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Thursday 4 February 2016
California Man Sentenced to Prison for Federal Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Oscar Toro, 43, of Fremont, Calif., was sentenced today in federal court in Albuquerque, N.M., to 57 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Toro was charged in March 2014, on a criminal complaint alleging that he possessed methamphetamine with intent to distribute on March 4, 2014, in Bernalillo County, N.M. According to the complaint, Toro was arrested after law enforcement seized approximately 3.4 kilograms of methamphetamine from a hidden compartment underneath Toro’s vehicle. Toro was subsequently indicted on March 26, 2014, and charged with possession of methamphetamine with intent to distribute.
On Oct. 20, 2015, Toro pled guilty to the indictment and admitted that on March 4, 2014, law enforcement officers found 3,415 grams of methamphetamine in a hidden compartment in his vehicle. Toro further admitted that he was given $1,000.00 to drive the methamphetamine from Calif. to Ky., and would later receive another $5,000.00.
This case was investigated by the Albuquerque office of the DEA and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Rumaldo Armijo prosecuted the case.
California Man Pleads Guilty to Cocaine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Oscar Casillas-Nunez, 39, of Orosi, Calif., pleaded guilty today in federal court in Albuquerque, N.M., to a cocaine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Casillas-Nunez and his co-defendant Gilbert Rosales, 43, of Dinuba, Calif., were arrested in Oct. 2013, on a criminal complaint charging them with conspiracy to distribute cocaine after DEA agents found approximately 4.6 kilograms of cocaine in their baggage during an interdiction investigation at the Amtrak Train Station in Albuquerque on Oct. 16, 2013. Both men were indicted on Oct. 30, 2013, and charged with conspiracy to distribute cocaine and possession of cocaine with intent to distribute in Bernalillo County, N.M.
During today’s proceedings, Casillas-Nunez pled guilty to a felony information charging him with possession of cocaine with intent to distribute. In entering his guilty plea, Casillas-Nunez admitted that on Oct. 16, 2013, he traveled through Albuquerque with cocaine that he intended to distribute to other people but was arrested by law enforcement agents before he could reach his final destination.
At sentencing, Casillas-Nunez faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. He will remain in custody pending a sentencing hearing which has yet to be scheduled.
Rosales previously pled guilty to the indictment on March 27, 2015, and admitted that on Oct. 16, 2013, he and Casillas-Nunez transported cocaine while traveling through Albuquerque on the Amtrak Train. Rosales further admitted that when the pair arrived in Albuquerque, he left the train to avoid police. Rosales further admitted that when police questioned Casillas-Nunez, he abandoned the bag containing the cocaine was in and did not return to the train. Rosales was sentenced on Oct. 29, 2015, to 60 months in federal prison followed by four years of supervised release.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Buffalo Man Charged with Trying to Renew the Passport of A Dead ManRead 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 Porfirio Rosa, a/k/a Luis Rosa, 74, of Buffalo, NY, was arrested and charged by criminal complaint with making false statements in application for a passport. The charge carries a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, on October 9, 2015, the Western Passport Center in Tucson, Arizona received a United States Passport Renewal Application from an individual identifying himself as Luis Rosa. The application was mailed from the defendant’s residence in Buffalo. As proof of identity and citizenship, the defendant submitted an expired U.S. passport issued in 2003 in the name of Luis Rosa.
Further investigation revealed that the name, social security number, and date of birth provided on the passport renewal application and original passport belonged to a man who died in 1995. The Social Security Administration confirmed that the decedent’s social security number has not been reissued, and that the decedent’s widow has been receiving benefits since the decedent’s death.
The complaint further states that at the time of his arrest, the defendant was in possession of several New York State identification cards as well as federal Social Security cards containing several different names, dates of birth, and social security numbers.
Rosa made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained.
The complaint is the result of an investigation by the Diplomatic Security Service, U.S. Department of State, under the direction of William Ferrari.
Antelope Couple Sentenced to 15 Years in Prison for the Arson of Their HomeRead the Press Release
SACRAMENTO, Calif. — An Antelope couple was sentenced today by Chief United States District Judge Morrison C. England Jr. to 15 years in prison each for four felony counts related to the arson of their former home and home-based business, United States Attorney Benjamin B. Wagner announced.
After a 10-day trial, a jury found Alexander Sakhanskiy, 43, and Larisa Sakhanskiy, 45, guilty of arson to commit another felony, two counts of mail fraud, and arson affecting interstate commerce. Judge England also ordered the defendants to pay nearly $540,000 in restitution to the insurance company that had paid their fraudulent claim.
According to evidence introduced at trial, on May 22, 2010, a gasoline-fueled fire destroyed the Sakhanskiys’ home in Antelope, a single-family residence at 5745 Hawkeye Lane, that was also the business location of “Alex’s Plumbing.” Prior to the fire, the Sakhanskiys removed most of their personal belongings from the house. Firefighters testified that the residential fire sprinkler system and smoke detectors had been deactivated. Although the fire resulted in the total destruction of the house, firefighters were able to prevent the fire from spreading to neighboring homes.
Evidence at trial showed that the Sakhanskiys had set the fire or caused the fire to be set to collect insurance money from Farmers Insurance Group, Mid-Century Insurance Company for hundreds of thousands of dollars of property they claimed was destroyed in the fire. In filing the claim, the defendants falsely claimed that hundreds of thousands of dollars of property was destroyed in the fire, when most of the contents of the house had been removed and hidden before the fire.
“For-profit arsonists like the Sakhanskiys allow their own personal greed to lead them to intentional acts that endanger the lives of themselves, their neighbors, and the first responders who are diverted from the accidental hazards of everyday life,” said U.S. Attorney Wagner. “We are pleased with today’s sentences, which reflect the gravity this offense, and are grateful for the hard work and cooperation of the ATF, the Sacramento Metropolitan Fire District, and the Sacramento County District Attorney’s Office in securing this result.”
“The Sakhanskiys committed arson in an attempt to defraud their insurance company, in turn placing their neighbors, firefighters and first responders in serious danger,” said ATF Special Agent in Charge Jill A. Snyder. “This investigation was a joint effort with our state and local partners.”
John Barsdale, Metro Fire Supervising Fire Investigator stated: “Keeping our communities safe is Metro Fire’s top priority, whether that means rapidly mitigating an emergency or working with our partner agencies to thoroughly investigate a fire scene and put an arsonist behind bars. Metro Fire's investigation team spent several hundred hours investigating this fire and conducting follow up investigations in order to successfully make an arrest and close the case.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sacramento Metropolitan Fire District. The Sacramento County District Attorney’s Office assisted investigators with the initial fire investigation. Assistant U.S. Attorneys Michael D. Anderson and Nirav Desai prosecuted the case.
11 Defendants Indicted for $1.2 Million Oxycodone ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 11 defendants have been indicted by a federal grand jury for their roles in a $1.2 million conspiracy to distribute Oxycodone that they obtained by using forged and fraudulent prescriptions.
Robert G. Joy, also known as “Bear,” 33, Gary D. Dickinson, also known as “James DeJong,” 49, Nicholas Destefano, 37, Katherine E. Beaven, 22, Douglas R. Parker, 56, Michelle C. Newton, 45, Felicita A. San Miguel, also known as “Cassandra Jasso,” “Susan Hernandez,” and “Sarah Buckner,” 37, Jermaine C. Brooks, 28, and Timothy D. Kroenke, 26, all of Kansas City, Mo.; Christopher J. Neale, 25, of Harrisonville, Mo.; and Thomas Poindexter, 41, of Olathe, Kan., were charged in a 27-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Feb. 2, 2016. That indictment was unsealed and made public today upon the arrests and initial court appearances of Joy, Destefano, Beaven, Parker, Neale and Kroenke.
The federal indictment alleges that all 11 co-defendants participated in a conspiracy to distribute Oxycodone that began on June 22, 2013.
All of the co-defendants are also charged with participating in a conspiracy to unlawfully use another person’s identification to facilitate a drug-trafficking crime. According to the indictment, conspirators obtained the means of identification of health care providers (including their names and DEA registration numbers, which are assigned by the DEA to allow them to write prescriptions for controlled substances). Conspirators allegedly used that identification and the prescription paper to prepare false prescriptions for controlled substances, including Oxycodone. They took the false prescriptions to pharmacies in Kansas City, Drexel, Riverside, Independence, Lee’s Summit, Blue Springs, Kearney, Butler, Odessa, Higginsville and Nevada, Mo. After they obtained the Oxycodone or other controlled substances, the indictment says, they distributed them to others.
In addition to the two conspiracies, Dickinson is charged with five counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge, one count of possessing methamphetamine with the intent to distribute and one count of possessing cocaine, oxycodone and methamphetamine with the intent to distribute.
Dickinson and San Miguel are charged together in two counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. Dickinson, Beaven and San Miguel are charged together in one count of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. Brooks and San Miguel are charged together in one count of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. San Miguel is also charged in a fifth count of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge.
Kroenke is also charged with five counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge.
Neale is also charged with two counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge.
Destefano is also charged with one count of possessing a firearm (a Smith and Wesson 9mm pistol) while being an unlawful user of a controlled substance and one count of possessing Oxycodone and methamphetamine with the intent to distribute.
Poindexter is also charged with one count of possessing Oxycodone, cocaine and methamphetamine with the intent to distribute.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property obtained from the proceeds of the alleged offenses, including a money judgment of $1.2 million.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelson. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the Missouri State Highway Patrol, and the police departments of Riverside, Blue Springs, Independence, Kearney, Odessa, Nevada, Higginsville, Drexel Lee’s Summit and Butler.
Wednesday 3 February 2016
Winnebago Man Sentenced to 80 Months for AssaultRead the Press Release
Mark James Decora, 32, of Winnebago, Nebraska, was sentenced in federal court in Omaha, Nebraska, for assault resulting in serious bodily injury. The Honorable Lyle E. Strom, Senior United States District Court Judge, sentenced Decora to the custody of the United States Bureau of Prisons for 80 months. After his release from prison, Decora will begin a three-year term of supervised release.
This is Decora’s third federal conviction. He was convicted in 2003 of assault. In 2005 he was convicted of resisting a federal officer. In 2008 Decora was convicted of his second felony assault.
On March 21, 2015, Winnebago Police were called to the Senior Complex in Winnebago, Nebraska. They observed a victim with significant facial injuries. Decora and the victim were the only two in the apartment. The victim was taken to Mercy Hospital in Sioux City, Iowa, where she reported that Decora assaulted her. She suffered significant facial fractures requiring surgery. She also suffered bruising and lacerations to her face.
This case was investigated by the Federal Bureau of Investigation.
Wetzel County, WV man convicted of unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Eric Brandon Lemasters, 33, of Jacksonburg, West Virginia, pled guilty to unlawful possession of four firearms today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Lemasters, who has a previous felony conviction in state court in Ohio, was discovered in July 2015 in unlawful possession of two rifles, a shotgun, and a pistol in Wetzel County, West Virginia. He was previously convicted of the felony offense of “Grand Theft” in the Court of Common Pleas of Lake County, Ohio.
