Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
24 March 2016
Las Cruces Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Edward Valenciano, 38, of Las Cruces, N.M., pleaded guilty today in federal court to a heroin trafficking charge. Under the terms of his plea agreement, Valenciano will be sentenced to 60 months in federal prison followed by a term of supervised release to be determined by the court.
Valenciano was arrested in June 2015, on a criminal complaint charging him with conspiracy to distribute heroin on June 11, 2015, in Doña Ana County, N.M. The complaint alleged that Valenciano was involved in the sale of approximately 353.4 grams of heroin to an individual working with law enforcement.
Valenciano was subsequently indicted on Oct. 15, 2015, and charged with conspiracy to distribute heroin from June 3 through 16, 2015, and possession of heroin with intent to distribute on June 16, 2015. The indictment included forfeiture allegations requiring Valenciano to forfeit $6,000, proceeds of the drug trafficking charged, to the United States.
During today’s proceedings, Valenciano pled guilty to conspiracy to possess heroin with intent to distribute and admitted that on June 3, 2015, he directed another individual to provide heroin to a person who unbeknownst to him was working with law enforcement. Valenciano further admitted that on June 11, 2015, he accepted $6,000 from the same person in payment for the heroin provided on June 3, 2015.
Valenciano remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Justice Department Sues Wyoming State Agency for Sex DiscriminationRead the Press Release
The Department of Justice announced today that it has filed a lawsuit against the Wyoming Military Department alleging that it discriminated against a female former employee on the basis of her sex when it failed or refused to take timely remedial actions when she was sexually harassed by her male supervisor.
According to the complaint, the supervisor’s persistent and prevalent sexual harassment led to a hostile work environment based on sex, in violation of Title VII of the Civil Rights Act of 1964. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, religion, sex or national origin.
The department’s complaint, filed today in the U.S. District Court for the District of Wyoming, alleges that the former employee was regularly subjected to sexual harassment in the workplace by her immediate supervisor, the former director of the Wyoming Military Department’s Youth Challenge Program. The supervisor’s unwelcome conduct included unwanted emails about his personal life with his then wife; unwanted written expressions of affection for the employee, including songs and poems; and invasion of her work space to discuss personal issues to such a degree that it interfered with her ability to do her work and that she found it necessary to invent pretext to get away from him. The employee repeatedly rejected these advances and requested that her supervisor cease all of his unwanted behavior, but the supervisor persisted in his conduct. The employee filed multiple complaints with the Wyoming Military Department indicating that her supervisor’s behavior was unwelcome, that she had asked him to stop his unwanted attentions and that he failed or refused to do so.
According to the complaint, the employee received no effective assistance from the Wyoming Military Department in remedying her claims despite her complaints to both its human resources department and management officials. The combination of the supervisor’s actions and the agency’s lack of assistance caused the employee to resign.
“Title VII ensures that no woman should have to choose between keeping her job and enduring sexual harassment in the workplace,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “When employers learn about allegations of sexual harassment, the law requires that they take swift action to protect victims and hold perpetrators accountable.”
The Equal Employment Opportunity Commission (EEOC) received a charge of sex discrimination filed by the former employee. The EEOC’s Denver Field Office, in the Phoenix District, investigated the matter and found reasonable cause to believe that the Wyoming Military Department discriminated against the former employee. After unsuccessful conciliation efforts, the EEOC referred the matter to the department.
The lawsuit seeks declaratory and injunctive relief requiring the Wyoming Military Department to implement employment policies that prevent hostile work environment harassment based on sex. The United States will also seek to obtain “make whole” relief, including monetary damages, for the victim.
The case was brought by the Civil Rights Division’s Employment Litigation Section. Enforcing federal employment discrimination laws is a top priority for the Justice Department. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
Jury Convicts Inmate David R. McPeters, and Daughter-In-Law Kathryn McPeters, in Social Security ScamRead the Press Release
David and Kathryn McPeters convicted of conspiring to defraud Social Security
GRAND RAPIDS, MICHIGAN — On March 24, a federal jury convicted David R. McPeters and Kathryn McPeters of conspiracy to defraud the Social Security Administration ("SSA"), U.S. Attorney Patrick Miles announced today.
David R. McPeters, 80, has been an inmate of the Michigan Department of Corrections since 1983, when he received two life sentences for murder. Kathryn McPeters, 57, his daughter-in-law, is a resident of Battle Creek, Michigan.
The evidence presented during the three-day trial before U.S. District Judge Janet T. Neff established that the two conspired to circumvent the law prohibiting prison inmates from receiving Social Security retirement benefits. Using David’s name and personal information, Kathryn applied online for SSA retirement benefits on his behalf but concealing the fact that he was incarcerated. Her application deceived the SSA into sending funds to a bank account set up for that purpose by Kathryn. Between 2006 and 2015, the scheme netted them approximately $250,000. The proceeds were split between the two, with Kathryn receiving the majority of the benefits. David has been returned to the Michigan Department of Corrections and Kathryn has been continued on bond pending their sentencing hearings, which have not yet been scheduled.
U.S. Attorney Patrick Miles stated that he was satisfied with the result. "Social Security retirement benefits are an important safety net for all of us when we retire. McPeters is already serving his retirement at taxpayer expense at the Michigan Department of Corrections. The money he and his daughter-in-law swindled should have gone to those retired individuals who have been hardworking taxpayers all their lives."
The case was investigated by the Grand Rapids Office of the Social Security Administration, Office of Inspector General. The case was tried by Timothy VerHey, Assistant United States Attorney.
END
Johnson City Man Sentenced for Federal Gun OffenseRead the Press Release
GREENEVILLE, Tenn. – On March 23, 2016, Jamarcus Lavelle Jackson, 26, of Johnson City, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 120 months in federal prison. Jackson was previously convicted at trial of being a felon in possession of a firearm.
In March 2014, officers with the Johnson City Police Department responded to a shooting at the Battery, a bar/restaurant located downtown. Upon arrival, officers found Jackson being restrained by a group of people. Several victims, all suffering gunshot wounds, were also discovered. When interviewed, numerous witnesses identified Jackson as the shooter and recalled seeing him leave the scene, only to return minutes later to commit the shooting. Testimony at trial showed that Jackson had left to retrieve the instant firearm from his vehicle. As he began shooting, witnesses tackled and subdued him, forcibly removing the gun from his hand. He was placed under arrest once police arrived. One victim died of his wounds. Three other victims recovered from their injuries.
Jackson will now return to state court where he faces charges of first degree murder, attempted second degree murder, aggravated assault, and reckless endangerment.
This investigation was the product of a partnership between the Johnson City Police Department, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Nick Regalia and Special Assistant U.S. Attorney Corey Shipley represented the United States.
###
James Hunley Indicted for Hobbs Act RobberyRead the Press Release
HAMMOND- United States Attorney David Capp announced today that an Indictment was filed charging James Hunley, 50, with four counts of Hobbs Act Robbery.
On the dates below, Hunley allegedly entered and robbed the following locations in the Northern District of Indiana:
-
March 7, 2016-Dollar General, 21 N. Main Street, Crown Point, Indiana
-
March 11, 2016- Dollar General, 2015 N. Michigan Street, Plymouth, Indiana
-
March 13, 2016- Dollar General, 611 E. Talmer Avenue, North Judson, Indiana
-
March 14, 2016- Walgreens, 13242 Wicker Avenue, Cedar Lake, Indiana
United States Attorney Capp said, “these violent acts will not be tolerated in our community. As stated at the last press conference, my Office and our state, local and federal law enforcement partners will continue to utilize all of our resources to apprehend and prosecute these perpetrators.”
Hunley was taken into custody on March 17, 2016 east of Tulsa, Oklahoma, pursuant to federal criminal complaint warrant. Hunley is in the custody of the United States Marshal’s Service and is being transported back to the Northern District of Indiana. The United States Attorney’s Office will seek pre-trial detention.
This case was investigated by the Federal Bureau of Investigation with assistance from the Lake, Marshall and Starke County Prosecutors’ Offices and the Cedar Lake, Crown Point, North Judson and Plymouth Police Departments. The case is being prosecuted by Assistant United States Attorney Jennifer Chang.
Anyone with any knowledge of James Hunley or his associates is urged to call the FBI at 219-769-3719 or 317-595-4000. All phone calls will be treated confidentially.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
# # #
-
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on March 23, 2016 and entering pleas of Not Guilty were:
- GEORGE GERALDO a 42-year-old resident of Las Vegas, Nevada, appeared on charges of conspiracy to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, GERALDO faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-15
- JAMIE RYAN MISCAMPBELL a 31-year-old resident of Kila, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, CAMPBELL faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Drug Task Force and Homeland Security Investigations. PACER Case Reference. 16-17
- ANDREW JOSEPH SHIELDS a 32-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, SHIELDS faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Northwest Drug Task Force and Homeland Security Investigations. PACER Case Reference. 16-17
Appearing before U.S. Magistrate Johnston in Great Falls on March 22, 2016 and entering pleas of Not Guilty were:
- TYRELL HENDERSON, a 26-year-old resident of Box Elder, appeared on charges of involuntary manslaughter. If convicted of the charge contained in the indictment, HENDERSON faces 8 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-10
- ARIANNE LATRAY, a 23-year-old resident of Harlem, appeared on charges of second degree murder. If convicted of the charge contained in the indictment, LATRAY faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-21
Appearing before U.S. Magistrate Lynch in Missoula on March 22, 2016 and entering pleas of Not Guilty were:
- STEVE ALAN BRITTNER a 50-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, BRITTNER faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-15
Appearing before U.S. Magistrate Lynch in Missoula on March 21, 2016 and entering pleas of Not Guilty were:
- KAULIKA THARA ARENSBERG, a 35-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine. If convicted of the charge contained in the indictment, ARENSBERG faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration. PACER Case Reference. 16-11
- JAMES MICHAEL RANDALL, a 31-year-old resident of Missoula, appeared on charges of conspiracy to distribute methamphetamine. If convicted of the charge contained in the indictment, RANDALL faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration. PACER Case Reference. 16-11
Appearing before U.S. Magistrate Lynch in Missoula on March 18, 2016 and entering pleas of Not Guilty were:
- JENNIFER BROOKE BUSHNELL, a 30-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, BUSHNELL faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missouri River Drug Task Force. PACER Case Reference. 15-13
- GABRIEL CALVIN SMITH, a 39-year-old resident of Bozeman, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charges contained in the indictment, SMITH faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missouri River Drug Task Force. PACER Case Reference. 15-13
Appearing before U.S. Magistrate Johnston in Great Falls on March 17, 2016 and entering pleas of Not Guilty were:
- JONATHAN JAY EAGLEMAN, a 50-year-old resident of Box Elder, appeared on charges of false statements to a federal agency. If convicted of the most serious charges contained in the indictment, EAGLEMAN faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Environmental Protection Agency. PACER Case Reference. 16-06
Appearing before U.S. Magistrate Johnston in Great Falls on March 15, 2016 and entering pleas of Not Guilty were:
- LOREN JAMES RIDER, a 38-year-old resident of Browning, appeared on charges of assault resulting in serious bodily injury/aiding and abetting. If convicted of the charge contained in the indictment, RIDER faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-17
Appearing before U.S. Magistrate Lynch in Missoula March 15, 2016 and entering pleas of Not Guilty were:
- KELLY GORDON DUPUIS, a 26-year-old resident of Polson, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, DUPUIS faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Missoula HIDTA and the Drug Enforcement Administration. PACER Case Reference. 16-11
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Houston Physician and Another Sent to Federal Prison in Health Care Fraud ConspiracyRead the Press Release
HOUSTON - Dr. Enyibuaku Rita Uzoaga, 43, has been ordered to serve 42 months and pay restitution to Medicare and Medicaid as a result of her six convictions of health care fraud and one count of conspiracy, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in Houston returned guilty verdicts Nov. 3, 2015, against Uzoaga following four hours of deliberation and a six-day trial.
Today, U.S. District Judge Ewing Werlein Jr. handed Uzoaga a 42-month sentence to be followed by three years of supervised release. She was further ordered to pay a $389,285 in restitution. In handing down the sentence, Judge Werlein noted the excessive number of vestibular tests that Uzoaga billed over an approximate four-year-period. One patient was billed for 1,200 tests after seeing Uzoaga only once. Evidence at trial showed patients only need one or two of these diagnostic tests in a lifetime.
Co-defendant Charles Harris, 55, who had pleaded guilty prior to trial, was sentenced earlier this month to 33 months in federal prison to be followed by three years of supervised release for his involvement in the Uzoaga case and two other vestibular indictments in the Southern District of Texas. In all three cases, Harris has been ordered to pay $1,500,203.72 in restitution to Medicare and $103,268.64 in restitution to Medicaid.
At trial, the jury heard that from approximately 2006 through 2010, Uzoaga, Harris and others falsely billed Medicare and Medicaid for numerous, unnecessary vestibular diagnostic tests. Some patients were billed for hundreds of tests, some for more than a 1,000. The evidence at trial showed that the testing by Harris and his employees was either not performed, not medically necessary and/or not performed by licensed individuals.
Vestibular diagnostic testing is used to diagnose a person for vertigo or dizziness. After being diagnosed, patients usually undergo physical therapy, take medication or undergo surgery as treatment.
As a result of this unlawful scheme between Harris and Uzoaga alone, Medicare and Medicaid were billed approximately $653,970 in submitted, fraudulent vestibular diagnostic claims. Medicare and Medicaid paid $389,285 on those claims.
Vestibular testing accounted for 23 percent of Uzoaga's income from Medicare and Medicaid.
