of taking indecent liberties with a child and received a sentence of 15 to 18 months in prison. Court records show that in his state court proceedings, Cagua-Anzules admitted that he had committed this crime in August 2010. Court records indicate that the criminal act occurred during Cagua-Anzules’ naturalization process, but the defendant failed to reveal this material information both on his naturalization application form and during his interview with a USCIS officer.
“Today, a federal judge stripped the U.S. citizenship of a man who did not deserve such privilege,” said U.S. Attorney Rose. “Cagua-Anzules violated our immigration laws and compromised the integrity of our naturalization proceedings. The United States has always been a welcoming country to honest, law-abiding foreign nationals in search of freedom, prosperity and the pursuit of the American dream. But make no mistake that we will prosecute those who try to cheat their way into an American citizenship. Liars and cheats need not apply,” Rose added.
The investigation was handled by ICE/HSI. Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte was in charge of the prosecutions.
Federal Grand Jury Indicts St. Clair County Man for Receiving, Distributing, and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a St. Clair County man on multiple charges of receipt, distribution and possession of child pornography, announced U.S. Attorney Joyce White Vance, Alabama Law Enforcement Agency Secretary Stan Stabler and FBI Special Agent in Charge Roger C. Stanton.
A three-count indictment filed in U.S. District Court charges DANNY C. OLIVER Sr., 62, with receiving, distributing and possessing child pornography between 2014 and 2015.
Because Oliver was previously convicted of sexual abuse in the first degree in the State of Alabama, the maximum penalty for receiving and distributing child pornography is 40 years in prison and a $250,000 fine, and the maximum penalty for possessing child pornography is 20 years in prison and a $250,000 fine.
ALEA and the FBI investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Agents Make Third Arrest in Operation Ice StormRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A Charlottesville man was arrested this morning and charged with federal drug trafficking charges in relation to a larger investigation into the trafficking of methamphetamine into the Charlottesville area, United States Attorney John P. Fishwick Jr. announced today.
Jose Alfredo Gonzalez-Martinez, 32, of Charlottesville, was arrested this morning on a federal criminal complaint and charged with distributing 50 grams or more of methamphetamine. Gonzales-Martinez is the third man charged in recent months as part of Operation Ice Storm, a federal law enforcement initiative targeting those trafficking methamphetamine into and around the greater Charlottesville area.
“Methamphetamine, especially the more potent ‘Ice’ form of the drug some of these defendants are trafficking in, is devastatingly addictive,” United States Attorney John P. Fishwick Jr. said today. “The use and addiction to this drug has a dramatic effect on our communities and our families and we will continue to work with our law enforcement partners to do all we can to stop the flow of this dangerous substance into our communities.”
Gonzales-Martinez is the third man charged as part of Operation Ice Storm, a multi-agency operation headed by the Drug Enforcement Administration and in partnership with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The operation’s goal is to target larger distributors and traffickers of methamphetamine into Charlottesville and surrounding areas.
In addition to today’s charges against Gonzalez-Martinez, two other men, Alfonso Lopez-Rios, 33, of Charlottesville, Va. and John Mark Fisher, 54, of Roanoke, Va., have both previously pled guilty to charges brought as part of Operation Ice Storm.
Lopez-Rios pled guilty in August 2015 to possession with intent to distribute and distributing 50 grams or more of methamphetamine. Lopez-Rios has admitted to participating in a larger conspiracy in which he would travel from Charlottesville, Virginia to North Carolina to obtain large quantities of methamphetamine. In his travels, Lopez-Rios would also drive to Roanoke to sell half-pound and pound quantities of methamphetamine to Fisher, another high-level distributor in the Roanoke area. In January 2016, Fisher pled guilty to possession with the intent to distribute and distributing 50 grams or more of methamphetamine. Lopez-Rios and Fisher are scheduled to be sentenced on April 14, 2016, and April 15, 2016, respectively.
The investigation of the case was conducted by the Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Christopher Kavanaugh is prosecuting the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Fayette County Man Charged with Possession of Destructive DevicesRead the Press Release
Trevor John Satrom, 33, from Oran, Iowa, has been charged with one count of possession of a National Firearms Destructive Device Not Registered to Possessor. The charges are contained in an Indictment filed on March 23, 2016, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about February 10, 2016, Satrom was in possession of four destructive devices: three explosive bombs more particularly described as pipe bombs and one explosive bomb more particularly described as a pressure cooker bomb. Satrom had failed to register any of these destructive devices in the National Firearms Registration and Transfer Record as required by federal law.
If convicted, Satrom faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
Satrom appeared on March 25, 2016, in federal court in Cedar Rapids and was held without bond. Satrom’s next appearance for trial is set for May 23, 2016.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Criminal Investigation, the Fayette County Sheriff’s Office, the Iowa State Fire Marshal’s Office, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2016.