Lemasters pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge James E. Seibert presided.
Violent Felon Charged in A String of Armed CarjackingsRead the Press Release
One Carjacking Victim Shot in the Chest
Earlier today, John Howard was arraigned before United States Chief Magistrate Judge Steven M. Gold in Brooklyn federal court. Howard faces charges for a series of gunpoint carjackings in Queens and Long Island. A criminal complaint charges the defendant with three counts of carjacking and using, carrying, brandishing, and discharging a firearm during and in relation to crimes of violence.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Delano A. Reid, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Office; and William J. Bratton, Commissioner of the New York City Police Department (NYPD).
As detailed in the complaint and a detention memorandum filed by the government, Howard, who has a history of violence, participated in a series of armed carjackings that took place beginning in December 2015.
On December 18, 2015, Howard attempted to burglarize a home in Valley Stream, New York. While fleeing the scene of the burglary, he pointed a gun at the driver of a white Volkswagen Jetta and threatened to shoot if the driver did not comply with his demands. After forcing the driver from the car, Howard stole the car.
Ten days later, on December 28, 2015, Howard struck again. This time the victim was sitting in his parked Mercedes Benz and was approached by two males. One male entered the car through the passenger side door. The second male, subsequently identified as Howard, opened the driver’s side door and told the victim, in sum and substance, “Give me your wallet or I’m going to shoot you.” Howard then hit the driver in the head, forced him out, and stole the driver’s wallet.
On January 21, 2016, Howard was involved in a third violent carjacking in which a fifty-three-year-old woman was shot in the chest. The woman’s daughter was in the passenger seat of a Hyundai parked in front of the Hampton Inn at JFK International Airport waiting for her mother to check into the hotel when a masked and armed man entered the car. The man demanded money and jewelry from the daughter and struck her in the head with his firearm. As the man began driving the car, he told the daughter, in sum and substance, “If your mother has no money, then I’m going to shoot you.” When the mother exited the hotel a few minutes later, the man demanded the mother’s purse. When the mother refused, the man shot her in the chest and drove off in a white Volkswagen Jetta – which was the same make and model, and had the same features, as the Volkswagen Jetta carjacked by Howard on December 18, 2015.
Four days after the January 21 carjacking, Howard was arrested in possession of the stolen white Volkswagen Jetta.
United States Attorney Capers stated, “As alleged in the complaint and other court filings, Howard’s targets were victims of harrowing crimes, the likes of which we have not seen in some time. This violence simply will not be tolerated, as Howard will now face the consequences of his acts in federal court.” Mr. Capers expressed his grateful appreciation to the ATF and NYPD’s Joint-Robbery Taskforce, who are responsible for leading the investigation, and thanked the Nassau County Police Department, the Nassau County District Attorney’s Office, the Queens District Attorney’s Office, the Kings County District Attorney’s Office, the NYPD’s Queens South Strategic and Tactical Command, and the 113 Precinct Detective Squad for their assistance.
ATF Special Agent in Charge Reid stated, “It is quite disturbing to think that an individual like the defendant was free to walk the streets as recently as two weeks ago. As alleged, Howard was involved in multiple carjackings where he exhibited his total disregard for human life. I am extremely grateful to the investigators and prosecutors on this case, who swiftly acted and removed such a dangerous individual from free society. It is now time for the defendant to feel the full weight of the U.S. judicial system and to know that the severity of his punishment will likely be commensurate to the depravity of his criminal behavior.”
“These series of crimes demonstrate a disturbing level of depravity and complete disregard for the safety and well-being of the victims involved in these acts of violence,” said New York City Police Commissioner Bratton. “As alleged, John Howard participated in a string of violent acts, including a carjacking where a 53 year-old mother was shot in cold blood when she refused to hand over her purse. I commend the efforts of the Queens South Strategic and Tactical Command Investigative Operations and the 113th Precinct Detective Squad who made it a priority to take this dangerous individual off the streets and into police custody.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Moira Kim Penza and Tanya Hajjar.
The Defendant:
Name: John Howard
Age: 49
Brooklyn, New YorkVermont Man Surrenders U.S. Citizenship and Consents to Removal from United StatesRead the Press Release
A Bosnian-born Burlington, Vermont, man surrendered his U.S. citizenship because he lied about his military service during the Bosnian war and the court cancelled his certificate of naturalization.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eric S. Miller of the District of Vermont, Special Agent in Charge Matthew J. Etre of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Boston Office and Special Agent in Charge Andrew W. Vale of the FBI’s Albany, New York, Field Office made the announcement.
Edin Sakoč, 55, stipulated to the court’s order of denaturalization and loss of citizenship based on a civil complaint alleging that Sakoč illegally and fraudulently obtained U.S. citizenship by giving false or misleading information to a U.S. official. According to court documents, when Sakoč sought refugee status in the United States in 2001, he misrepresented his wartime service in the Croatian Defense Council by denying that he served in a reconnaissance unit.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] or toll-free at 1-800-813-5863, or through the HSI tip line at 1-866-DHS-2-ICE or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
HSI Burlington and the FBI’s Albany Division investigated the case, with assistance from ICE’s Human Rights Violators and War Crimes Center. The Criminal Division’s Office of International Affairs and its counterpart at the Prosecutor’s Office of Bosnia and Herzegovina provided valuable assistance. Senior Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Eugenia A.P. Cowles of the District of Vermont are prosecuting the case.
Van Buren Man Sentenced to over 8 Years for Child PornographyRead the Press Release
Acting United States Attorney Kenneth Elser
Western District of Arkansas
_______________________________________________________FOR IMMEDIATE RELEASE CONTACT: Joyce Snow
February 3, 2016 PHONE: (479) 494-4066TWITTER: @WDARnews
VAN BUREN MAN SENTENCED TO OVER 8 YEARS FOR CHILD PORNOGRAPHY
Fort Smith - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Brad Middleton, age 29, of Van Buren, was sentenced yesterday to 100 months in prison and 5 years of supervised release on one count of Distribution of Child Pornography. The Honorable P. K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, between March 22, 2015, and April 30, 2015, the defendant sent an undercover detective links to thirty one videos depicting minors engaging in sexually explicit conduct. Records reflect that the IP address from which the videos were sent was associated with the defendant and show that the videos were sent by the defendant while he was in the Fort Smith Division of the Western District of Arkansas. Middleton was indicted by a federal grand jury in July 22, 2015 and pleaded guilty to the charge in September 30, 2015.
This case was investigated by Homeland Security Investigations, Internet Crimes Against Children, and the Russellville Police Department. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Valentino Anderson Sentenced to 77 Months for Conspiracy to Distribute Heroin and Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Valentino Anderson, 50, of Rutland, was sentenced yesterday for his role in a conspiracy to distribute heroin and cocaine base in Vermont. Chief United States District Judge Christina Reiss sentenced Anderson to 77 months in prison, to be followed by three years of supervised release.
According to court records, Valentino Anderson and his wife Crystal Anderson participated in a conspiracy to distribute heroin and cocaine base during the fall 2012 time period. The evidence in the case included a March 2011 law enforcement-controlled purchase of heroin from Mr. Anderson and the seizure of approximately 23 grams of cocaine base during a car stop of the Andersons in October 2012. In connection with the car stop, Valentino Anderson admitted that he and his wife were returning from a trip to Connecticut to pick up the drugs. Mr. Anderson further admitted that he had been selling drugs for a period of months before the car stop. Mr. Anderson was also federally convicted in Vermont in 2004 of conspiracy to distribute cocaine in 2004 and was sentenced to 27 months’ imprisonment. Crystal Anderson was sentenced on August 22, 2013 to time-served and three years of supervised release.
This matter was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Vermont State Police. The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. Valentino Anderson was represented by Richard C. Bothfeld, Esq. of Burlington.
Upstate New York Construction Company and Individuals to Pay More Than $1 Million to Settle Fraud ClaimsRead the Press Release
ALBANY, NEW YORK – An upstate New York construction company and three individuals have paid $1,012,000 to resolve claims that they defrauded a government program designed to benefit women- and minority-owned contractors, announced United States Attorney Richard S. Hartunian. The settling parties are Watervliet-based ING Civil, Inc. and its owner, Corey Ingerson; James Beaudoin, who is the former president of Watervliet-based Rexford Albany Municipal Supply Company, Inc. (RAMSCO); and former RAMSCO salesman John Leary.
The United States Department of Transportation (DOT) has promulgated regulations intended to provide opportunities for businesses owned by socially and economically disadvantaged individuals to perform work on projects financed, at least in part, by the federal government. DOT also administers a Disadvantaged Business Enterprise (DBE) program that requires state and local governments receiving federal funding to establish goals for the participation of DBEs on federally-funded projects. A contractor may claim credit for a DBE’s participation on a project only if the DBE serves a "commercially useful function." A DBE performs a commercially useful function when it is responsible for execution of a distinct element of work on a contract. A DBE does not serve a commercially useful function if its role is limited to that of an extra participant to a transaction through which funds are passed to create the impression that members of a historically disadvantaged group worked on a contract.
The settlements resolve the following allegations:
In 2009, when preparing to submit a bid to the City of Cohoes to reconstruct the Bridge Avenue Bridge over the Mohawk River, Corey Ingerson spoke with John Leary to see if RAMSCO would provide a quote for materials that ING Civil would need if awarded the project. Leary explained to Ingerson that RAMSCO could both provide the materials for the project and bill them through a DBE, American Indian Builders & Suppliers, Inc. (AIB), to help ING Civil satisfy the project’s DBE goals. Shortly thereafter, Ingerson learned that ING Civil had been awarded the project, and he signed a DBE Utilization Worksheet representing that AIB would supply $306,285 worth of materials for the project. When Ingerson signed the DBE Utilization Worksheet agreeing to work with AIB, he knew virtually nothing about the company and had not had any substantive discussions with anyone from AIB about the materials needed for the project. All of Ingerson’s discussions on that topic were with RAMSCO officials. ING Civil ended up purchasing all materials on its DBE Utilization Worksheet from RAMSCO, rather than AIB.
In November 2010, after work on the Bridge Avenue Bridge was substantially complete, local government officials asked Ingerson to document ING Civil’s DBE expenditures on the project. Ingerson then contacted Leary to explain that ING Civil did not have the documentation necessary to support a claim that it had purchased materials from AIB, as it had represented it would do on its DBE Utilization Worksheet. At that time, Leary and Ingerson decided to prepare documents to create the appearance that the materials ING Civil purchased from RAMSCO had been purchased from AIB. Over the next few months, officials from ING Civil, RAMSCO, and AIB exchanged invoices, purchase orders and other documents to make it appear as though ING Civil had purchased materials from AIB that it had actually purchased from RAMSCO. In February 2011, ING Civil submitted electronic documentation to the City of Cohoes falsely representing that it had satisfied its DBE goals on the project by working with AIB.
