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18 March 2016
Petaluma Slaughterhouse Employee Sentenced for Scheme to Distribute Adulterated MeatRead the Press Release
SAN FRANCISCO – Felix Sandoval Cabrera, the kill floor foreperson at the now-defunct Rancho Feeding Corporation in Petaluma, was sentenced today for his role in a scheme to distribute adulterated, misbranded, and uninspected meat, announced Acting United States Attorney Brian J. Stretch and Special Agent in Charge of the Western Region of the U.S. Department of Agriculture (USDA), Office of Inspector General, Investigations, Lori Chan.
Cabrera, 56, of Santa Rosa, was sentenced by U.S. Senior District Judge Charles R. Breyer to three months’ imprisonment, to be followed by two years of supervised release, conditions of which include three months of home confinement, and a $1,000 fine.
Cabrera was charged along with Rancho Feeding’s owner Jesse Amaral, 78, of Petaluma and Eugene Corda, 66, of Petaluma, with distribution of adulterated, misbranded, and uninspected meat, in violation of the Federal Meat Inspection Act (FMIA), 21 U.S.C. §§ 610(c) & 676(a), conspiracy to commit the same, in violation of 18 U.S.C. § 371, and conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349. For his part in the scheme, a fourth defendant, Robert Singleton, 79, owner of Petaluma-based Rancho Veal Corporation, was charged in a separate information on August 18, 2014, with one count of distributing adulterated, misbranded, and uninspected meat in violation of the FMIA.
On November 26, 2014, Cabrera pleaded guilty to one count of conspiracy to distribute adulterated, misbranded and uninspected meat. As part of his plea agreement, Cabrera admitted he directed other kill floor employees to carve “USDA Condemned” stamps out of carcasses of condemned cattle and to process the carcasses for transport, sale, and distribution. Cabrera further acknowledged placing heads from apparently healthy cows next to the carcasses of cows showing signs of “cancer eye” in an effort to circumvent government meat inspection procedures, and then processing the uninspected cattle for transport, sale, and distribution.
Amaral, Corda, and Singleton have each pleaded guilty and acknowledged their separate roles in the scheme. Each has been sentenced by Judge Breyer. Amaral pleaded guilty to FMIA conspiracy on February 18, 2015. Judge Breyer sentenced him to 12 months and one day of imprisonment for leading the conspiracy. Corda, Rancho’s yardman, pleaded guilty to one of the underlying distribution counts, admitting that he knowingly switched uninspected cancer eye cattle with inspected, healthy cattle as part of a scheme to circumvent USDA inspection procedures. Judge Breyer sentenced Corda to three years’ probation, including six months of home detention. Singleton pleaded guilty to the information, admitting that he participated in a scheme by which Rancho employees were instructed to carve “USDA Condemned” stamps out of cattle carcasses, to conceal from USDA inspection cows showing signs of cancer eye by switching the diseased heads with healthy heads, and to process the adulterated and uninspected carcasses for human consumption. Judge Breyer sentenced Singleton to three months’ imprisonment, to be followed by one year of supervised release, conditions of which include three months of home confinement and fifty hours of community service.
Cabrera’s sentence was a result of the United States’ motion for downward departure based on his cooperation, pursuant to U.S.S.G. § 5K1.1. Judge Breyer set a self-surrender deadline of September 2, 2016.
Assistant U.S. Attorney Hartley M.K. West prosecuted this case with the assistance of Rosario Calderon and Bridget Kilkenny. The prosecution is the result of an investigation by agents of the USDA’s Office of Inspector General, Investigations and USDA’s Food Safety Inspection Service, Office of Investigation, Enforcement and Audit, Compliance and Investigations.
Pearl River Man Indicted for Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEVEN LONG, age 30, of Pearl River, was indicted today for illegally possessing five firearms in his home on March 10, 2016, after having previously been convicted of three narcotics felonies in St. Tammany Parish.
LONG faces a maximum sentence of ten years in prison, a $250,000 fine, and three years of supervised release if convicted.
The Indictment is a product of an ongoing investigation by the United States Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the St. Tammany Parish Sheriff’s Office.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the ATF, with assistance from the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Myles Ranier is in charge of the prosecution.
Participant in Advance Fee Fraud Scheme Sentenced to 5 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that ALEXANDER D. HURT, also known as “Alex Hurt” and “Alex Dante,” 45, of Scottsdale, Ariz., formerly of Massachusetts, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by three years of supervised release, for his role in an advance fee fraud scheme that victimized more than 40 individuals who lost a total of more than $4.5 million. HURT also was ordered to perform 250 hours of community service while on supervised release.
On December 22, 2014, a grand jury returned an 11-count indictment charging HURT and David C. Jackson, also known as “C. David Manns,” “Charles Jackson” and “Andrew D. Smithson,” with one count of conspiracy to commit wire fraud and multiple counts of wire fraud. The indictment also charged Hurt with one count of making a false statement to federal law enforcement. On September 29, 2015, a jury returned a verdict of guilty on all counts.
According to the evidence presented during the trial, in approximately September 2009, Jackson, using the alias “C. David Manns,” established Jalin Realty Capital Advisors, LLC, using a business address in Dayton, Ohio. In 2011, Jackson changed the name of his business to American Capital Holdings, LLC, using business addresses in Pittsburgh, Pennsylvania. Soon after changing the business name, Jackson began introducing himself to victim clients as “Charles Jackson” and then also used the name “Andrew Smithson” to prevent victims from learning his true identity and the true nature of his background and his scheme.
HURT held himself out as Vice President of Brightway Financial Group, LLC, a company that used a business addresses in Grapevine, Texas. As established during the trial, HURT used his background as a pastor with a Brockton, Massachusetts church to gain the confidence of a number of victims who lost money in the scheme. When meeting with victims, HURT represented himself to be the decision maker with respect to whether or not the individuals would get loans for their business. HURT’s representations, like the loans themselves were entirely fraudulent.
Working together Jackson and others, HURT defrauded individuals, including Connecticut residents, out of millions of dollars. In anticipation of receiving large business loans that HURT represented he could deliver, the victims wired funds to Jackson, HURT and certain escrow accounts that they had set up. The upfront fees were alternately described as “application fees,” “collateral fees” or “commitment fees.” The victims were promised that the fees were totally refundable, and the victims were told by HURT and others that they would be provided a refund of the upfront fees if their loan transactions were not completed.
In order to convince victim-borrowers that the loans were legitimate and that Jalin and ACH had successfully secured loans in the past, Jackson provided victims and potential victims the name and phone number of a co-conspirator and told them that they could contact her for a reference. After she was contacted, the co-conspirator falsely represented to victims and potential victims that she had, in fact, received funding from Jackson for a construction loan, and that she had successfully done a project financed with her co-conspirator and Jalin.
Through this scheme, more than 40 individuals provided Jackson and HURT with more than $4.5 million in advance fees and funds that were to be held in escrow for business loans that were never provided. Some of the individuals received partial refunds of the advance fees they had provided, but the refunds were made using fees that had been paid by other victims in a Ponzi-like scheme.
HURT previously served as Pastor at the Dominion Christian Church in Brockton, Mass. As established in court, HURT moved money generated through the scheme through church accounts and used the proceeds for himself and his family.
HURT was ordered to pay restitution in the amount of $2,255,000
On February 8, 2016, Jackson was sentenced to 205 months of imprisonment.
Jackson was previously convicted in the Western District of Pennsylvania of federal bank fraud and money laundering offenses in October 2006 and was sentenced to 41 months in prison, followed by five years of supervised release. He was released from federal prison in September 2009 and operated this advance fee fraud scheme while on supervised release.
This matter was investigated by the Federal Bureau of Investigation and the Ansonia Police Department, and was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Michael S. McGarry.
Pair of Friends Charged in Scheme to Defraud Distressed HomeownersRead the Press Release
PHILADELPHIA – An indictment, unsealed today, charges two friends, Daniel Sheehan, 41, of Gloucester City, NJ, and John Hoban, 42, of Bellmawr, NJ, in a scheme to defraud distressed homeowners seeking help out of more than $400,000, announced United States Attorney Zane David Memeger. The pair is charged with wire fraud conspiracy and eight counts of wire fraud. Sheehan is additionally charged with 18 wire fraud counts and one count of interstate transport of stolen property. As a result of the alleged scheme, more than 110 people were defrauded, several of whom lost their homes.
According to the indictment, between September 2012 and February 2015, Sheehan, a mortgage modification professional, represented to a dozen clients that he could help them modify their mortgages through the Home Affordable Mortgage Program (“HAMP”) or the Home Affordable Refinance Program (“HARP”). Instead, it is alleged, Sheehan: took fees from his clients without ever submitting the loan modification paperwork he promised; deceived his clients by representing to them that he had secured a new mortgage for them; directed many of his clients to make their mortgage payments to him until their new loan paper work arrived; had Hoban pretend to be a bank representative to lull the client into a false sense of security; and used his clients’ mortgage payments for his own purposes rather than that for which those payments were intended. Several of Sheehan’s clients’ homes went into foreclosure and at least two went to Sheriff’s sale.
According to the indictment, LS, who owned a home in Northfield, NJ, contacted Sheehan after he lost his job and couldn’t make his mortgage payments. LS and his wife had lived in the home for years and had raised their children there. In August of 2013, Sheehan told LS that he could get him a loan modification that would reduce both his principal and his interest rate. LS paid Sheehan his requested fee of $1,700. In February of 2014, Sheehan informed LS that he saw LS’s offer and that LS should have it in his hands in the next 24 to 48 hours. Although LS’s house was scheduled to be sold as a Sherriff’s sale on several occasions, Sheehan allegedly reassured LS that he would take care of it. In May of 2014, a man came to LS’s and told LS that he was going to purchase the house at Sherriff’s sale. When LS told Sheehan, Sheehan instructed LS to ignore the man. On July 1, 2014, Sheehan told LS that the modification had been approved, that his house had not been sold, and presented him with an agreement to sign. He told LS that he would have to make trial payments of $1,525.55 for the next three months and he instructed LS to make the payments out to him and that he would place the payments in an escrow account. In September of 2014, Sheehan allegedly gave LS a document that purported to be an order from a judge allowing LS to stay in his home until September 23, 2105. On November 5, 2014, LS appeared in court where he learned from the judge that the document provided to him by Sheehan was a forgery. On November 5, 2014, LS and his family were physically evicted from their home.
In another instance, according to the indictment, when a client of Sheehan’s started receiving foreclosure notices from her bank, Sheehan told her that a representative with the new mortgagor would resolve the issue. Sheehan then, it is alleged, had Hoban pose as that bank representative, convincing the homeowner that the foreclosure notice would be “frozen” and that she would receive a packet from the new bank in 30 days. Meanwhile, no application for a loan modification had ever been filed on that homeowner’s behalf.
“This type of mortgage fraud is very personal. The defendants cheated their homeowner victims out of hundreds of thousands of dollars by preying on their emotional and financial vulnerabilities,” said Memeger. “The financially struggling victims viewed the defendants as life savers who would help them preserve their most valuable investment -- their homes. Instead, the defendants betrayed their victims, sank them into deeper debt, and, in some cases, left them homeless.”
“It’s hard to overstate the cruelty displayed by these defendants,” said FBI Special Agent-in-Charge William F. Sweeney, Jr. “Portraying themselves as white knights who would help families keep their homes, pocketing their money – knowing, all the while, their unsuspecting victims would soon be homeless. Their actions are unconscionable.”
It is further alleged that between April 2014 and February 2015, Sheehan transported, transmitted, and transferred in interstate and foreign commerce, goods, wares, securities, and money of the value of $5,000 or more, taken by fraud.
If convicted, each defendant faces a maximum statutory sentence of 20 years in prison, possible fines, and up to three years of supervised release. Sheehan would be required to pay a $2,900 special assessment; Hoban, a $900 special assessment. A notice of forfeiture for $470,000 is also attached.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Paul Shapiro.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Axis Benefits Administrators Pleads Guilty to Theft of $3 Million Dollars from Health Care Reimbursement Trust Account FundsRead the Press Release
Portland, Ore. – Darrin Bottinelli, 45, of Portland, Oregon, pled guilty Thursday, March 17, 2016, before U.S. District Judge Robert E. Jones to one count of theft in connection with health care. Bottinelli admitted in his plea agreement that between 2009 and 2014 he stole approximately $3 million dollars from individual health reimbursement accounts (HRAs) under management by his company, Axis Benefit Administrators, Inc., also known as AXIS Health Partners.
