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14 March 2016
Illinois Woman Sentenced to Probation for Using Counterfeit Credit CardsRead the Press Release
PITTSBURGH - A resident of Bolingbrook, Illinois, has been sentenced in federal court to a term of three years of probation and restitution in the amount of $25,310.26 on her conviction of conspiracy and using unauthorized access devices, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Monique S. Morris, 33, of Bolingbrook, Illionois.
According to information presented to the court, on or about August 9, 2013, Morris used counterfeit credit cards to make purchases in excess of $1,000 at a high-end Pittsburgh retail store.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Morris.
Huntington felon and Charleston heroin dealer sentenced to prison for Federal crimesRead the Press Release
HUNTINGTON, W.Va. – Two men were sentenced today on federal charges, announced Acting United States Attorney Carol Casto. Semaj Markes Leondre Figg, 24, of Huntington, was sentenced to two and a half years in federal prison for being a felon in possession of a firearm. In a separate prosecution, Anthony Lamar Jordan Honeycutt, 35, of Charleston, was sentenced to two years and three months in federal prison for possession with intent to distribute heroin.
Figg previously pleaded guilty in December 2015. He admitted that on April 29, 2015, he was arrested by members of the Huntington Police Department on a warrant for a parole violation. At the time of his arrest, officers found Figg in possession of a CZ Model 52, 7.62 x 25 caliber pistol. Figg was prohibited from possessing any firearm under federal law because of a 2014 felony conviction in Cabell County Circuit Court for conspiracy to deliver cocaine.
Honeycutt previously pleaded guilty in December 2015, and admitted that on December 16, 2014, drug task force officers working with the Metropolitan Drug Enforcement Network Team stopped him in downtown Charleston. Honeycutt was on his way to deliver heroin to a confidential informant working with law enforcement. Officers found Honeycutt in possession of approximately 42 grams of heroin at the time of his arrest.
The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of Figg. Assistant United States Attorney Timothy D. Boggess handled the prosecution of Figg. The investigation of Honeycutt was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Joshua Hanks is in charge of the prosecution of Honeycutt. Chief United States District Judge Robert C. Chambers imposed the sentences.
The prosecution of Figg is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
The Honeycutt case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Harrisburg Man Sentenced to Six Months in Prison for Defrauding the IRS of $337,000Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hung Danh, age 55, Harrisburg, Pennsylvania, was sentenced to six months in prison by U.S. District Court Judge John E. Jones, III, in Harrisburg for a conspiracy to evade $337,000 in employment taxes in connection with his operation of an employee leasing business known as HD Staffing.
In addition, Danh was ordered to pay restitution to the IRS in the amount of $337,302 and serve three years supervised release. Danh was ordered to surrender to the Bureau of Prisons on March 28, 2016 to commence service of his sentence.
According to U.S. Attorney Peter Smith, Danh helped operate an employee leasing business between 2009 and 2010, known as HD Staffing. HD Staffing provided laborers to various businesses throughout the Harrisburg area and failed to withhold payroll taxes from the laborers’ wages.
Employers are required to withhold income taxes from employee wages based on the number of allowances on the employees’ W-4 Form. Employers are also required to withhold FICA taxes from their employees’ wages at the FICA tax rate and remit those payments, along with the employee’s matching FICA tax, when they file their Employer’s Quarterly Federal Income Tax Return-Form 941.
Danh admitted he conspired with two other previously convicted individuals to evade these employment taxes for HD Staffing. Danh was indicted in July 2014 along with two other individuals and remained a fugitive until he was detained by U.S. Customs authorities entering the country on July 12, 2015 at JFK airport.
On March 23, 2015, Vanny Son, age 34, of Harrisburg, was sentenced to 37 months’ imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy. On March 24, 2015, Son Thach, age 56, of Harrisburg, was sentenced to one month imprisonment and ordered to pay $682,897 in restitution to the IRS for his role in the conspiracy.
The case was investigated by the Criminal Investigation Division of the IRS and was prosecuted by Assistant United States Attorney Bruce Brandler, Chief of the Criminal Division.
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Grand Prairie Man Sentenced to 10 Years in Federal Prison on Money Laundering ConvictionRead the Press Release
FORT WORTH, Texas — Hao Tran, 37, of Grand Prairie, Texas has been sentenced by U.S. District Judge John McBryde to 120 months in federal prison, following his guilty plea in November 2015 to one count of money laundering, announced U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, Tran purchased a $150,000 cashier’s check using money that came from his illegal drug trafficking business that he had been operating between California and Texas.