In the settlement agreement, Ingerson admitted that he made a false filing indicating that materials for the Bridge Avenue Bridge project had been supplied by AIB when, at the time he made that filing, he knew the materials had been provided by RAMSCO, which was not a DBE. Beaudoin (for RAMSCO) and Leary admitted that they took steps to aid ING Civil in making that false filing. The parties also acknowledged that their conduct violated the False Claims Act.
United States Attorney Hartunian said: "The Disadvantaged Business Enterprise program was established to help small businesses owned by minorities and women obtain work on federally funded projects. As these and our other recent DBE fraud settlements demonstrate, this office will aggressively pursue individuals and entities that undermine this important objective."
"As evidenced by the settlement agreements entered into by ING Civil, Inc., Corey Ingerson, James Beaudoin, and John Leary, we remain steadfast in our commitment to maintaining the integrity of the United States Department of Transportation’s Disadvantaged Business Enterprise program," said Douglas Shoemaker, regional Special Agent-in-Charge of DOT’s Office of Inspector General. "Working with the Secretary of Transportation and other DOT leaders, and our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law."
In August 2015, HD Supply Waterworks, a company that acquired RAMSCO, paid $4,945,000 to resolve allegations that it also enabled several prime contractors to represent falsely that AIB had performed commercially useful functions on federally-funded contracts. Each of these investigations and settlements were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, the United States Department of Transportation’s Office of Inspector General and the United States Environmental Protection Agency’s Office of Inspector General, with the assistance of the Federal Bureau of Investigation and the New York State Department of Transportation’s Investigations Bureau. The United States was represented in each matter by Assistant United States Attorney Adam J. Katz.
U.S. Attorney's Office and IRS award criminal forfeiture assets to local law enforcementRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto and Internal Revenue Service (IRS) Special Agent in Charge Thomas Jankowski presented three local law enforcement agencies today with over $1 million in forfeited cash as a result of their participation in a joint investigation of a Barboursville pharmacy owner. Officials from the Charleston Police Department, the Huntington Police Department, and the Boone County Sheriff’s Department were on hand to receive the forfeiture awards at a press conference in the U.S. Attorney’s Office in Charleston.
Several law enforcement agencies worked together on a far-reaching investigation that resulted in the convictions of 19 defendants on federal drug charges, including 15 local drug dealers, two out-of-state drug suppliers, and one local pharmacy owner. The IRS’s Criminal Investigation Division, the Huntington Police Department, the West Virginia State Police, the West Virginia National Guard, Drug Enforcement Administration Task Force Officers from the Charleston Police Department, and the Boone County Sheriff’s Department jointly investigated the extensive drug conspiracy that stretched from Lincoln County to Florida.
As part of the conspiracy, the drug suppliers illegally filled prescriptions for oxycodone and sent the drugs to Lincoln County for distribution. During a search by law enforcement of the drug suppliers’ home in Florida, agents discovered prescription pill bottles for oxycodone that had been filled at A+ Care Pharmacy in Barboursville. Law enforcement then executed search warrants at A+ Care Pharmacy and at the home of its owner, Kofe Agyekum, and seized over 50,000 oxycodone pills, over $2 million in cash, and a Lexus. Agyekum pleaded guilty and was sentenced to over five years in federal prison.
“Let me be clear – we will work with every local, state, and federal law enforcement agency and use every available tool to prosecute those who flood West Virginia with drugs. As we proved in this case, we will travel beyond our state’s borders to bring them to justice,” said Acting United States Attorney Casto. “I want to thank the law enforcement agencies that worked as a team to investigate this case. These forfeiture assets will be used by law enforcement to continue this fight and make our communities safer.”
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.
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Two defendants sentenced in Beckley for Federal crimesRead the Press Release
BECKLEY, W.Va. – A White Sulphur Springs woman and a Beckley felon were sentenced today in federal court, announced Acting United States Attorney Carol Casto. The sentences were imposed by United States District Judge Irene C. Berger.
Paula Kay Butts, 51, of White Sulphur Springs, was sentenced to a year and a half in federal prison for using a phone to facilitate methamphetamine distribution. Butts previously pleaded guilty in November 2015 to the federal drug crime. Butts admitted that on June 27, 2015, while in White Sulphur Springs, she texted a confidential informant working with law enforcement to arrange a drug deal. Later that day, Butts met the informant and distributed methamphetamine.
Leon Eugene Smith, Jr., 35, of Beckley, was sentenced to five years in federal prison for being a felon in possession of a firearm, a Smith & Wesson 9mm handgun. Smith previously pleaded guilty in October 2015 to the federal gun crime. Smith was prohibited under federal law from possessing any firearm because of a 2005 felony conviction in federal court for possession with intent to distribute a controlled substance.
The case against Butts was investigated by the Greenbrier Valley Drug and Violent Crime Task Force as part of the Greenbrier Valley Heroin and Pill Initiative, a multi-agency effort led by the United States Attorney’s Office to combat drug trafficking in communities across the Southern District of West Virginia.
The case against Smith was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beckley Police Department as part of Project Safe Neighborhoods, a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Two Women Plead Guilty to Defrauding USDA’s Summer Food Service ProgramRead the Press Release
NORFOLK, Va. – Cindy Hall, 41, of Monroe, North Carolina, pleaded guilty today to charges of mail fraud and unlawful monetary transactions. Hall’s mother, Stephanie Almond, 61, of Franklin, pleaded guilty on Jan. 27, 2016, to charges of mail fraud.
According to statements of facts filed with the plea agreements, Cindy Hall ran a non-profit organization known as Send Thee Community Outreach, allegedly to administer the Summer Food Service Program (SFSP), which is a USDA federally-funded program to feed children during the summer when free-lunch programs end at the conclusion of the school year. The Virginia Department of Health (VDH) administers the SFSP in Virginia. In 2012 and 2013, Hall submitted fraudulent claims to VDH for reimbursement, resulting in at least $150,000 in overpayment to Hall. Almond previously ran her own non-profit organization, Neighborhood Pride, which was a SFSP sponsor approximately 2008 to 2011, when she was disqualified by VDH. Almond continued to be involved with the program with Hall, until Hall was told she was disqualified by VDH from receiving funds in 2014.
Hall and Almond were indicted by a federal grand jury on Oct. 8, 2015. Hall and Almond face a maximum penalty of 20 years in prison when sentenced on May 4, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel W. Steven Flaherty, Superintendent of Virginia State Police; June W. Jennings, Inspector General of Virginia; and Phyllis K. Fong, Inspector General for U.S. Department of Agriculture, made the announcement after the plea was accepted by U.S. Magistrate Judge Robert Krask. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr132.
Two Northeast Pennsylvania Check Cashers Charged in Separate Stolen Identity Refund Fraud SchemesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that two northeast Pennsylvania check cashers have been charged as a result of their participation in separate stolen identity refund fraud schemes.
Jose Cabreja, age 30, of Scranton, and Franklyn Nunez, age 40, of Hazleton, were charged in one-count criminal informations filed today in federal court in Scranton with conspiracy to make false claims against the government.
According to United States Attorney Peter Smith, the Cabreja Information charges that Cabreja operated Frank Check Casher, Inc. in Olyphant, and that his co-conspirators used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns. The Information alleges that Cabreja deposited and cashed fraudulently obtained tax refund checks totaling $876,731 between June and August 2013.
The Nunez Information charges that he operated The Closet Multi-Service, LLC in Hazleton, and alleges that co-conspirators of Nunez used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns. The Information also alleges that Nunez deposited and cashed fraudulently obtained tax refund checks totaling $358,525 between June and September 2011.
The government also filed a plea agreement in each case which is subject to approval by the court.
According to United States Attorney Smith, the prosecution of fraudulent tax refund schemes that rob tax payers as well as the government is a high priority in this district.
The Department of Justice views the prosecution of Stolen Identity Refund Fraud, or “SIRF,” as vital. These schemes disrupt the orderly administration of the income tax system for hundreds of thousands of law abiding taxpayers nationwide and have cost the United States Treasury billions of dollars. SIRF crimes are often perpetrated by criminal enterprises with key individuals at all stages of the scheme: those who steal Social Security Numbers and other personal identifying information, those who file false returns with the Internal Revenue Service, those, including check cashers, who facilitate obtaining the refunds, and those who promote the schemes. These criminal enterprises exploit the highly automated systems for storing personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly—often in the form of electronic payments. Everyone with a Social Security Number is potentially vulnerable to having his or her identity stolen. The IRS estimates that during the 2013 filing season alone, over 5 million tax returns were filed using stolen identities, claiming approximately $30 billion in refunds.
The charges in the present cases are the result of ongoing investigations by the Scranton Office of the Internal Revenue Service, Criminal Investigation, with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson City, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices. The cases are assigned to Assistant United States Attorney William Houser for prosecution.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Men Sentenced to a Total of 119 Months Imprisonment for Bank Robbery in Hot SpringsRead the Press Release
Acting United States Attorney Kenneth Elser
Western District of Arkansas
_______________________________________________________FOR IMMEDIATE RELEASE CONTACT: Joyce Snow
February 3, 2016 PHONE: (479) 494-4066TWITTER: @WDARnews
TWO MEN SENTENCED TO A TOTAL OF 119 MONTHS IMPRISONMENT FOR BANK ROBBERY IN HOT SPRINGS
Hot Springs, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that two men were sentenced on one count each of Bank Robbery, Aiding, and Abetting in connection with a 2014 bank robbery in Hot Springs. Nicholas Tolerson, age 36 of Little Rock, was sentenced yesterday to 77 months in prison and three years supervised release. James Pritchett, age 30 of Maumelle, was sentenced on January 27, 2016 to 42 months imprisonment and three years supervised release. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in Hot Springs.
According to court records, on April 4, 2014, officers with the Hot Springs Police Department responded to a bank robbery at Bancorp South. Upon their arrival, officers spoke with witnesses who observed a man running out of the bank carrying a red bag and getting into a silver Cadillac. Witnesses were also able to relay the tag number of the vehicle to officers. Later that day, officers located the suspect’s vehicle in front of the Oaklawn Race Track and a pursuit ensued. The vehicle crashed, and after a foot pursuit, both suspects were taken into custody. The driver was identified as James Pritchett, and the passenger was identified as Nicholas Tolerson. Officers were also able to locate the red bag that Tolerson used during the robbery and had thrown out of the vehicle during the pursuit. A Federal Grand Jury issued an indictment for Tolerson and Pritchett on May 7, 2014. Tolerson pleaded guilty on March 18, 2015. Prichett pleaded guilty on May 21, 2015.
This case was investigated by the Hot Springs Police Department and the FBI. Assistant U.S. Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Two Georgia Real Estate Investors Indicted for Bid Rigging and Bank Fraud at Public Home Foreclosure AuctionsRead the Press Release
A federal grand jury in Atlanta charged in separate indictments two real estate investors with bid rigging and bank fraud related to public real estate foreclosure auctions in Georgia, the Justice Department announced today.