Bottinelli served as the sole shareholder, officer and director of Axis, which held its principle place of business in Portland. Axis administered employee health reimbursement or flexible spending accounts for their client employers. According to Axis contracts with employers, Axis pledged to post employer contributions to trust accounts for employee plan participants. These plan participants could then seek reimbursement for eligible health expenditures from their account funds.
Between 2009 and 2014,the defendant improperly and repeatedly accessed trust account funds for his own personal use. On March 19, 2014, Bottinelli abruptly closed the Axis office without any communication to client employers or plan participants. As a result, approximately four thousand plan participants were unable to access their account funds. Individual victim losses range from $22,500 to less than $10.
The maximum sentence for theft in connection with health care is ten years of imprisonment, a $250,000 fine, and three years of supervised release. Sentencing is currently scheduled for September 14, 2016.
This case was investigated by the U. S. Department of Labor, Employee Benefits Security Administration, the Federal Bureau of Investigation, and the U. S. Department of Labor – Office of Inspector General. The case is being handled by Assistant United States Attorney Donna Brecker Maddux.
Owner of Long Island Produce Distributor Convicted at Trial of Embezzling Money from Company Profit Sharing PlanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the conviction after trial of THOMAS HOEY, JR. for embezzling nearly all of the assets of his company’s profit sharing plan and defrauding the plan participants. HOEY, the owner and president of a Long Island based produce distributor (the “Company”), and trustee for the Company’s profit sharing plan (the “Plan”), an employee benefit plan set up for the benefit of the Company’s employees, transferred over $750,000 from the Plan to the Company’s corporate accounts. HOEY then unlawfully used the money to cover significant negative balances in the Company’s accounts, to purchase, among other things, hundreds of thousands of dollars of produce for the Company, and for hundreds of thousands of dollars of HOEY’s personal expenses. HOEY was convicted after a four-day jury trial before Judge Paul A. Engelmayer.
U.S. Attorney Preet Bharara said: “Thomas Hoey Jr. made real what is the nightmare of any hardworking employee: the theft of a company-sponsored pension plan. As the jury found in convicting him today, Hoey stole virtually all of his employees’ retirement plan money, and spent it himself on international travel, limousine service, and luxury Manhattan hotels. Thanks to the efforts of our law enforcement partners at the Department of Labor and Internal Revenue Service, Hoey will now receive just punishment for his crimes.”
According to the allegations contained in the Indictment as well as the evidence presented during trial:
The Plan was set up as an employee pension benefit plan under the Employee Retirement Income Security Act of 1974 (“ERISA”), for the benefit of certain employees of the Company. As an ERISA qualified pension plan, there were strict statutory and regulatory limitations on the use of money contributed to the Plan. In particular, Plan proceeds could only be used to pay for employee disbursement and employee loans, which, in no circumstances, could be greater than $50,000. Moreover, the Company, which was the sponsor for the loan, was not allowed to receive any money from the Plan.
Between June 2009 and July 2012, however, the defendant transferred almost all of the assets in the Company’s Plan to corporate accounts that HOEY controlled. Specifically, in three transactions on one day in June 2009, the defendant transferred $350,000 from the Plan to the Company’s corporate bank account. In May 2010, the defendant transferred $415,000 from the Plan to the Company’s corporate bank account. And finally, in July 2012, the defendant transferred $73,000 from the Plan to the Company’s corporate bank account. As a result of these withdrawals from the Plan as well as fees on the account, the Plan, which at one point was worth over $900,000 in employee benefits, was almost entirely depleted.
The Plan money was transferred to corporate accounts to cover significant negative balances as well as for additional corporate expenses and HOEY’s personal expenses. For example, hundreds of thousands of dollars of Plan money was used to pay invoices from the Company’s produce suppliers. Plan money was also used to pay for automobile insurance on a policy that covered, among other vehicles, numerous luxury cars that HOEY used for his personal use. During the period of time that HOEY was using Plan money to fund the Company’s corporate accounts, the corporate accounts were also being used to pay for HOEY’s personal expenses, including international travel for HOEY and his family, limousine service, and hotels in Manhattan.
In order to cover up HOEY’s embezzlement of Plan assets, HOEY caused plan statements to be created that reflected the employees’ full account balances as if no money had been taken out of the Plan. A 2012 account statement for one employee, for example, reflected an individual benefit total of approximately $140,000. At that time, however, the total amount of money left in the Plan was only approximately $15,000.
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HOEY, 48, of Garden City, New York, was convicted of one count of embezzlement from an employee pension plan, which carries a maximum sentence of five years in prison; one count of interstate transportation of stolen money, which carries a maximum sentence of 10 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of money laundering, which carries a maximum sentence of 10 years in prison. HOEY will be sentenced on July 19, 2016, at 10:00 a.m. before Judge Paul A. Engelmayer.
Mr. Bharara praised the work of the DOL and IRS.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kristy J. Greenberg and Daniel B. Tehrani are in charge of the prosecution.
Organizer of Bank Fraud Scheme that Used Information Stolen by Wells Fargo Employees to Access Customer Accounts Pleads GuiltyRead the Press Release
LOS ANGELES – The lead defendant in a bank fraud case who oversaw a scheme in which Wells Fargo Bank employees stole customer account data – information that was used to impersonate customers and steal money from their accounts – has pleaded guilty to federal fraud charges.
Ronald Charles Reed, 69, of Inglewood, pleaded guilty late yesterday to felony counts of bank fraud and aggravated identity theft.
Reed was among eight defendants who were charged in two indictments returned by a federal grand jury last year (see: http://go.usa.gov/c7ZDY). Three of the defendants charged in the case have not yet been identified, and authorities are seeking the public’s help in identifying and apprehending the currently unknown individuals.
Reed, who is also known as “Disco Ronnie,” pleaded guilty before United States District Judge Fernando M. Olguin, who is scheduled to sentence the defendant on July 15. As a result of the guilty pleas, Reed faces a statutory maximum sentence of 32 years in federal prison.
“Schemes involving bank insiders are particularly difficult to investigate,” said United States Attorney Eileen M. Decker. “But in this case, the FBI and Secret Service diligently worked to uncover the mechanics of the scheme and those responsible for the losses suffered by the bank. I want to compliment the special agents involved in this matter, as well as Wells Fargo for cooperating in the investigation.”
When he pleaded guilty, Reed admitted that he worked with former Wells Fargo employees and the three unknown individuals in a scheme that caused Wells Fargo to suffer hundreds of thousands of dollars in losses. In his plea agreement, Reed has agreed to pay nearly $600,000 in restitution.
Reed recruited four Wells Fargo employees in 2013 and 2014, asked them to access the bank’s computer records, and then purchased personal identifying information (PII) belonging to bank customers, including dates of birth, account numbers, driver’s license numbers and social security numbers. With this information, the currently unidentified “runners” used fake IDs to impersonate bank customers and made substantial cash withdrawals from the customers’ accounts. In some cases, the runners also used the customer’s account to deposit worthless checks and receive cash back. The fraudulent transactions were made at Wells Fargo branches across Southern California and in other states, including Minnesota and Nevada.
Reed also admitted that in 2014 he purchased PII for accounts at U.S. Bank – but the information was for an undercover account and was supplied by a confidential informant who was working with law enforcement.
Three former Wells Fargo employees involved in the scheme previously also pleaded guilty and are pending sentencing. A case against one former Wells Fargo employee is still pending.
“The FBI is seeking the public's help in identifying three individuals who participated in the scheme by going into bank branches with fake IDs to illegally access customer accounts,” said FBI Assistant Director in Charge David Bowdich. “Anyone with information is urged to call the FBI’s Los Angeles Field Office at 1-888-226-8443.”
This matter was jointly investigated by the Federal Bureau of Investigation and the United States Secret Service. Wells Fargo Bank fully cooperated during the investigation.
Norway Man Sentenced for Distribution of Child PornographyRead the Press Release
MARQUETTE, MICHIGAN — Garrett Joseph Thoresen, 23, of Norway, Michigan was sentenced to 60 months in federal prison for distribution of child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered Thoresen to serve five years of court supervision following his release from prison, to pay a $100 special assessment, and to pay $3,000 in restitution to one of his victims. Thoresen will also be required to register as a sexual offender.
On December 22, 2015, Thoresen pleaded guilty to a federal felony charge of distributing child pornography. Thoresen’s activities came to light through an undercover investigation into his use of a closed peer-to-peer file sharing network. An undercover agent was able to download images and videos containing child pornography from Thoresen’s computer through peer-to-peer software. Investigators obtained a federal search warrant for computer media at Thoresen’s residence. A forensic examination of Thoresen’s computers revealed his possession of approximately 4,600 images and 189 videos containing child pornography involving approximately 65 known child victims.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
The Federal Bureau of Investigation investigated the case. The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.
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North Miami Man Sentenced to Five Years for Identity Fraud and Tax Fraud SchemeRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon II today sentenced Joseph A. Johns to 5 years in federal prison for possession of 15 or more fraudulent debit cards and aggravated identity fraud. He pleaded guilty on October 19, 2015.
According to court documents, in February 19, 2012, Osceola County Sheriff’s Office deputies stopped Johns’s vehicle because of an active arrest warrant. During the stop, Johns gave deputies consent to search his car, during which they found ledgers containing Personal Identifying Information (PII), including the Social Security numbers, dates of birth, and bank account numbers of hundreds of individuals. Deputies also found approximately 197 debit cards in the names of various individuals, some of whose PII was contained in the ledgers. Further investigation revealed that Johns was using the victim information to file fraudulent tax returns and receive tax refunds in the victims’ names. Johns arranged for these tax refunds to be deposited onto prepaid debit cards in his possession.
Through this scheme, Johns obtained at least $158,425.65 in fraudulent federal tax refunds. He also received at least $15,914.70 in fraudulent state tax refunds from the state of Georgia.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Osceola County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.
New Orleans Man Charged with Illegal Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced today the unsealing of a one-count Indictment charging KIDUS WODAJO, age 23, of New Orleans, with being a felon in possession of a firearm.
According to the Indictment, WODAJO, who had previously been convicted of a felony in Orleans Parish Criminal District Court, possessed a Taurus Millennium Pro .45 caliber semiautomatic pistol in December 2013.
If convicted, WODAJO faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley, of the Department of Justice, Organized Crime and Gang Section, are in charge of the prosecution.
New Orleans Jury Convicts Company Owner and Doctor for Roles in $34 Million Fraud SchemeRead the Press Release
WASHINGTON – A federal jury in New Orleans convicted the owner of a health care company and a doctor for their roles in a $34 million Medicare fraud scheme that operated over the course of seven years in New Orleans and surrounding communities.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office made the announcement.
Elaine Davis, 59, and Dr. Pramela Ganji, 66, both of New Orleans, were each convicted of one count of conspiracy to commit health care fraud and one count of health care fraud late yesterday after an eight-day trial before Chief U.S. Judge Kurt D. Englehardt of the Eastern District of Louisiana. Davis and Ganji will be sentenced on July 6, 2016.
Evidence introduced at trial showed that Davis owned and controlled the operations of Christian Home Health Care Inc., and Davis and Ganji caused Christian to bill Medicare for home health care services that were not needed and/or were not provided. In her role, Davis paid employees to recruit new patients from communities in and around New Orleans and Hammond, Louisiana. Christian then sent the new patients’ Medicare information to doctors, including Ganji, to obtain their signatures to certify that the patients qualified to receive home health care services, which trial evidence showed they did not qualify for or need. Trial evidence showed that Ganji had often never seen these patients and these false certifications allowed Davis and Christian to bill Medicare for home health services and to conceal that the services were unnecessary. Evidence introduced at trial showed that from 2007 through June 2015, Christian submitted more than $34.4 million in claims to Medicare, a large number of which were fraudulent. Medicare paid Christian approximately $29.6 million on these claims.