Tran, who has been in custody since August 2015 on a related federal criminal complaint, was also ordered to forfeit to the government property that he acknowledged was traceable to his money laundering activities, including of a parcel of land in Grand Prairie; seven vehicles, including a Bentley Continental, two Mercedes Benz, and a Hummer H2; as well as jewelry and cash.
The case was investigated by Internal Revenue Service Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Brian Poe was in charge of the prosecution.
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Gang Member Sentenced to 34 Years in Prison for RICO ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Douglas Ashby, 29, of Newport News, was sentenced today to 412 months in prison for a racketeering conspiracy. Ashby’s sentence will run consecutive to a 10 year sentence on an earlier federal firearms conviction.
Ashby plead guilty on Nov. 12, 2015. According to court documents, Ashby was a member of the Newport News street gang “Thug Relations”, which engaged in the distribution of marijuana and crack cocaine. The gang established dominance over the drug trade in its territory through violence and intimidation, which included physical assaults, home invasions, and numerous shootings, some of which resulted in murders. In particular, Ashby admitted his involvement in the murder of Aaron Sumler, because the victim and a friend had been selling cocaine in the area of Aqueduct Apartments, which was part of Thug Relations territory. Further, Ashby participated in two other home invasion robberies or attempted robberies which resulted in the wounding of one victim and the death of another caused by another robbery participant. Ashby also participated in two additional shooting incidents.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General for the U.S. Department of Justice’s Criminal Division; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Howard J. Zlotnick, Lisa R. McKeel, Brian Samuels, and Trial Attorney Yvonne L. Garcia of the Criminal Division’s Organized Crime and Gang Section 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. 4:14-cr-59.
Former Prison Guard Sentenced for Smuggling ContrabandRead the Press Release
PHILADELPHIA – Joseph Romano, 31, previously employed at The Philadelphia Industrial Correctional Center (“PICC”) and the Riverside Correctional Facility, was sentenced today to 30 months in prison for attempted extortion which interfered with interstate commerce and two counts of attempted distribution of controlled substances. In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered a $1,000 fine, three years of supervised release, and a $200 special assessment.
Romano agreed to deliver OxyContin pills to a prisoner in exchange for $1,000. To obtain the contraband and payment, Romano arranged a meeting with the inmate’s purported associate at locations in Philadelphia. During the ensuing meeting, the inmate’s purported associate handed the contraband and cash payment to Romano, and Romano subsequently smuggled the contraband past prison security and delivered it to an inmate.
The case was investigated by the FBI and the Philadelphia Department of Corrections with assistance from the Philadelphia Police Department’s Prison Intelligence Group. It is being prosecuted by Assistant United States Attorney Kevin Brenner.
Former Owner of Virginia Beach Used Car Dealership Pleads Guilty to Defrauding Navy Federal Credit UnionRead the Press Release
NORFOLK, Va. – Andysheh Ayatollahi, 36, formerly of Virginia Beach, pleaded guilty today to charges of conspiracy to commit financial institution fraud and filing a false tax return.
According to a statement of facts filed with the plea agreement, in July 2007 Ayatollahi purchased a 50 percent interest in the Car Store, a used car dealership located in Virginia Beach. From then until May 2008, when the Car Store closed, Ayatollahi conspired with others, including Car Store personnel, to defraud Navy Federal Credit Union (NFCU). Ayatollahi and his co-conspirators engaged in fraudulent practices that included using individuals as straw buyers/borrowers to apply to NFCU for car loans because the actual buyers were not sufficiently creditworthy to qualify for a car loan. Ayatollahi also submitted fraudulent car loan applications to NFCU with false supporting documents; made telephone calls to NFCU impersonating buyers applying for car loans; provided false employer telephone numbers to NFCU and then impersonated the employer while verifying the applicant’s employment and wages; and fraudulently inflated the true purchase price of vehicles and split the excess with the buyers. In total, Ayatollahi fraudulently caused NFCU to issue 61 car loans with a total loan amount of $1,168,904.97. Most of these loans went into default, resulting in a loss to NFCU of approximately $867,448.43. Additionally, Ayatollahi filed false tax returns with the IRS that underreported his income for tax years 2005-2007, resulting in a tax loss of $113,093.
Ayatollahi will be sentenced on July 13, 2016, and faces a maximum penalty of 30 years in prison on the financial institution fraud charge and three years in prison on the charge of filing a false tax return. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney Alan M. Salsbury is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:10cr15.
Former Bald Knob Police Chief Pleads Guilty to Gun CrimeRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Jeffrey Reed, Resident Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and Col. William J. Bryant of the Arkansas State Police, announced today that former Bald Knob Police Chief Erek Balentine, 31, of Bald Knob, pled guilty to a felony Information charging him with possessing a stolen firearm. In addition, he agreed to personally pay more than $12,000 in restitution relating to an incident in which his personal truck burned shortly prior to his resignation from the police department.