At trial, Uzoaga attempted to convince the jury that she was unaware of the false billings. The jury did not believe her story and found Uzoaga guilty as charged.
Previously released on bond, Uzoaga was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. Harris is in custody.
The charges are the result of the investigative efforts of the Texas Attorney General's Medicaid Fraud Control Unit, Department of Health and Human Services - Office of Inspector General, Office of Investigations and the FBI. Special Assistant U.S. Attorney Suzanne Bradley and Assistant U.S. Attorney Tina Ansari prosecuted the case.
Hattiesburg Businessmen Indicted for Fraud Relating to Government Housing ContractRead the Press Release
Hattiesburg, Miss – Kenneth Fairley, 62, of Hattiesburg, and Artie Fletcher, 55, of Picayune, have been charged in a federal indictment with a scheme to defraud the U.S. Department of Housing and Urban Development (HUD), announced U.S. Attorney Gregory K. Davis, IRS Criminal Investigation Special Agent in Charge Jerome R. McDuffie, HUD Special Agent in Charge Nadine Gurley, Federal Bureau of Investigation Special Agent in Charge Donald Always and Mississippi State Auditor Stacey Pickering.
Fairley and Fletcher are charged with devising a scheme to defraud HUD in connection with a government contract issued to the City of Hattiesburg for the rehabilitation of three residential properties located within the city limits. The project was supported by federal funding and was executed through sub-contracted work to be completed by Pinebelt Community Services, a local non-profit operated by Fairley. The indictment alleges that Fairley conspired with Fletcher to fraudulently perform the work for a lesser amount than represented on the HUD contract, with the difference in the bid and actual costs being transferred to Fairley, through Fletcher, for purposes not intended by the government contract.
The indictment charges Fairley with one count of conspiracy to defraud the United States, two counts of theft of government money, one count of conspiracy to commit money laundering, and two counts of engaging in monetary transactions in property derived from unlawful activity.
Fletcher is charged with one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering, and one count of engaging in a monetary transaction in property derived from unlawful activity.
"When the federal government provides resources to local cities and county governments, the U.S. Attorney’s Office will be vigilant in vindicating the interests of the taxpayers when federal and state law enforcement agencies determine that the funds have been stolen or misused," said U.S. Attorney Gregory K. Davis.
IRS Criminal Investigation Special Agent in Charge Jerome R. McDuffie, stated: "While the indictment is merely an allegation with respect to the charges of money laundering violations and conspiracy to commit money laundering, IRS -CI takes the investigation of all crimes related to the misuse of taxpayer dollars very seriously. Our special agents will pursue the charges alleged against Mr. Fairley and Mr. Fletcher until the ends of Justice are served in this matter."
"Schemes that defraud the government are akin to stealing from American taxpayers", said Donald Alway, Special Agent in Charge of the FBI in Mississippi. "We take that very seriously. The FBI is committed to tracking and shutting down fraud schemes like the one alleged in the indictment. I also want to thank our law enforcement partners for their dedicated work in this case."
"I want to thank the Federal and State investigators who worked together on this case," said Mississippi State Auditor Stacey Pickering. "They are the unsung heroes who work to protect the taxpayers."
Fairley and Fletcher were arraigned before U.S. Magistrate Judge Michael T. Parker in Hattiesburg today. They are scheduled for trial before U.S. District Judge Keith Starrett on April 18, 2016.
The maximum penalties for the crimes charged in the indictment are as follows: Conspiracy to defraud the U.S. - 5 years in prison and a $250,000 fine; Theft of government money – 10 years in prison and a $250,000 fine; Conspiracy to commit money laundering - 20 years in prison and a $500,000 fine or twice the amount of the criminally derived property involved in the transaction; Engaging in monetary transaction in property derived from specified unlawful activity - 10 years in prison and $250,000 fine or twice the amount of the criminally derived property involved in the transaction.
This case was investigated by the U.S. Department of Housing and Urban Development, IRS – Criminal Investigation, Federal Bureau of Investigation, and the Mississippi State Auditor’s Office.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
Hartford Man Sentenced to 10 Years in Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AKEEM MANOO, a.k.a. “Keeme,” 25, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for gang-related narcotics trafficking.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force, which includes the Hartford Police Department, into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the WestHell street gang who, along with MANOO and other associates, distributed crack cocaine in the Westland Street area of Hartford.
In December 2014 and January 2015, investigators made four controlled purchases of crack from MANOO. In addition, MANOO indicated to the drug purchaser that MANOO had kilogram quantities of crack available for $19,600 per kilogram.
MANOO’s criminal history includes two state firearms convictions.
MANOO has been detained since March 2014 when he was arrested on state motor vehicle charges. On April 24, 2014, a grand jury returned a 52-count indictment charging Scott, MANOO and 23 others with various offenses. On May 4, 2015, MANOO pleaded guilty to one count of conspiracy to distribute 280 grams or more of cocaine base (“crack”).
Twenty-three defendants pleaded guilty to various offenses and one defendant was convicted after trial. One defendant was shot and killed while his case was pending.
On March 21, 2016, Scott was sentenced to 13 years of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Grady County Residents Sentenced for Burning Houses for InsuranceRead the Press Release
Acting United States Attorney for the Middle District of Georgia, G.F. Peterman, III, today announced the sentencing on March 24, 2016 of two individuals in an insurance fraud scheme. The sentences were handed by Senior District Court Judge W. Louis Sands in federal court in Albany, Georgia.
Elbert Walker, Jr. a/k/a “Shula”, aged 67, of Cairo, Georgia, was sentenced to serve 121 months in Federal prison for conspiracy to commit arson and mail, wire, bank and bankruptcy fraud and false declarations to a court as well as several firearms offenses and Shirley Burk, aged 48, of Cairo, Georgia, was sentenced to 60 months for conspiracy to commit arson, mail fraud and false declarations to a court.
The two defendants, along with Darryl Burk, were convicted in November 2015 of the charges following a three and a half week jury trial. Evidence presented at trial showed that between 1996 and 2006, Elbert Walker, Jr. was the owner and operator of Southside Grocery in Camilla, Georgia; Northside Home Remodeling in Cairo and Moultrie, Georgia; J and J Hauling, Roofing and Construction in Cairo, Georgia; North Broad Mini Market in Thomasville, Georgia; Rainbow Club located in Pelham, Georgia; Chickasaw Club in Cairo, Georgia; and Zock Rock Publishing and Promotions, Inc. located in Cairo, Georgia. Co-defendants Darryl Burk and Shirley Denise Burk were residents of Grady County, Georgia and relatives of Elbert Walker, Jr. Darryl Burk will be sentenced on May 19, 2016.
The three defendants conspired to destroy residential dwellings in the Grady, Mitchell, Thomas and Colquitt County areas by intentionally setting fire to them. They then defrauded insurance providers by falsely claiming that proceeds of insurance policies should be paid to them. In addition, the trio defrauded lending institutions in order to obtain financing for residential mortgage loans for the properties and presented counterfeit and forged checks associated with the proceeds of said insurance policies. Finally, Mr. Walker and Mrs. Burk defrauded the United States Bankruptcy Court and United States District Court.
The properties involved in the conspiracy were located at 1097 Bondvilla Drive in Cairo, Georgia; 410 Oak Street in Thomasville, Georgia; 555 Baggs Ferry Road in Camilla, Georgia; 605 S. Harney Street in Camilla, Georgia; and 608 Oak Circle in Moultrie, Georgia.
Evidence presented also showed that Mr. Walker was previously convicted of Welfare Fraud Conspiracy in New Jersey. In 2007 and 2011, agents executed search warrants at his residence in Cairo, Georgia and located multiple firearms in his possession. Some of these firearms also had obliterated serial numbers.
Acting U.S. Attorney Peterman said, “The criminal activities for which these defendants were sentenced today have been ongoing for years. Time and again they swindled banks and insurance companies and perpetrated frauds on our courts. They put the lives of firefighters in jeopardy through their numerous arsons for profit. As the leader of this gang, Elbert Walker, Jr. was a virtual one-man crime wave in South Georgia. He is the very person at whom are aimed our laws banning the possession of firearms by felons. I commend the federal, state and local law enforcement authorities who investigated this case for their excellent work in bringing these defendants to justice, as well as the prosecutors whose dedication and hard work resulted in these convictions.”
“Today’s sentence is another reminder that ATF and our law enforcement partners will hold individuals accountable for any criminal behavior, especially that which threatens the safety of innocent civilians,” said ATF Assistant Special Agent in Charge John Schmidt.
"The co-conspirators in this fraud ring went to great lengths to carry out their illegal schemes, which included arson and fraudulent insurance claims," said Insurance Commissioner Ralph Hudgens. "I would like to commend local, state and federal investigators and Assistant U.S. Attorney Leah McEwen, for their work in dismantling this major arson and insurance fraud ring."
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; United States Secret Service, Georgia State Fire Marshal’s Office, Grady County Sheriff’s Office, Pelham Police Department, and Moultrie Fire Department. Assistant U.S. Attorney Leah McEwen and Special Assistant U.S. Attorney Harry Foster prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Fraudulent Tax Preparers Sentenced to Federal PrisonRead the Press Release
ATLANTA - Frederick Jenkins and Willie Jenkins have each been sentenced to over six years in federal prison after a jury convicted them of preparing and filing false tax returns with the Internal Revenue Service.
“The defendants in this case blatantly stole from their clients and left them to deal with the tax liability,” said U. S. Attorney John Horn. “It’s important to be careful when selecting someone to prepare tax returns. Demand to see what your tax preparer files with the IRS and ask questions, especially if the return seems too good to be true.”
“Return Preparer fraud is a top priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these,” said Veronica Hyman-Pillot, Special Agent in Charge, Atlanta Field Office. “Return preparers who concoct schemes to defraud the government, the tax paying public and their own clients face federal prosecution and federal prison. It is our hope that the sentencing of Willie and Frederick Jenkins helps reassure our communities that return preparers who lack integrity and engage in illegal activities will be held accountable for their actions.”
“Frederick and Willie Jenkins did a disservice to legitimate tax preparers who comply with Georgia tax law. The Jenkins’ not only violated the integrity of our tax system, but also placed an unfair burden on the hardworking taxpayers of Georgia. We will continue to find and track others who seek to defraud the taxpayers of our state,” said Josh Waites Director of the Office of Special Investigations, Georgia Department of Revenue.
According to U.S. Attorney Horn, the charges and other information presented in court: Between 2009 and 2012, Fredrick and Willie Jenkins prepared and filed thousands of tax returns at Global Tax Service, a business they managed together. The defendants created fictitious, unprofitable businesses that they listed on their clients’ tax returns as a way to generate fraudulent deductions. Those deductions lowered the clients’ taxable income and made their refunds larger. Ultimately, however, the clients were left to resolve their situations with the IRS and state authorities, while the defendants kept the fees they charged for preparing the returns.
In the end, Fred and Willie Jenkins conspired to create fraudulent business deductions that resulted in a tax loss of over $3.5 million.
-
Frederick Jenkins, 43, of Douglasville, Georgia, was sentenced to six years, six months in prison to be followed by three years of supervised release, a special assessment of $1100, and restitution of $3.5 million to the IRS.
-
Willie Jenkins, 46, also of Douglasville, was sentenced to six years, three months in prison to be followed by three years of supervised release, a special assessment of $700, and restitution of $3.5 million to the IRS.
Both Defendants were found guilty by a jury on October 26, 2015, following a week-long trial.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Office of Special Investigations, Georgia Department of Revenue.
Assistant United States Attorneys Bernita B. Malloy and Christopher C. Bly prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
-
Fourth Defendant Pleads Guilty in Connection with Scheme to Unlawfully Ship Firearms to LebanonRead the Press Release
Bassem Afif Herz, age 31, pleaded guilty today in United States District Court in Cedar Rapids, to charges relating to a scheme to illegally ship firearms and ammunition to Lebanon.
Herz was originally charged along with his wife, Sarah Majid Zeaiter; his brother, Ali Afif Ali Herz; and his nephew, Adam Al Herz, in a criminal complaint filed in May 2015. The affidavit supporting the complaint alleged that between about August 2014 and May 11, 2015, three shipping containers originating from Cedar Rapids were loaded with Bobcat skid loaders, clothing, and various other items with an intended destination of Beirut, Lebanon. The first container was not interdicted. On about March 26, 2015, the second container was interdicted at the outbound port in Norfolk, Virginia, where it was found to contain 53 firearms and more than 6800 rounds of ammunition secreted in three Bobcat skid loaders inside the container. On May 8, 2015, a third container, loaded and shipped from a Cedar Rapids business, was searched and found to contain an additional 99 firearms and over 9500 rounds of ammunition. The firearms and ammunition were again secreted within two Bobcat skid loaders in the container.
Herz pleaded guilty today to: (a) one count of conspiring to: deal in firearms without a license; ship and transport firearms and ammunition in interstate commerce; make false statements to licensed firearms dealers; fail to give notice to common carriers; and violate the Arms Export Control Act; (b) one count of conspiracy to commit money laundering; and (c) one count of violating the Arms Export Control Act. In total, Herz could be sentenced to serve 45 years imprisonment; pay a $1,750,000 fine and $300 in special assessments; and serve 13 years of supervised release.
Herz’s wife, brother, and nephew each pleaded guilty in United States District Court in Cedar Rapids to similar charges on March 10 and 11, 2016.
Sentencing proceedings in each case will be set at a later date.