Real estate investor Douglas L. Purdy has been charged with one count of bid rigging and five counts of bank fraud for participating in the alleged conspiracy and scheme at Forsyth County, Georgia, foreclosure auctions from 2008 to 2012. Clifford Wayne Hill was charged with one count of bid rigging and seven counts of bank fraud related to public foreclosure auctions in Gwinnett County, Georgia, from 2007 to 2012. The defendants and their co-conspirators allegedly rigged bids at public foreclosure auctions and defrauded banks that owned the mortgage notes. Among other methods, the conspirators allegedly held secret “second auctions” of properties they had obtained through rigged bids, dividing the auction proceeds that should have gone to pay off debts against the properties and, in some cases, to homeowners who had defaulted.
“These defendants corrupted public foreclosure auctions in Georgia to keep for themselves money that rightfully belonged to banks and homeowners,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Those who illegally enrich themselves at the expense of financially distressed homeowners and their lenders should be held accountable for their crimes.”
“The FBI continues its work with the U.S. Department of Justice’s Antitrust Division in ridding corrupt activities within the public real estate foreclosure auction process in Georgia,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office. “The additional federal indictments of these two real estate investors illustrate not only the scope of the problem but also the federal efforts to address it. Anyone with information regarding such criminal activity as alleged here should contact their nearest FBI field office.”
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Including the indictments filed today in the Northern District of Georgia, 14 defendants have been charged in connection with the department’s ongoing investigation into bid rigging and fraudulent schemes involving real estate foreclosure auctions in the Atlanta area; 12 have pleaded guilty.
These charges have been filed as a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division and the U.S. Attorney’s Office of the Northern District of Georgia, in connection with the president’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Purdy Indictment (211.42 KB)
Hill Indictment (274.93 KB)
Troy Man Pleads Guilty to Health Care FraudRead the Press Release
ALBANY, NEW YORK – John VonFricken, age 50, of Troy, New York, pled guilty today to obtaining false receipts for orthodontic services and submitting them to his union’s health care plan, announced United States Attorney Richard S. Hartunian.
VonFricken was charged with health care fraud for obtaining $54,600 in cash reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7. Between July 2008 and February 2015, VonFricken submitted 18 fake receipts for orthodontic work he did not receive.
VonFricken’s sentencing is scheduled for June 3, 2016 before United States District Court Judge Mae A. D’Agostino. The charges carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Three Texas Tax Return Preparers Convicted of Filing False Tax Returns for ClientsRead the Press Release
Three El Paso, Texas, tax return preparers were convicted by a jury yesterday in the U.S. District Court for the Western District of Texas (El Paso Division) of conspiracy to defraud the United States for their involvement in a fraudulent tax return preparation scheme and numerous counts of aiding and assisting in the preparation and filing of materially false federal income tax returns, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U. S. Attorney Richard L. Durbin Jr. for the Western District of Texas announced.
According to evidence and witness testimony introduced at the trial, Belia Mendoza, 60, was the owner of Mendez Tax Services (MTS), a tax preparation business she operated out of her home in El Paso. Margarita Hernandez, 36, and Denise Duchene, 46, relatives of Mendoza’s, were employees of MTS hired and trained by Mendoza to prepare tax returns for clients for tax years 2008, 2009 and 2010. From February 2009 until June 2011, Mendoza, Hernandez and Duchene conspired to prepare and submit to the Internal Revenue Service (IRS) numerous false Forms 1040 (U.S. Individual Income Tax Returns).
To maximize their clients’ income tax refunds, Mendoza, Hernandez and Duchene placed materially false items on the clients’ tax returns, at times without the knowledge or consent of the clients, including false or inflated figures for unreimbursed employee business expenses, child and dependent care expenses and education credits. Income tax returns prepared by the defendants also included false filing statuses and improperly claimed Earned Income Tax Credits.
“These verdicts represent our continued commitment to identifying and prosecuting those individuals who willfully prepare and file false and fraudulent tax returns,” said Acting Assistant Attorney General Ciraolo. “The millions of U.S. taxpayers who will file returns during the 2016 filing season are entitled to the assistance of honest and competent professionals, and the Tax Division will hold those preparers who in engage in criminal conduct accountable.”
“It’s tax season and the guilty verdicts for Belia Mendoza and her relatives, Margarita Hernandez and Denise Duchene, are proof that taxpayers are fed up with tax fraud and abuse,” said Special Agent in Charge William Cotter of IRS-Criminal Investigation, San Antonio. “Dishonest return preparers use a variety of methods to cheat the government. Remember, it is your responsibility to know what is on your income tax return. You are ultimately responsible for what gets filed with the IRS. Taxpayers are encouraged to visit the IRS.gov website for tips on looking for a reputable return preparer.”
Mendoza, Hernandez and Duchene each face up to five years in federal prison on the conspiracy charge and up to three years in federal prison for each false tax return preparation charge.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Durbin commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Joseph M. Giannullo of the Tax Division and Assistant U.S. Attorneys Adrian Gallegos and Rifian Newaz, who prosecuted the case.
Texas Woman Sentenced to Prison in Prescription Drug Smuggling RingRead the Press Release
The Department of Justice announced today that an Athens, Texas, woman has been sentenced to more than one year in prison for her role in the smuggling of imitation, unapproved and misbranded prescription drugs from China.
Catherine Nix, 42, pleaded guilty in April 2015 to one count of conspiracy to smuggle the drugs into the United States. Nix was sentenced to 15 months in prison, followed by two years of supervised release. Two co-defendants, Tom Giddens, 59, and Wanda Hollis, 64, also of Athens, were each sentenced to 15 months in prison in October 2015.
“Consumers of prescription drugs need to know that what they are buying is legitimate, safe, and approved,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This illegal operation introduced more than 100,000 bogus pills into the stream of commerce, potentially posing a huge public health and safety risk. Consumers should know that the drugs they are buying are exactly what they appear to be, and not false versions of name-brand products that could ultimately do them more harm than good.”
In 2009, the defendants smuggled at least 43 known shipments, totaling approximately 106,000 pills, from China to Texas. The shipments contained unapproved, bogus versions of several FDA-approved drugs that, because of the health and safety risks associated with their use, require valid prescriptions to dispense. The prescription drugs seized included: Xanax®; Valium®; sibutramine; Cialis®; Viagra® and Stilnox®, marketed in the United States as Ambien®. None of the pills that were seized and tested were legitimate. Some were sub-potent, but most contained entirely different active ingredients from their legitimate, approved versions. The defendants attempted to hide their smuggling by using shipping labels that concealed the contents of their shipments and customs declarations falsely describing the contents as “gifts” or “toys.” They used multiple addresses in an effort to reduce the likelihood of seizures by U.S. Customs and Border Protection authorities.
“This office remains committed to stemming the increasing flood of illegitimate prescription drugs that come into East Texas,” said U.S. Attorney John M. Bales for the Eastern District of Texas. “This case puts the very real, inherent dangers of counterfeit prescription drugs on full display. These pills looked almost exactly like their legitimate counterparts, but lacked any of the safety or efficacy of the legitimate versions.”
“FDA’s laws are in place to ensure that consumers have access to safe and effective prescription drugs,” said Director George M. Karavetsos of the FDA’s Office of Criminal Investigations. “Those who evade those laws risk harming the public’s health. We will continue to work with our law enforcement partners to keep the U.S. marketplace free of illegitimate medical products.”
This case was investigated by the FDA’s Office of Criminal Investigations and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Allen Hurst for the U.S. Attorney’s Office for the Eastern District of Texas and by Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch.
Tennessee Man Pleads Guilty for Role in New Orleans-Based Sex Trafficking SchemeRead the Press Release
WASHINGTON – The Justice Department announced today that Granville Robinson, 27, of Memphis, Tennessee, pleaded guilty to one count of conspiring to commit sex trafficking and one count of sex trafficking for his role in scheme operated out of the Riviera Motel in New Orleans. Six defendants have previously pleaded guilty in connection with the scheme, which used force and threats to compel multiple women to engage in prostitution for the defendants’ profit in New Orleans and elsewhere.
“Human traffickers facilitate a form of modern-day slavery that threatens the dignity of vulnerable individuals and violates the most basic standards of human decency,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to vigorously pursue justice by prosecuting traffickers and protecting victims from this heinous crime that has no place in our society.”
“This defendant recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”
“Granville Robinson is not only the ringleader of this gang, but also the most violent of the group,” said Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division. “In December 2015, the FBI New Orleans Division established the ‘Violent Crime Against Children and Human Trafficking Task Force,’ a stand-alone squad formed to specifically address the Human Trafficking threat in Louisiana. We will continue to aggressively work with our federal, state, and local law enforcement partners to investigate these matters and bring people to justice.”
“Sex traffickers have complete disregard for humanity. They treat people as commodities solely for financial gain,” said Special Agent in Charge Raymond R. Parmer Jr. of Homeland Security Investigations (HSI) New Orleans. “With this guilty plea, we have made our nation safer, ensuring this trafficker can't harm future victims.”
On Oct. 3 2014, Robinson and co-defendants Duane Phillips, Christopher Williams, Anthony Ellis and Laquentin Brown were charged in a second superseding indictment with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution. An additional defendant, Kanubhai Patel, who owned the Riviera Motel where the sex trafficking scheme was based, was charged in the same indictment with benefitting financially from sex trafficking. A seventh defendant, Zacchaeus Taylor, was charged separately on March 28, 2014.
According to Robinson’s admissions during his plea hearing and other court documents, he enforced strict rules on the women he trafficked as part of his conspiracy. These rules included requiring the women to earn a minimum amount each day, to provide him with all of their earnings and to seek his permission to stop prostituting for the night. Robinson confiscated some women’s identification to make it harder for them to leave, and forced some to get tattoos signifying that they belonged to him. When the women broke the rules or did not earn enough money, Robinson physically assaulted them.
Robinson acknowledged compelling and coercing more than 10 different women to engage in prostitution for his profit from 2012 through January 2014 in connection with the charged conspiracy. Robinson admitting using force to punish and control the women, including one instance of punching and kicking a woman in the abdomen, knowing she was pregnant, to punish her for texting without his permission, and another instance of shoving a woman into a toilet tank hard enough to break it, then striking her repeatedly with a wooden board, to punish her for reportedly planning to escape.
Robinson and his co-defendants aided each other by posting bond for each other following arrests, monitoring the women and reporting to each other any violations of the rules the defendants imposed on the women and transporting women together from New Orleans to Texas, Tennessee, Maryland and Washington, D.C., for prostitution. When two women tried to escape on one such trip, Robinson and a co-defendant found them, forced them into a car, and brought them back to New Orleans to continue prostituting.
Robinson and his co-defendants operated out of certain motels, including the Riviera, which generally did not report their activities to the police. The defendants rented multiple rooms at the Riviera where women would meet prostitution clients, and paid the Riviera above-market rates to reflect the high traffic through the rooms.
Robinson is the seventh defendant to plead guilty in connection with this case. On July 1, 2015, Patel pleaded guilty to benefitting financially from human trafficking. In March and April 2015, Phillips, Williams, Ellis and Brown pleaded guilty to conspiracy to engage in sex trafficking by force, fraud and coercion. Ellis and Brown also pleaded guilty to interstate transportation for prostitution. On June 25, 2014, Taylor pleaded guilty to sex trafficking conspiracy and interstate transportation for prostitution.