Davis was found not guilty of three additional counts of health care fraud and Ganji was found not guilty of one additional count of health care fraud. Dr. Godwin Ogbuokiri was acquitted of all charges.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. Trial Attorneys William Kanellis, Antonio Pozos and Drew Bradylyons of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New Orleans Jury Convicts Company Owner and Doctor for Roles in $34 Million Fraud SchemeRead the Press Release
A federal jury in New Orleans convicted the owner of a health care company and a doctor for their roles in a $34 million Medicare fraud scheme that operated over the course of seven years in New Orleans and surrounding communities.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office made the announcement.
Elaine Davis, 59, and Dr. Pramela Ganji, 66, both of New Orleans, were each convicted of one count of conspiracy to commit health care fraud and one count of health care fraud late yesterday after an eight-day trial before Chief U.S. Judge Kurt D. Englehardt of the Eastern District of Louisiana. Davis and Ganji will be sentenced on July 6, 2016.
Evidence introduced at trial showed that Davis owned and controlled the operations of Christian Home Health Care Inc., and Davis and Ganji caused Christian to bill Medicare for home health care services that were not needed and/or were not provided. In her role, Davis paid employees to recruit new patients from communities in and around New Orleans and Hammond, Louisiana. Christian then sent the new patients’ Medicare information to doctors, including Ganji, to obtain their signatures to certify that the patients qualified to receive home health care services, which trial evidence showed they did not qualify for or need. Trial evidence showed that Ganji had often never seen these patients and these false certifications allowed Davis and Christian to bill Medicare for home health services and to conceal that the services were unnecessary. Evidence introduced at trial showed that from 2007 through June 2015, Christian submitted more than $34.4 million in claims to Medicare, a large number of which were fraudulent. Medicare paid Christian approximately $29.6 million on these claims.
Davis was found not guilty of three additional counts of health care fraud and Ganji was found not guilty of one additional count of health care fraud. Dr. Godwin Ogbuokiri was acquitted of all charges.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of Louisiana. Trial Attorneys William Kanellis, Antonio Pozos and Drew Bradylyons of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New Haven Man Sentenced to Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PERRY FLOWERS, also known as “Mel,” 46, of New Haven, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to approximately 21 months of imprisonment, time already served, and four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, on two occasions in late 2013, and again in March 2014, FLOWERS sold crack cocaine to an individual working with law enforcement. FLOWERS sold a total of approximately 43 grams of crack during the three sales.
FLOWERS has been detained since his arrest on June 18, 2014. On December 2, 2015, he pleaded guilty to one count of possession with intent to distribute, and distribution of, cocaine base (“crack cocaine”).
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Robert Spector and Gabriel Vidoni.
Navajo Man from Torreon Sentenced to Three Years Probation for Federal Misdemeanor Assault ConvictionRead the Press Release
ALBUQUERQUE – Orlando King, 35, an enrolled member of the Navajo Nation who resides in Torreon, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a misdemeanor assault charge. After entering his guilty plea, King was sentenced to three years of probation.
King was arrested on Dec. 29, 2015, on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm. According to the complaint, on Dec. 4, 2015, in Sandoval County, N.M., King and another man allegedly attacked the victim, hitting the victim in the face, kicking his body and face, and hitting the victim in the left arm and back with an ax. The victim sustained an open fracture to the bone between his elbow and shoulder that required two surgeries.
During today’s proceedings, King pled guilty to a misdemeanor information charging him with assault by striking, beating or wounding. In entering the guilty plea, King admitted that on Dec. 4, 2015, he and another man got into a verbal argument with the victim, and the other man began to physically fight the victim. King further admitted that he struck and kicked the victim several times, and the other man involved in the fight then used an ax to strike the victim which caused serious injury. King admitted that he did not participate or encourage the assault with the ax. The assault occurred within the Navajo Indian Reservation. A sentencing hearing has yet to be scheduled.
The other man referred to by King is Henderson Castillo who is charged in a two-count indictment with assault with a dangerous weapon and assault resulting in serious bodily injury. The indictment alleges that Castillo injured the victim by assaulting him with an ax on Dec. 4, 2015. Castillo has entered a not guilty plea to the indictment and remains detained pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
Mexican Citizen in Pottawattamie County, Iowa, Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
Council Bluffs, IA - On March 16, 2016, Jonathon Oros-Moreno, a 29 year-old citizen of Mexico, was sentenced by Senior United States District Court Judge James E. Gritzner, to 100 months in prison followed by five years of supervised release for possession with intent to distribute methamphetamine announced Acting United States Attorney Kevin E. VanderSchel.
Oros-Moreno entered a guilty plea on July 24, 2015, to possession with intent to distribute methamphetamine following his arrest on July 24, 2014, by the Southwest Iowa Narcotics Task Force working with the Federal Bureau of Investigation's Safe Streets Task Force. On July 24, 2014, law enforcement purchased two one-pound packages of methamphetamine from Oros-Moreno before serving a search warrant on the Council Bluffs, Iowa apartment where Oro-Moreno was staying. At the apartment, law enforcement located an additional twelve one-pound packages of methamphetamine.
The investigation was conducted by the Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, the Bellevue (Nebraska) Police Department, the Omaha (Nebraska) Police Department and the FBI’s Safe Streets Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Members of Chester Drug Trafficking Organization ConvictedRead the Press Release
PHILADELPHIA – A federal jury, today, returned guilty verdicts against members of a violent drug trafficking gang that operated in and around Chester, PA. The jury found Donald Womack, Sr., Paris Church, Ronell Whitehead, Breon Burton, Spencer Payne, guilty of operating a drug market within the Rose and Upland neighborhood on the east side of Chester City. Womack, Church, Whitehead, Burton, and Payne were convicted of conspiracy. All of the defendants face a maximum possible sentence of life in prison; Womack faces a mandatory term of life in prison; the remaining defendants, except Payne, face a mandatory term of 20 years in prison; Payne faces a mandatory term of 10 years in prison. Sentencing hearings have not yet been scheduled.
Among the charges that these defendants and their 17 co-defendants were convicted of: distributing cocaine, crack cocaine, and heroin to customers in their territory and elsewhere between August of 2012 and September of 2014; maintaining a drug house; possessing firearms in furtherance of drug trafficking crimes; and distributing cocaine, crack and heroin within 1,000 feet of area schools and a playground. Burton was previously convicted of being a felon in possession of firearms and use of a firearm in furtherance of drug trafficking. One of the group’s largest alleged cocaine and heroin suppliers, Paris Church, was convicted of conspiracy to distribute 280 or more of cocaine base (“crack”), 500 grams or more of cocaine, and 100 or more grams of heroin for re-distribution. The leader of the drug trafficking group, William Dorsey, and 16 other co-defendants pleaded guilty to their roles in the organization.
The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Chester Police Department, the Pennsylvania State Police, and the Delaware County Office of the District Attorney’s Criminal Investigation Division. Also providing substantial manpower and assistance in the arrests were agents from the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Ashley K. Lunkenheimer, A. Nicole Phillips, and Faithe Moore Taylor.
Massachusetts Woman Charged with Passport and Identity FraudRead the Press Release
PHILADELPHIA - Altagracia Arias, 60, of Lawrence, Massachusetts, was charged by indictment, filed today, with passport fraud, use of a fraudulently obtained passport, and aggravated identity theft, announced United States Attorney Zane David Memeger.
According to the indictment, between November of 2008 and February of 2016, Arias used a United States passport which she had obtained through false statements on her passport application. She allegedly ARIAS used the name of another individual (“A.S.”), stated that she was born in Puerto Rico and was, therefore, a U.S. citizen, and gave a Social Security Number that was not hers.
If convicted of all charges, Arias faces a mandatory minimum term of two years in prison for the identity theft with a maximum statutory sentence of 32 years in prison, a possible fine, a $400 special assessment, and up to three years of supervised release.
This case was investigated by the U.S. Department of State Diplomatic Security Service, and is being prosecuted by Assistant United States Attorney V. Paige Pratter.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Maryland Man Charged in Alleged Sexting CaseRead the Press Release
PHILADELPHIA – Ralph Fisher, 38, of Elkton, Maryland, was charged by indictment, filed on March 15, 2016, with attempting to entice a minor to engage in sexual conduct, attempting to transfer obscene material to minors, and other charges. The case was announced today by United States Attorney Zane David Memeger and Delaware County District Attorney Jack Whelan.
According to the indictment, between June 15, 2015 and July 20, 2015, Fisher engaged in sexually explicit chats over the Internet with “Minor #1,” a person Fisher believed to be a 15-year old boy. Fisher allegedly attempted to engage “Minor #1” in sexual conduct and sent pornographic pictures of himself to “Minor #1.” It is further alleged that on July 20, 2016, Fisher traveled to Delaware County, Pennsylvania, to have sex with “Minor #1” but was, instead, arrested by the Delaware County Criminal Investigation Division. Fisher is also charged with distributing child pornography to others over the Internet, and possessing child pornography on his cell phone.
If convicted of all charges, Fisher faces a mandatory minimum sentence of 10 years in prison with a statutory maximum sentenced of life in prison, a possible fine, supervised release, and a $500 special assessment.
This case was investigated by the Delaware County Criminal Investigation Division and the Federal Bureau of Investigation. It is being prosecuted by Special Assistant United States Attorney Alan Borowsky.
Maryland Man Allegedly Paid People in the Philippines to Send Child PornographyRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Louis Francis Bradley, age 65, of Baltimore, with distribution, receipt and possession of child pornography. The criminal complaint was filed on March 15, 2016, and unsealed upon Bradley’s arrest. Bradley had his initial appearance in U.S. District Court in Baltimore before U.S. Magistrate Judge Stephanie A. Gallagher. Bradley was ordered to be detained pending a detention hearing scheduled for Monday, March 21, 2016, at 11:00 a.m.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Kevin Davis of the Baltimore Police Department.
“The disturbing affidavit alleges that the defendant contacted women in the Philippines over the internet and paid them to send images of young girls engaged in sexually explicit conduct,” said U.S. Attorney Rod J. Rosenstein.
According to the affidavit filed in support of the criminal complaint, In January 2016, the National Center for Missing and Exploited Children (NCMEC) received a Cybertipline Report submitted by a website stating that between December 30, 2015, and January 14, 2016, eight images of suspected child pornography were uploaded to a photo account associated with Bradley’s email address.
As part of the investigation, search warrants were executed for Bradley’s social media and email accounts. The results for one of Bradley’s Facebook accounts is over 29,000 pages long and the review of the results is ongoing, but law enforcement located conversations with women in the Philippines. Based on those conversations, the affidavit alleges that Bradley is paying the women, who have access to minor females, to send him images of those prepubescent females engaged in sexually explicit conduct. The affidavit alleges that Bradley also distributed child pornography to at least one woman in the Philippines.
If convicted, Bradley faces a minimum mandatory sentence of five years and up to 40 years for distribution and receipt of child pornography; and a maximum of 20 years in prison for possession of child pornography.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the federal case.
Man Pleads Guilty to Attempting to Rob U.S. Postal OfficeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERT WARREN, age 74, no known residence, pled guilty as charged yesterday to an Indictment charging one count of attempting to rob a United States Postal Office and one count of interference with postal employees.
According to court records, WARREN entered the Postal Office located at 701 Loyola Avenue, New Orleans, handed a handwritten note to a teller, and demanded a quantity of money. WARREN was quickly arrested by investigators for the United States Postal Inspection Service.
WARREN faces a sentence of imprisonment of up to ten years for the attempted robbery charge and up to eight years for the interference with postal employees charge. U.S. District Judge Eldon E. Fallon scheduled sentencing for June 23, 2016.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
Man Pleads Guilty to Assaulting Two Women in Back-to-Back Attacks Near Foggy Bottom Metro PlazaRead the Press Release
WASHINGTON – Mustapha Kone, 48, who has no fixed address, pled guilty today to kidnapping and other charges stemming from separate attacks against two young women near the Foggy Bottom Metro station in the fall of 2014, announced U.S. Attorney Channing D. Phillips.