In a plea agreement unsealed at the time of the guilty plea today, Herz admitted there were a total of four shipments of guns sent from Cedar Rapids and destined for Lebanon, between March 2014 and May 2015. Each of the shipping containers was shipped from Midamar Corporation in Cedar Rapids and contained Bobcat skid loaders in which firearms and ammunition were concealed. Proceeds of the guns sales were used to purchase more guns and ammunition and to further the illegal scheme.
The case is being prosecuted by Assistant United States Attorney Richard Murphy and was investigated by U.S. Immigration and Customs Enforcement, Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and U.S. Customs and Border Protection.
Anyone with information concerning this matter is requested to contact Homeland Security Investigations at 319-286-4680.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-0054-LRR.
Follow us on Twitter @USAO_NDIA.
Four Indicted for Robbery and Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that a federal grand jury in Raleigh, North Carolina returned a three count indictment charging JAMES STEPHEN THORPE a/k/a J1, JOSHUA RAYSHAWN MELVIN a/k/a J.O., ERVIN MONTEZ ALSTON, JR. a/k/a Wes or Wesley, and JAHID PRESTON DIGGS with conspiring to commit interference with commerce by robbery; interference with commerce by robbery; and discharging a firearm during and in relation to a crime of violence and aiding and abetting.
The investigation revealed that on March 16, 2015, THORPE, MELVIN, ALSTON and DIGGS committed a home invasion and robbery of the victim and others in the victim’s residence. During the robbery, the victim was shot and others in the home were injured and threatened. All four defendants are in custody awaiting their next court appearance.
If convicted, the defendants face up to 20 years’ imprisonment on both robbery counts. They also face not less than 10 years’ imprisonment and up to life imprisonment for the firearms offense.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation’s Raleigh Durham Safe Streets Task Force, Durham County Sheriff’s Office, Durham Police Department, Morrisville Police Department, Orange County Sheriff’s Office, North Carolina State Highway Patrol, North Carolina Alcohol Law Enforcement, and the North Carolina Department of Probation and Parole.
Four El Reno Residents Sentenced in Fraudulent Vehicle Cash-Back SchemeRead the Press Release
Oklahoma City, Oklahoma – Today, RICHARD M. ARNOLD SR. (a/k/a/ "Rick Arnold"), 62; RICHARD M. ARNOLD II, (a/k/a/ "Ricky Arnold"), 29; ROBERT W. ARNOLD, 26; and ROBYN R. ARNOLD, 57, all of El Reno, Oklahoma, were sentenced for conspiracy and wire fraud, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma. All were charged with conspiring to defraud new car purchasers out of cash included in loan proceeds based on false representations that a charitable trust would make all of the victims’ monthly car payments. The first three defendants received sentences of 54, 29 and 27 months in prison respectively. Robyn Arnold was ordered to serve five years of supervised release.
Ricky Arnold pled guilty to conspiracy on March 24, 2015; Rick and Robyn Arnold pled guilty on May 11, 2015. Robert Arnold, however, pled not guilty and went to trial before the Honorable Timothy D. DeGiusti on May 26, 2015. The evidence at trial showed that from May of 2013 through April of 2014, the defendants informed their acquaintances, family members, and friends that they could become beneficiaries of a program operated by a charitable trust designed to help working people acquire new cars. The defendants claimed that "CECU Trust" financed the program, which was also called the "United Auto Buyers Co-op Association."
Rick Arnold, Ricky Arnold, and Robert Arnold met car purchasers interested in the program at various car dealerships and arranged for purchases on credit that would include cash paid back to the buyers of $4,000 to $12,000 per car. In some instances, defendants caused victims’ loan applications to include fraudulently inflated income. Defendants told the car buyers that the rebate money would have to be given to the defendants for deposit into CECU Trust, which would then pay the buyers’ car loans in their entirety.
After the car purchases were complete, one or more of the defendants met the car buyers in a public place, such as a coffee shop or a bank, to receive the proceeds of the cash-back finance transactions. That money was deposited into bank accounts controlled by Robyn Arnold. Much of the money was used for personal expenses. Defendants also asked buyers to sign powers of attorney as well as proposed agreements advising the buyers that the association’s success depended on the buyers referring new participants to the program.
When various lenders notified buyers of potential defaults, defendants either assured the buyers that the payments would be made or stated that the trust would be unable to make further payments unless the buyers recruited additional participants.
The jury convicted Robert Arnold of conspiracy and wire fraud after hearing more than two days of testimony.
Today Judge DeGiusti sentenced all four defendants. They received the following sentences:
-
Rick Arnold: 54 months in prison, plus 4 years of supervised release
-
Ricky Arnold: 29 months in prison, plus 2 years of supervised release
-
Robert Arnold: 27 months in prison, plus 2 years of supervised release
-
Robyn Arnold: ordered to serve 5 years of supervised release
Rick Arnold’s sentence included an upward adjustment for his leadership role. All four sentences were based on loss amounts of more than $250,000. The court will determine a precise restitution amount within 60 days.
Reference is made to court filings for further information.
This case is the result of an investigation by the Federal Bureau of Investigation and the Public Protection Unit of the Oklahoma Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorneys Scott E. Williams and Kate Holey.
-
Former Tate County, Mississippi, Sheriff’s Deputy Sentenced for Unlawful TasingRead the Press Release
Former Tate County, Mississippi, Lieutenant Randy T. Doss, 63, was sentenced to two years in prison today for unlawfully tasing a pretrial detainee, J.W., at the Tate County Jail. The tasing, which occurred in 2012, caused the victim to fall to the concrete floor and fracture his skull.
At the time of the incident, which was captured on video, the victim was standing against a wall with his hands over his head, not posing a physical threat to anyone. Doss tased the victim from 11 feet away. The victim fell backward and hit his head on the concrete floor, necessitating brain surgery.
“The defendant is a veteran law enforcement officer who had been certified to train other officers on appropriate use of force,” said Principal Deputy Assistant Attorney General Gupta. “The Department of Justice will protect the rights of all citizens from excessive force at the hands of law enforcement.”
“The defendant abused his authority, violated the law and the public trust,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “While the majority of law enforcement officers are hardworking professionals who risk their lives daily for our safety, the U. S. Attorney’s Office is committed to aggressively prosecuting those officers who break the law and violate an individual’s constitutional rights.”
“In making arrests, maintaining order and defending life, the law allows law enforcement officers to use whatever force is ‘reasonably’ necessary,” said Special Agent in Charge Donald Alway of the FBI’s Jackson Division. “Violations of federal law occur when it can be shown, as in this case, that the force used was willfully ‘unreasonable’ or ‘excessive.’”
Doss had more than 20 years of experience in law enforcement, and had been certified to train other officers on the proper use of force, including how to use a taser.
Doss was indicted on March 30, 2015, by a grand jury in Oxford, Mississippi. He was charged with a single count of violating the rights of J.W. not to be deprived of liberty without due process of law. Doss was charged with both using a dangerous weapon – a taser – and causing bodily injury to the victim. He pleaded guilty to the single count in October 2015.
The case was investigated by the FBI’s Jackson Division, with the cooperation of the Tate County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorneys Dana Mulhauser and Andres Palacio of the Civil Rights Division’s Criminal Section.
Former Tate County, Mississippi, Sheriff's Deputy Sentenced for Unlawful TasingRead the Press Release
WASHINGTON – Former Tate County, Mississippi, Lieutenant Randy T. Doss, 63, was sentenced to two years in prison today for unlawfully tasing a pretrial detainee, J.W., at the Tate County Jail. The tasing, which occurred in 2012, caused the victim to fall to the concrete floor and fracture his skull.
At the time of the incident, which was captured on video, the victim was standing against a wall with his hands over his head, not posing a physical threat to anyone. Doss tased the victim from 11 feet away. The victim fell backward and hit his head on the concrete floor, necessitating brain surgery.
“The defendant is a veteran law enforcement officer who had been certified to train other officers on appropriate use of force,” said Principal Deputy Assistant Attorney General Gupta. “The Department of Justice will protect the rights of all citizens from excessive force at the hands of law enforcement.”
“The defendant abused his authority, violated the law and the public trust,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi. “While the majority of law enforcement officers are hardworking professionals who risk their lives daily for our safety, the U. S. Attorney’s Office is committed to aggressively prosecuting those officers who break the law and violate an individual’s constitutional rights.”
“In making arrests, maintaining order and defending life, the law allows law enforcement officers to use whatever force is ‘reasonably’ necessary,” said Special Agent in Charge Donald Alway of the FBI’s Jackson Division. “Violations of federal law occur when it can be shown, as in this case, that the force used was willfully ‘unreasonable’ or ‘excessive.’”
Doss had more than 20 years of experience in law enforcement, and had been certified to train other officers on the proper use of force, including how to use a taser.
Doss was indicted on March 30, 2015, by a grand jury in Oxford, Mississippi. He was charged with a single count of violating the rights of J.W. not to be deprived of liberty without due process of law. Doss was charged with both using a dangerous weapon – a taser – and causing bodily injury to the victim. He pleaded guilty to the single count in October 2015.
The case was investigated by the FBI’s Jackson Division, with the cooperation of the Tate County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorneys Dana Mulhauser and Andres Palacio of the Civil Rights Division’s Criminal Section.
Former State Representative Sentenced to 7 Years for BriberyRead the Press Release
LEXINGTON — A former state representative and Pikeville coal operator, Wendell Keith Hall, has been sentenced to 7 years for bribing a state mine official.
Today, U.S. District Judge Karen Caldwell sentenced Hall, 56, and also ordered him to pay a $25,000 fine and serve two years on supervised release, following service of his sentence. Under federal law, Hall will have to serve at least 85 percent of his sentence.
Hall, who represented House District 93 in the Kentucky General Assembly, was convicted by a jury, in June, of paying former mine reclamation officer Kelly Shortridge, for favorable treatment in connection with his official duties.
Shortridge worked at the Kentucky Division of Mine Reclamation and Enforcement, where he was responsible for enforcing mine reclamation statutes and regulations. Evidence presented at trial established that from 2006 through 2011, Shortridge inspected mines owned by Hall and ignored violations that occurred on Hall’s property, in exchange for a series of payments totaling over $46,000.
The evidence also established that the two men disguised the payments as consulting fees. In 2010, a shell company, DKJ Consulting, was established in the name of Shortridge’s wife. Hall then used a company he owned, S&K Properties, to funnel money to Shortridge, through DKJ, in order to make the payments appear as legitimate business expenses.
Shortridge was sentenced to two years in prison in January.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Howard S. Marshall, Special Agent in Charge, FBI; and Scott Oliver, Department of Interior, Office of Inspector General, jointly made the announcement.
Former Prison Guard Admits Smuggling Contraband into Philadelphia PrisonRead the Press Release
PHILADELPHIA – Dupree Myers, 27, previously employed at Curran-Fromhold Correctional Facility (“CFCF”), pleaded guilty today to attempted extortion which interfered with interstate commerce and attempted distribution of controlled substances. Myers agreed to deliver OxyContin pills and a cellphone to a prisoner in exchange for $1,000. U.S. District Court Judge Wendy Beetlestone scheduled a sentencing hearing for June 23, 2016. Myers faces a statutory maximum sentence of 40 years, plus supervised release, a special assessment, and a possible fine.
To obtain the contraband and payment, Myers arranged a meeting with the inmate’s purported associate at a location in Philadelphia. During the ensuing meeting, the inmate’s purported associate handed the contraband and cash payment to Myers, and Myers subsequently smuggled the contraband past prison security and delivered it to an inmate.
Myers was one of six prison guards charged by separate, unrelated indictments. Each of the officers from within the Philadelphia Prison System was charged with smuggling drugs and/or cell phones to inmates in exchange for money. To date, in addition to Myers, guilty pleas have been entered in separate, related cases by: George Kindle, a former correctional officer at The House of Corrections; Marc Thompson, a former correctional officer at The House of Corrections; John Wesley Herder, a former correctional officer at the Curran-Fromhold Correctional Facility; Joseph Romano, a former correctional officer at The Philadelphia Industrial Correctional Center. Defendant Bryant Fields, a former correctional officer at The Detention Center, is awaiting trial.
The case was investigated by the FBI and the Philadelphia Department of Corrections with assistance from the Philadelphia Police Department’s Prison Intelligence Group. It is being prosecuted by Assistant United States Attorney Kevin Brenner.
Former Judge Sentenced to 10 Years for Accepting Bribe During His Arkansas Court of Appeals CampaignRead the Press Release
A former state circuit judge in Arkansas was sentenced today to 120 months for accepting a bribe in exchange for reducing a negligence verdict against a company in Conway, Arkansas, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and First Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas.
Michael A. Maggio, 54, of Conway, was sentenced by Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas. Maggio pleaded guilty on Jan. 9, 2015, to a one-count information charging him with bribery concerning programs receiving federal funds.
As part of his plea agreement, Maggio admitted that in 2013, he served as an elected circuit judge for the state of Arkansas, 20th Judicial District, Second Division, and presided over a civil matter in Faulkner County, Arkansas, Circuit Court, in which a jury awarded a plaintiff $5.2 million in damages against a nursing home company. Maggio admitted that, while the company’s post-trial motions for new trial or to reduce the amount of damages awarded were pending, he formally announced his candidacy for the Arkansas Court of Appeals.
Two weeks later, the owner of the nursing home company donated approximately $24,000 to Maggio’s campaign, and the following day Maggio reduced the verdict to $1 million. Before making his decision, Maggio admitted that a fundraiser for his campaign discussed the pending post-trial motions with him and told him that the company’s owner had committed money to support his campaign. As part of his plea, Maggio admitted that his decision to remit the judgment was caused by the donations and that he attempted to delete text messages between the fundraiser and himself after the media became aware of the bribes.