At sentencing, currently scheduled for May 4, 2016, Robinson faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison. The plea agreement provides for a recommended sentence of 24 and a half years in prison.
This case was investigated jointly by the FBI’s New Orleans Division and HIS’s New Orleans Field Office, with assistance from the FBI’s Memphis Division. This case is being prosecuted by Trial Attorney Christine M. Siscaretti and Special Litigation Counsel John Cotton Richmond of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Tennessee Man Pleads Guilty for Role in New Orleans-Based Sex Trafficking SchemeRead the Press Release
Seventh Defendant to Plead Guilty in Sex Trafficking Case
The Justice Department announced today that Granville Robinson, 27, of Memphis, Tennessee, pleaded guilty to one count of conspiring to commit sex trafficking and one count of sex trafficking for his role in scheme operated out of the Riviera Motel in New Orleans. Six defendants have previously pleaded guilty in connection with the scheme, which used force and threats to compel multiple women to engage in prostitution for the defendants’ profit in New Orleans and elsewhere.
“Human traffickers facilitate a form of modern-day slavery that threatens the dignity of vulnerable individuals and violates the most basic standards of human decency,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to vigorously pursue justice by prosecuting traffickers and protecting victims from this heinous crime that has no place in our society.”
“This defendant recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”
“Granville Robinson is not only the ringleader of this gang, but also the most violent of the group,” said Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division. “In December 2015, the FBI New Orleans Division established the ‘Violent Crime Against Children and Human Trafficking Task Force,’ a stand-alone squad formed to specifically address the Human Trafficking threat in Louisiana. We will continue to aggressively work with our federal, state, and local law enforcement partners to investigate these matters and bring people to justice.”
“Sex traffickers have complete disregard for humanity. They treat people as commodities solely for financial gain,” said Special Agent in Charge Raymond R. Parmer Jr. of Homeland Security Investigations (HSI) New Orleans. “With this guilty plea, we have made our nation safer, ensuring this trafficker can't harm future victims.”
On Oct. 3 2014, Robinson and co-defendants Duane Phillips, Christopher Williams, Anthony Ellis and Laquentin Brown were charged in a second superseding indictment with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution. An additional defendant, Kanubhai Patel, who owned the Riviera Motel where the sex trafficking scheme was based, was charged in the same indictment with benefitting financially from sex trafficking. A seventh defendant, Zacchaeus Taylor, was charged separately on March 28, 2014.
According to Robinson’s admissions during his plea hearing and other court documents, he enforced strict rules on the women he trafficked as part of his conspiracy. These rules included requiring the women to earn a minimum amount each day, to provide him with all of their earnings and to seek his permission to stop prostituting for the night. Robinson confiscated some women’s identification to make it harder for them to leave, and forced some to get tattoos signifying that they belonged to him. When the women broke the rules or did not earn enough money, Robinson physically assaulted them.
Robinson acknowledged compelling and coercing more than 10 different women to engage in prostitution for his profit from 2012 through January 2014 in connection with the charged conspiracy. Robinson admitted to using force to punish and control the women, including one instance of punching and kicking a woman in the abdomen, knowing she was pregnant, to punish her for texting without his permission, and another instance of shoving a woman into a toilet tank hard enough to break it, then striking her repeatedly with a wooden board, to punish her for reportedly planning to escape.
Robinson and his co-defendants aided each other by posting bond for each other following arrests, monitoring the women and reporting to each other any violations of the rules the defendants imposed on the women and transporting women together from New Orleans to Texas, Tennessee, Maryland and Washington, D.C., for prostitution. When two women tried to escape on one such trip, Robinson and a co-defendant found them, forced them into a car, and brought them back to New Orleans to continue prostituting.
Robinson and his co-defendants operated out of certain motels, including the Riviera, which generally did not report their activities to the police. The defendants rented multiple rooms at the Riviera where women would meet prostitution clients, and paid the Riviera above-market rates to reflect the high traffic through the rooms.
Robinson is the seventh defendant to plead guilty in connection with this case. On July 1, 2015, Patel pleaded guilty to benefitting financially from human trafficking. In March and April 2015, Phillips, Williams, Ellis and Brown pleaded guilty to conspiracy to engage in sex trafficking by force, fraud and coercion. Ellis and Brown also pleaded guilty to interstate transportation for prostitution. On June 25, 2014, Taylor pleaded guilty to sex trafficking conspiracy and interstate transportation for prostitution.
At sentencing, currently scheduled for May 4, 2016, Robinson faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison. The plea agreement provides for a recommended sentence of 24 and a half years in prison.
This case was investigated jointly by the FBI’s New Orleans Division and HIS’s New Orleans Field Office, with assistance from the FBI’s Memphis Division. This case is being prosecuted by Trial Attorney Christine M. Siscaretti and Special Litigation Counsel John Cotton Richmond of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Robinson Plea Agreement
Sumter County Convicted Felon Pleads Guilty to Federal Drug and Firearms OffensesRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III, announces that Thomas Franklin Dinkins, Jr. (25, Lake Panasoffkee) has pleaded guilty to possessing with the intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. He faces a maximum penalty of 20 years in federal prison for the drug offense and a consecutive sentence of at least 5 years, up to life, for the firearms offense. A sentencing date has not yet been set.
According to the plea agreement, on December 16, 2014, deputies from the Sumter County Sheriff’s Office (SCSO) stopped Dinkins for an expired tag. After a narcotics canine subsequently alerted on the car, deputies performed a search and found a locked, portable safe in the trunk. The key to the safe was in Dinkins’s jacket. Inside the safe, deputies found methamphetamine, two digital scales, plastic baggies, and a loaded .22 caliber handgun with an obliterated serial number. Deputies also located a backpack containing additional plastic bags and ammunition. A check of Dinkins’s criminal history revealed he was a multi-convicted felon who is prohibited from possessing firearms and ammunition under federal law. Dinkins later admitted that the firearm was “probably stolen” and that he had it to protect himself while distributing drugs.
On March 21, 2015, a discarded cellphone was discovered by a citizen and turned over to SCSO. After reviewing some of its contents, deputies determined that it had belonged to Dinkins. Multiple pictures and text messages found on the phone linked the recovered handgun, another shotgun, and numerous drug sales to Dinkins.
This case was investigated by the Sumter County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
St. Francis Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on January 25, 2016, by U.S. District Judge Roberto Lange.
Allan Left Hand Bull, age 23, was sentenced to 42 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Left Hand Bull was indicted for Assault with a Dangerous Weapon by a federal grand jury on October 14, 2015. He pled guilty on December 8, 2015.
On August 10, 2015, Left Hand Bull and his girlfriend, the victim, were drinking alcoholic beverages in St. Francis. Left Hand Bull was intoxicated and became upset with the victim. Left Hand Bull left the area where they were drinking, but soon thereafter saw the victim walking down a street in St. Francis and ran toward her with a knife. Left Hand Bull put his arm around the victim and choked her.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Left Hand Bull was immediately turned over to the custody of the U.S. Marshals Service.
Shreveport man sentenced to 27 months in prison for evasion of tax paymentsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced Tuesday to 27 months in prison for evading the payment of more than $250,000 in taxes for 10 years.
Joseph Lanza, 72, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of attempting to evade and defeat payment of tax. He was also sentenced to three years of supervised release. Lanza attempted to evade payment of income taxes in 1996 through 1999, 2001, 2002 and 2004 through 2007 by concealing his income from the IRS.
The IRS conducted the investigation. Assistant U.S. Attorney William J. Flanagan prosecuted the case.
Schenectady Man Indicted for Firearm OffensesRead the Press Release
ALBANY, NEW YORK – A federal grand jury today returned a two-count superseding indictment charging John Coffin, age 46, of Schenectady, New York, of being a felon and armed career criminal in possession of a firearm, as well as possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
The superseding indictment alleges that on March 23, 2015, Coffin possessed a Walther P22 semi-automatic pistol and .22 caliber ammunition.
The superseding indictment also alleges that on July 28, 2015, Coffin possessed a Hi-Point 995 9-millimeter rifle and 9-millimeter ammunition, and possessed that rifle and ammunition in connection with a drug trafficking crime.
The charges in the superseding indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Coffin has three prior convictions for violent felonies or drug trafficking crimes, making him an armed career criminal under federal law and subject to a minimum 15-year prison sentence if convicted. Additionally, any person convicted of possessing a firearm in furtherance of a drug trafficking crime is subject to a minimum 5-year prison sentence.
Coffin faces the maximum of life imprisonment and a $250,000 fine if convicted of either count. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
Trial is scheduled to begin on March 21, 2016 before United States District Judge Gary L. Sharpe. Coffin is detained until trial.
This case is being investigated by the Federal Bureau of Investigation and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Kofi Sansculotte.
Schenectady Man Indicted as an Armed Career CriminalRead the Press Release
ALBANY, NEW YORK – An indictment was unsealed this week charging Tameen Johnson, age 38, of Schenectady, New York, of being a felon and armed career criminal in possession of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Johnson, who was indicted on December 23, 2015, is alleged to have possessed a Hi-Point .40 caliber pistol and ammunition in April 2015. At the time, Johnson had three prior convictions for violent felonies or drug trafficking crimes, making him an armed career criminal under federal law and subject to a minimum 15-year prison sentence if convicted.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Johnson faces a maximum of life imprisonment and a $250,000 fine if convicted. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
Trial is scheduled to begin on April 25, 2016 before United States District Judge Gary L. Sharpe. Johnson is detained until trial.
This case is being investigated by the Federal Bureau of Investigation and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Sacramento Man Sentenced to 18 Months in Prison for Tax Refund SchemeRead the Press Release
SACRAMENTO, Calif. — United States District Judge Kimberly J. Mueller sentenced Manuel Ruiz, 47, of Sacramento, to 18 months in prison for making false claims for tax refunds on federal income tax returns, United States Attorney Benjamin B. Wagner announced. Ruiz pleaded guilty on May 26, 2015.
According to court documents, Ruiz engaged in a scheme to fraudulently prepare tax returns for clients of a tax preparation business he operated from his home. As part of the scheme, Ruiz reported false wages and listed false dependents on his clients’ returns to qualify them for the Earned Income Credit (EIC) when they would not otherwise have been eligible, and to maximize the tax benefits of the EIC beyond the legitimate amounts to which his clients were actually qualified.
In total, between tax years 2009 and 2011, Ruiz made false claims on more than 180 returns, including returns that he filed on his own behalf and on behalf of others, which resulted in over $650,000 in fraudulent refunds paid out by the IRS. During that period, Ruiz directed more than $460,000 in tax refunds from the false claims into bank accounts he controlled. After payments to clients, Ruiz retained at least $192,000 from the false claims.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Sherry D. Hartel Haus and André M. Espinosa prosecuted the case.