Kone pled guilty in the Superior Court of the District of Columbia to charges of kidnapping, threats, and assault. He is to be sentenced on May 27, 2016 by the Honorable Florence Pan. The charges carry a statutory maximum of 30 years in prison.
According to the government’s evidence, on Oct. 19, 2014, at about 3:30 a.m., one of the victims was sitting on a bench in the above-ground plaza near the Foggy Bottom Metro station, in the 2300 block of I Street NW. The defendant – a total stranger – approached the woman and told her that he wanted her to come with him into the nearby bushes as he had something that he wanted to show her. When she declined, Kone grabbed her and tried to pull her into the bushes. She resisted, and Kone told her that if she tried to leave, he would kill her. She began to scream, and Kone let go of her. She then ran to her nearby residence and called 911 to report the assault.
Meanwhile, Kone walked further west in that same plaza, where he encountered the second victim, another total stranger. He walked up to her and told her that he wanted to have sex with her. He then knocked the woman to the ground and got on top of her. Unable to get away, she began to scream. A group of nearby Good Samaritans then came to her aid, yelling at Kone to get off of her. He did, and began to flee down New Hampshire Avenue, toward the Watergate complex. Two of the Good Samaritans gave chase, calling 911 as they pursued him.
Kone ran behind a bush or tree in front of one of the nearby apartment buildings. The two Good Samaritans stood watch, urging the 911 operator to get the police to their location quickly before Kone could flee again. While those two young men remained, keeping an eye on Kone, campus police from George Washington University arrived and arrested the defendant.
In announcing the plea, U.S. Attorney Phillips praised the work of police from the George Washington University, who initially apprehended the defendant; and of detectives from MPD’s Sexual Assault Unit, which investigated the case. He also commended the bravery and willingness to become involved of the Good Samaritans who came to the aid of the victims.
U.S. Attorney Phillips also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Colleen Kennedy and Mark Aziz, Paralegal Specialists Michelle Chambers and D’Yvonne Key, and Victim/Witness Advocate Tracey Hawkins. Finally, he commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Man Pleads Guilty in Manhattan Federal Court in Connection with Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that WILLIAM J. WELLS pled guilty in Manhattan federal court today to an Indictment charging him with securities fraud and wire fraud in connection with his scheme to defraud more than 30 investors of more than $1.5 million through a fraud scheme over the course of more than six years. WELLS was arrested on October 1, 2015, and pled guilty today before United States Magistrate Judge Henry B. Pitman.
U.S. Attorney Preet Bharara said: “As he admitted today in court, William Wells engaged in a fraudulent scheme where he lured investors through lies about his trading performance and spent their money lavishly on himself. Instead of operating a legitimate investment firm – as he said he would to his investors – Wells focused on covering up his consistent trading losses and his personal spending of investor money, going so far as to create entirely fake account statements to reassure his clients. Thanks to the outstanding work of the FBI, Wells has now been forced out of the fraud-scheme business.”
According to the Complaint, the Indictment, and other statements made in open court:
From September 2009 through his arrest, WELLS, through his investment firm Promitor Capital LLC (“Promitor Capital”), engaged in a scheme to obtain investments by falsely representing that he had achieved consistently positive returns in the U.S. equity markets, including through the successful use of options to hedge risk. In truth, WELLS’ trading was remarkably unsuccessful. Between 2009 and the time of his arrest, WELLS realized trading losses every year and, in total, trading losses in excess of $500,000. In fact, as of September 2015, Promitor Capital had less than $1,000 under management.
In connection with the scheme, WELLS made a series of false and misleading representations to investors, including: (a) that WELLS’ trading was generating consistently positive returns when, in fact, his trading was consistently unsuccessful; (b) that investors were invested in certain stocks at certain times when, in fact, none of the accounts held by Promitor or WELLS held those stocks; and (c) that WELLS had created so-called sub-accounts for clients, for which WELLS purported to execute individualized trading strategies, when, in fact, no such sub-accounts were ever funded. In addition to false and misleading representations made orally and in writing, WELLS also generated wholly fictitious account statements that he provided to his clients.
As a result of these misrepresentations, WELLS obtained more than $1.5 million in investments from more than 30 investors, many of whom were friends, colleagues, or family members. WELLS routinely converted investor funds he did not lose trading to his own use in the form of cash withdrawals and to pay personal expenses, including more than $500,000 for, among other things, credit card bills, payments for WELLS’ automobile, and for private school tuition. In addition, to hide his trading losses and to continue to fund his personal lifestyle, WELLS used new investor funds to pay back other investors in a Ponzi-like fashion. In total, WELLS distributed less than approximately $500,000 back to investors.
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WELLS, 42, formerly of Manhattan and New Jersey, now living in Valley Cottage, New York, pled guilty to one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. 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 the judge. The defendant will be sentenced at a future date by United States District Judge Kimba M. Wood.
Mr. Bharara praised the work of the Federal Bureau of Investigation and thanked the Securities and Exchange Commission for their assistance with the investigation.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
Man Indicted on Weapons ChargesRead the Press Release
CONCORD, N.H. – Daniel E. Musso, Sr., 54, of East Kingston, New Hampshire, was indicted in the United States District Court for the District of New Hampshire for receiving and possessing grenades, reports United States Attorney Emily Gray Rice.
The indictment charges Musso with four counts of receiving and possessing an unregistered firearm, specifically, grenades.
The charges resulted from an undercover investigation by the FBI. In January, Musso allegedly met with and told an undercover FBI agent posing as an arms dealer that he wanted to acquire grenades. He and the undercover agent allegedly agreed on a price for the grenades and agreed to another meeting to complete the transaction. On January 27, the undercover agent delivered four grenades to Musso at a location in Seabrook, New Hampshire. Musso was arrested by other FBI agents as he approached his vehicle carrying a bag containing the grenades.
Musso has been in custody since he was arrested. Today, after he was arraigned on the indictment, the court ordered that Musso be detained pending trial.
A trial has been scheduled for May 3, 2016. The statutory maximum for each of the charges in the indictment is 10 years in prison. If convicted, Musso’s sentence will be determined by the court after a presentence investigation report is prepared.
This case was investigated by the FBI New Hampshire Joint Terrorism Task Force. This case is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.
An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty.
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Man Admits to Arson, Looting, Assault and Other Mayhem During Baltimore Riots and Shooting Woman over a $20 Drug Dispute Ten Weeks LaterRead the Press Release
Baltimore, Maryland –Donta Betts, age 20, of Baltimore, pleaded guilty today to making a destructive device in connection with the April 27, 2015, riots in Baltimore. Betts also pleaded guilty in an unrelated case to discharge of a firearm in furtherance of a drug trafficking crime on July 2, 2015.
The guilty plea 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; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“This is the sad reality confronting brave police officers who try to save lives in Baltimore,” said U.S. Attorney Rod J. Rosenstein. “Donta Betts engaged in arson, looting, assault and other mayhem during the Baltimore riots. He threw rocks at the police near Mondawmin Mall; tried to destroy police cars; stole from a pharmacy, a liquor store and a shoe store; and set off a homemade bomb. Ten weeks later, he tried to murder a woman over a $20 drug dispute, then he conspired to get her to sign a false affidavit. We caught him only because police and prosecutors spent many hours reviewing video and audio recordings. It may sound like a story arc from a TV series, but it is real life in Baltimore.”
On April 27, 2015, riots and widespread looting erupted in Baltimore. Among the affected businesses, the CVS Pharmacy located at 2509 Pennsylvania Avenue in Baltimore was looted and burned. According to his plea agreement, Betts participated in the looting at the CVS. Betts is captured on surveillance video entering the store through its main front entrance and removing merchandise from the store.
By 5:44 p.m., riot participants had placed an assemblage of metal propane cylinders and charcoal briquettes near the main entrance to CVS, between West North Avenue and a line of police officers that had formed across the 2500 block of Pennsylvania Avenue. In an effort to deter the line of police officers from advancing to stop the looting of the CVS, Betts set fire to a roll of toilet paper and placed it on top of the propane cylinders and charcoal briquettes. Betts then squirted lighter fluid onto the burning roll of toilet paper atop the incendiary materials. Betts’ face and full body are shown squirting lighter fluid onto the incendiary materials in still photographs, some of which were published by local and national news media. Betts then fled, and at approximately 5:58 p.m., a large flame exploded from the improvised incendiary device, resulting in flying debris of large metal fragments from the propane cylinders and blast effects felt by nearby bystanders.
During the investigation, ATF learned that in addition to making the incendiary device, the scope of Betts’ participation in the April 27th riots included: throwing objects at police in the vicinity of Mondawmin Mall; attempting to tip over MTA and police vehicles while encouraging others to join him; attempting to destroy a police cruiser by placing flammable material in the fuel filler pipe and igniting the material; and stealing from the CVS, a liquor store in Baltimore, and a shoe store at Mondawmin Mall. Betts’ involvement in the riots is documented in surveillance footage and still photographs.
In an unrelated case, on July 2, 2015, Betts shot and attempted to kill an individual who had previously purchased heroin from him. According to the plea agreement, Betts expected to be paid $40 for the heroin, but the individual only paid him about $20. On the morning of July 2, 2015, Betts saw the individual in the driver’s seat of a vehicle with a passenger in southwest Baltimore. Betts approached the vehicle with a gun in his hand and shot at the individual, intending to kill the victim in retaliation for having been cheated in the prior drug transaction. The victim managed to drive away and was treated at the Shock Trauma Center at University of Maryland Hospital for severe injuries to her left leg. Betts was arrested for the shooting on July 7, 2015 and charged in state court with attempted first degree murder and other offenses, and detained.
On July 18 and July 19, 2015, while he was detained, Betts made calls to a friend. During the call on July 19, which was recorded by the Maryland Department of Public Safety and Correctional Services, Betts provided the name of the shooting victim and asked his friend to relay that information to associates of Betts and to instruct them to obtain a signed affidavit from the victim stating that Betts did not shoot her. During the same call, Betts admitted that he did shoot the victim.
Betts and the government have agreed that if the Court accepts the plea agreement Betts will be sentenced to between 14 and 16 years in prison. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 24, 2016 at 10:00 a.m. Betts remains detained.
The investigation into arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
Federal prosecutors previously have charged four other defendants for arson crimes committed during the Baltimore riots on April 27, 2015. Trevon Green, age 23, of Baltimore, is charged with malicious destruction of property by fire, for allegedly setting fire to a food store on North Monroe Street. Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, faces federal charges for obstruction of firefighters during a civil disorder and for aiding and abetting arson. Darius Raymond Stewart, age 22, of Baltimore, is charged with malicious destruction of a commercial building for allegedly setting fire to a liquor store on West North Avenue. Raymon Carter, age 25, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Matthew J. Maddox and Sandra Wilkinson, who are prosecuting the case.
Luzerne County Man Sentenced to 151 Months in Prison for Federal Heroin Trafficking OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County man was sentenced today by United States District Court Judge Malachy E. Mannion in Scranton, to serve 151 months (12 years and 7 months) in prison for heroin trafficking.
According to United States Attorney Peter Smith, the defendant, Pedro Noriega, age 42, of Plymouth, Luzerne County, previously pleaded guilty to possession with intent to distribute heroin. He was indicted by a grand jury in August 2015.
Investigators had arranged to make a purchase of heroin from Noriega, obtained a search warrant for his residence, on West Main Street in Plymouth, and seized approximately 495 bags of suspected heroin, a quantity of raw heroin, packaging materials and drug paraphernalia from a bedroom in the residence.
In imposing the sentence, Judge Mannion noted the defendant’s previous criminal history which included multiple drug trafficking convictions.
The investigation was conducted by the Luzerne County Drug Task Force, the Bureau of Narcotics Investigations (BNI) of the Pennsylvania Office of Attorney General, and the Bureau of Alcohol, Tobacco and Firearms (ATF).
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Judge Mannion also ordered that Noriega be supervised by a probation officer for a period of three years following his release from prison.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Local Tax Preparer Sentenced to Seven Years in Prison for Filing Thousands of False Tax Returns and Stealing Identities in Multi-Million Dollar ScamRead the Press Release
Assistant U.S. Attorneys Joseph J.M. Orabona (619) 546-7951 or Alexandra Foster (619) 546-6735
NEWS RELEASE SUMMARY – March 18, 2016
SAN DIEGO – The owner of a tax preparation business in San Diego County was sentenced in federal court today to seven years in prison, admitting that she filed more than 3,500 false income tax returns with the Internal Revenue Service, that she committed tax evasion, and that she stole the identities of minors and other persons in order to obtain more than $7 million in bogus refunds.