The FBI’s Little Rock Field Office investigated the case. Trial Attorneys Edward P. Sullivan and Charles Walsh of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas prosecuted the case.
Former Judge Sentenced to 10 Years for Accepting Bribes During His Arkansas Court of Appeals CampaignRead the Press Release
WASHINGTON – A former state circuit judge in Arkansas was sentenced today to 120 months for accepting a bribe in exchange for reducing a negligence verdict against a company in Conway, Arkansas, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and First Assistant U.S. Attorney Patrick C. Harris of the Eastern District of Arkansas.
Michael A. Maggio, 54, of Conway, was sentenced by Chief U.S. District Judge Brian S. Miller of the Eastern District of Arkansas. Maggio pleaded guilty on Jan. 9, 2015, to a one-count information charging him with bribery concerning programs receiving federal funds.
As part of his plea agreement, Maggio admitted that in 2013, he served as an elected circuit judge for the state of Arkansas, 20th Judicial District, Second Division, and presided over a civil matter in Faulkner County, Arkansas, Circuit Court, in which a jury awarded a plaintiff $5.2 million in damages against a nursing home company. Maggio admitted that, while the company’s post-trial motions for new trial or to reduce the amount of damages awarded were pending, he formally announced his candidacy for the Arkansas Court of Appeals.
Two weeks later, the owner of the nursing home company donated approximately $24,000 to Maggio’s campaign, and the following day Maggio reduced the verdict to $1 million. Before making his decision, Maggio admitted that a fundraiser for his campaign discussed the pending post-trial motions with him and told him that the company’s owner had committed money to support his campaign. As part of his plea, Maggio admitted that his decision to remit the judgment was caused by the donations and that he attempted to delete text messages between the fundraiser and himself after the media became aware of the bribes.
The FBI’s Little Rock Field Office investigated the case. Trial Attorneys Edward P. Sullivan and Charles Walsh of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Julie Peters of the Eastern District of Arkansas prosecuted the case.
Former CEO of Karlise In-Home Care Sentenced in Federal CourtRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The former CEO of a home health care provider that operated in the Western District of Virginia, and who previously pled guilty to a pair of federal criminal charges, was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville, announced United States Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring.
Amanda Moye Randolph, 43, of Palmyra, Virginia, pled guilty in October 2015 to one count of theft of public money and one count of falsification of records in relation to a federal investigation. Today in District Court, Randolph was sentenced to eight months in federal prison, to be followed by three years of supervised release, the first eight months of which must be served in some alternate form of incarceration. Randolph was also ordered to pay $136,574 in restitution.
“Medicaid and other social programs are in place to help those in our communities who are truly in need of assistance,” United States Attorney John P. Fishwick said today. “When individuals like Ms. Randolph steal from these important social programs, they must be held accountable. I am grateful to be able to work with the Office of the Attorney General on this case, as always, the Medicaid Fraud Unit did great work in bringing this case together.”
“We will always work to hold providers accountable for fraudulent and illegal business practices that steal from taxpayers and from vulnerable individuals who rely on these important programs for medical care. Our close relationships with state and federal partners, including the U.S Attorney’s office and the Department of Medical Assistance Services, are key to successfully pursuing these cases,” said Virginia Attorney General Mark R. Herring.
According to evidence presented at previous hearings by Assistant United States Attorney Ronald Huber, Randolph was the CEO of Karlise In-Home Care, a Medicaid home health care provider, from April 2008 to June 2014. From around December 2008 to April 2014, Randolph knowingly concealed her employment at Karlise from the United States Social Security Administration and the United States Department of Health and Human Services during the application for, and continued receipt of, disability benefits and supplement security income benefits. An accounting completed by those two agencies concluded that Randolph received $80,735 in connection with these fraudulent schemes.
In January 2013, the Medicaid Fraud Control Unit of the Virginia Office of the Attorney General initiated a criminal investigation of Karlise following a complaint that Randolph had fabricated missing documentation from patient files. In furtherance of this investigation, the Department of Medical Assistance Services [DMAS] conducted a series of on-site audits of Karlise and requested to examine specific patient files that had previously been submitted for billing. Prior to turning these files over to auditors, Randolph examined these forms, determined that they were missing required information and/or signatures and, in turn, forged this information in order to prevent DMAS auditors from discovering discrepancies in Karlise patient files.
Randolph was aware that if discrepancies were discovered by DMAS, Karlise would in turn be required to reimburse Medicaid for the incorrectly documented services.
A subsequent review by the Medicaid Fraud Control Unit for the Virginia Office of the Attorney General has concluded that Medicaid incurred a loss of $55,838 as a result of the falsified documentation in Karlise patient files.
The investigation of the case was conducted by Medicaid Fraud Control Unit for the Virginia Office of the Attorney General, the Department of Medical Assistance Services, the Department of Health and Human Services, and the Social Security Administration. Assistant United States Attorney Ronald Huber prosecuted the case for the United States.
Former Business Owner Sentenced to Prison for Criminal Employment Tax ViolationsRead the Press Release
PHOENIX – Gregory S. Ott, 65, of Prescott, Ariz., was sentenced by Senior United States District Judge Fredrick J. Martone to 12 months in prison for evading the payment of federal employment taxes he collected from numerous small business owner clients. Ott had previously pleaded guilty to evasion of payment of tax.
“The collection and payment of Federal payroll taxes is an important duty of all law-abiding business owners. In this case, the defendant willfully diverted client funds for his personal use. IRS-Criminal Investigation will continue its efforts to detect and investigate this type of tax fraud,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr.
Ott owned and operated Xpress Pay, Inc., a professional employment organization in Scottsdale that contracted with small business owners to provide payroll services including the preparation of federal employment tax returns and the payment of employment taxes owed by these small businesses to the IRS. Ott and Xpress Pay collected the taxes directly from their clients by accessing the clients’ bank accounts. Instead of making the required federal tax payments to the IRS in full, Ott transferred substantial amounts of money to his personal bank accounts and used the money to pay his own expenses. In 2010, Ott’s conduct resulted in a $568,279.00 tax loss.
In addition to the prison sentence, Ott was ordered to serve 3 years of supervised release upon his release from prison, pay a $10,000 fine, perform 150 hours of community service, and to fully cooperate with the IRS in the determination and collection of taxes, penalties, and interest due and owing.
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Assistant U.S. Attorneys Monica Edelstein and Bridget Minder.
CASE NUMBER: CR-14-08133-PHX-PGR
RELEASE NUMBER: 2016-25_Ott
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Bloomington Parks Department office manager sentenced in fraud caseRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the sentencing of a former Bloomington Parks Department office manager for her role in an elaborate fraud and embezzlement scheme. Judith A. Seigle, 52, Gosport, Indiana, was sentenced to 24 months in federal prison by U. S. District Judge William T. Lawrence.
“The citizens of Bloomington deserve better from their paid city employees,” said Minkler. “Public officials need to serve the public, not themselves. The projects and programs of the Park’s Department exist to benefit the citizens of Bloomington, not Ms. Seigle.”
As office manager, Seigle was responsible for maintaining the books for the Parks Department and the Bloomington Community Parks and Recreation Foundation, a 501(c)(3) charitable organization that receives donations and supports Bloomington’s parks and community programs. In particular, the Foundation provides scholarships for children to participate in park programs and summer camps.
For over 13 years, until she was caught in October 2014, Seigle diverted, embezzled, and misappropriated over $430,000 in Foundation and Parks Department funds for her personal use and benefit. Seigle used Foundation credit cards to make purchases for her personal use and she caused numerous fund transfers from Foundation and Parks Department bank accounts to her personal bank and credit card accounts. Seigle concealed her scheme by creating false bank statements and, for several years, providing them every month to the Foundation’s executive director and others, with whom she had worked for almost 20 years.
"This was a collaborative effort by all agencies involved to make sure that tax dollars are used the way they were intended and hold accountable those who seek to use them for their own benefit,” said Andrew Shank, State Board of Accounts Director of Special Investigations.
According to Assistant United States Attorney Nick Linder and Senior Litigation Counsel Steve DeBrota, who prosecuted this case for the United States, Seigle must serve three years of supervised release after her sentence and make restitution of over $430,000.
The investigation was conducted by the FBI, the Bloomington Police Department, the Indiana State Board of Accounts and with assistance from the Monroe County Prosecutor’s Office.
Flint Man Indicted on Perjury Charges Following His Testimony in Federal CourtRead the Press Release
A 25-year-old Flint man was arraigned on March 18 on a two-count indictment charging him with making false declarations before a court, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by ATF Special Agent in Charge S. Robin Shoemaker.
The indictment alleges that Dion A. Polk, II, testified falsely in the federal trial of Rashad J. Jones on January 20 in Flint. Jones, a five-time felon, was on trial before U.S. District Judge Terrence G. Berg on charges of being a felon in possession of ammunition. Polk falsely testified at the trial that he, not Jones, possessed the ammunition magazine recovered by the police on June 29, 2015. Polk further falsely testified that the ammunition magazine pertained to a firearm that he owned and possessed on that same day.
Additional evidence at trial, however, revealed that the firearm was owned by another individual at the time of the charged offense, and that Polk had purchased the firearm only recently, just weeks before the start of Jones’ trial.
“Lying under oath is a serious offense because the justice system depends on truthful testimony,” McQuade said. “Witnesses who commit perjury and obstruct justice will be prosecuted and held accountable for their crimes.”
“ATF along with our state and local partners will aggressively investigate violent crimes to include those that falsify information to bring those accountable for violating the laws to justice,” said ATF Special Agent in Charge S. Robin Shoemaker.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed not guilty unless convicted at trial by a jury.
If convicted, Polk faces a maximum statutory penalty of five years in federal prison for each count.
The case is being prosecuted by the Flint Branch of the United States Attorney’s Office with the assistance of special agents from the ATF.
Financial Services Company Executive Pleads Guilty to Obstruction of JusticeRead the Press Release
CHARLOTTE, N.C. – The CEO of Preferred Merchants LLC, a financial services company based in Napa, California, pleaded guilty yesterday to engaging in an elaborate obstruction of justice scheme to conceal millions of dollars—which were subject to a freeze order and seizure warrant—from the government using a series of offshore accounts, domestic and foreign nominee accounts, a shell company and related bank and brokerage accounts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge Michael Rolin of the U.S. Secret Service’s Charlotte, North Carolina, Field Division and Special Agent in Charge Thomas J. Holloman III of the Internal Revenue Service-Criminal Investigation (IRS-CI) Charlotte Field Office made the announcement.
Jaymes Meyer, aka James Meyer, 47, of Napa, pleaded guilty yesterday before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina in Charlotte to obstruction of justice.
According to the plea agreement, in or about 2012, the U.S. Securities and Exchange Commission’s (SEC’s) Division of Enforcement commenced a securities fraud investigation concerning a Ponzi scheme centering on Rex Ventures Group LLC (RVG), a North Carolina-based company for which Preferred Merchants held millions in assets in treasury and trust accounts. As a result of its investigation, the SEC filed a civil enforcement action against RVG, after which the court entered a freeze order that appointed a receiver and froze all of RVG’s assets. Among other things, the receiver was responsible for marshaling, managing and distributing remaining RVG assets to impacted RVG investors. In addition to the freeze order, the U.S. Secret Service also obtained a seizure warrant of RVG assets held by Meyer through Preferred Merchants. Meyer admitted that in August 2012, the SEC informed him of, among other things, the investigation and the court order freezing RVG’s assets and requested that Meyer freeze any RVG assets in his possession, custody or control.
According to the plea agreement, in response to this request, Meyer misled the SEC by falsely implying that Preferred Merchants did not exercise dominion or control over any RVG assets when, in fact, Meyer controlled approximately $17.4 million in RVG assets. Meyer further admitted that he wired approximately $4.8 million from an RVG trust account to a brokerage account under his control within an hour of learning about the SEC’s investigation. Over the next 10 months, Meyer used that money to purchase homes in Napa and the Turks and Caicos, to which he subsequently made $1.5 million in improvements, and withdrew approximately $195,000 in cash. He also established a Cook Islands-based trust account, formed a shell company and opened a brokerage account in the shell company’s name to further conceal the trail of RVG assets subject to the freeze order and seizure warrant.
Meyer also admitted that throughout the pending civil litigation surrounding the RVG scheme, he made fraudulent and misleading statements to the U.S. District Court for the Western District of North Carolina, the SEC and the court-appointed receiver during depositions.
In connection with his plea agreement, Meyer agreed to pay an approximately $4.8 million money judgment and to forfeit the homes that he purchased in the Turks and Caicos and Napa as proceeds of the obstruction of justice offense.
The U.S. Secret Service and the IRS-CI investigated the case.
Assistant U.S. Attorney Mark T. Odulio of the Western District of North Carolina and Trial Attorney Kevin Lowell of the Criminal Division’s Asset Forfeiture and Money Laundering Section-Bank Integrity Unit are prosecuting the case.
Federal Jury Finds Carlsbad Man Guilty of Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict today finding Mia Coy Campbell guilty of being a felon in possession of a firearm. The guilty verdict was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division and Commander James McCormick of the Pecos Valley Drug Task Force (PVDTF).
Campbell, 32, of Carlsbad, N.M., was arrested on Oct. 8, 2015, on a criminal complaint charging him with being a felon in possession of a firearm on Sept. 24, 2015, in Eddy County, N.M. Campbell was subsequently indicted on the same charge on Nov. 5, 2015. Campbell was prohibited from possessing firearms or ammunition because he previously had been convicted of possession of methamphetamine with intent to distribute and escape of a prisoner in custody of a correctional institution or officer.