Rockwall Man Sentenced to 180 Months in Federal Prison on Child Pornography Conviction Involving Images of Prepubescent ChildrenRead the Press Release
DALLAS — Christopher Michael Burgess, 33, of Rockwall, Texas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to 180 months in federal prison, following his guilty plea to an indictment charging one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in May 2013, an individual (mother) looked on Burgess’s computer, found child pornography, and immediately took the computer to the Rockwall Police Department. Based on this information, law enforcement obtained a warrant to search the computer’s content.
The North Texas Regional Computer Forensic Lab examined the hard drive and located more than 500 images and 10 videos of child pornography, some videos involving infants. Burgess admits that some of the videos he collected depicted sadistic and/or violent content.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Rockwall Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Robert Durst Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERT DURST, age 72, pled guilty today to being a felon in possession of a firearm.
A judge in Los Angeles, California, signed an arrest warrant for DURST on March 11, 2015, for the 2000 murder of Susan Berman. Agents of the Federal Bureau of Investigation (“FBI”), New Orleans Field Office, located DURST in a local hotel on March 14, 2015, where he had checked in under the alias “Everette Ward.” A lawful search of DURST’s hotel room found him to be in possession of a loaded Smith and Wesson .38 caliber revolver, a realistic mask, and over $40,000 in cash.
DURST was indicted in April of this year in the Eastern District of Louisiana. The indictment alleged that DURST possessed the firearm after having previously been convicted in 2004 of federal felony firearms offenses in the Eastern District of Pennsylvania.
DURST faces a maximum of ten years imprisonment, a fine of $250,000, not more than three years of supervised release, and $100 special assessment fee. U.S. District Judge Kurt D. Engelhard set sentencing for April 27, 2016.
U.S. Attorney Polite praised the work of the Orleans Parish District Attorney’s Office, the FBI, the Los Angeles Police Department, and the Los Angeles County District Attorney’s Office in investigating this matter. Assistant United States Attorneys Michael McMahon and Myles Ranier are in charge of the prosecution.
Richmond Man Sentenced to 27 Years in Prison for Armed RobberyRead the Press Release
RICHMOND, Va. – Marcus Deante Bennett, 32, of Richmond, was sentenced today to 324 months in prison for robbery and brandishing a firearm.
Bennett pleaded guilty on Aug. 11, 2014. According to court documents, on Jan. 9, 2015, Bennett and another individual robbed a McDonald’s restaurant in Henrico. Bennett, who entered the restaurant armed with a black revolver and wearing a mask, approached the restaurant manager and brandished the firearm, ordering the manager to hand over the money in the safe. Bennett then went to the drive through window cashier and forced the cashier to hand over an additional sum of money. In addition to this crime, Bennett admitted to committing three additional armed robberies. Bennett was also given additional prison time for having violated the terms of his federal supervised release related to a series of armed robberies he participated in 12 years ago.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15cr134.
Pink Hill Men Sentenced for Methamphetamine Possession & Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday Senior United States District Judge W. Earl Britt, sentenced RALPH EDWARD STROUD, 50, and LORNE HOWARD, 47, both of Pink Hill, North Carolina, to 132 months’ imprisonment followed by 5 years’ supervised release and 70 months’ imprisonment followed by 3 years of supervised release respectively.
June 1, 2015, HOWARD pled guilty to possession with intent to distribute a quantity of a mixture or substance containing a detectable amount of methamphetamine and aiding and abetting. On June 29, 2015, STROUD pled guilty to the same charge and possession of a firearm in furtherance of a drug trafficking offense.
According to the investigation, on August 15, 2013, law enforcement executed a search warrant at STROUD'S home and property. Law enforcement detained STROUD and his girlfriend and discovered an active methamphetamine lab. Within the lab, officers recovered at total 5 grams of pseudoephedrine,
1,017.79 grams of liquid containing methamphetamine, .82 grams of methamphetamine, empty pseudoephedrine blister packs, homemade ammonia condensers, propane tanks, sulfuric acid, lye, pill grinders, tubing, Coleman camp fuel, fertilizer, stripped lithium batteries, and home HcL generators. A search of the residence recovered small amounts of unmeasured methamphetamine, drug paraphernalia, five firearms, and ammunition. Subsequent to his arrest, STROUD provided an unprotected statement acknowledging ownership of the firearms in his residence and the production of methamphetamine on his property.
On August 19, 2013, HOWARD was arrested and provided an unprotected statement acknowledging his use of methamphetamine and that he was present with STROUD on August 15, 2013, while methamphetamine was cooked. HOWARD admitted smoking methamphetamine with STROUD approximately 40 times and purchased it from STROUD approximately 20 to 30 times.
The criminal investigation of this case was conducted by the Lenoir County Sheriff’s Office, Duplin County Sheriff’s Office, the North Carolina State Bureau of Investigation and the Drug Enforcement Administration. Assistant United States Attorney Jennifer Wells handled the prosecution on behalf of the Eastern District of North Carolina.
Owner of Shuttered Louisville Microwave Popcorn Company Ordered to Pay Restitution for Bank FraudRead the Press Release
LOUISVILLE, Ky. – The owner of the shuttered Preston Farms Popcorn, LLC (Preston) was ordered to pay full restitution and serve a three year period of supervised release, by Chief Judge Joseph H. McKinley Jr., in U.S. District Court this week, for diverting buyers’ payments toward the operation of his business rather than towards the payment of his loan, announced U.S. Attorney John E. Kuhn, Jr.
Kermit W. Highfield, 43, of Louisville, pleaded guilty to a single count of bank fraud, stemming from a business loan from UPS Business Capital Credit (UPS) that was insured by the United States Export-Import Bank (Ex-Im Bank). This loan was an advance on payments due from Preston’s international buyers. Preston defaulted on the UPS loan, and the Ex-Im Bank reimbursed UPS, resulting in a loss of $110,678.74 to the Ex-Im Bank. Highfield has repaid $15,000 of the total loss.
According to the plea agreement, between March 18, 2013 and May 30, 2013, Highfield executed a scheme to defraud UPS. Under the terms of the loan, Preston was required to instruct buyers of the product to transmit payments into a specific BB&T Bank account, and those funds were to be used to pay off the UPS loan. However, Highfield admitted to instructing Preston’s buyers to deposit payments into other bank accounts controlled by Highfield and Preston. The funds were diverted from UPS and used by Highfield to pay for Preston operating expenses.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by United States Export-Import Bank OIG in Washington, D.C.
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The Ex-Im Bank is the official export credit agency of the United States, and assists in financing the export of U.S. goods and services to international markets. Complaints and reports of waste, fraud, and abuse related to Ex-Im Bank programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at [email protected].
Oswego Man Arrested for Distribution, Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – James M. Moody, Jr., 41, of Oswego, New York, was arrested yesterday on charges of distribution, receipt and possession of child pornography following a joint investigation by Special Agents of the Department of Homeland Security Investigations ("HSI"), the New York State Police-Computer Crime Unit and the Oswego Police Department, announced United States Attorney Richard S. Hartunian.
The defendant appeared today in federal court in Syracuse, New York, before United States Magistrate Judge David E. Peebles. He is being held in custody pending a detention hearing set for February 8, 2016.
If convicted of distributing, receiving and possessing child pornography, Moody faces a mandatory minimum sentence of five (5) years imprisonment, a maximum term of 20 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Norfolk Man Sentenced to 13 Years for 2007 Armed RobberyRead the Press Release
NORFOLK, Va. – Anthony Charles Hunter, 57, of Norfolk, was sentenced today to a total of 156 months in prison for interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence. Hunter was also ordered to pay $10,396.01 in restitution.
Hunter pleaded guilty on Oct. 28, 2015. According to court documents, Hunter committed approximately 12 commercial armed robberies in Chesapeake, Norfolk, Suffolk and Virginia Beach between Sept. 29, 2007 and Oct. 18, 2007.
On Oct. 15, 2007, Hunter entered the Acredale Center Citgo in Virginia Beach. Hunter paid a clerk employed at the business $3 for gasoline and left the store. Moments later, Hunter re-entered the store and approached the clerk at the front counter. Hunter brandished a firearm at the clerk and ordered her to be quiet. The clerk, who was in the process of counting the store’s proceeds from the previous weekend with the store safe open, activated a silent alarm. Hunter then walked behind the counter. Fearing for her safety, the clerk struck Hunter in the head, whereupon Hunter struck the clerk upon her head with the firearm. Hunter forced the clerk to the floor behind the counter and stood over her. Hunter instructed the clerk to be quiet and struck her again. Hunter collected approximately $8,000 in cash belonging to the business and left the store.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
This case was investigated by the FBI’s Norfolk Field Office with the assistance of the Norfolk, Virginia Beach, Suffolk and Chesapeake Police Departments. Assistant U.S. Attorneys Darryl J. Mitchell and Andrew Bosse prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:12-cr-124.
Nine Arrested for Conspiracy to Traffic in Contraband CigarettesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that the following men were indicted for conspiracy to traffic in contraband cigarettes, trafficking in contraband cigarettes, and aiding and abetting, and those indicated below in the Eastern District of North Carolina had their initial appearance in federal court today. The others are scheduled for their initial appearance in federal court in New York later today.
MOKHTAR ABDUL KAREM KHASHAFA, 34, of Durham (EDNC)
YOUSEF ABDULLA MOHAMED KAID, 35, of Durham (EDNC)
IBRAHIM ABDULLA KAIED, 39, of Durham (EDNC)
TAHA AL MONTASER, 31, of Greenville, North Carolina (EDNC)
AHMED AL MONTASER, 30, of Staten Island, New York
MOHAMMED NASSER ALI, a/k/a “Mo”, 50, of Durham (EDNC)
JABBAR MAZAB, a/k/a “Obaydah”, 38, of Brooklyn, New York
BASSAM SAAD, a/k/a “Sam”, 31, of Syracuse, New York
MUHAMMED LABBID AL HADDAWI, 27, of Durham (EDNC)
The Grand Jury indicted the above listed individuals on January 26, 2016.
According to the investigation, the object of the conspiracy was to profit from the illegal sale of large quantities of cigarettes by purchasing them in North Carolina and then selling them in the State of New York and New York City without paying the much higher taxes that apply there. During the relevant time period, the North Carolina state excise tax was $0.45 per pack of 20 cigarettes, or $4.50 per carton of ten packs. The New York State excise tax was $4.35 per pack ($43.50 per carton), and the New York City excise tax was an additional $1.50 per pack ($15.00 per carton). The total combined excise tax for New York State and New York City was $5.85 per pack, or $58.50 per carton. By evading the New York State and New York City excise taxes, Defendants and their co-conspirators were able to sell the contraband cigarettes at a lower cost, and at a higher profit margin, than competing cigarette sellers in New York who complied with federal and state law.
The Indictment alleges that some of the defendants and co-conspirators owned or operated retail stores in North Carolina, which enabled them to make wholesale purchases of large quantities of cigarettes from wholesale dealers, far exceeding the quantities of cigarettes actually being sold at the stores to retail customers in North Carolina. Defendants and co-conspirators in New York would arrange for the purchase of contraband cigarettes from defendants and co-conspirators in North Carolina. The contraband cigarettes would be transported by vehicle from North Carolina to various storage locations in New York. Various defendants and co-conspirators would apply counterfeit tax stamps to the cigarette packaging to create the false appearance that applicable New York State and New York City excise taxes had been paid.