Melissa Ann Vega, also known as Lisa Vega, was a local tax preparer and owner of L&T Works, a tax return preparation business on Miramar Road. She was sentenced on charges of conspiracy to file false, fictitious, and fraudulent claims for federal tax refunds, tax evasion and aggravated identity theft before U.S. District Court Judge Jeffrey T. Miller.
As detailed in her plea agreement, Vega conspired with others from at least December 2009 through April 2015 to submit thousands of false income tax returns to the IRS in order to fraudulently obtain tax refunds to which Vega, her co-conspirators and her clients were not entitled. In carrying out her scheme, Vega falsified her clients’ tax returns without their knowledge or consent. As part of the conspiracy, Vega claimed thousands of dollars in false education expenses and tax credits for which her clients were not qualified.
Vega told her co-conspirators and employees that they should maximize clients’ refunds by filing for a $4,000 education credit, even though the clients did not attend school for that tax year. To conceal her role in the fraud, Vega intentionally omitted her name and tax return preparer identification number on the false tax returns she prepared for her clients. In total, Vega’s fraud caused the IRS to pay more than $7 million in artificially-inflated tax refunds based solely on the false education credits. Moreover, Vega admitted that she and her co-conspirators stole the identities of other persons, including minors, and used them on the false tax returns in order to further inflate the amount of the tax refund paid by the IRS.
Vega did not shy away from personally profiting from her fraudulent scheme. In addition to charging her clients between $150 and $200 per return, Vega also admitted that she stole more than $300,000 in false tax refunds from her clients by directing their refunds into bank accounts that she controlled. Vega also admitted that she evaded her own income taxes and filed false personal tax returns in which she fraudulently claimed withholding credits, education credits, and tax credits for minor dependents that she did not support and who were not related to her. According to court documents, Vega evaded more than $156,000 in taxes due to the IRS for tax years 2009 through 2013.
Vega was arrested on gun charges on December 16, 2014. On January 28, 2015, she was released on bond and ordered not to commit any federal crimes --specifically filing false tax returns-- while out in the community. Nonetheless, Vega once again began filing false tax returns with the IRS within days of her release. Without the clients’ knowledge, Vega again fraudulently inflated or created credits and deductions to maximize her clients’ false returns. In an attempt to cover up her criminal activity, Vega agreed with Deanna Dave (charged in Criminal Case No. 15CR2715-JM) that Dave was the owner and paid-return preparer for the tax returns filed in February 2015. In truth, Vega continued as the owner of her tax preparation business and prepared the false tax returns, which she filed for her clients. The IRS uncovered her fraud, and Vega was again arrested on February 25, 2015. Dave pled guilty to providing false statements to the grand jury and is set for sentencing on April 1, 2016, before Judge Miller.
In addition to sentencing Vega, a previously convicted felon, to 7 years in prison, the Court also ordered the forfeiture of several firearms seized from Vega’s residence during the execution of a search warrant in April 2014, including a sawed-off shotgun, shotgun shells, a 9mm handgun, and 9mm ammunition. Vega’s husband, Jamie Lang, was sentenced to 30 months for possessing the unregistered sawed-off shotgun. The Court ordered Vega to pay restitution to the IRS in the total amount of $7,176,836.
Furthermore, as part of her plea agreement, Vega agreed to be permanently enjoined from ever preparing or filing federal income tax returns for anyone other than herself. A permanent injunction will be entered by the IRS to prevent Vega from acting as a tax preparer in the future.
“Tax fraud results in an increasing burden on honest taxpayers and negatively impacts honest citizens’ confidence in our tax system,” said U.S. Attorney Laura Duffy. “Identity theft not only has a long-lasting financial impact on the victims, but also has an emotional impact affecting the stability of victims and their families. Today’s seven-year sentence for Ms. Vega sends a message to tax preparers and others who engage in refund schemes and identity theft that the government will prosecute you to the fullest extent of the law and that the punishment will be severe.” With the current tax return filing season underway, U.S. Attorney Duffy reminded the public to always review a copy of any tax return prepared and filed on their behalf and to be skeptical of tax preparers that offer to obtain substantial tax refunds.
“Over the span of six years, Ms. Vega operated a massive tax refund and identity theft scheme, often using the identities of children to falsify deductions,” stated Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation. “As today’s sentence shows, the government will hold accountable those who use deceit and fraud to line their pockets with money, especially when that money represents stolen federal tax refunds.”
“Today’s sentencing is a direct result of the efforts of dedicated investigators and prosecutors, and is a reminder that the U.S. Secret Service will vigorously investigate identity thieves who use the personal information of unsuspecting victims,” stated Special Agent In Charge David Murray, U.S. Secret Service.
Separately, three more defendants have entered guilty pleas admitting their roles in the tax fraud conspiracy. Earlier this year, co-conspirators Tammie Cowles, Stephen Elliott, and Justin Vega entered guilty pleas to conspiracy to file false claims for tax refunds. Co-conspirators Justin Vega and Stephen Elliott are scheduled to be sentenced before U.S. District Judge Jeffrey T. Miller on April 15, 2016, and co-conspirators Tammie Cowles is scheduled for sentencing before Judge Miller on May 6, 2016.
The public is reminded that tax-related identity theft occurs when someone uses your stolen Social Security number (or the SSN of a dependent) to file a tax return claiming a fraudulent refund. If your SSN is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these additional steps:
• Respond immediately to any IRS notice; call the number provided.
• Complete IRS Form 14039, Identity Theft Affidavit, if your e-filed return is rejected because of a duplicate filing under your SSN. Attach the completed form to your return and mail according to instructions.
• Continue to pay your taxes and file your tax return, even if you must do so by paper.
• If you previously contacted the IRS and did not have a resolution, you may contact them for specialized assistance at 1-800-908-4490.
Link: The link to IRS Form 14039 = https://www.irs.gov/pub/irs-pdf/f14039.pdf
DEFENDANT Criminal Case No. 14CR3658-JM
Melissa Ann Vega Age: 44 San Diego, CA
SUMMARY OF CHARGES THAT DEFENDANT VEGA PLEADED GUILTY TO:
Count 1 – Title 18, United States Code, Section 286 B Conspiracy to File False Claims
Maximum penalties: 10 years in prison, $250,000 fine, 3 years of supervised release.
Count 2 – Title 26, United States Code, Section 7201 – Tax Evasion
Maximum penalties: 5 years in prison, $250,000 fine, 1 year of supervised release.
Count 3 – Title 18, United States Code, Section 1028A – Aggravated Identity Theft
Maximum penalties: 2 years in prison to be served consecutive to any other term of imprisonment, $250,000 fine, 3 years of supervised release.
OTHER CO-CONSPIRATORS AND CHARGES:
Tammie Cowles Age: 41 San Diego, CA Criminal Case No. 15CR1591-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Stephen Elliott Age: 28 San Diego, CA Criminal Case No. 15CR1003-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Justin Vega Age: 26 San Diego, CA Criminal Case No. 15CR2198-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Deanna Dave Age: 49 San Diego, CA Criminal Case No. 15CR2715-JM
Pleaded Guilty to: Title 18, United States Code, Section 1623 – False Declaration before Grand Jury
Jamie Lang Age: 27 San Diego, CA Criminal Case No. 14CR3658-JM
Pleaded Guilty to: Title 26, United States Code, Section 5861(d) – Possession of Saw-Off Shotgun
Sentenced to: 30 months in prison, 3 years of supervised release, forfeiture of firearms
INVESTIGATING AGENCIES
Internal Revenue Service-Criminal Investigation
United States Secret Service
Bureau of Alcohol, Tobacco, and Firearms
Lewis County man pleads guilty to possession of stolen firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jacob Daniel Anthony, 21, of Weston, West Virginia, pled guilty today to possessing stolen firearms, United States Attorney William J. Ihlenfeld, II, announced.
In August 2015, Anthony stole a .45 caliber pistol, a 12 gauge shotgun, and a 20 gauge shotgun. He then pawned the three firearms at locations in Lewis, Upshur, and Harrison Counties.
Anthony pled guilty today to one count of “Possession of Stolen Firearms.” 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 Weston, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Korean National Sentenced to Four Years in Prison for Crimes Ranging from Identity Theft to Illegal Firearm PossessionRead the Press Release
A Korean national who had been deported from the U.S. and then returned using falsified documents to commit additional fraud was sentenced today in U.S. District Court in Seattle to four years in prison and $49,815 in restitution, announced U.S. Attorney Annette L. Hayes. CHONG HWA LIM aka Jong Wha Rim, 64 of Federal Way, Washington, was arrested April 14, 2015 in connection with a bank fraud investigation. LIM had been deported from the U.S. in 1995 for alien smuggling and making false statements to a Border Agent. At sentencing U.S. District Judge Richard A. Jones said he had “a significant degree of concern about items found in the search of LIM’s apartment…. They raise concerns about the defendant’s true motives.”
According to records filed in the case, LIM pleaded guilty in December 2015 to Illegal Reentry after Deportation, Forgery and False Use of a Passport, being a Felon in Possession of a Firearm, Conspiracy to Commit Wire Fraud, and Aggravated Identity Theft. When law enforcement searched LIM’s Federal Way apartment in April 2015 they found high-end identity device making equipment; police equipment; counterfeit identifications, credit cards and immigration documents; hundreds of new Social Security cards; a loaded .380 Beretta handgun; an unloaded Mossberg 500 12-gauge shotgun; and a binder containing names, social security numbers, and other identifying information for taxpayers (real and fake) used by the conspirators when filing fraudulent tax returns. LIM and his coconspirators had submitted false tax returns under the names of other people and obtained more than $49,000 in fraudulent refunds. LIM also used a fake Korean passport to obtain a Washington State driver’s license in a false name.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), the Kent Police Department, Social Security Administration Office of Inspector General (SSA-OIG), Homeland Security Investigations (HSI) and the U.S. State Department Diplomatic Security Service (DSS).
The case was prosecuted by Assistant United States Attorney Rebecca Cohen and Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute fraud cases in federal court.
Jury Convicts Rochester Man of Drug and Firearms ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal jury has found Willie Harris, 46, of Rochester, NY, guilty of possession of cocaine with intent to distribute and being a felon in possession of ammunition and a firearm. The charges carry a maximum penalty of 30 years in prison and a fine of $2,000,000 or both.Assistant U.S. Attorney Charles E. Moynihan, who handled the prosecution of the case, stated that on June 10, 2014, Harris was arrested at 49 Troup Street in Rochester after agents from the Federal Bureau of Investigation and officers of the Rochester Police Department executed a search warrant in one of the apartments at that address.
Prior to executing the search warrant, Harris spoke with officers and told them he had a short-barreled “rifle” and cocaine inside his apartment. Once inside of the location, officers found four bags of cocaine, as well a digital scale commonly used to measure drugs for distribution, small ziplock bags and approximately $180.00 in United States currency. Officers also located a Mossberg 500 C slide action shotgun, the barrel of which had been sawed-off to a length of 16 and 1/8 inches. Ammunition was also found with the shotgun.
The conviction is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Sentencing is scheduled for June 18, 2016, at 2:00 p.m. before U.S. District Judge Elizabeth A. Wolford who presided over the trial of the case.
Jackson County Residents Charged with Methamphetamine OffensesRead the Press Release
Two Jackson County residents were indicted on March 8, 2016, for methamphetamine-related offenses, Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Kyle E. Easterly, 29, and Charles W. Yearian, a/k/a "Chucky," 29, both of Murphysboro, are charged in a two-count indictment charging conspiracy to manufacture and distribute methamphetamine and possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine. The indictment alleges that the offenses occurred between October 2015 and March 2016, in Jackson and Perry Counties. Easterly and Yearian appeared in federal court on March 17, 2016. They were ordered held without bond pending a May 9, 2016, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt.