Today’s plea hearing took place in Little Rock before United States District Judge Brian S. Miller. Judge Miller will sentence Balentine at a later date.
Balentine’s final day as Bald Knob police chief was October 5, 2015. In spring 2015, Balentine had a conversation with a former White County police officer who was interested in donating a shotgun to the Bald Knob Police Department. Bald Knob was attempting to raise money for a K-9 unit for the department, and the purpose of this firearm donation was to auction off the shotgun to obtain funds to retrofit a police car with a cage to hold the K-9 unit.
The former officer purchased the shotgun, a Beretta, Model A300, 12-gauge shotgun, for $1,199 and had it shipped to All Star Pawn in Bald Knob, a federal firearm licensee. The donor intended for All Star Pawn to hold the shotgun and make a legal transfer to the winner of the auction, after the police department had the funds. At no time was Balentine or anyone authorized to keep the shotgun for personal use prior to the auction.
On October 2, 2015, the last business day he was still police chief, Balentine retrieved the Beretta shotgun from All Star Pawn. On October 14, 2015, Arkansas State Police Corporal Mike McNeill received information that Balentine was attempting to sell the shotgun, which was still police property, to an individual with whom Balentine was acquainted. Earlier that day, Balentine sent this acquaintance a text message with a picture of the Beretta shotgun, still in its case, which stated, "brand new, I will take $800 for it." Balentine also said that he needed the money for personal reasons.
After this communication agents observed Balentine go to his residence in Bald Knob and retrieve what appeared to be a gun in its case and proceed toward the location of the proposed gun transaction. Cpl. McNeill and ATF Special Agent David Oliver then initiated a traffic stop on Balentine, at which time he admitted he had a gun in the car. The shotgun was never auctioned.
During the plea hearing, in addition to admitting to the facts of the stolen firearm, Balentine did not contest facts offered by the United States to support a restitution payment of $12,968.71 to Progressive Insurance related to a fraudulent insurance claim for a vehicle fire. This restitution is designed to repay Progressive for insurance payments from the fire which destroyed Balentine’s 2007 Dodge Ram pickup truck.
The fire occurred at Balentine’s residence on September 24, 2015, and was immediately determined to be arson. At Monday’s plea hearing the United States—in providing a factual basis for the proposed restitution order—presented numerous examples of evidence which suggest that Balentine was a participant in causing the fire which resulted in the damage to his truck. The United States informed Judge Miller that it would not pursue charges before a Grand Jury for arson and mail fraud, and Balentine agreed to repay as restitution the money Progressive paid as a result of Balentine’s fraudulent insurance claim.
The charge of possession of a stolen firearm carries a maximum sentence of up to 10 years in prison, a $250,000 fine, and three years of supervised release. The investigation was conducted by the Arkansas State Police and the ATF. The case is being prosecuted by Assistant United States Attorney Chris Givens.
Federal Jury Convicts Studio City Man of Credit Card Fraud for Possessing Card Numbers Stolen from Gas Station ‘Skimmers’Read the Press Release
LOS ANGELES – A federal jury has convicted a Studio City man of possessing more than 1,400 credit card profiles that had been stolen from consumers who used gas pumps with “skimmers” that illegally collected their credit card information.
Koren Robert Kechedzian, 24, of Studio City, was convicted on March 11 in United States District Court of two counts of credit card fraud (specifically, two counts of possession of 15 or more counterfeit access devices) and two counts of aggravated identity theft.
At the conclusion of a one-week trial, the jury found that Kechedzian possessed two USB flash drives – which are commonly called “thumb drives” – that contained stolen credit card information. The portable drives were found at Kechedzian’s residence when federal authorities executed a search warrant in June 2013. At that time, investigators also recovered an illegal skimming device designed to be installed in gas station pumps to steal credit card data.
“As credit card thieves use increasingly sophisticated technology to access consumer data, consumers must be more vigilant in protecting their financial information and keeping a close eye on their transactions,” said United States Attorney Eileen M. Decker. “Law enforcement is responding to the increasing use of skimmers by working with businesses to help them secure their equipment and by more aggressively targeting those engaging in identity theft. This case demonstrates our commitment to protect consumers and to punish those who seek to defraud consumers and financial institutions.”
The investigation in this case was conducted by special agents with IRS Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the United States Secret Service.
Special agents testifying at trial said that credit card fraud rings install skimming devices in gas station pumps and obtain credit card numbers from the devices using Bluetooth technology. Customers who use these compromised gas pumps are the unwitting victims of the credit card fraud.