The trial of Campbell on the indictment began on March 22, 2016 and concluded today when the jury returned a verdict finding Campbell guilty on the sole count of the indictment. The evidence at trial established that on Sept. 24, 2015, PVDTF and FBI agents went to Campbell’s residence and arrested him on an outstanding federal arrest warrant. Campbell was arrested as he was walking away from a canopy that had a partially disassembled go-cart underneath. When arrested, Campbell’s hands were dirty and greasy and it appeared as if he had been working on the go-cart. A smoldering Marlboro cigarette that was near a tool bag by the go-cart drew an officer’s attention to the tool bag where the officer found a firearm. A search of Campbell incident to arrest revealed that he had a pack of Marlboro cigarettes in his pocket containing the same type of cigarette that was smoldering on the ground near the go-cart.
Campbell has been in custody since his arrest in Oct. 2015, and will remain detained pending a sentencing hearing which has yet to be scheduled. At sentencing, Campbell faces a statutory maximum penalty of 10 years in federal prison.
The case was investigated by the Las Cruces office of the FBI and the Pecos Valley Drug Task Force with assistance from the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorneys Randy M. Castellano and John Andrew Balla of the U.S. Attorney’s Las Cruces Branch Office.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Federal Jury Convicts Antioch Man of Child Pornography ChargesRead the Press Release
Christopher N. Bonick, 31, of Antioch, Tennessee, was found guilty by a federal jury yesterday of attempting to entice a minor to engage in sexual activity and possession of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee. The jury returned a guilty verdict following a 2-day trial before U.S. District Judge Aleta Trauger.
Evidence produced at trial showed that, in July of 2010 Bonick began communicating online with an individual he initially believed to be a 13 year old girl. On July 27, 2011, Bonick engaged in a lengthy sexually explicit chat with this person, who, unknown to him, was actually an undercover investigator in Louisiana. Bonick, who believed the individual to be 14 years old, asked her if she would be willing to engage in sexual activity with him. He also discussed having previously met a 15 year- old girl online and had traveled to have sex with her.
The evidence at trial also showed that Bonick had previously communicated with numerous minors online, had solicited child pornography from them, and had traded child pornography with other individuals via email. Bonick was in possession of dozens of images of child pornography when a search warrant was served at his home in Antioch in January 2012 at which time he admitted that he was sexually attracted to minors.
Bonick will be sentenced by Judge Aleta Trauger on July 11, 2016, at 2:00 p.m. He faces 10 years to life in prison and a fine of up to $250,000.
The case was investigated by the Metropolitan Nashville Police Department and the Louisiana Department of Justice-Cyber Crime Unit. The case was prosecuted by Assistant U.S. Attorneys Carrie Daughtrey and Henry Leventis.
El Paso Man Sentenced to 20 Years in Federal Prison for Receipt and Distribution of Child PornographyRead the Press Release
In El Paso today, 27-year-old Ignacio Gallegos was sentenced to 20 years in federal prison for receipt and distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
In addition to the prison term, United States District Judge Kathleen Cardone ordered that Gallegos be placed on supervised release for 10 years after completing his prison term.
On January 5, 2016, Gallegos pleaded guilty to one count of receipt and distribution of child pornography and one count of possession of material involving the sexual exploitation of children. By pleading guilty, Gallegos admitted that he received, possessed and distributed visual depictions of children engaging in sexual explicit conduct.
Gallegos has remained in federal custody since his arrest by HSI agents on May 28, 2015.
“This sentence sends a sobering message to child predators, who are under the impression they can hide in cyberspace,” said Waldemar Rodriguez, Special Agent in Charge of HSI El Paso. “HSI has the tools and training to identify, arrest and help get these individuals out of our society.”
This case was investigated by the Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Ian Hanna prosecuted this case on behalf of the government.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
#####
Denver Man Sentenced for Failure to Pay Millions in Employment TaxesRead the Press Release
DENVER – Lucilious J. Ward, age 65, of Denver, Colorado, was sentenced to serve 26 months in federal prison, followed by 3 years of supervised release by U.S. District Court Judge Lewis T. Babcock for failure to account for and pay over the employment taxes withheld from his employees’ paychecks and making a false claim against the United States, United States Attorney John Walsh and IRS Criminal Investigation Acting Special Agent in Charge Kevin J. Caramucci announced. Ward, who appeared at the hearing free on bond, was ordered to surrender to a U.S. Bureau of Prisons institution within 15 days of designation. In addition to the prison sentence, the defendant was ordered to pay $5,955,231.28 in restitution to the IRS.
Ward was charged first by indictment on October 2, 2012. He pled guilty before Judge Babcock on January 3, 2014. He was sentenced on March 23, 2016. On September 8, 2011, Special Agents with IRS Criminal Investigation executed a search warrant on Ward’s business, Global Access, LLC, dba, Global Transportation (“Global Access”), located at 5455 East 52nd Avenue, Commerce City, Colorado.
According to the facts contained in the Indictment as well as the stipulated facts contained in the plea agreement, since at least 2004, Ward has owned and operated Global Access. Global Access has provided public and private transportation services including hotel and airport shuttles, para transit services, and charter bus tours. Its largest client has been the Regional Transportation District (“RTD”), which contracted with Global Access to provide a portion of RTD’s Access-a-Ride bus services. RTD has paid Global Access more than $35,000,000 during the period 2003 through 2012, and Global Access incurred substantial costs under the RTD contract. During this time, the Internal Revenue Code required Global Access to withhold its employees' shares of Federal Insurance Contribution Act taxes ("FICA" or social security and Medicare taxes) and income taxes (collectively referred to as "employment taxes") from the salaries or wages of its employees, and to account for and pay over the withheld amounts to the IRS.
From January 2005 through the second quarter in 2011, Ward withheld employment taxes from Global Access’s employees’ paychecks. Ward knowingly and willfully failed to file with the IRS Forms 941 (employment tax forms) as required by law and failed to pay to the IRS the employment taxes that Ward had withheld from their paychecks. With the exception of the first quarter of 2008 which was paid in part and filed automatically by a payroll company Ward hired. Ward also failed to pay the required employer’s matching portion of FICA. Rather than paying the IRS the employment taxes owed by Global Access, Ward kept that money in Global Access’s bank account(s) and spent it on a variety of expenses.
At the end of 2008 Global Access’s office manager recommended to Ward that he elect to have a payroll company take care of paying the employment taxes for Global Access; however, defendant Ward declined. Furthermore, a CPA who performed various accounting functions for Global Access and Ward repeatedly told Ward about Global Access’s growing employment tax liability, he needed to pay these taxes, and about the consequences associated with not paying these taxes.
Additionally, in 2010, Ward filed with the IRS an amended personal tax return (Form 1040X) for the tax year 2007 which falsely claimed that $76,479.44 of federal income tax withholdings had been withheld from his paychecks by Global Access and paid to the IRS. At the time Ward filed this Form 1040X, he knew that he and Global Access had not paid to the IRS the $76,479.44. Ward intentionally filed this false return so that he would be assessed a refund of $76,479 to which he was not legitimately entitled.
“Businesses have a legal responsibility to collect and pay employment taxes,” said U.S. Attorney John Walsh. “In this case, the defendant failed to pay employment taxes, and as a result, he was held accountable not only by being sent to federal prison, but also by having to pay millions of dollars to the IRS, payments that could ultimately follow him for the rest of his life.”
“Business owners have a significant responsibility to collect and turn over all withholding taxes to the IRS as this can have an impact on their employees, who may see future benefits such as Social Security, Medicare or Unemployment Compensation reduced or eliminated because of their employers not complying with the law," said Kevin J. Caramucci Acting Special Agent in Charge, IRS Criminal Investigation, Denver Field Office “As this sentence demonstrates, there are real consequences for committing employment tax fraud.”
This case was investigated by IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Defendant Pleads Guilty to Extortion and Firearm ChargesRead the Press Release
Yesterday, at the federal courthouse in Brooklyn, New York, Denis Nikolla pleaded guilty to two counts of Hobbs Act extortion conspiracy, one count of threatening physical violence in furtherance of an extortion plan, and one count of brandishing a firearm. The proceeding took place before United States District Judge Eric N. Vitaliano. When sentenced, Nikolla faces up to life in prison and a mandatory minimum sentence of seven years. One of his co-defendants, Besnik Llakatura, who served as a police officer with the New York City Police Department during the charged crimes, previously pleaded guilty in this case.
The plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and William J. Bratton, Commissioner, New York Police Department.
According to prior court filings and facts presented during the plea proceeding, between May and November 2013, Nikolla, Llakatura and their co-defendant conspired and attempted to extort a Queens restaurant owner, demanding regular payments in exchange for so-called “protection.” The extortion began shortly after the victim opened a restaurant in Astoria when he was visited by the co-defendant and told that he had opened a business in “our neighborhood” and, as a result, “you have to pay us” $4,000 per month. The restaurant owner sought help from his friend Llakatura. Unbeknownst to him, Llakatura, an NYPD officer in Staten Island since 2006, was conspiring with the co-defendant in the extortion. Llakatura actively discouraged the restaurant owner from going to the police and sought to leverage his position of trust as a friend and a police officer to persuade the victim that he had no choice but to make the demanded payments, warning the victim that the co-defendant and his associates would physically harm him if he did not pay. When the victim resisted, Nikolla threatened him with physical violence and chased him at gunpoint down the street in Queens. Over the course of five months, each of the three defendants took turns collecting monthly payments from the Astoria restaurant owner, ultimately collecting $24,000 in so-called protection money.
Between April 2012 and November 2013, Nikolla and the co-defendant also conspired and attempted to extort the proceeds of two nightclubs located in Queens, New York, and used a firearm in their efforts to do so. In or about April 2012, around the time that one of the clubs was opened, Nikolla approached the owner with an extortion demand, indicating to the victim that other businesses in the area were paying him for so-called “protection.” Nikolla demanded $200 per week from the owner for each of the two nightclubs. After the owner refused to pay, Nikolla retrieved a firearm from the codefendant’s side, stuck the firearm in owner’s ribs, and informed the owner that if he wasn’t paid, Nikolla would come to the owner’s house and beat up the owner in front of the owner’s wife and children.
Finally, during 2013, Nikolla, Llakatura, and the co-defendant also conspired and attempted to extort a proprietor of two social clubs in Astoria. Nikolla, accompanied by the co-defendant, made the initial extortion demand, seeking payments of $1,000 per week from the proprietor for so-called “protection.” The proprietor refused to make the demanded payments and ceased going to his social clubs out of fear for his safety. Court-authorized wiretaps of the defendants’ telephones revealed evidence of Nikolla’s participation in this extortion conspiracy with Llakatura and the co-defendant, and their attempts to locate the victim. In one instance, Nikolla, Llakatura, and the co-defendant threatened, punched, and pulled a gun on a friend of the victim in an effort to make the friend locate the victim. The victim ultimately fled to a foreign country for a period of time to avoid the defendants’ extortionate threats.
Mr. Capers expressed his thanks to members of the Joint Organized Crime Task Force, which includes agents of the FBI and detectives of the NYPD, which led the investigation, as well as the NYPD’s Internal Affairs Division and the FBI’s Public Corruption squad for their cooperation and assistance in the investigation.
The co-defendant is scheduled to commence trial later this month.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia Shihata and Patrick Hein are in charge of the prosecution.
The Defendant:
DENIS NIKOLLA
Age: 35
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-668 (ENV)
Council Bluffs Woman Sentenced to Prison for Drug User in Possession of a Firearm ChargeRead the Press Release
COUNCIL BLUFFS, IA – On March 24, 2016, Sarah D. Long, 35, of Council Bluffs was sentenced by Chief United States District Court Judge John A. Jarvey to 30 months in prison, announced Acting United States Attorney Kevin E. VanderSchel. Long was also sentenced to three years of supervised release to follow her prison term.
Long pleaded guilty to drug user in possession of a firearm on December 3, 2015. She admitted that on or about August 11, 2015, she was arrested by the Council Bluffs Police Department for operating a stolen vehicle. At the time of her arrest, she was found to be in possession of methamphetamine, drug paraphernalia, and a loaded 9 mm handgun.
This investigation was conducted by the Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Craigslist Fraudster Who Was on the Lam for Four Years is Sentenced to 84 Months in Federal PrisonRead the Press Release
DALLAS — Phillip Sean Anthony, 32, of Grand Prairie, Texas, was sentenced today by U.S. District Judge Ed Kinkeade to 84 months (seven years) in federal prison and ordered to pay restitution to his victims. The sentencing follows Anthony’s guilty plea in June 2015 to one count of mail fraud and one count of aggravated identity theft. The announcement was made by U.S. Attorney John Parker of the Northern District of Texas.
Anthony was indicted by a federal grand jury in Dallas in March 2011 on five counts of mail fraud and two counts of aggravated identity theft stemming from an identity theft scheme he ran from approximately mid-June 2008 to early December 2009 using Craigslist. He agreed to plead guilty to one count of mail fraud and one count of aggravated identity theft in plea papers that were filed in October 2011, but he failed to appear in court as ordered for his rearraignment on October 25, 2011.
Approximately four years later, Anthony was located in Irving, Texas, after absconding to California for three years. In February 2015, the government filed a motion for detention which was granted by U.S. Magistrate Judge Paul D. Stickney, who found that Anthony had violated the terms of his pretrial release. Judge Stickney further found that Anthony had been committing new crimes continuously since absconding in 2011 and had used more than 30 different names, which were stolen identities, had stolen more than $200,000 from his victims, and then after stealing the identities, sold them to others for additional money
According to plea documents, Anthony admitted that he placed dozens of false job postings on Craigslist for “customer service representative” and “reservation agent” positons with various airlines. He placed the ads on the local Craigslist site where the airline was based, including ads in Chicago for United Airlines; Orlando, Florida, for Air Tran Airways; and in New York City for JetBlue Airways. When contacted by prospective applicants, Anthony claimed to be a representative of the respective airline-employer. He explained the application process and then forwarded each applicant a job application that was on the respective company’s letterhead and appeared authentic.