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FBI, DEA, NYPD and New York State Police Seize over 200 Kilograms of K2 from Narcotics Factory Operating in Queens StorefrontRead the Press Release
A joint raid conducted by the Federal Bureau of Investigation and Drug Enforcement Administration’s New York Drug Enforcement Task Force last night resulted in the discovery of a manufacturing facility and the seizure of at least 200 kilograms of synthetic cannabinoids, commonly sold on the street under the brand names “K2” or “Spice,” from a storefront in Queens, New York. One defendant, Osvaldo Maria Vasquez, was arrested at the site in connection with a previously-issued arrest warrant charging him with participating in a conspiracy to distribute cocaine in 2014 and 2015.
The seizure and arrest were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), Commissioner William J. Bratton, New York City Police Department (NYPD) and Joseph A. D’Amico, New York State Police Superintendent.
According to the detention memorandum, a search warrant was executed last night at “Excellent Tire Shop Services,” a business in Queens Village that purported to sell tires. Upon entry into the premises, the agents located approximately 170 kilograms of suspected synthetic cannabinoids already packaged for immediate sale to customers. Concealed behind a tarp in the rear of the premises was a narcotics manufacturing facility, where agents found industrial quantities of the chemicals used to manufacture synthetic cannabinoids, scales, packaging materials, flavoring agents, as well as a large amount of processed cannabinoids that were not yet packaged for sale. In total, at least 200 kilograms of suspected synthetic cannabinoids were seized from the location. Law enforcement estimates this quantity of synthetic cannabinoids to have a street value of at least $200,000.
“Synthetic cannabinoids present a new danger to public health. While sometimes called synthetic marijuana, use of these drugs can have unpredictably severe and even lethal effects,” stated United States Attorney Robert L. Capers. “Last night’s seizure by the FBI and DEA represents another step in law enforcement’s response to this deadly serious problem.”
FBI Assistant Director in Charge Diego Rodriguez said “the production of synthetic drugs creates serious concerns for the law enforcement community and poses a significant public safety risk for consumers of these volatile and potentially deadly substances. As we confront an epidemic in which society is saturated with the dissemination of many illegal substances, we stand with our partners in confronting this emerging challenge."
DEA Special Agent in Charge James J. Hunt said “rearing its ugly head, synthetic cannabinoids were being manufactured and packaged with intentions to be unleashed in our city. Due to good police work, a clandestine K2 lab was dismantled in Queens, demolishing the health and the societal dangers caused by K2 use along with it.”
“This makeshift synthetic cannabinoid lab, which operated out of sight in the rear of a tire shop, was used to produce this poison in the vicinity of several homes and businesses,” said Police Commissioner William J. Bratton. “I commend the work of the Drug Enforcement Task Force and our FBI partners for seizing this drug before it reached the streets of New York.”
Joseph A. D’Amico, New York State Police Superintendent said “the dangers of synthetic narcotics are well documented, with very serious health and public safety issues that have occurred because of the increase in use. With this bust, we have succeeded in taking a large quantity of synthetic drugs off the streets, and shutting down the lab where they were produced. The State Police is committed to working with our law enforcement partners to keep these hazardous substances out of our communities.”
The defendant was arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak at the federal courthouse in Brooklyn. The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Lauren Howard Elbert and Jennifer Sasso Carapiet are in charge of the prosecution.
The Defendant:
OSVALDO MARIA VASQUEZ
Age: 36
Queens, New YorkE.D.N.Y. Docket No. 16 MJ 256
El Paso Income Tax Return Preparer Indicted by Federal Grand JuryRead the Press Release
In El Paso, Gabriela Chavez Garcia, owner and operator of G & A Tax Service, is charged with 38 counts of aiding and abetting the preparation of a false income tax return, announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter.
A federal grand jury indictment, unsealed this afternoon, alleges that from March 2011 to April 2013, Garcia prepared and filed fraudulent federal Income Tax Returns. The indictment further alleges that the fraudulent returns, submitted on behalf of 20 individuals, contained fraudulent claims and figures, including Earned Income Credit, Child Tax Credit, Additional Child Tax Credit, certain business expenses, certain unreimbursed job expenses and other miscellaneous deductions to which the taxpayers were not entitled.
IRS-CI agents arrested Garcia yesterday. Garcia was released on a $20,000 bond at her initial appearance today in front of U.S. Magistrate Judge Robert Castaneda.
Upon conviction, each charge calls for up to three years in federal prison.
This case was investigated by special agents with the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Nikhil Bhagat is prosecuting this case on behalf of the Government.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.