“The incidence of skimming, both here in Los Angeles and nationwide, has reached epidemic proportions and consumers need to very vigilant about any suspicious or unauthorized activity on their accounts,” said Joseph Macias, special agent in charge for HSI Los Angeles. “These types of crimes not only result in major losses for financial institutions and merchants, but can cause a major disruption in consumers’ personal finances. HSI will continue to work closely with its federal and local law enforcement partners to target skimming schemes and the criminal syndicates that typically are behind them.”
Bank records examined by investigators established that the stolen credit cards numbers on the USB flash drives came from Chevron gas stations in Palmdale and Moorpark, and testimony at trial showed that the data on portable drives was consistent with the output from a credit card skimming device.
“As credit card fraud becomes more prevalent, we are increasing our efforts to protect consumers from fraud artists committed to taking the identities of innocent victims,” stated IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “Law enforcement officers respond to credit card fraud with every legal resource available. Let this conviction serve as a warning to those who are considering similar conduct.”
United States District Judge Philip S. Guttierez, who presided over the trial, is scheduled to sentence Kechedzian on June 27, at which time the defendant faces a statutory maximum sentence of 10 years in prison on each of the credit card fraud counts. The charge of aggravated identity theft carries a mandatory consecutive two-year prison term.
Farmington Woman Sentenced to 30 Months in Prison for Mail Fraud and Filing False Tax ReturnsRead the Press Release
CONCORD, N.H. – A 55-year-old resident of Farmington, New Hampshire, Susan Durrance, has been sentenced to 30 months in prison for a mail fraud offense that involved the theft of more than $396,000 from her former employer and three counts of filing false tax returns for failing to report the embezzled funds on her federal tax returns, announced United States Attorney Emily Gray Rice.
Durrance stole $396,212.93 while employed as a bookkeeper for a privately owned appliance store in Wolfeboro and (later) Ossipee, New Hampshire from 2005 to June 2011. Durrance stole the money by issuing checks from the store’s operating account to make payments on her personal credit accounts. For example, in May 2010, Durrance paid for a tractor she purchased for her personal use by causing a $2,999 check drawn on the operating account to be mailed to the tractor’s manufacturer. Durrance also issued checks from the operating account to “Cash” or to herself in amounts that were inconsistent with her salary, which were cashed or deposited to her personal bank account.
In addition, Durrance failed to report the proceeds of her embezzlement scheme on her federal income tax returns for tax years 2005 through 2010. Through this conduct, she evaded paying additional taxes totaling $94,270 to the Internal Revenue Service.
Durrance was ordered to pay restitution to the victim of her crime.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division, the United States Postal Inspection Service, and Carroll County New Hampshire Sheriff’s Office. The case was prosecuted by Senior Litigation Counsel Robert M. Kinsella.
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Evansville, Indiana Man Guilty of Transportation of an Owensboro, Kentucky Minor to Engage in Criminal Sexual ActivityRead the Press Release
OWENSBORO, Ky. – An Evansville, Indiana man pleaded guilty today in United States District Court, before Magistrate Judge H. Brent Brennenstuhl, to the charge of transportation of a minor to engage in criminal sexual activity, announced United States Attorney John E. Kuhn, Jr.
In court, Zachary Andrew Coleman, 28, pleaded guilty to a single count Indictment pursuant to a plea agreement reached with the United States. According to the plea agreement, on or about February 6, 2015, Coleman picked up a twelve year old female from her residence in Owensboro, Kentucky and took her to his home in Evansville, Indiana for the purpose of engaging in criminal sexual activity with her. Coleman communicated with the minor via a social networking site called MyLOL and sent sexually explicit messages to the minor, while claiming to be a teenager himself. Conversations obtained via a search of the minor’s computer show Coleman arranged to pick the minor up at her home for the purposes of transporting her to engage her in sexual activities that would violate Kentucky law.
Coleman was arrested on May 5, 2015 by federal authorities. Coleman faces a statutory mandatory minimum of 10 years and a maximum of life imprisonment, a fine of $250,000, and supervised release of not less than 5 years and not more than life. The sentencing hearing is scheduled to take place in Owensboro on June 9, 2016 at 9:00 CST.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness, and is being investigated by the Federal Bureau of Investigation (FBI) with assistance from the Daviess County, Kentucky Sheriff’s Office, and the Evansville, Indiana Police Department.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Essex County, New Jersey, Woman Admits Leadership Role in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – A Belleville, New Jersey, woman today admitted leading a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.
Victoria Horvath, 43, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging her with conspiracy to distribute oxycodone.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Victoria Horvath as a senior member of the drug trafficking organization.