Anthony admitted that he used the information that prospective applicants put on the applications he received, such as name, address, date of birth and Social Security number, to open accounts with various online wireless service and device providers, such as LetsTalk.com, Simplexity.com and Wirefly.com. He also purchased activated smartphones from these online retailers using these identities stolen from the job applications.
Anthony also purchased prepaid debit cards and registered them in the names of the stolen identities after loading a nominal amount of funds onto each card. He then used these debit cards to reserve hotel rooms throughout the country in the names of the stolen identities. He provided these hotel addresses as the residential address to the online phone retailer and instructed them to send the smartphones to that address. Once the phones were shipped, Anthony would call the hotel and cancel the reservation, explaining to the hotel representative that he was expecting a package and to forward it to his office in Irving. Anthony then sold the fraudulently-obtained phones for a fraction of their value.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
# # #
Colorado Woman and Man Arrested and Charged with Production and Transportation of Child Pornography Involving an InfantRead the Press Release
DENVER –Brandi Leonard, and Richard Hennis, both of Colorado, were arrested for production of child pornography involving an infant victim, U.S. Attorney John Walsh, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge David A. Thompson, and Internet Crimes Against Children (ICAC) Commander for Colorado Lieutenant Christina Sheppard of the Colorado Springs Police Department announced.
According to evidence presented in open court, as well as arguments outlined in a public filing, in the course of online chats that occurred between Leonard and Hennis spanning approximately two months, Leonard told Hennis that she had sexually abused an infant. Hennis encouraged Leonard to sexually abuse the infant again, to take pictures of or video the abuse, and to send them to him. She did. Law enforcement recovered the pictures that Leonard produced of the infant from Hennis’s phone.
Around the same time that Leonard was sexually abusing the infant, she was also corresponding by email with nannies4hire.com and care.com, which are websites that provide services including connecting child-care providers with those who need child care.
Finally, during their chats, the two defendants discuss in graphic detail kidnapping, raping, killing and dismembering a child between the ages of 4 and 8 years. Leonard twice during the chat indicated that she didn’t intend to go through with it, yet she continued to engage in such chats with Hennis.
A U.S. Magistrate Judge held a detention hearing for Leonard on March 17th 2016. Leonard was ordered released on bond conditions that included home incarceration. The government appealed the order. Senior U.S. District Court Judge Lewis T. Babcock issued an emergency stay of the release order, and ultimately U.S. District Court Judge R. Brooke Jackson ordered Leonard detained without bond pending a resolution of her case. A U.S. Magistrate Judge held a detention hearing on March 22, 2016 resulted in Hennis also being ordered held without bond.
Leonard is currently charged with one count of Production of Child Pornography, which carries a penalty of not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine. She also faces one count of Transportation of Child Pornography, which carries a penalty of not less than 5 years, and not more than 20 years in federal prison, and up to a $250,000 fine. Hennis faces one count of Production of Child Pornography, which carries a penalty of not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine. He faces one count of Advertisement of Child Pornography, which carries a penalty of not less than 15 years, and not more than 30 years in federal prison, and up to a $250,000 fine. He also faces one count of Transportation of Child Pornography, which carries a penalty of not less than 5 years, and not more than 20 years in federal prison, and up to a $250,000 fine.
This case was investigated by HSI and the Colorado Springs Police Department’s ICAC Unit.
The defendants are being prosecuted by Assistant U.S. Attorney Alecia Riewerts.
A Criminal Complaint is a probable cause charging document. Anyone accused of committing a felony violation of federal law has a Constitutional right to be indicted by a federal grand jury. The charges contained in the Complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Chester County Man Pleads Guilty to Telemarketing ScamRead the Press Release
PHILADELPHIA - Marc Roy Ferry, 35, of Downingtown, PA, pleaded guilty today to one count of wire fraud and two counts of money laundering in connection with a telemarketing scheme that bilked tens of thousands of senior citizens out of more than $13 million. U.S. District Court Judge Gerald A. McHugh, Jr. scheduled a sentencing hearing for June 22, 2016.
According to court documents, between 2009 and March 2014, Ferry and Ari Tietolman, charged elsewhere, and others, used Tietolman’s network of telemarketers in Canada and India to target American senior citizens with deceptive telemarketing calls. They sold worthless or non-existent services and then debited the victims’ bank accounts without their informed consent. Using the business names Fraud Watch, Patient Assistance Plus, Legal Eye and Trust One, the worthless or non-existent services these telemarketers sold included purported fraud protection and discounted legal services, as well as a discount prescription card. Tietolman and others, it is alleged, had been running the scheme since at least 2005.
During the calls, Tietolman’s telemarketers made various false representations, such as that they were calling on behalf of, or were affiliated with, the victim’s bank, or insurance company, or the United States government. In addition to misrepresenting the value of the products being marketed, Tietolman’s telemarketers also misrepresented the cost of these products, sometimes telling consumers the products were free, or less expensive than the amount that was ultimately debited from the consumers’ bank accounts. In other instances, Tietolman’s telemarketers assured consumers they would not debit the consumers’ bank accounts, and then did just that after the consumer provided their bank account information.
Tietolman allegedly attempted to conceal his involvement in the scheme by employing defendant Marc Roy Ferry and others to run “front” companies - including First Consumers, LLC - and process the fraud money. Ferry admitted that Tietolman paid him and others to form corporations in the United States. The sole purpose of these corporations was to process the fraud proceeds generated by the telemarketing scheme. Tietolman, according to court documents, instructed Ferry and others to open up numerous bank accounts in the United States in the names of the fraud companies that they had incorporated. Ferry sent Tietolman online logins and passwords so Tietolman and others could control these United States bank accounts from Canada.
Tietolman allegedly sent Ferry and others bank account information for the victims in the United States. Using computer programs and printers allegedly provided by Tietolman, Ferry and others used the victims’ bank account information to print remotely created checks (“RCCs”), in the United States. The RCCs were all made payable to the fraud companies and did not require a signature by the account holder. Because these RCCs did not require the account holder’s consent each time a check was created and submitted to the bank for payment, the account holder-victim had no opportunity to object or prevent the debit from occurring. Ferry and others deposited the RCCs in bank accounts held by the fraud companies, allegedly per Tietolman’s instructions. Tietolman, according to court documents, instructed Ferry and others to deposit the RCCs in batches of less than $10,000 to avoid federally-mandated reporting requirements. After the checks were deposited, Tietolman instructed Ferry and others to wire the majority of the funds to accounts in Canada.
Ferry faces a maximum possible sentence of 70 years in prison; three years of supervised release; a fine of $750,000 or up to double the amount involved in the money laundering; and a $300 special assessment. Ferry will also be ordered to pay restitution to the victims.
The case was investigated by the FBI, IRS Criminal Investigations, U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Federal Trade Commission, and the United States Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Vineet Gauri.
Cheektowaga Woman Sentenced for Bank Robbery and Making A False Statement to the FbiRead 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 Angelina Kurtz, 20, of Cheektowaga, NY, who was convicted of bank robbery and making a false statement to the FBI, was sentenced to time served, six months of home detention with an ankle bracelet, two years supervised release, and ordered to pay $543.00 to Key Bank in restitution.
Assistant U.S. Attorney Meghan A. Tokash, who prosecuted the case, stated that Kurtz robbed the Key Bank located at 2318 Delaware Avenue in Buffalo. The defendant handed the teller a note demanding $20,000 in cash and threatening the teller that she had a .45 caliber gun with her that she would use if dye packs or alarms disrupted the robbery plot.
Kurtz also made a false statement to investigators after she was arrested.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.California Deputy Sheriff and Three Others Charged in York County Drug Trafficking ConspiracyRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Harrisburg has indicted four individuals, including a former deputy sheriff, in a drug conspiracy that trafficked between Northern California and York County, Pennsylvania.
According to United States Attorney Peter Smith, Yuba County, California Deputy Sheriff Christopher Mark Heath, 37; Tyler Neil Long, 32; Ryan Jay Falsone, 27; and Ramona Marcel Long, 56, all of whom reside in the Oroville, California area, were charged in a 19-count indictment with conspiracy to manufacture and distribute marijuana, and conspiracy to launder drug proceeds. The indictment alleges that the conspiracy involved 100 kilograms and more of marijuana. The indictment also charges one or more defendants with delivering marijuana on specific days. Heath is charged with possessing a firearm in furtherance of drug trafficking.
The indictment alleges that the four defendants participated in a conspiracy that began in approximately September 2014 and continued to January 7, 2016. During this time, Heath was a deputy sheriff in Yuba County, California, assigned as a narcotics investigator. Heath has since resigned. Ramona Long was a Lead Service and Sales Associate working in the U.S. Post Office in Oroville. The defendants allegedly grew marijuana on property in Oroville, and shipped it mainly through the United States Postal Service to several locations, including post office boxes in York New Salem and Mountville, Pennsylvania, as well as to a home address in the Hanover area. Money to purchase additional marijuana was mailed from locations in and around York County to a post office box in Bangor, California.
Ramona Long, the mother of Tyler Neil Long and the mother-in-law of Christopher Mark Heath, is alleged to have used her position as a supervisor in the post office to allow packages of marijuana and drug proceeds to be shipped to and from the post office. Approximately 200 pounds of marijuana and $500,000 in drug proceeds were shipped between California and Pennsylvania in this fashion.
According to the Indictment, the conspirators also allegedly transported marijuana by motor vehicle from California to several locations, including York County. Beginning on approximately December 27, 2015, Heath, Long, and Falsone traveled from California to York County in two vehicles. Heath’s vehicle contained a quantity of marijuana. Heath also traveled with a loaded Glock firearm that he was authorized to carry in connection with his position as a deputy sheriff and a deputy sheriff’s badge. Heath, Long, and Falsone were arrested by the York County Drug Task Force and Penn Township, York County, Police.
Akeia Conner, Internal Revenue Service, Special Agent in Charge, said “Today’s indictment of four individuals operating an interstate drug organization is only achieved through the tireless efforts of all the agencies involved. The Internal Revenue Service, Criminal Investigation proudly provides the financial expertise that dismantles the laundering of the drug proceeds which fuel these conspiracies.”
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement on this investigation and will continue to vigorously protect the U.S. Mail against all forms of criminal misuse.”
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigations, the York County Drug Task Force, Penn Township Police, the Butte County, California Sheriff’s Department, the United States Postal Inspection Service and United States Postal Service Office of Inspector General. The United States Attorney’s Office for the Eastern District of California also provided assistance and cooperated with the investigation. Assistant U.S. Attorney Christy H. Fawcett has been assigned to prosecute the case.
Indictments are only allegations. All persons charged are presumed innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute 100 kilograms and more of marijuana is 40 years’ imprisonment, lifetime supervised release, and a $2,000,000 fine. The offense carries a mandatory minimum sentence of five years’ imprisonment. The maximum penalty upon conviction of conspiracy to commit money laundering is 20years’ imprisonment, a fine of $500,000 or twice the value of the laundered funds, whichever is greater, and three years’ supervised release. Each count of manufacture, distribution and possession with intent to manufacture and distribute carries a maximum term of imprisonment of 20 years, a $1,000,000 fine, and lifetime supervised release. The maximum penalty for the offense of possessing a firearm in furtherance of drug trafficking is life, a three-year term of supervised release, and a $250,000 fine. The mandatory minimum sentence for possessing a firearm in furtherance of drug trafficking is five years’ imprisonment to be served consecutively to any other sentence imposed.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicate of the potential sentence for a specific defendant.
# # #
Broward County Resident Convicted for his Participation in a Stolen Identity Tax Fraud SchemeRead the Press Release
Following a three-day trial before United States District Court Judge Kenneth A. Marra, a jury convicted a Lauderhill resident for his participation in a stolen identity tax fraud scheme which occurred in Palm Beach and Broward Counties.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Jean Daniel Julien, of Lauderhill, was convicted of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of theft of government money, in violation of Title 18, United States Code, Section 641.
According to evidence presented at trial, Julien received a $56,000 U.S. Treasury refund check in the name of “D.H.” Another individual opened a bank account in D.H.’s name, and the defendant deposited the refund check into this account. Julien then deposited a $55,000 starter check written on the D.H. account into a business account opened by Julien’s wife. During the next two days, most of the $55,000 was withdrawn from the account.
Julien is scheduled to be sentenced by United States District Court Judge Kenneth A. Marra on June 10, 2016. At sentencing, Julien faces up to thirty years in prison for the conspiracy charge, and up to ten years in prison for the theft of government money charge.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney William Zloch.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bois D'Arc Man Sentenced for Bank Fraud Related to $1.6 Million HomeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Bois D’Arc, Mo., business owner was sentenced in federal court today for a bank fraud scheme related to the construction of his $1.6 million residence.
Michael R. Ussery, 58, of Bois D’Arc, was sentenced by U.S. District Judge M. Douglas Harpool to two years in federal prison without parole. The court also ordered Ussery to pay $1.3 million in restitution to Mid-Missouri Bank.
On Oct. 30, 2015, Ussery was convicted at trial of 12 counts of bank fraud. Ussery was the owner/operator of two businesses in 2007, USS Properties and Villa Properties, both of which purchased real estate for residential development.