The Indictment alleges that, from on or about June 15, 2015 to on or about January 16, 2016, the defendants and co-conspirators transported and sold approximately 22,205 cartons of contraband cigarettes, resulting in a total tax loss to the State and City of New York of approximately $1,224,947.50.
The charges are punishable by up to 5 years imprisonment, a fine of up to $250,00, and a term of supervised release of up to 3 years.
The charges and allegations contained in the indictment are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The case is being investigated by FBI Raleigh with assistance from FBI Newburgh NY, FBI New York, FBI Syracuse, North Carolina State Bureau of Investigation, North Carolina Department of Public Safety, Raleigh Police Department, Durham Police Department, Cary Police Department, Greenville Police Department, North Carolina Alcohol Law Enforcement, North Carolina Probation and Parole, North Carolina State Highway Patrol, New York Department of Taxation and Finance, Internal Revenue Service, United States Marshals Service, and the Virginia National Guard Counterdrug Taskforce. Assistant United States Attorney Eric Goulian is representing the government in this case.
Niagara Falls Man Charged with Being A Felon in Possession of A FirearmRead 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 Josue Ortiz, 34, of Niagara Falls, NY, was arrested and charged by criminal complaint with being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the complaint, on December 23, 2015, the Niagara Falls Police Department was dispatched to a residence on Niagara Avenue. A resident living in the lower apartment told officers that she believed a resident living upstairs had a gun. It was further alleged in court that the defendant threatened to kill a neighbor.
Officers went upstairs and made contact with the defendant through a closed door. According to the complaint, officers asked Ortiz if he had a gun. The officers talked Ortiz into putting down the gun (a 12 gauge shotgun) and putting his hands up. Officers then placed the defendant handcuffs and secured the gun.
The complaint further states that Ortiz purchased the gun on December 22, 106 at a local sporting goods store.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending the continuation of a detention hearing on February 5, 2016 at 10:00 a.m.
The indictment is the culmination of an investigation by the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
New York Man Charged with Selling Luxury Counterfeit Goods at the Marshfield FairRead the Press Release
BOSTON – A New York City man was charged today in U.S. District Court in Boston for selling counterfeit goods bearing luxury trademarks at the Marshfield Fair.
Xian Chen Chen, 39, was charged in an Information with introducing imported merchandise by means of false statements and practices. The Information alleges that in summer 2013, Chen Chen sold goods fraudulently bearing the trademarks of Armani, Beats by Dr. Dre, Burberry, Bvlgari, Chanel, Christian Dior, Coach, Dolce Gabbana, Dooney & Bourke, Ed Hardy, Fendi, Gucci, Hello Kitty, Jimmy Choo, Juicy Couture, Louis Vuitton, Marc Jacobs, Michael Kors, Oakley, Prada, Ray Ban, The North Face, Tiffany & Co., Tory Burch, and Versace.
The charge provides for a sentence of no greater than two years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
The details in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Businessman Sentenced on Wire Fraud and Tax ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JASON C. DOYLE, age 38, of New Orleans, was sentenced today after previously pleading guilty to wire fraud and failing to pay taxes.
U.S. District Judge Sarah S. Vance sentenced DOYLE to 30 months imprisonment, followed by two years of supervised release. As part of the sentence, the Court also ordered DOYLE to pay $993,960.34 in restitution to the victims
According to documents, DOYLE operated, controlled, marketed and sold several restaurant franchises to willing investors. From 2010 through 2014, DOYLE defrauded three investors who paid him monies for a restaurant franchise. DOYLE defrauded the investors of monies totaling in excess of $888,000. These investor monies were paid to DOYLE with the understanding that DOYLE would furnish them with either a restaurant or the equipment and essentials necessary to open a restaurant establishment. Instead of using the investor funds to complete the promised restaurant project, DOYLE fraudulently diverted the monies for his own personal use.
In 2010, DOYLE also deducted federal taxes from his employees’ wages. However, he failed to pay over the collected employee taxes to the Department of Treasury, in violation of federal tax law.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division in investigating this matter. Assistant United States Attorneys Richard R. Pickens, II and Andre J. Lagarde were in charge of the prosecution.
New Haven Man Pleads Guilty to Federal Assault in Aid of Racketeering, Crack Distribution OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT HARRIS, also known as “Skully Mack,” 19, of New Haven, pleaded guilty today in Bridgeport federal court to one count of assault in aid of racketeering and one count of possession with the intent to distribute crack cocaine.
On September 30, 2015, a federal grand jury in New Haven returned a 34-count indictment against HARRIS and five co-defendants charging various racketeering, violent crimes in aid of racketeering, firearms, money laundering and narcotics distribution offenses. The indictment described a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies.
In pleading guilty, HARRIS admitted that he was a member of the RSGB in 2014. As part of his gang membership, on December 23, 2014, he and another RSGB member, Christopher Graham, a.k.a. “Ugg,” committed a violent assault of an individual over a .40 caliber pistol that the victim allegedly stole from him. Graham had called HARRIS to the scene after realizing the victim had stolen the gun.
HARRIS further admitted that he distributed approximately 10 grams of crack cocaine in June 2014.
HARRIS has been detained since his arrest on October 1, 2015. He is scheduled to be sentenced by Chief U.S. District Judge Janet C. Hall on April 29, 2016, in New Haven, and faces a maximum penalty of 20 years of imprisonment and a $250,000 fine on the assault count, and 20 years of imprisonment and a $1 million fine on the drug count.
Graham has pleaded guilty to the same charges and awaits sentencing.
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert M. Spector and Peter D. Markle. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Montgomery County Oxycodone Distributor Sentenced to 9 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Richard Michael Mathisen, age 29, of Rockville, Maryland today to nine years in prison followed by three years of supervised release for conspiring to distribute oxycodone and ordered him to pay a $60,000 fine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to court documents and evidence presented at the sentencing hearing, from at least 2013 through at least September 25, 2014, Mathisen arranged for co-conspirators to obtain magnetic resonance imaging scans (MRIs), and take them to another co-conspirator to manipulate the MRIs to make them appear as though the co-conspirators required prescriptions for pain medication. After the co-conspirators used the altered MRIs to obtain prescriptions for oxycodone, they either gave or sold oxycodone to Mathisen who used some of the oxycodone for himself and distributed some of the oxycodone to others.
During the two day sentencing hearing, the court determined that Mathisen was a manager or supervisor of the conspiracy, which included between 60,000 and 105,000 grams of oxycodone. The court also determined that Mathisen had possessed a firearm during drug trafficking.
The government also introduced evidence relating to the death of a young woman on July 12, 2014 at Mathisen’s residence as a result of oxycodone and alcohol intoxication after ingesting oxycodone at Mathisen’s residence. The court found that the woman died as a result of the drug conspiracy.
Philip Rice D’Avanzo, age 29, of Bethesda, Maryland, pleaded guilty to his participation in the drug conspiracy and is scheduled to be sentenced on March 14, 2016 at 2:00 p.m.
United States Attorney Rod J. Rosenstein praised ATF and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mara Zusman Greenberg, who prosecuted the case.
Monroe Man Sentenced to 15 Months for Social Security FraudRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Gary D. Hallett, 47, of Monroe, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 15 months in prison and three years of supervised release for fraudulently obtaining social security disability benefits. Hallett was also ordered to pay $67,753 in restitution. He pleaded guilty to the charge on May 12, 2015.
Court records show that the Social Security Administration (“SSA”) paid disability benefits to Hallett from 2004 until 2014. In 2012, the Bangor Daily News reported that the defendant had been charged with an elver fishing violation. The article indicated that Hallett’s attorney in the state matter had asked the Maine court to delay the trial of the violation because the defendant had the opportunity to make $200,000 in the upcoming elver season. That story led to an investigation by the SSA Office of Inspector General that revealed that Hallett had been working and earning income since 1999 which he had not reported to the SSA as required. As a result, the SSA paid $67,753 in benefits to Hallett to which he was not entitled.
In imposing the sentence, Judge Woodcock said: “I consider your conduct to be deplorable …. The Social Security program is a reflection of the good faith of the American people…. You have been cheating your fellow citizens.”
The investigation was conducted by the SSA Office of Inspector General.
Milwaukee-Area Attorney Sentenced to Four Years in Prison for Defrauding Financial Institutions and Clients, Money Laundering, and Filing a False Tax ReturnRead the Press Release
Gregory J. Haanstad, Acting United States Attorney for the Eastern District of Wisconsin, announced that on February 2, 2016, Sarah E.K. Laux a/k/a “Sarah Kitzke” (age 35) of Mequon, Wisconsin, was sentenced before Judge Charles N. Clevert, Jr. on charges of bank fraud, wire fraud, mail fraud, money laundering, and tax fraud. Laux was sentenced to 48 months in federal prison and was ordered to serve five years on supervised release.
The Court ordered Laux to pay a forfeiture of $2,072,276.48 and forfeited Laux’s interests in other properties, including her interests in her Mequon residence, another parcel of real property in Mequon, a Las Vegas timeshare property, $5,000 in currency, seven jewelry items, and two insurance businesses.
At sentencing, the Court also stated that it will soon enter an order requiring Laux to pay full restitution to the victims of her crimes of conviction, and will order Laux to repay the Internal Revenue Service all back taxes, penalties, and interest arising from her filing of a false 2010 personal income tax return in which she failed to report $200,000 in income.
Sarah E.K. Laux was indicted in December 2014 with defrauding four different clients – an entity and three individuals – to whom Laux had provided trust and estates advice and to whose funds Laux gained access through her solo-practice law firm. Laux defrauded those clients out of more than $2.2 million in funds that Laux then converted to her own use.
As set forth in the indictment, between 2010 and 2012, Laux engaged in a scheme to defraud his client by gaining access to their money and then, through misrepresentations and false pretenses, converting more than $1.6 million of their money to her own use. Laux used that money to buy residential real property and an insurance business and to pay Laux’s personal bills and bills of Laux’s law firm, Laux Law, LLC.
As also set forth in the indictment, Laux also defrauded Associated Bank, N.A., and its subsidiary Associated Trust, N.A., which served as trustee of a trust of which the previously mentioned client was a beneficiary, by falsely representing to those financial institutions that Carleen Guenther needed a distribution from the trust to buy a condominium in a retirement home; causing those financial institutions to distribute the $450,000 for that purpose; and then converting the $450,000 to her own use. Laux then prepared falsified documents and presented those falsified documents, and made false statements, to Associated Trust and Associated Bank to conceal that Laux had fraudulently converted the $450,000 in distributions from the trust to Laux’s own use.
In addition, during 2013, Laux defrauded two other estate-planning clients, a husband and wife, by embezzling approximately $584,000 of their investment monies after having promised to use their money to buy annuities.