The methamphetamine offenses carry a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and Murphysboro Police Department. The Jackson County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Henry County Man Sentenced to 204 Months for Unlawfully Possessing Assault Rifle, Attempting to Distribute Marijuana in Obion County JailRead the Press Release
Jackson, TN – A repeat offender has been collectively sentenced to 204 months in federal prison for two separate crimes. Markia D. Patton, 30, of Paris, Tennessee has been sentenced to 190 months for possession of an assault rifle while attempting to traffic marijuana. Patton received an additional sentence of 14 months for conspiring to distribute marijuana in the Obion County Jail while incarcerated on the aforementioned case. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to information presented in court, Patton unlawfully possessed with the intent to distribute more than three pounds of marijuana. He also illegally possessed a semi-automatic SKS assault rifle.
On September 24, 2012, the Henry County Metro Crime Unit responded to a 911 call involving an armed suspect behind some houses in the Wynn Street section of Paris, Tennessee. When officers arrived, they located the defendant behind the houses. Witnesses on the scene identified Patton as the armed suspect.
While searching the area, officers located a semi-automatic assault rifle wrapped in a coat lying in the weeds beside the back of one of the homes. Over 3.5 pounds of marijuana packaged for resale in four separate baggies were located close to the assault rifle. Law enforcement also searched Patton’s vehicle, finding a set of digital scales used to weigh narcotics and a box of sandwich bags, which are commonly used to package illegal narcotics for resale. The Tennessee Bureau of Investigation (TBI) Nashville Crime Laboratory found Patton’s fingerprints on the bags. The TBI Lab also confirmed Patton’s DNA was on items in a pocket of the jacket that concealed the assault rifle.
On Thursday, February 18, 2016, Patton was sentenced by Chief U.S. District Judge J. Daniel Breen to 130 months for felony possession of a firearm in furtherance of a drug trafficking crime and another 60 months for possession with intent to distribute less than 50 kilograms of marijuana.
Patton was sentenced to an additional 14 months on Friday, March 18, 2016 for conspiracy to distribute and possess with intent to distribute marijuana in the Obion County Jail. He pled guilty to the charge in February 2016.
According to court information, Patton, incarcerated on the aforementioned case at the time, conspired with his girlfriend, 25-year-old Shalyndrea Williams, and a then-correctional officer, 35-year-old Cara Bing, to smuggle and distribute marijuana inside of the jail. From February to June 2015, Patton had Williams bring marijuana into the jail. From there, Bing would retrieve the marijuana, smuggle it inside the jail, and distribute it to Patton.
TBI agents were informed that Patton was having marijuana brought into the jail. Surveillance was set up on the entrance to the women’s restroom in the lobby of the facility. In June 2015, agents discovered more than 30 grams of marijuana in the trash can of the restroom. Williams was allegedly directed by Patton to bring the drugs into the restroom.
Williams dropped off drugs and tobacco in the facility’s women’s restroom on at least six occasions for Patton. Bing was paid several hundred dollars to retrieve and deliver the smuggled drugs to Patton.
Both Williams and Bing have pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute marijuana.
Williams is scheduled to be sentenced on Thursday, April 14, 2016. Bing is scheduled to be sentenced on Tuesday, June 14, 2016. The defendants face individual sentences of up to five years and a fine of up to $250,000.
The first case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); TBI; Henry County Sheriff's Department; Henry County Metro Crime Unit; and the Paris Police Department.
The second case was investigated by TBI, Obion County Sheriff’s Department, and the 27th Judicial District Drug Task Force.
Assistant U.S. Attorney Beth C. Boswell prosecuted these cases on the government’s behalf.
Harrisburg Man Sentenced to 30 Months in Prison for Firearm OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tyler Brookin-Jones, age 24, Harrisburg, Pennsylvania, was sentenced yesterday to 30 months in federal prison by United States District Court Judge John E. Jones, III, in Harrisburg, for possession of a firearm by a convicted felon.
According to United States Attorney Peter Smith, Brookin-Jones pleaded guilty to possessing a stolen firearm in November 2015.
Brookin-Jones was indicted by a grand jury in Harrisburg in July 2015, as a result of an investigation by ATF and the Harrisburg Bureau of Police. Assistant United States Attorney Meredith A. Taylor prosecuted the case.
This case was part of the Violent Crime Reduction Partnership (“VCRP”), a district-wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend and prosecute individuals who commit violent crimes.
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Gun Crime Is Fed Time in SavannahRead the Press Release
Savannah, GA – Two convicted felons, both from Savannah, Georgia, were sentenced earlier this week to lengthy federal prison sentences for possessing firearms.
Alan Stanton, a/k/a “Lucky,” 31, was sentenced on March 16, 2016 by Chief U.S. District Court Judge Lisa Godbey Wood to 96 months in federal prison, to be followed by 3 years of supervised release. According to evidence presented during Stanton’s guilty plea and sentencing hearings, in May, 2015, Savannah-Chatham Metropolitan Police Department (SCMPD) officers arrested Stanton, a known member and leader of the Ghost Face Gangsters (a white supremacy gang), after Stanton pointed a pistol at a civilian during a “road rage” incident. The police timely responded to the incident and found the pistol hidden in a speaker box. As a convicted felon, Stanton was prohibited from possessing firearms. Stanton’s criminal history included over 12 convictions on drug charges, theft charges, driving charges, domestic violence charges, and multiple drug trafficking charges. Judge Wood ordered Stanton’s 96 month federal sentence to run consecutive to his 10 year state sentence. There is no parole in the federal system. Upon Stanton’s release from state and federal prisons, he will serve a period of court supervision for 5 years under the state system and 3 years under the federal system.
Laron Allen, 28, of Savannah, Georgia, was sentenced on March 16, 2016 by U.S. District Court Judge William T. Moore, Jr. to also serve 96 months in federal prison, followed by 3 years of supervised release. According to the evidence presented during Allen’s guilty plea and sentencing hearings, in January of 2015, SCMPD investigators arrested Allen, who had seven outstanding warrants for his arrest. Investigators observed Allen exit a convenience store located on Augusta Road, in Savannah, and immediately took him into custody. Investigators found Allen in possession of a loaded, stolen, .40 caliber semi-automatic pistol; an extra magazine loaded with ammunition in his pocket; and, a quantity of crack cocaine and marijuana. Allen’s criminal history dates back 14 years, with over 10 convictions on violent crime charges, obstruction of justice charges, and drug trafficking charges. Judge Moore ordered that Allen’s 96 month sentence run consecutive to his other state charges. Upon Allen’s release from state and federal prisons, he will be on a lengthy period of state and federal supervision.
U.S. Attorney Edward J. Tarver stated, “Violent gun crime incidents in Savannah have increased at an alarming rate. This United States Attorney’s Office and its federal partners will work closely with the Savannah Chatham Metropolitan Police and other local law enforcement officials to stem the surge of violent crime in Savannah. Felons and career offenders are on notice that gun crime, even possessing a pistol, a rifle, or even one bullet will land them in a federal prison. Gun crime is fed time.”
These cases were brought to federal court as part of Project Ceasefire, a joint federal, state and local firearms initiative addressing gun crime in Savannah and throughout the Southern District of Georgia. Both cases were investigated by SCMPD and the ATF. Assistant United States Attorney E. Gregory Gilluly prosecuted the cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Granite City Man Sentenced for Distribution of MethamphetamineRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced that Shawn A. Thompson, age 39, of Granite City, Illinois, was sentenced on March 17, 2016 to 151 months’ imprisonment for Distribution of Methamphetamine.
Thompson pled guilty to the federal charge on December 3, 2015. At his change of plea hearing, Thompson admitted that he and co-defendant Michael Murphy had sold a police informant an ounce of methamphetamine for $2,000 in Granite City on December 11, 2013. Thompson also admitted selling methamphetamine twice a week for the four months preceding his arrest.
Thompson’s co-defendant Michael Murphy was also convicted and sentenced to 36 months’ imprisonment in January, 2016.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. The investigation which led to the arrest and conviction of Thompson and Murphy was conducted by the Drug Enforcement Administration (DEA).
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Granite City Man Sentenced for Distribution of MethamphetamineRead the Press Release
A Granite City man was sentenced on March 17, 2016, in federal court in East St. Louis, Illinois, for Distribution of Methamphetamine he Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. James Wagner, 50, of Granite City, Illinois, was sentenced to 210 months’ imprisonment. Wagner was also sentenced to 5 years of supervised release once he released from prison. In addition, he was ordered to pay a $1000 fine and a $100 special assessment.
The United States Postal Inspection Service and Metropolitan Enforcement Group of Southwestern Illinois intercepted a package containing 213.3 grams of methamphetamine that was being sent through the United States Postal Service. The package was addressed to a friend of Wagner’s who agreed to cooperate with law enforcement and assist in the controlled delivery. Wagner was arrested after the package was delivered and he was attempting to open it. Wagner had previously pled guilty to the charge on September 25, 2015.
The case was investigated by the United States Postal Inspection Service and the Illinois State Police Metropolitan Enforcement Group of Southwestern Illinois. The case was prosecuted by Special Assistant United States Attorneys Vanessa T. Lu and Alex Boykin.
Former Manchester Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
CONCORD, N.H. – Okello Odongo, 36, of Snellville, Georgia, pleaded guilty in United States District Court for the District of New Hampshire to 19 counts of filing false tax returns and fraudulently obtaining tax refunds reports United States Attorney Emily Gray Rice.
Odongo is a former resident of Manchester, New Hampshire, where he operated a tax return preparation business called Tax Smart Solutions Co. As a tax preparer, Odongo was authorized by the IRS to file tax returns electronically for his customers. One of the forms he filed electronically was an Allocation of Refund Form that instructed the IRS to directly deposit refunds into specified bank accounts. The form allowed a refund to be allocated to two or more bank accounts.
In 2011 and 2012 Odongo filed false tax returns on behalf of some of his customers that fraudulently overstated the amounts of the tax refunds they were entitled to claim. Odongo also filed Allocation of Refund Forms that directed the IRS to electronically deposit the fraudulent portions of the refunds to bank accounts Odongo held or had access to. None of Odongo’s customers knew that he used their doctored tax returns as a vehicle to defraud the IRS.
The statutory maximum for each of the 19 charges Odongo pleaded guilty to is five years in prison. A sentencing hearing has been scheduled for June 22, 2016. The court will sentence Odongo after it has reviewed and considered a presentence investigation report prepared by the United States Probation Office.
This case was investigated by the Internal Revenue Service, Criminal Investigations. It is being prosecuted by Assistant United States Attorney Mark S. Zuckerman.
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Former Head of Offshore Brokerage Sentenced to 18 Years for Conspiracy to Commit International Stock Fraud and Money LaunderingRead the Press Release
A California man was sentenced to 216 months in prison today for two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Harold Bailey Gallison II, 58, of Valley Center, California, pleaded guilty on Dec. 10, 2015, and was sentenced by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia, who also ordered Gallison to pay $1,724,770 in restitution. Gallison was charged in an indictment unsealed on July 14, 2015, along with eight other individuals for their roles in complex international stock manipulation and money laundering schemes.
In his guilty plea, Gallison admitted that he conspired to artificially “pump” or inflate the trading volume and price of the shares of Warrior Girl Corp., quoted on the OTC market under the ticker symbol WRGL, and Everock Inc., quoted on the OTC market under the ticker symbol EVRN, by touting business activities and deceptive revenue forecasts and by engaging in coordinated trading activity to create the appearance of increasing market demand. Gallison also admitted that he and others then “dumped” or sold the shares at the inflated prices and laundered proceeds through bank accounts in the United States and overseas. Gallison facilitated the schemes through an offshore brokerage and money laundering platform that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively Moneyline), he admitted. According to the plea, through Moneyline, Gallison created nominee accounts in the names of shell companies to conceal both the true source and ownership of the securities and the flow of funds. In addition, Gallison pleaded guilty to one count of conspiring to launder the proceeds of a number of securities fraud schemes, including Warrior Girl and Everock, totaling more than $25 million.
The FBI’s Washington Field Office is investigating the case. Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kosta S. Stojilkovic of the Eastern District of Virginia are prosecuting the case. The Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs also provided significant assistance.