During this time, Ussery also was building a $1.6 million home for himself in Bois D’Arc. Mid-Missouri Bank agreed to provide a $1.6 million construction loan to build the residence; $1.15 million was used to pay off the previous bank which had financed the construction of the residence up to that point, and the remaining $450,000 was supposed to have gone to completing the construction of the residence. When persons worked on the house, Ussery was supposed to obtain an invoice and a lien waiver from the contractors and submit these documents to Mid-Missouri Bank, which would then make a disbursement of the amount owed to Ussery’s personal bank account.
A dozen invoices and lien waivers totaling $315,417 were submitted to Mid-Missouri Bank from May 29 to June 25, 2007, purportedly from persons or companies building the residence, to draw money from the $1.6 million loan amount for construction of the residence. In fact, each invoice and lien waiver was false, faked or forged. They were either created by, or caused to be submitted by, Ussery, and contained materially false or fraudulent representations. The companies or persons who were indicated on the fraudulent invoices and lien waivers did not prepare or submit the invoices and lien waivers, did not perform the work on the property as indicated in the invoices, did not agree to waive any lien on the residence for work actually done on the property, and did not receive any payments for work done as indicated in the invoices. A handwriting expert testified that Ussery’s handwriting was on every false lien waiver document.
Along with the lien waivers and the invoices submitted, there were checks purported to have been written on Ussery’s checking account to the persons that Ussery claimed had done work on the residence. There is no record of any of these checks having been cashed by the contractors or businesses for which Ussery wrote out the checks. Representatives of these businesses testified that Ussery never provided them with the checks attached to the lien waivers, which had been attached to the disbursement forms as a record of the amount allegedly paid by Ussery to the business.
For example, Ussery admitted at trial that he signed one of the lien waivers for services provided by the Davis Cabinet Shop, a company operated by his father-in-law. The handwriting expert also concluded that Ussery wrote a $42,609 check to Davis Cabinet Shop, which was purported to be for cabinet work at the residence. This check was never cashed and the bank’s building inspector did not observe any cabinets in the house during the time of the construction of the house or later when the residence was eventually sold after foreclosure. During the trial, the person who purchased the Bois D’Arc residence at the foreclosure sale testified that Ussery approached him and asked him to testify that when he bought the property in the foreclosure sale that there was cabinet material in the house which corresponded to the Davis Cabinet Shop lien waiver. In exchange for this testimony, Ussery offered to loan him money. The new owner, however, testified at trial that when he purchased the residence, there was no cabinet material in the house, apart from scrap material in the garage, and there were no cabinets installed in the house.
Auditors at the bank visited the construction site in June and July of 2007 and saw nothing that would indicate that this amount had been spent on the construction of the residence, apart from the hanging of drywall. Mid-Missouri Bank actually deposited $315,417 into Ussery’s personal bank account based upon the fraudulent representations contained in the lien waiver and invoice documents.
Ussery wrote checks from his bank account where the loan amounts for his house were deposited to either of his two businesses. Afterwards, it appears that the money, which had been meant for building the house, was deposited instead into bank accounts relating to USS Properties or Villa Properties. This activity occurred while both businesses were under severe economic strain, which eventually led to their bankruptcy.
Ussery eventually stopped construction on the Bois D’Arc property and the bank had to foreclose on the loan. The bank took a $782,349 loss after the sale of the property with its partially finished house. The bank also paid a total of $103,257 to settle mechanic liens placed on the residence by the contractors that Ussery claimed he had paid in the false lien waivers. Ussery filed for bankruptcy relief in 2011.
Although not charged in the indictment, evidence introduced during the trial indicated that Ussery also committed similar fraudulent activity against a husband and wife who hired him to build a personal residence in Greene County, Mo. Ussery started construction of the house in 2007, but did not complete the project. The victim clients discovered that Ussery was providing false lien waivers to Great Southern Bank to obtain loan draws from the construction loan.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney Patrick Carney. It was investigated by IRS-Criminal Investigation, the U.S. Secret Service and the Springfield, Mo., Police Department.
Belen Man Sentenced to Five Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Darrell Ray Trammell, 66, of Belen, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 60 months in prison for his methamphetamine trafficking conviction. Trammell will be on supervised release for three years after he completes his prison sentence.
Trammell was arrested in Aug. 2014, on an indictment charging him and co-defendant Cynthia Boykin, 49, also of Belen, with participation in a conspiracy to distribute methamphetamine in Valencia County, N.M. According to the indictment, the conspiracy continued from Nov. 2013 to Jan. 2014. The indictment also charged Trammell and Boykin with distributing methamphetamine in Valencia County in Dec. 2013, and Trammell alone with distributing methamphetamine in Bernalillo County, N.M., in Jan. 2014.
On Sept. 15, 2015, Trammell pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the plea, Trammell admitted that on Jan. 8, 2014, he distributed methamphetamine to an undercover law enforcement officer in exchange for $1,700.00.
Co-defendant Boykin was arrested in March 2015. On May 20, 2015, Boykin pled guilty to a felony information charging her with possession of methamphetamine with intent to distribute. She admitted that on Dec. 12, 2013, she distributed three grams of methamphetamine to an undercover law enforcement officer. Boykin was sentenced on Sept. 24, 2015, to five months in federal prison followed by three years of supervised release.
This case was investigated by the Albuquerque office of the DEA and the New Mexico State Police. Assistant U.S. Attorneys David M. Walsh and Stephen R. Kotz prosecuted the case.
Alabama Loan Company Employee Pleads Guilty to Stealing Identities Used to File False Income Tax ReturnsRead the Press Release
A Montgomery County, Alabama, resident pleaded guilty today to one count of conspiracy to commit wire fraud and one count of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. According to court documents, between January 2013 and August 2015, Wendy Huff, worked at two loan companies in Montgomery, Alabama, and had access to the means of identification of customers, including their names, social security numbers and dates of birth. Huff agreed to steal names from her employers and provide them to James Vernon Battle, identified as a co-conspirator in the indictment. The government alleges that Battle used those names to file over 335 returns claiming more than $400,000 in fraudulent refunds and that he directed the Internal Revenue Service (IRS) to issue the anticipated tax refunds in the form of prepaid debit cards and U.S. Treasury checks, which were mailed to addresses in Montgomery including Huff’s residence. Huff subsequently delivered the prepaid debit cards to Battle. The government further alleges that Battle brought several U.S. Treasury checks to Huff’s workplace where she used her position to cash them. Huff returned half of the proceeds to Battle and kept the balance for herself. Huff faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge, which will be in addition to any other term of imprisonment she receives. She also faces substantial monetary penalties and restitution. Sentencing is set for July 14. Battle’s trial is scheduled to begin during the week of April 11. Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who investigated the case and Trial Attorneys Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case. Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
24 Savannah Residents Charged with Federal Firearm, Drug Trafficking and Related OffensesRead the Press Release
SAVANNAH, GA – Federal indictments were unsealed yesterday revealing that 24 Savannah residents have been charged with federal firearms and drug-trafficking offenses. The federal indictments are the result of joint federal and state efforts to reduce violent crime and gang activities in the Savannah area. The focus of a joint ATF and Savannah-Chatham Metropolitan Police Department (SCMPD) operation was the Cann Park neighborhood, a small neighborhood near downtown Savannah that has seen a significant rise in crime. The criminal activities charged in the federal indictments all occurred in the Cann Park neighborhood.
The Savannah residents charged with federal crimes include:
Marquiel Bell, aka “Quelly,” aka “Julio,” 19,
Roemain R. Bennett, aka “Ratt,” 33,
Jesse Benton, 27,
Mario Grant, 33,
Benjamin Gordon, 43,
Jamal Hilton, aka “Jamel Hilton,” aka “Jamaal Hilton,” aka “Mel,” aka “Tommy Henderson II,” 31,
Jeremy James, 34,
Kristopher Kemp, 30,
Nicholas Kemp, 28,
Stephen Kemp, 25,
Jacqueline Mavity, 44,
Roy Mobley, aka “Grind,” 37,
Albert Morisette, 31,
Alekseyer X. Mungin, 37,
Rashaun Padgett, aka “Ray Ray,” 31,
Michael Porter, 36,
Marvin Roberts, aka “Steady,” 29,
Tony Small, 20,
Kareem Savage, aka “Rashaad Roberts,” 27,
Jamaine Wallace, 35,
Simmeon Whitfield, aka “Yon,” 26,
Xavier Whitfield, aka “Kenny,” 30,
Randy Williams, 32, and,
Travis Young, 35.
U.S. Attorney Edward Tarver said, “Citizens should be able to walk down the streets of their neighborhoods without the fear of drug activity and gang violence. The U.S. Attorney’s Office will work hand in hand with our federal and state law enforcement partners to remove dangerous criminals who traffick in guns, drugs and fear in the Savannah area. Some people are dangerous and need to go to prison. But, arresting criminals is not the only answer to Savannah’s violent crime problem. The U.S. Attorney’s Office will continue to provide its support to a number of other anti-crime initiatives, including recidivism reduction campaigns and the City’s “Step Forward” strategy. Working together, we can end the violent crime problems plaguing the great city of Savannah.”
“The overall impact of this investigation should be immediately realized by everyone living in the Cann Park community. ATF's primary mission is to reduce violent crime through effective partnerships with other Federal, state, and local law enforcement agencies, as evidenced by this investigation,” said Assistant Special Agent in Charge James Deir.
“This family-oriented community has been kept on edge for far too long due the high level of drug and gang activity,” said District Attorney Meg Heap. “We hope this recent operation will allow parents to let their children play in their own yards without fear.”
Savannah-Chatham Metropolitan Police Chief Joseph H. Lumpkin, Sr. said, “We certainly appreciate the help of the federal government and in this particular case the ATF, in building cases against these violent individuals and removing illegal guns from our street. We are confident the U.S. Attorney on the federal level and the District Attorney on the state level will pursue justice in each of these cases. We are going to continue such efforts with our local, state and federal criminal justice partners to improve public safety throughout our community.”
U.S. Attorney Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The operation was investigated by ATF and SCMPD, with assistance from the U.S. Marshals Service, the Chatham-Savannah Counter Narcotics Team (CNT) and the Chatham County Sheriff’s Office. Assistant United States Attorneys Greg Gilluly, Charlie Bourne and Jennifer Kirkland are prosecuting these cases for the United States. For any questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
23 March 2016
Washington County Rapist Charged with Failing to Register as a Sex OffenderRead the Press Release
PITTSBURGH - A Washington County sex offender has been indicted by a federal grand jury in Pittsburgh on a charge of failing to register as a sex offender, United States Attorney David J. Hickton announced today.
The one-count indictment returned yesterday named Clayton Mitchell, 31, of Washington, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, from Oct. 23, 2015 to Feb. 16, 2016, Mitchell, who had been convicted of the felony sex offense of rape in 2010, failed, as required, to register and update a registration under the Sex Offender Registration and Notification Act.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Virginia Man Pleads Guilty to Assaulting A Flight Attendant on Jacksonville FlightRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Joseph Michael Sharkey (36, Reston, VA) has pleaded guilty to assault or intimidation of a flight attendant. He faces a maximum penalty of 20 years in federal prison. After pleading guilty yesterday, Sharkey was ordered to remain in custody pending a sentencing hearing, which has yet to be scheduled.
According to court documents, on January 31, 2016, Sharkey was a passenger on Jet Blue Flight 715 from Reagan National Airport in Washington, DC to Jacksonville International Airport (JIA). During the final 20 minutes of the flight, Sharkey attempted to place another passenger in a headlock. A flight attendant assisted that passenger and ordered Sharkey to take a seat. Sharkey at first complied but then kneed the flight attendant in the groin and stated that he was going to exit the airplane through an exit door. With the help of volunteers, the flight attendants subdued Sharkey and placed him in flex cuffs for the remainder of the flight. The airplane landed safely at JIA and Sharkey was removed from the flight by airport police.
This case was investigated by the Jacksonville Aviation Authority Police Department and the Jacksonville Office of the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Dale Campion.
U.S. Marshals Service National Operation Nets More Than 8,000 FugitivesRead the Press Release
Operation Violence Reduction12 Nabs Most Dangerous Criminals
Today, Deputy Attorney General Sally Q. Yates and U.S. Marshals Service Deputy Director David Harlow announced that for the second consecutive year, the U.S. Marshals Service has conducted a high-impact national fugitive apprehension initiative focusing on the country’s most violent offenders. This six-week initiative, called Operation Violence Reduction12 (Operation VR12), resulted in the arrest of 8,075 gang members, sex offenders and other violent criminals.
“Through Operation VR-12, over 8,000 violent fugitives who preyed on our communities were tracked down, arrested and put behind bars,” said Deputy Attorney General Yates. “Thanks to the strategic and focused efforts of the U.S. Marshals Service and their law enforcement partners, our nation’s streets are now rid of over 500 accused murderers, 600 gang members and nearly 1,000 sex offenders. Fugitives initiated gun battles, forced barricaded standoffs, assaulted officers and did everything they could to evade arrest – but our Deputy Marshals, together with their law enforcement partners, stood firm and succeeded in capturing the bad guys.”
“We applied a strategically focused approach to locate and apprehend the nation’s most dangerous fugitives,” said Deputy Director Harlow. “By removing these violent offenders from the streets, the communities they preyed upon can immediately feel more secure. Operation VR12 was about using our expertise and law enforcement partnerships to significantly impact our communities by focusing on the worst of the worst violent criminals.”
While Operation VR12 was conducted nationwide in all 94 federal judicial districts, U.S. Marshals focused special attention on 12 selected locations experiencing upticks in violent crime: Baltimore; Brooklyn, New York; Camden, New Jersey; Chicago; Compton, California; Fresno, California; Gary, Indiana; Milwaukee; New Orleans; Oakland, California; Savannah, Georgia; and Washington, D.C.