According to the indictment, using the proceeds of these various fraud schemes, Laux engaged in money laundering transactions. She also filed a materially false and fraudulent personal income tax return for tax year 2010. Laux falsely stated that her and her husband’s income for 2010 was $104,249, when in fact the amount was in excess of that amount.
On October 6, 2015, Laux pleaded guilty to five counts of the 33-count indictment. Those counts charged her with bank fraud, wire fraud, mail fraud, money laundering, and filing a false tax return.
The case was investigated by Special Agents of the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Scott J. Campbell prosecuted the case.
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Michigan Art Dealer Arrested and Charged with Fraud for Selling Dozens of Forged Artworks over Five YearsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of ERIC IAN HORNAK SPOUTZ, a/k/a “Robert Chad Smith,” a/k/a “John Goodman,” a/k/a “James Sinclair,” on charges of wire fraud in connection with the sale of dozens of forged artworks by renowned American artists, such as Willem De Kooning, Franz Kline, and Joan Mitchell. SPOUTZ was arrested in Los Angeles today and will be presented before U.S. Magistrate Judge Gail Standish of the Central District of California this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Eric Spoutz used false and fictitious provenance to peddle his forged artwork to unsuspecting buyers, claiming they were masterpieces from Willem De Kooning, Franz Kline and Joan Mitchell. Our Office has a long history of investigating – and prosecuting – those who try to contaminate the art world with fraudulent artwork. Thanks to the outstanding investigative work by the FBI, Spoutz’s alleged forgery mill is no longer in business.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As alleged, Eric Spoutz created an entire world of fiction to make a profit—from the fraudulent paintings he was selling, to the phony letters and receipts for provenance. The only real thing in this situation seems to be the financial losses the victims have incurred for purchasing what they thought were true works of art, whether for investment purposes or personal enjoyment.”
According to the allegations contained in the Complaint[1] and other documents in the public record, and statements made in court:
Between 2010 and March 2015, SPOUTZ repeatedly sold works of art he falsely claimed were by well-known artists, using forged documents to convince buyers of the authenticity of those works. During the course of the scheme, SPOUTZ sold dozens of fraudulent works of art – which he attributed to, among others, Willem De Kooning, Franz Kline, and Joan Mitchell – through various channels, including auction houses and on EBay.
SPOUTZ was publicly accused of selling forged works of art as early as 2005, after which he began selling them under various aliases, particularly “Robert Chad Smith” and “John Goodman.” To deceive his victims into believing the works of art were authentic, SPOUTZ created and provided forged receipts, bills of sale, and letters from deceased attorneys and other individuals. These documents falsely indicated that SPOUTZ, in the guise of one of his false identities, had inherited or purchased dozens of works by these artists.
Despite his efforts to create false histories for the artwork, investigators identified multiple inconsistencies and errors in SPOUTZ’s forged provenance documents. Many of the purported transactions took place before SPOUTZ was born, and the forged letters included non-existent addresses both for the purported sender and various parties referenced as sources of the artworks. SPOUTZ also consistently used a single distinctive typesetting when forging documents purportedly authored by entirely different art galleries in different decades regarding unrelated transactions. In one instance, investigators located the original letter used by SPOUTZ as a model for one of his forgeries in a collection at a private university, which holds a collection of letters from the individual whose identity SPOUTZ used to create a false story of inheritance.
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SPOUTZ, 32, of Mount Clemens, Michigan, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Unknown victims may have purchased artwork from SPOUTZ unwittingly under provenance documents using historical names such as “Betty Parsons Gallery,” “Larry Larkin,” “Henry Hecht,” and “Julius or Jay Wolf.” If you believe you are a victim and purchased a fraudulent painting, please call the New York Art Crime Team at 212-384-1000, attention Special Agent Chris McKeogh or Special Agent Meridith Savona.
The case is being prosecuted by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant United States Attorney Andrew C. Adams is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Mexican National Pleads Guilty to Illegal Use of Social Security NumberRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SERGIO GALVEZ-VELAZQUEZ, age 40, a citizen of Mexico, pled guilty today to illegal use of a Social Security Number.
According to court documents, GALVEZ-VELAZQUEZ illegally obtained a Louisiana Identification Card from the Louisiana DMV office in Houma by using a Social Security number that did not belong to him.
GALVEZ-VELAZQUEZ faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for May 4, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
McDowell County Assistant Prosecutor pleads guilty to Federal tax crimeRead the Press Release
BECKLEY, W.Va. – A McDowell County Assistant Prosecuting Attorney pleaded guilty today to a federal tax crime, announced Acting United States Attorney Carol Casto. Jason Ray Grubb, 38, of Beaver, entered his guilty plea in federal court to failing to pay employment taxes.
Grubb admitted that while working as a lawyer in private practice, he had an employee from whom he withheld taxes. Instead of withholding and paying those taxes as required under federal law, he kept the money and did not pay the Internal Revenue Service. Grubb also admitted that he failed to pay personal income taxes for a number of years, and that he falsified vouchers sent to West Virginia Public Defender Services, including 51 days on which he billed for over 24 hours of work. Grubb has agreed to pay restitution for his failure to pay over $247,000 in federal taxes, overbilling Public Defender Services more than $126,000, and not paying a financing company, Daniels Capital Corporation, for more than $29,000 in advances.
He faces up to five years in federal prison and a $10,000 fine when he is sentenced on May 12, 2016.
This case was investigated by the Internal Revenue Service and the West Virginia Commission on Special Investigations. Assistant United States Attorneys Meredith George Thomas and Eric Bacaj handled the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
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Mask-Wearing Robber Sentenced to 32 Years in PrisonRead the Press Release
PHILADELPHIA – Blair Thomas, Jr., 30, of Lansdowne, PA, was sentenced today to 384 months in prison for robbing a bank, attempting to rob postal employees at two post offices, and with being a convicted felon in possession of a firearm. A federal jury, on April 15, 2015, returned guilty verdicts in the case. In addition to the prison term, U.S. District Court Judge Gerald A. McHugh ordered three years of supervised release, restitution in the amount of $1,891, and a $600 special assessment.
In each robbery and robbery attempt, Thomas wore a special effects, movie quality mask as a disguise, and in each robbery attempt, he armed himself with a .45-caliber Ruger semi-automatic handgun. On January 22, 2014, Thomas entered United States Post offices in Yeadon, PA, and in Darby, PA, wearing the face mask and armed with the handgun, in one instance brandishing the gun, and demanded ten $1,000 money orders from postal clerks. The following day, January 23, 2014, Thomas entered a Wells Fargo Bank in Springfield, PA wearing the special effects mask and displayed a note announcing a robbery. Tellers at the bank gave Thomas approximately $1,890. Surveillance video of the robberies was disseminated to local news outlets. Law enforcement received a tip which led Postal Inspectors to the mask manufacturer who in turn led them to Blair Thomas.
On January 29, 2014, a search warrant was executed on Thomas’ home, and inspectors recovered the special effects face mask and the firearm used in the robberies.
The case was investigated by the United States Postal Inspection Service and the Springfield, Yeadon, and Darby Police Departments. It was prosecuted by Assistant United States Attorney Jessica Natali.
Maryland Man Sentenced to 10 Years for Transporting Child Pornography into United StatesRead the Press Release
A Maryland man was sentenced to 10 years in prison today for transporting child pornography into the United States, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Robert L. Capers of the Eastern District of New York announced.
Victor Otubu, 50, previously pleaded guilty to transporting child pornography. U.S. District Judge Dora L. Irizarry of the Eastern District of New York also ordered Otubu to serve 10 years of supervised release following his prison sentence.
In connection with his plea, Otubu admitted that when he arrived at John F. Kennedy International Airport on Sept. 6, 2014, from Nigeria, his suitcase contained an external hard drive and several DVDs containing hundreds of child exploitation files. Otubu was arrested on Sept. 10, 2014, in Houston as he attempted to flee prosecution by boarding a flight back to Lagos, Nigeria.
HSI’s Cyber Crimes Center Child Exploitation Investigations Unit and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) High Tech Investigations Unit investigated the case. CEOS Trial Attorney Amy Larson and Assistant U.S. Attorney Ameet Kabrawala of the Eastern District of New York prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Manhattan U.S. Attorney Announces Conviction of Jose Luis Gracesqui on Murder-For-Hire ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James Hunt, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), William J. Bratton, the Police Commissioner of the City of New York (“NYPD”), and Joseph D’Amico, Superintendent of the New York State Police (“NYSP”), announced that JOSE LUIS GRACESQUI was found guilty Tuesday of conspiracy to commit murder-for-hire, murder-for-hire, and murder in connection with a narcotics conspiracy for his role in the murder of a 28-year old Manhattan man in 1999. GRACESQUI was convicted after a three-week jury trial before U.S. District Judge P. Kevin Castel.
Manhattan U.S. Attorney Preet Bharara said: “Thanks to the efforts of the dedicated agents, detectives, and prosecutors who relentlessly pursued justice, this cold-case murder of an innocent 28-year old man has now been solved and prosecuted. We hope seeing justice done brings some measure of peace to Richard Diaz’s family.”
DEA Special-Agent-in-Charge James Hunt said: “This conviction exemplifies the significant role violence plays in the infrastructure of drug trafficking. I commend the New York Drug Enforcement Task Force and the U.S. Attorney's Office Southern District of New York for their diligent work throughout this three week jury trial.”
NYPD Commissioner William J. Bratton said: “It is our hope that this conviction brings some level of comfort to the victim’s family. I commend the efforts of the NYPD investigators and our law enforcement partners who worked to bring this individual to justice.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
JOSE LUIS GRACESQUI, a/k/a “Luis Perez,” a/k/a “Ramon Ortiz,” a/k/a “Onel Colon,” a/k/a “Muffler,” was a member of a crew who committed violent robberies, kidnappings, and beatings of drug dealers. In the summer of 1999, GRACESQUI was hired by a major drug dealer in upper Manhattan to kill one of the drug dealer’s customers (“Intended Victim-1”) after Intended Victim-1 and a number of his associates stole heroin from the drug dealer.
On the night of July 19, 1999, GRACESQUI and a member of his crew saw Intended Victim-1 in a car with another person and began following Intended Victim-1 through Manhattan. When the car with Intended Vicitm-1 stopped at a red light, GRACESQUI got out of the car in which he had been, approached the car with Intended Victim-1, and began shooting. The shots hit both Intended Victim-1 and the driver of the car, Richard Diaz. Richard Diaz was able to drive a short distance to the Henry Hudson Parkway, until Diaz lost consciousness and died. Intended Victim-1 sustained injuries but did not die.
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JOSE LUIS GRACESQUI, 45, of Queens, faces a mandatory minimum sentence of life in prison. The potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing is scheduled for June 10, 2016, before Judge Castel.
Mr. Bharara praised the investigative work of the DEA New York Drug Enforcement Task Force, which comprises agents and officers of the DEA, NYPD, and the New York State Police.
This case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Laurie A. Korenbaum, Brendan F. Quigley, and Rebekah Donaleski are in charge of the prosecution.