Horvath admitted that, between Feb. 5, 2014 and Aug. 13, 2014, she personally went to various doctors’ offices and obtained prescriptions for pills containing oxycodone, had the prescriptions filled by various pharmacies, and sold the pills to members of the conspiracy and others. Horvath also drove other conspirators to specific doctors to obtain oxycodone prescriptions, assisted them in getting the prescriptions filled, and helped them sell the pills.
For example, Horvath admitted that she, while working with multiple conspirators, sold 119 oxycodone pills to an undercover law enforcement officer in February 2014 in exchange for $2,020. Horvath also admitted to being an organizer and manager of the conspiracy.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
The charge to which Horvath pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for June 20, 2016.
Of the individuals originally charged with Horvath, Daniel Horvath, 27, Monica Horvath, 22, Johnny Horvath, 46, Tony Marco, 47, and Steven Horvath, 45, all of Rutherford, New Jersey, and Justin Farraj, 24, of Newark, New Jersey have pleaded guilty and await sentencing. Brian Perez, 23, was sentenced to a term of 40 months in prison in September 2014. Luis Rivera, 25, was sentenced to 54 months in prison in August 2015. Charges were dismissed against Belleville pharmacist Vincent Cozzarelli after his death in April 2014. The indictment remains pending against six other conspirators.
U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office in Newark.
Defense counsel: Frank P. Arleo Esq., West Orange, New Jersey
East St. Louis Man Sentenced to Federal Prison for Possession of A Firearm by A FelonRead the Press Release
An East St. Louis man, who pled guilty to possession of a firearm by a felon, was sentenced to 84 months in federal prison on March 10, 2016, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Craig Flowers, 42, of East St. Louis, Illinois, received an 84-month prison sentence for being a felon in possession of a firearm. Following release from imprisonment, Flowers will serve a 3-year term of supervised release. Flowers was also fined $300 and ordered to pay a special assessment of $100. Flowers pleaded guilty to the charge on October 30, 2015.
Flowers was arrested after police went to the door of his girlfriend’s apartment in Belleville, and her son said, "He threw it out the window. He threw the gun out the window."
This case was investigated by the Illinois State Police. The case was prosecuted by Assistant United States Attorney Donald S. Boyce.
EOIR Swears in Eight Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of eight immigration judges. Acting Chief Immigration Judge Print Maggard presided over the investiture during a ceremony held March 11, 2016, at the U.S. Court of Appeals for the Armed Forces in Washington, D.C.
After a thorough application process, Attorney General Loretta E. Lynch appointed Raisa Cohen, Evalyn P. Douchy, D’Anna H. Freeman, Rebecca B. Jamil, Elise M. Manuel, R. Reid McKee, Vernon B. Miles, and Morris I. Onyewuchi to their new positions.
“We are pleased to welcome these appointees to the immigration judge corps,” said Maggard. “We look forward to continuing to hire more qualified people to fill these important positions in public service.”
Biographical information follows.
Raisa Cohen, Immigration Judge, New York City Immigration Court
Attorney General Loretta E. Lynch appointed Judge Raisa Cohen to begin hearing cases in March 2016. Judge Cohen earned a Bachelor of Business Administration in 2002 from Baruch College, City University of New York Zicklin School of Business, and a Juris Doctor in 2007 from St. John’s University School of Law. From September 2015 to February 2016, and previously from April 2009 to September 2014, Judge Cohen served as assistant chief counsel for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security, in New York. From October 2014 to September 2015, Judge Cohen was an attorney at Cohen & Cohen Law Group PC, in New York. From 2007 through 2009, Judge Cohen was an immigration attorney at the Law Firm of Ted Sofer, in New York. Judge Cohen is a member of the New York State Bar.
Evalyn P. Douchy, Immigration Judge, New York City Immigration Court
Attorney General Loretta E. Lynch appointed Judge Evalyn P. Douchy to begin hearing cases in March 2016. Judge Douchy earned a Bachelor of Arts degree in 1992 from Binghamton University and a Juris Doctor in 1995 from New York Law School. From 1997 to February 2016, she served as assistant chief counsel for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security, in New York. From 1996 through 1997, she was an associate at the Law Offices of Anil Jethmalani & Timothy Herrick, in New York. From 1995 through 1996, she was a lawyer at the Law Office of Mark S. Drucker in Jackson Heights, N.Y. Judge Douchy is a member of the New York State Bar.