In order to have the greatest impact on violent crime, Operation VR12 focused on fugitives who had three or more prior felony arrests for crimes such as murder, attempted murder, robbery, aggravated assault, arson, abduction/kidnapping, weapon offenses, sexual assault, child molestation and narcotics. Operation VR12 investigators increased their focus on fugitives accused of sex crimes and on the recovery of missing children.
Between Feb. 1 and March 11, the U.S. Marshals Service used its multi-jurisdictional investigative authority and fugitive task force network to arrest 648 gang members and others wanted on charges including 559 for homicide; and 946 for sexual offenses. In addition, investigators seized 463 firearms, $390,360 in currency and more than 71 kilograms of illegal narcotics. Also during the operation, investigators recovered 17 children who had been abducted and reported missing.
Notable arrests:
Blake Edwards Fitzgerald and Brittany Nicole Harper were the focus of a multi-state investigation that received national media attention. Dubbed a modern-day Bonnie and Clyde, Fitzgerald and Harper were wanted in Missouri, Georgia, Alabama and Florida for multiple charges including kidnapping, armed robbery, burglary and firearms violations. After leading authorities on a multi-day, cat-and-mouse chase and two high-speed pursuits, the duo was located in Pensacola, Florida, on Feb. 5. Fitzgerald was mortally wounded in an exchange of gunfire with officers, while Harper sustained non-life threating gunshot wounds.
Sabino Avila, a documented member of the Two Sixer street gang, was wanted by the Chicago Police Department for home invasion and rape. On Feb. 9, Avila allegedly forced entry into the home of a 54-year-old woman, tied her up and sexually assaulted her. Local authorities asked U.S. Marshals for assistance in locating and apprehending the suspect. He was arrested without incident in Chicago on Feb. 14.
Carl Cooper was wanted by the Baltimore City Police Department for allegedly shooting two elderly siblings in front of a busy shopping center. He was named “Public Enemy #1” by Police Commissioner Kevin Davis. Operation VR12 investigators arrested Cooper in Fayetteville, North Carolina, on March 4.
“Fugitives have a propensity to commit violent criminal acts posing danger to communities and plaguing neighborhoods where we live and work.” said Deputy Director Harlow. “Working with our federal, state and local partners, enforcement initiatives like Operation VR12 severely cripple these criminal activities.”
The concept behind interagency law enforcement operations such as Operation VR12 evolved largely from regional and district task forces. Since the 1980s, the U.S. Marshals Service has combined their resources and expertise with local, state and federal agencies to find and apprehend dangerous fugitives. Operation VR12 continued this tradition.
For more information about Operation VR12, including photographs and B-roll footage, visit www.usmarshals.gov.
Two men charged with using firearms to rob Cleveland bankRead the Press Release
A federal grand jury indicted James J. Stites-Bray, 23, and Darnell E. Cosper, Jr., 18, both of Cleveland, for the armed robbery of a bank, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on November 16, 2015, Stites-Bray and Cosper entered the Fifth Third Bank located at 972 East 185 Street in Cleveland, and robbed the bank of $5,983. Both men carried a handgun, which they brandished and used in furtherance of the bank robbery, accordign to the indictment.
Additionally, the indictment further alleges that on November 25, 2016, Stites-Bray was arrested with a .380 caliber pistol, which he could not legally possess due to a prior felony conviction.
The Federal Bureau of Investigation conducted the investigation in conjunction with the Cleveland Division of Police, the Lakewood Police Department and the RTA Police Department. The case is being prosecuted by Assistant United States Attorney Kevin R. Filiatraut.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two drug dealers plead guilty to distributing pain pillsRead the Press Release
CHARLESTON, W.Va. – Two men pleaded guilty today to federal drug crimes, announced Acting United States Attorney Carol Casto. Willie Keaton Goodson III, 22, of Ronceverte, entered his guilty plea to distribution of oxymorphone. In a separate prosecution, David Pfost, 31, of Beckley, pleaded guilty to distributing oxycodone.
Goodson admitted that on October 22, 2015, he distributed oxymorphone pills at his Ronceverte residence to a confidential informant working with law enforcement. During the course of the investigation, authorities seized large quantities of oxymorphone, oxycodone, and heroin. Goodson also agreed to the forfeiture of approximately $103,000 seized by law enforcement. Goodson further admitted that he made the money from selling drugs. The forfeiture proceeding is pending in Greenbrier County Circuit Court. Goodson faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 30, 2016.
In a separate drug prosecution, Pfost admitted that on February 11, 2015, he distributed oxycodone to a confidential informant working with law enforcement. The drug deal took place on Washington Street in Beckley. Pfost faces up to 20 years in federal prison and a $1 million fine when he is sentenced on June 30, 2016.
The investigation of Goodson was conducted by the Greenbrier Valley Drug and Violent Crime Task Force. The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation of Pfost. The plea hearings were held before United States District Judge Irene C. Berger.
The Goodson case was prosecuted as part of the Greenbrier Valley Heroin and Pill Initiative. Both of these prosecutions were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
- Follow us on Twitter: SDWVNews
Two Charged with Smuggling Illegal AliensRead the Press Release
McALLEN, Texas – Federal agents executed a search warrant and two arrest warrants in Mission yesterday in an alien smuggling investigation, announced U.S. Attorney Kenneth Magidson.
On Tuesday, March 22, 2016, federal agents executed a search warrant at a residence on the 6800 block of Bagley Drive in Mission. During the search, agents arrested Jose Antonio Landin-Ortiz, 26, and Jose Alfredo Ortiz-Vega, 45, both Mexican citizens illegally residing in Mission. They are set to make initial appearances before a U.S. Magistrate judge this morning.
According to the complaint, on March 4, 2016, Border Patrol agents at the Falfurrias checkpoint found two illegal aliens hidden within the air dam of a tractor trailer that was approaching the primary inspection area. They were arrested for being in the United States unlawfully. At that time, they identified Ortiz and Landin as the individuals involved in their smuggling. Ortiz allegedly provided the illegal aliens with a cell phone to use to communicate with him. The complaint further alleges that Ortiz also took them to a truck stop and instructed both to climb into the air dam on the tractor trailer. Landin helped Ortiz with the smuggling arrangements and the aliens stayed at Landin’s house while they were waiting to be smuggled north, according to the allegations.
If convicted, both Landin and Ortiz face up to 10 years imprisonment and possible $250,000 maximum fine.
The arrests are the result of a joint investigation between Homeland Security Investigations and Border Patrol. Hidalgo County Precinct Four deputy constables assisted in the search of the residence and arrests. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Three Sentenced in Food Stamp Fraud Scheme that Defrauded the U.S. of over $1 MillionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TAYSIR MUHAMMAD, a/k/a “Tommy,” age 46, of Kenner; EUGENE TUMBS, a/k/a “Mr. G,” age 68, of New Orleans; and his daughter KATHY TUMBS, 45, also of New Orleans, were sentenced today after previously pleading guilty to a food stamp fraud scheme that defrauded the United States government of over $1,000,000 in food stamp benefits.
U.S. District Judge Sarah S. Vance sentenced MUHAMMAD to 34 months imprisonment, followed by three years of supervised release. EUGENE and KATHY TUMBS were each placed on five years of probation. The defendants were also ordered to pay a total amount of restitution of $1,080,575.40 to the U.S. Department of Agriculture.
KATHY TUMBS previously pled guilty to one count of food stamp fraud and one count of conspiracy to structure transactions. EUGENE TUMBS previously pled guilty to one count of food stamp fraud, one count of wire fraud, and one count of conspiracy to structure transactions. MUHAMMAD previously pled guilty to conspiracy to commit food stamp fraud and wire fraud, food stamp fraud, wire fraud, conspiracy to structure transactions, and conspiracy to commit money laundering.
According to court documents, the defendants operated a corner store at the intersection of Frenchmen and North Derbigny Streets in New Orleans. The store, called the Frenchmen Meat Market, participated in Supplemental Nutrition Assistance Program (“SNAP”), which is operated by the U.S. Department of Agriculture. The SNAP program provides food stamps to individuals who can then present those food stamps in exchange for eligible food products at participating vendors using the electronic benefits transfer (“EBT”) system to complete the transaction. The defendants, however, permitted customers to use food stamps for ineligible products and for cash. In exchange for this service, the defendants would charge customers a fee that was derived from the fraudulent food stamp transaction. The defendants would then transfer funds from the store’s bank account into separate bank accounts by structuring transactions to willfully avoid currency transaction reporting requirements. Using this scheme, from April 2012 through May 2014, the defendants defrauded the government of over $1,000,000 in food stamp benefits.
U.S. Attorney Polite praised the work of the Department of Agriculture’s Office of Inspector General and the Bureau of Alcohol, Tobacco, Firearms and Explosives, in coordination with the Orleans Parish District Attorney’s Office and the Louisiana Office of Alcohol and Tobacco Control in investigating this matter. Assistant United States Attorney Matthew Payne was in charge of the prosecution.
Three Defendants Sentenced Involving Heroin Distribution that Killed Local TeenRead the Press Release
St. Louis, MO – Steven Robinson was sentenced to 144 months imprisonment today. Kyle Turner and Hali Wilson were each sentenced earlier this month to 84 months in prison. Additionally, each defendant was ordered to pay $8,150 restitution to the family of the deceased victim.
According to court documents, Turner and Wilson purchased the heroin from Robinson, and then dealt the drug to a St. Charles teen. The victim’s mother discovered his body the following morning. The medical examiner later determined that the victim had died of acute heroin intoxication.
Robinson, St. Louis, Missouri; Turner, O’Fallon, Missouri; and Hali Wilson, also of O’Fallon, Missouri; each pled guilty in December to one felony count of distribution of heroin. Robinson appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the St. Charles County Regional Drug Task Force and the Drug Enforcement Administration.
Thirty-two people indicted for $2 million food stamp fraud conspiracy in YoungstownRead the Press Release
A federal grand jury indicted 32 people for their roles in a $2 million food-stamp fraud conspiracy, said Acting U.S. Attorney Carole S. Rendon.
Count 1 of the indictment alleges that beginning in or around June 2010 and continuing to October 2014, the following individuals knowingly conspired to defraud the U.S. Department of Agriculture, Food and Nutrition Service, specifically the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. The objects of the conspiracy was to defraud SNAP by converting illegally obtained SNAP benefits into money that the defendants, their co-conspirators, and designees could use for any purpose and to enrich the defendants. Indicted are:
George Rafidi
Age: 61
Warren, OH
Charles R. Thomas
Age: 45
Youngstown, OH
Vincent E. Poyssick, Sr.
Age: 67
Youngstown, OH
Alecia D. Gayles
Age: 33
Youngstown, OH
Sophia L. Hendrix
Age: 37
Campbell, OH
Tashauna J. Grissett
Age: 27
Youngstown, OH
Donna S. Hendrix
Age: 42
Youngstown, OH
Katrina M. Haskins
Age: 32
Youngstown, OH
Deidra Wilson
Age: 29
Youngstown, OH
Faydra Spikes-Hill
Age: 36
Austintown, OH
Jennifer A. Lee
Age: 29
Youngstown, OH
Cheryle O’Neal
Age: 23
Warren, OH
Torrie L. Crump
Age: 40
Youngstown, OH
Yoletta S. Alvarado
Age: 39
Youngstown, OH
Tracey M. Eley
Age: 53
Youngstown, OH
Latise Mahinparvar
Age: 27
Youngstown, OH
Allison Harris
Age: 28
Youngstown, OH
Brittany N. Littlejohn
Age: 26
Youngstown, OH
Tshombe P. Miller
Age: 32
Youngstown, OH
Monique D. Sutton
Age: 32
Youngstown, OH
Lisa West
Age: 33
Youngstown, OH
Telisha Stanford
Age: 34
Youngstown, OH
Joann Averette
Age: 55
Youngstown, OH
Floyayeshia Robinson
Age: 25
Youngstown, OH
Herman L. Taylor, Jr.
Age: 46
Campbell, OH
Earlene Williams
Age: 41
Youngstown, OH
Doreen Mayberry
Age: 49
Youngstown, OH
Jessica Dickerson
Age: 28
Youngstown
Tiffany Williams
Age: 39
Boardman, OH
Harriett Randolph
Age: 49
Youngstown, OH
Jamalia Abrams
Age: 25
Unknown, OH
Tearra Dates
Age: 32
Boardman, OH
On or about March 18, 2010, George Rafidi filed articles of incorporation for Ghazy, LLC, doing business as Breaden Market, a convenience store located in Youngstown. On March 31, 2010, Rafidi completed and submitted a SNAP application for stores, for Breaden Market to the USDA Food and Nutrition Service. Breaden Market then began operating in or about April 2010, according to the indictment.
It was part of the conspiracy that SNAP beneficiaries went to Breaden Market and obtained cash and prohibited items, such as alcohol and tobacco, in exchange for their SNAP benefits. Rafidi fraudulently redeemed SNAP benefits and caused money to be deposited into Breaden Market’s bank accounts, according to the indictment.
During the course of the conspiracy, Rafidi and Breaden Market submitted claims for more than $2 million in fraudulently obtained SNAP benefits, according to the indictment.
Count 2 of the indictment alleges the above-named defendants knowingly acquired USDA FNS SNAP benefits through the use of Electronic Benefit Transfer cards in exchange for U.S. currency and other ineligible items.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the U.S. Department of Agriculture, Office of the Inspector General. The matter is being prosecuted by Assistant United States Attorneys David M. Toepfer and Benedict Gullo.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.