Former Head of Offshore Brokerage Sentenced for Conspiracy to Commit International Stock Fraud and Money LaunderingRead the Press Release
ALEXANDRIA, Va. – Harold Bailey Gallison II, 58, of Valley Center, California, was sentenced today to 18 years in prison for two counts of conspiracy to commit wire fraud and one count of conspiracy to commit international money laundering in connection with an international “pump and dump” scheme involving stocks traded on the over-the-counter (OTC) market. Gallison was also ordered to forfeit more than $1.7 million.
Gallison pleaded guilty on Dec. 10, 2015. According to court documents, Gallison admitted that he conspired to artificially “pump” or inflate the trading volume and price of the shares of Warrior Girl Corp., quoted on the OTC market under the ticker symbol WRGL, and Everock Inc., quoted on the OTC market under the ticker symbol EVRN, by touting business activities and deceptive revenue forecasts and by engaging in coordinated trading activity to create the appearance of increasing market demand. Gallison also admitted that he and others then “dumped” or sold the shares at the inflated prices and laundered proceeds through bank accounts in the United States and overseas. Gallison facilitated the schemes through an offshore brokerage and money laundering platform that went by various names, including Sandias Azucaradas, Moneyline Brokers and Trinity Asset Services (collectively Moneyline), he admitted. According to the plea, through Moneyline, Gallison created nominee accounts in the names of shell companies to conceal both the true source and ownership of the securities and the flow of funds. In addition, Gallison pleaded guilty to one count of conspiring to launder the proceeds of a number of securities fraud schemes, including Warrior Girl and Everock, totaling more than $25 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Kosta Stojilkovic, Senior Trial Attorney N. Nathan Dimock and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorneys James P. Gillis and G. Zachary Terwilliger assisted in the prosecution. The FBI’s Washington Field Office investigated the case, while the Securities and Exchange Commission, the Financial Industry Regulatory Authority and the Criminal Division’s Office of International Affairs provided significant assistance.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-178.
Former Executive of Defense Contractor Sentenced to 63 Months in Prison for $30 Million Fraud SchemeRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – March 18, 2016
SAN DIEGO – Alex Wisidagama, a former executive of a Singapore-based defense contracting firm Glenn Defense Marine Asia, was sentenced to 63 months in prison today for his participation in a fraud scheme that over-billed the U.S. Navy by more than $34 million for ship husbanding services.
Wisidagama, 42, of Singapore, the former global manager for government contracts of Glenn Defense Marine Asia (GDMA), was sentenced today by U.S. District Judge Janis L. Sammartino. In addition to imposing the prison term, Judge Sammartino ordered Wisidagama to pay $34.8 million in restitution to the Navy.
In March 2014, Wisidagama pleaded guilty to one count of conspiracy to submit false claims for payment. He is the third defendant to be sentenced in a massive fraud and corruption scheme involving GDMA, which provided port services to U.S. Navy ships in the Asia-Pacific region.
According to admissions made as part of his plea agreement, Wisidagama and his cousin, GDMA CEO Leonard Glenn Francis, 51, of Malaysia, perpetrated a scheme to defraud the U.S. Navy on ship husbanding contracts by, among other things, over-billing for the sale of goods, fuel and port tariffs. Records show that GDMA’s contracts with the U.S. Navy allowed it to sell certain categories of supplies for which GDMA was the lowest bidder. To make it appear that GDMA’s prices were competitive, Wisidagama and others created false price quotations purporting to be from third-party vendors and submitted them to the U.S. Navy, he admitted. Because the contracts forbade GDMA from making up the price of fuel that it supplied to U.S. Navy ships, Wisidagama admitted that he and his conspirators created false invoices purporting to show that GDMA paid more to purchase fuel than was actually the case, which allowed GDMA to build undisclosed markups into the prices at which it supplied fuel to the U.S. Navy. According to the plea, GDMA inflated the cost of port tariff expenses that it passed on to GDMA, despite the fact that the contracts did not allow GDMA to mark up these items.
Wisidagama admitted that in October 2011, GDMA charged the U.S. Navy $2,739,351.49 to service the USS Mustin during a port visit to Thailand, $1,593,766.75 of the charges were fraudulent. Wisidagama admitted that the scheme caused more $34 million in total losses to the U.S. Navy.
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Malaki, Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; and on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; the others await sentencing.
NCIS, DCIS and the Defense Contract Audit Agency are conducting the ongoing investigation. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline or call (800) 424-9098.
DEFENDANT Case Number: 13cr4043-JLS
Alex Wisidagama 42 Singapore
SUMMARY OF CHARGES
Conspiracy to Defraud the United States in violation of 18 USC 286
Maximum of 10 years in prison; a maximum $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Former Executive of Defense Contractor Sentenced to 63 Months in Prison for $30 Million Fraud SchemeRead the Press Release
A former executive of a Singapore-based defense contracting firm was sentenced to 63 months in prison today for his participation in a fraud scheme that over-billed the U.S. Navy by more than $34 million for ship husbanding services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Special Agent in Charge Chris D. Hendrickson of the Defense Criminal Investigative Service’s (DCIS) Western Field Office and Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
Alex Wisidagama, 42, of Singapore, the former global manager for government contracts of Glenn Defense Marine Asia (GDMA), was sentenced today by U.S. District Judge Janis L. Sammartino of the Southern District of California. In addition to imposing the prison term, Judge Sammartino ordered Wisidagama to pay $34.8 million in restitution to the Navy. In March 2014, Wisidagama pleaded guilty to one count of conspiracy to submit false claims for payment. He is the third defendant to be sentenced in a massive fraud and corruption scheme involving GDMA, which provided port services to U.S. Navy ships in the Asia-Pacific region.
According to admissions made as part of his plea agreement, Wisidagama and his cousin, GDMA CEO Leonard Glenn Francis, 51, of Malaysia, perpetrated a scheme to defraud the U.S. Navy on ship husbanding contracts by, among other things, over-billing for the sale of goods, fuel and port tariffs. Records show that GDMA’s contracts with the U.S. Navy allowed it to sell certain categories of supplies for which GDMA was the lowest bidder. To make it appear that GDMA’s prices were competitive, Wisidagama and others created false price quotations purporting to be from third-party vendors and submitted them to the U.S. Navy, he admitted. Because the contracts forbade GDMA from making up the price of fuel that it supplied to U.S. Navy ships, Wisidagama admitted that he and his conspirators created false invoices purporting to show that GDMA paid more to purchase fuel than was actually the case, which allowed GDMA to build undisclosed markups into the prices at which it supplied fuel to the U.S. Navy. According to the plea, GDMA inflated the cost of port tariff expenses that it passed on to GDMA, despite the fact that the contracts did not allow GDMA to mark up these items.
Wisidagama admitted that in October 2011, GDMA charged the U.S. Navy $2,739,351.49 to service the USS Mustin during a port visit to Thailand, $1,593,766.75 of the charges were fraudulent. Wisidagama admitted that the scheme caused more $34 million in total losses to the U.S. Navy.
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Malaki, Commander Michael Vannak Khem Misiewicz, Captain Daniel Dusek, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense (DoD) civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; and on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; the others await sentencing.
NCIS, DCIS and the Defense Contract Audit Agency are conducting the ongoing investigation. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California are prosecuting the case.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD Hotline at www.dodig.mil/hotline or call (800) 424-9098.
Former Correctional Officer Sentenced for Sexually Assaulting A Federal InmateRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Samuel A. Hart, a former Correctional Officer of Escambia County Detention Center, was sentenced today before the Honorable District Court Judge Kristi Dubose for sexually assaulting a federal inmate.
Hart, who has no other criminal history, appeared before the Court today for his sentencing hearing. The defense argued that Hart has a low chance of recidivism due to his lack of criminal history. The United States argued that Hart abused his position of trust by engaging in sexual conduct with an inmate in his custody. This conduct, according to the United States, should not occur regardless of one’s circumstances. Hart had only been on the job for eighteen (18) days before he committed this crime. While engaging in his official duties, he decided to engage in sexual intercourse with an inmate during transport. Additionally, he had the federal inmate perform oral sex on him. Hart was terminated from employment as a Correctional Officer.
After hearing the arguments from both sides, the Court sentenced Hart to a split sentence, which consists of five (5) months in custody and five (5) months home confinement. He is required to pay the cost for the electronic monitoring during his home confinement. Moreover, the court sentenced Hart to a five (5) year term of supervised release, during which he will be subjected to several terms and conditions as imposed by the court. He is also required to pay $100 special assessment. As a result of this conviction, Hart is also required to register as a sex offender.
This case was investigated by the United States Marshal Service and prosecuted by Assistant United States Attorneys Suntrease Williams-Maynard and George May.
Former CPA Sentenced to Prison for Fraudulently Conducting ERISA AuditsRead the Press Release
PHOENIX, – On March 16, 2016, Michael Edelen, 64, of Phoenix, Ariz., was sentenced by U.S. District Judge Humetewa to 24 months in prison, followed by 3 years of supervised release, and was ordered to pay $459,308 in restitution to 45 victims. In October of 2015, Edelen had previously pleaded guilty to conspiring to make false statements in audit documents required by ERISA pension plans and conspiring to commit mail and wire fraud.
Michael Edelen, operating as Retirement Plan Auditors, Ltd., and several other entities, performed audits of retirement plans covered by ERISA as a CPA licensed in several states. After he lost his licenses, he continued to perform the audits and to sign audit reports required by ERISA to be signed by a CPA. During 2011 and 2012, Edelen conducted audits for 45 companies and submitted reports to the U.S. Secretary of Labor falsely claiming the retirement plans were audited by a CPA. He collected $459,308 from the victim companies, all of which believed Edelen was a licensed CPA.
“Our office will continue to prosecute those who conspire to falsely represent clients in any type of financial transactions,” said Acting U.S. Attorney Elizabeth A. Strange. “I want to thank our partner agencies for their commitment to investigating these types of public trust crimes.”
“CPAs represent the first line of defense for plan participants. We are grateful to the USAO Arizona in joining with us in our resolve to keep that line strong and remove unqualified practitioners who threaten the integrity of our system,” said Ian Dingwall, Chief Accountant for the Department of Labor, Employee Benefits Security Administration.
“The US Postal Inspection Service will continue to partner with fellow law enforcement agencies to bring those to justice who use our nation’s mail system to commit fraud,” said Postal Inspector in Charge Keith Fixel. “The US Postal Inspection Service remains dedicated to our mission to protect the US Postal Service, secure the nation’s mail system, and ensure public trust in the mail.”
Charlotte Anne Viterbo, also formerly a CPA, separately had pleaded guilty to a federal fraud charge for her role in the offenses, and she was sentenced by U.S. District Judge Snow on Jan. 11, 2016, to 3 years of probation, and was ordered to pay $24,000 in restitution. Both Edelen and Viterbo agreed as part of their plea agreements to refrain from future professional involvement with ERISA plans and to refrain from seeking reinstatement of their CPA licenses.
The investigation in this case was conducted by the U.S. Department of Labor and the U.S. Postal Inspection Service. The prosecution was handled by Peter Sexton and Monica Klapper, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-15-1318-PHX-DJH; CR-15-1320-PHX-GMS
RELEASE NUMBER: 2016-022_ Edelen et al
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Fairfax Woman Sentenced for Embezzling $653,000 from Virginia State SenatorRead the Press Release
ALEXANDRIA, Va. – Linda Diane Wallis, aka Lynn Wallis Miller, 51, of Fairfax, was sentenced today to 56 months in prison for her role in three fraud schemes totaling over $1.4 million in losses, including embezzling $653,000 from Virginia State Senator Richard Saslaw’s campaign fund. Wallis was also ordered to pay restitution in the amount of $1,429,599.
“Those who abuse a position of public and private trust by engaging in sophisticated fraud schemes will be held accountable for their actions,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This prosecution should serve as a deterrent to anyone contemplating similar theft for their own benefit.”
Wallis pleaded guilty on Oct. 15, 2015. According to court documents, Wallis participated in three separate fraud schemes from in or around January 2013 through in or around February 2014. In the first scheme, Wallis, along with a co-conspirator, D.M., created two fraudulent companies, the first known as Federal Legal Associates, and the second was The Straile Group. Through various methods including fraudulent wire transfers and checks, Wallis caused approximately $368,400 in loss to Company A.