D’Anna H. Freeman, Immigration Judge, Pearsall Immigration Court
Attorney General Loretta E. Lynch appointed Judge D’Anna H. Freeman to begin hearing cases in March 2016. Judge Freeman earned a Bachelor of Science degree in 1988 from Baylor University, a Master of Public Health in 1995 from the University of Texas Health Science Center, and Juris Doctor in 2004 from the University of Houston Law Center. From 2007 to February 2016, Judge Freeman served in various capacities for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security, including: as assistant chief counsel from 2013 to 2016, in Dallas; as senior attorney from 2010 through 2013, in Livingston, Texas; and as assistant chief counsel from 2007 through 2010, in Eloy, Ariz. From 2006 through 2007, she was a partner at Forrest & Harrison LLC, in Houston. From 2005 through 2006, she served as an attorney at Dunbar, Harden & Benson LLP, in Houston. From 2004 through 2005, she operated the Law Office of D’Anna Harrison, in Houston. Judge Freeman is a member of the State Bar of Texas.
Rebecca B. Jamil, Immigration Judge, San Francisco Immigration Court
Attorney General Loretta E. Lynch appointed Judge Rebecca B. Jamil to begin hearing cases in March 2016. Judge Jamil earned a Bachelor of Arts degree in 1998 from Stanford University and a Juris Doctor in 2006 from the University of Washington Law School. From 2011 to February 2016, Judge Jamil served as assistant chief counsel for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security, in San Francisco. From 2006 to 2011, she served as staff attorney in the Research Unit, Ninth Circuit Court of Appeals, in San Francisco. Judge Jamil is a member of the Washington State Bar.
Elise M. Manuel, Immigration Judge, Newark Immigration Court
Attorney General Loretta E. Lynch appointed Judge Elise M. Manuel to begin hearing cases in March 2016. Judge Manuel earned a Bachelor of Arts degree in 1983 from Northwestern University and a Juris Doctor in 1987 from Georgetown University Law Center. From 1991 to February 2016, Judge Manuel served in various capacities on the Board of Immigration Appeals, Executive Office for Immigration Review, U.S. Department of Justice, including: as a temporary board member from 2012 to 2016; as an attorney-advisor from 2008 through 2012, from 1998 through 2005, and 1991 through 1995; as a team leader from 2005 through 2008; and as a senior panel attorney from 1995 through 1998. From 1987 through 1991, she was a staff attorney for the Legal Assistance Foundation of Chicago. Judge Manuel is a member of the Illinois State Bar.
R. Reid McKee, Immigration Judge, Pearsall Immigration Court
Attorney General Loretta E. Lynch appointed Judge R. Reid McKee to begin hearing cases in March 2016. Judge McKee earned a Bachelor of Arts degree in 1997 from the University of Alabama, a Master of Arts in Social Sciences in 1998 from the University of Chicago, and a Juris Doctor in 2003 from the University of Mississippi School of Law. From 2010 to February 2016, Judge McKee served as assistant chief counsel for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security. From 2009 through 2010, he was the manager of R. Reid McKee PLLC, in Madison, Miss. From 2003 through 2009, he was an associate at Watkins and Eager PLLC, in Jackson, Miss. Judge McKee is a member of the Mississippi and Tennessee Bars.
Vernon B. Miles, Immigration Judge, San Antonio Immigration Court
Attorney General Loretta E. Lynch appointed Judge Vernon B. Miles to begin hearing cases in March 2016. Judge Miles earned a Bachelor of Arts degree in 1980 from the University of Mississippi, a Juris Doctor in 1983 from Howard University School of Law, and a Master of Laws degree in 1992 from the U.S. Army Judge Advocate General’s School. From 1995 to February 2016, Judge Miles served in various capacities for the U.S. Department of Justice, including: as a trial attorney in the Narcotic and Dangerous Drug Section, Criminal Division, from 2014 to February 2016, in Washington, D.C.; as an assistant U.S. attorney in the Office of the U.S. Attorney from 2003 through 2014, in San Juan, Puerto Rico; as an assistant U.S. attorney in the Office of the U.S. Attorney from 1998 through 2003, in Oxford, Miss.; and as a civil appellate trial attorney in the Office of Immigration Litigation from 1995 through 1998, in Washington, D.C. From 1985 through 1994, he served in various capacities in the U.S. Marine Corps, including: as assistant officer-in-charge, defense attorney and prosecuting attorney in the Naval Legal Service Office Detachment from 1992 through 1994, in Roosevelt Roads, Puerto Rico; as deputy staff judge advocate, chief defense counsel and chief legal assistance officer in the 3d Force Service Support Group from 1989 through 1991, in Okinawa, Japan; and as prosecuting attorney, defense attorney and chief legal assistance attorney in the 2d Force Service Support Group from 1985 through 1989, in Cherry Point, N.C. From 1983 to 1985, he served in various capacities for the North Mississippi Rural Legal Services, including as managing attorney and staff attorney. Judge Miles is a member of the Mississippi Bar.
Morris I. Onyewuchi, Immigration Judge, Port Isabel Immigration Court
Attorney General Loretta E. Lynch appointed Judge Morris I. Onyewuchi to begin hearing cases in March 2016. Judge Onyewuchi earned a Bachelor of Arts degree in 1990 from Georgia State University, a Juris Doctor in 2002 from the Thurgood Marshall School of Law, Texas Southern University, and a Master of Studies in International Human Rights Law in 2010 from the University of Oxford in Oxford, U.K. From 2002 to February 2016, Judge Onyewuchi served as assistant chief counsel and trial attorney for U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security. Judge Onyewuchi is a member of the State Bar of Texas.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Dodge City Woman Pleads Guilty to Producing Child PornRead the Press Release
WICHITA, KAN. B A Dodge City woman pleaded guilty Monday to making a video of herself engaged in a sex act with a child under five years old and uploading the video to the Internet, U.S. Attorney Barry Grissom.
Ashley Marie Kelly, 25, Dodge City, Kan., pleaded guilty to one count of producing child pornography. In her plea, she admitted she used a smartphone to record the act and posted the video to her Google Drive account. Google discovered the photographs and sent reports to the National Center for Missing and Exploited Children.
Sentencing is set for June 1. Both parties have agreed to recommend a sentence of 300 months in federal prison. Grissom commended the Ford County Sheriff’s Office, the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
Dodge City Man Pleads Guilty to Transporting Child PornographyRead the Press Release
WICHITA, KAN. - A Dodge City man pleaded guilty Monday to transporting child pornography across state lines, U.S. Attorney Barry Grissom said.
Joel Edward McClure, 36, Dodge City, Kan., pleaded guilty to one count of transportation of child pornography. In his plea, he admitted that in May and August 2015 he used his laptop computer to download and share child pornography with other users via a file sharing network. Investigators followed an electronic trail to McClure’s home in Dodge City, Kan., where they served a search warrant. They learned McClure had left Dodge City with his laptop and gone to Denver. Investigators found McClure with the laptop containing the child pornography.
Sentencing is set for June 1. Both parties have agreed to recommend a sentence of 77 months in federal prison. Grissom commended the Kansas Internet Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
District Man Sentenced to Nine Years in Prison for Attacking 65-Year-Old Homeless WomanRead the Press Release
WASHINGTON – Benjamin Smalls Allen III, 52, of Washington, D.C., was sentenced today to nine years in prison on charges stemming from a brutal assault last year of a homeless 65-year-old woman with a baseball bat, U.S. Attorney Channing D. Phillips announced.
Allen was found guilty by a jury in January 2016, following a trial in the Superior Court of the District of Columbia, of one count of assault with a dangerous weapon (baseball bat) of a senior citizen and one count of committing the offense while he was on release in two other pending cases. The Honorable Anita Josey-Herring sentenced him to a total of 16 years in prison, but suspended seven years of that time on the condition that he later successfully complete a period of supervised probation. At sentencing, she described Allen as “a very dangerous man.”
According to the government’s evidence, on Aug. 28, 2015, at approximately 9:15 p.m., the victim was seated in front of the tarp tent that she calls home in the area of Miriam’s Kitchen, located in the 700 block of 24th Street NW. The victim was putting medication on the lower part of her stomach when Allen seated himself in front of her and started staring at her.
Wanting some privacy, she asked the defendant to move down the road. Allen refused and began verbally harassing her. She then called 911, stating that a man was threatening her. While she was still on the phone with the 911 dispatcher, the defendant announced himself by name in the background, twice stating, “Tell them my name is Benjamin Smalls Allen III.” When she completed the 911 call, Allen asked her if she had called the police and she replied that she had. At this time, Allen removed a metal baseball bat from his bag and struck the victim repeatedly with it, using overhead swings.
The woman put her hands over her head to protect herself as Allen continued to strike her in the hand, elbow and knee. An eyewitness, also homeless, saw a portion of this assault. The victim sought medical treatment a few days later and was diagnosed with a closed non-displaced fracture on her right hand. She later identified Allen as the person who assaulted her.
At sentencing, the government noted that Allen has prior convictions for assault with intent to kill, criminal sexual conduct in the third-degree, burglary and grand larceny.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Crystal Waddy; Victim/Witness Coordinator Tonya Jones; Victim/Witness Advocate Diana Lim, and Assistant U.S. Attorneys Allessandra Stewart and Melissa Jackson, who investigated and prosecuted the case.
Discharged Air Force Serviceman Sentenced for Theft on Robins Air Force BaseRead the Press Release
Simon Watson, age 37, of Warner Robins, Georgia, was sentenced on March 10, 2016, in Macon, Georgia, by the Hon. Judge Leslie J. Abrams to serve a total of 51 months imprisonment for Theft of Public Funds, Aggravated Identity Theft, and Failure to Appear for Sentencing. Mr. Watson is also required to pay $3,088.30 in restitution to the Army and Air Force Exchange Service.