The second scheme involved the embezzlement of approximately $653,000 from the campaign account of Senator Saslaw. From June 2013 to September 2014, Wallis served as the treasurer of the Saslaw for State Senate campaign. During that time, Wallis issued or caused to be issued, approximately 73 fraudulent checks from the Saslaw for State Senate campaign bank account, which totaled approximately $653,000. Wallis made the checks payable to the aforementioned Federal Legal Associates, The Straile Group, and herself. All of the checks were issued without knowledge or permission of Senator Saslaw or his campaign staff, and were deposited into accounts she independently controlled or that were jointly controlled with co-conspirator D.M.
The third scheme involved misuse of funds from a charitable organization, of which Wallis was Executive Director, and co-conspirator D.M., co-founded. The Community College Consortium on Autism and Intellectual Disabilities (CCCAID) claimed to provide assistance to community colleges for program development and implementation and information on the availability of resources for sustainability of programs. Wallis and D.M. marketed CCCAID as a non-profit entity, but they never applied for non-profit status for the organization. In April 2010, Wallis established CCCAID’s bank account, and between April 2010 and April 2013, community colleges located around the country contributed approximately $293,000 to CCCAID. Additionally, a Bulgarian businessman associated with co-conspirator D.M. donated $500,000 to CCCAID. The funds contributed to CCCAID were to be used to further the mission of the organization and not to enrich Wallis or co-conspirator D.M. Despite these restrictions, from April 2010 to August 2014, Wallis authorized approximately $482,000 in transfers from CCCAID’s account to other bank accounts Wallis and co-conspirator D.M. controlled. A significant percentage of the $482,000 CCCAID was used to pay Wallis’ and co-conspirator D.M.’s personal expenses, such as mortgage payments, expenses related to food and restaurants, merchandise purchases, and a vacation.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T.S. Ellis III. Assistant U.S. Attorney Uzo Asonye 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. 1:15-cr-285.
Fairbanks Man indicted by Federal Grand Jury for being a felon in possession of firearmsRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Fairbanks man has been indicted by a federal grand jury in Anchorage for possessing firearms as a convicted felon.
J Cobb Whitmore, 37, of Fairbanks, Alaska, was charged in a one count indictment.
The indictment alleges that Whitmore B a two-time felon B illegally possessed two firearms on November 19, 2015. Whitmore was convicted of felony assault in 2000 and, again, in 2015 by the State of Alaska’s Fourth Judicial District, Superior Court, based in Fairbanks.
Assistant U.S. Attorney Andrea Hattan, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both, for the charged offense. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshal Service, both branches of the Department of Justice, and the Alaska State Troopers conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
El Salvador Man Sentenced to Prison for Assault of Border Patrol AgentRead the Press Release
TUCSON, Ariz. –Wilmer Noe Velasquez-Mejia, 35, from El Salvador, was sentenced yesterday by U.S. District Judge James A. Soto to serve 13 months in prison for assault of a federal officer. Velasquez-Mejia had previously pleaded guilty to this offense.
On Aug. 26, 2015, while illegally in the United States after having been deported on previous occasions, Velasquez-Mejia was attempting to break into occupied vehicles stopped at an intersection near Three Points, Ariz. The victim, a United States Border Patrol agent, responded to the intersection to assist. Upon seeing the Border Patrol agent, Velasquez-Mejia ran away and ignored his instructions to stop. The victim pursued Velasquez-Mejia, who repeatedly resisted and struggled with the victim and continued to run from him. At one point during the struggle Velasquez-Mejia charged at the victim and gestured as if he had a firearm concealed under his clothing, repeatedly challenging the victim to kill him. Velasquez-Mejia then jumped into a nearby car through an open window. The driver was able to force Velasquez-Mejia out of the car, at which point the victim was finally able to arrest Velasquez-Mejia.
The investigation in this case was conducted by the United States Border Patrol. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-15-1712-TUC-JAS
RELEASE NUMBER: 2016-021_Velasquez-Mejia
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Drug Dealers Sentenced for Role in Cairo Cocaine and Crack Cocaine OperationRead the Press Release
Eddie Lee Perry, age 43, of Cairo, Georgia, Joseph Davenport, age 52, of Thomasville, Georgia, and Brandon Perry, age 22, of Cairo, Georgia were sentenced March 17, 2016 by the Honorable W. Louis Sands in Albany, Georgia. Mr. Eddie Perry was sentenced to serve 240 months in federal prison. Based on his multiple prior cocaine convictions, Mr. Davenport has been sentenced to mandatory life imprisonment. Mr. Brandon Perry received 18 months and credit for time served. Chad Ragin was not sentenced today.
Evidence presented at trial in August 2015 showed that during 2013, Eddie Lee Perry, Joseph Davenport, and Chad Ragin were part of a criminal organization that distributed cocaine and crack cocaine in Cairo, Georgia. Mr. Ragin acted as a courier of drugs and money between Mr. Perry and Roger Ross, of the Miami, Florida area. Mr. Davenport “cooked” the powder cocaine, converting it into crack cocaine. The organization was responsible for trafficking/distributing kilogram quantities of cocaine.
Roger Ross was sentenced in October 2015 to 30 years imprisonment, followed by a term of supervised release of 8 years.
Brandon Perry entered a guilty plea on November 17, 2015.
The case was investigated by the Thomas County Vice/Narcotics Squad, the Thomasville Police Department, the Grady County Sheriff’s Office, the Cairo Police Department, the Pelham Police Department, the Georgia State Board of Pardons and Paroles District Office and the U.S. Drug Enforcement Administration. Assistant United States Attorney Leah E. McEwen prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
District Man Sentenced to 22 Years in Prison for Sexual Abuse of 13-Year-Old DaughterRead the Press Release
WASHINGTON – A 34-year-old man from Washington, D.C. was sentenced today to 22 years in prison on a charge of first-degree child sexual abuse with aggravating circumstances for sexually abusing his 13-year-old daughter, U.S. Attorney Channing D. Phillips announced.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty in November 2015 in the Superior Court of the District of Columbia. The plea, which was contingent upon the Court’s approval, called for a prison sentence between 9 ½ and 23 years. The Honorable Jennifer Anderson accepted the plea today and sentenced the defendant accordingly. Following completion of his prison term, the man will be placed on 10 years of supervised release. He also must register as a sex offender for 10 years upon his release.
According to the government’s evidence, the abuse occurred between July 19 and July 27, 2014 in Southeast Washington. The defendant, who is the victim’s father, was watching television with her in the defendant’s room. The defendant removed the victim’s pants and underwear, and sexually assaulted her. Afterwards, he apologized to the victim, promising that he wouldn’t sexually abuse her again.
The defendant, who left the Washington, D.C. area, was arrested by the U.S. Marshals Service in New York City on Sept. 10, 2015. He admitted having had sex with the victim. He also wrote the victim an apology letter, asking her to forgive him.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Youth Investigations Division and of the Deputy U.S. Marshals based in New York. He also commended the efforts of staff from the U.S. Attorney’s Office, including Child Forensic Interview Specialists Tracy Owusu and Karen Giannakoulias; Victim/Witness Advocate Lezlie Richardson; Paralegal Specialist Joyce Arthur, and Assistant U.S. Attorney John L. Hill, who prosecuted the case.
District Man Sentenced to 16 Years in Prison for Stabbing His Ex-GirlfriendRead the Press Release
WASHINGTON – Donta Winslow, 33 of Washington, D.C., was sentenced today to 16 years in prison for stabbing his ex-girlfriend last summer while they were in her car in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Winslow pled guilty in November 2015, in the Superior Court of the District of Columbia, to one count of assault with intent to kill while armed. The plea, which was contingent upon the Court’s approval, called for a prison sentence within the range of 13 to 16 years. The Honorable Michael Ryan accepted the plea today and sentenced Winslow accordingly. After his prison term, Winslow will be placed on five years of supervised release.
According to the government’s evidence, Winslow was previously in a romantic relationship with the victim. She had ended the romantic relationship, however. In the late morning of Aug. 14, 2015, Winslow approached and then got into the victim’s car. At one point, near the intersection of 46th and Meade Streets NE, Winslow forced the victim to pull the car onto a curb. The victim was in the driver’s seat, and Winslow was in the passenger seat.
Winslow took out a knife and stabbed the victim multiple times in the body, including in the back of her neck, back, and chest. The victim was curled down, facing forward in the seat, when Winslow stabbed her. A witness approached the car and confronted Winslow, causing him to get out of the car and run away.
When officers from the Metropolitan Police Department (MPD) responded to the scene, they found the victim motionless on her side. She was transported to the hospital via ambulance. She had approximately 11 stab wounds to her body, and two collapsed lungs. She was admitted to the hospital for almost two months. She has severe spinal cord damage from the stabbing that initially left her paralyzed. Through extensive physical therapy, she has regained some of her motor skills, but remains significantly impaired.
Winslow fled the scene and was apprehended in Washington, D.C., shortly after the incident. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Erica Vample and Joyce Arthur, and Victim/Witness Advocate Meshall Thomas. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
District Man Pleads Guilty to Assaulting His Step-DaughterRead the Press Release
WASHINGTON – A 42-year-old man, formerly of Washington, D.C., pled guilty today to one count of assault with intent to commit first-degree sexual abuse of his 13-year-old stepdaughter, U.S. Attorney Channing D. Phillips announced.
The man, who is not identified here to protect the privacy of the victim, pled guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a seven-year prison sentence. The Honorable Michael Ryan set a hearing for May 20, 2016 to determine whether the plea and sentence will be accepted.
According to the government’s evidence, sometime between May and October of 2015, the victim and her younger sibling would spend weekends at the defendant’s home in Northwest Washington On one occasion during that time-frame, the defendant told the victim to remove all of her clothes. At that time, he had a belt in his hand and threatened to beat the girl if she did not comply. Out of fear, she complied, whereupon the man sexually assaulted her. The man was arrested on Feb. 6, 2016, after the abuse came to light, and has been in custody ever since.
In announcing the plea, U.S. Attorney Phillips praised the work of detectives from the Metropolitan Police Department’s Youth Investigations Division, which investigated the case; and of personnel from Safe Shores, who forensically interviewed the victim and her younger sibling. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist D’Yvonne Key; Child Forensic Interview Specialist Karen Giannakoulias, and Victim/Witness Advocate Tracey Hawkins. Finally, he commended Assistant U.S. Attorneys Jessica Brooks and Peter V. Taylor, who investigated and prosecuted this case.
Crystal Falls Businessman Sentenced for Distribution of Child PornographyRead the Press Release
MARQUETTE, MICHIGAN — Stephen John Plowe, 62, of Menasha, Wisconsin was sentenced to 120 months in federal prison for distribution of child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge Robert Holmes Bell ordered Plowe to serve five years of court supervision following his release from prison, to pay a $100 special assessment, and to pay $12,000 to victims of his crime. Plowe will also be required to register as a sexual offender.
On December 14, 2015, Plowe pleaded guilty to a federal felony charge of distributing child pornography. Plowe’s activities came to light through three separate undercover investigations in which officers, posing as 13 to 14 year-old girls, conversed with him using Yahoo! Internet Messenger. In these online conversations, Plowe engaged in explicit sexual talk and sent child pornographic images to the undercover officers. The investigation revealed that Plowe was using a computer located at Plowe Furniture in Crystal Falls, Michigan. Investigators, armed with a federal search warrant, seized the computer and the contents of Plowe’s Yahoo! accounts. A forensic examination of the computer and Plowe’s Yahoo! accounts revealed Plowe’s possession of approximately 1,100 images and 118 videos containing child pornography. Plowe admitted engaging in online conversations with underage females, receiving nude images from them, and sending child pornography videos and images for approximately eight years.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov.
Immigration and Customs Enforcement, Homeland Security Investigations, the Federal Bureau of Investigation, the Somervell County, Texas Sheriff Department, the Bay County, Florida Sheriff Department, and the Macomb County, Michigan Sheriff Department investigated the case. The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.
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