Mr. Watson entered a guilty plea to Theft of Public Funds and Aggravated Identity Theft on June 9, 2015. From February 11, 2014, through March 2, 2014, Mr. Watson, a discharged Air Force serviceman, cashed and attempted to cash eleven forged checks at the Army and Air Force Exchange Service (“AAFES”) located at Robins Air Force Base. The checks cashed by Mr. Watson were from two business accounts he had incorporated, both of which were later dissolved. The bank accounts for both businesses had also been closed. Mr. Watson stole three Common Access Cards (“CAC”) from the gym at Robins Air Force Base, which he used as identification to cash the fraudulent checks. Mr. Watson would print the name from the stolen CAC on the checks from his dissolved businesses and bring the checks, along with the stolen CAC, to the AAFES to cash. Mr. Watson successfully cashed $3,088.30 in checks at the AAFES. However, investigators located additional pre-printed checks in his vehicle. The parties agreed that the intended loss amount was $10,000 - $30,000.
Mr. Watson was scheduled to appear for sentencing on October 8, 2015 on the Theft of Public Funds and Aggravated Identity Theft charges. He was aware of this scheduled court appearance but did not appear as required. Mr. Watson was subsequently charged with Failure to Appear for Sentencing, and entered a plea of guilty to that charge on December 4, 2015.
Acting United States Attorney G.F. “Pete” Peterman stated; “Not only did Mr. Watson steal money that did not belong to him but he also betrayed the trust of his fellow servicemen by stealing their identities to further his criminal enterprise. The agents did an outstanding job which resulted in this significant sentence of imprisonment.”
The case was investigated by the United States Air Force Office of Special Investigations. Assistant United States Attorney Beth Howard prosecuted the case on behalf of the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Detroit oxycodone dealer pleads guilty to Federal drug crimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit drug dealer pleaded guilty today to a federal oxycodone crime, announced Acting United States Attorney Carol Casto. Chester Lee Estes, 40, entered his guilty plea to possession with intent to distribute oxycodone.
On October 2, 2014, agents with the Huntington FBI Drug Task Force were conducting surveillance of several individuals in Huntington who appeared to be involved in drug trafficking near the Days Inn. During that surveillance, agents observed Estes leave the hotel and travel west toward Walmart on Route 60. Members of the Cabell County Sheriff’s Department, who were assisting in the investigation, then arrested Estes on an outstanding misdemeanor warrant for transferring and receiving stolen property. In a search of Estes following his arrest, agents seized 476 oxycodone pills, over $4,500 in cash, two cell phones, and a Days Inn room key. Law enforcement also conducted a search of the hotel room and located the girlfriend of Estes, along with their small child, as well as over $900 in cash and an additional cell phone.
Estes faces up to 20 years in federal prison when he is sentenced on June 20, 2016.
The investigation of Estes was conducted by the Huntington FBI Drug Task Force and the Cabell County Sheriff’s Department. Assistant United States Attorney Gregory McVey is handling the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Department of Justice Releases Report on Understanding Firearms Assaults Against Law EnforcementRead the Press Release
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced the release of a new publication addressing officer safety.
Understanding Firearms Assaults against Law Enforcement Officers, produced by the Justice Department’s Officer Safety and Wellness Group, addresses two primary safety concerns in law enforcement, injuries and deaths among officers and premeditated and unprovoked ambushes of officers. It examines the differential risks thought to influence the use of deadly force against police officers in the United States through a literature review and survey analysis.
This publication is a joint COPS Office, Bureau of Justice Assistance and Major Cities Chiefs Association publication, and was informed with input from the Justice Department’s Officer Safety and Wellness Group.
“Every day, law enforcement officers courageously serve this nation by protecting our values and keeping our communities safe,” said Attorney General Loretta E. Lynch. “This report will serve as a critical resource as we honor their service and sacrifice and take the necessary steps to improve officer safety.”
The Department of Justice established the Officer Safety and Wellness Group in 2011 to encourage the adoption of cultures of safety and wellness among the nation’s law enforcement agencies. The working group includes more than 40 participants representing federal, state and local law enforcement; national associations; unions; and researchers who discuss and develop the research.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 127,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Coraopolis Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 36 months imprisonment, followed by 12 years supervised release, on a charge of possession of material depicting the sexual exploitation of a minor. United States District Judge Nora Barry Fischer also ordered Stephen Hutchinson to pay $9,000.00 in restitution to victims, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Stephen Hutchinson, 30, of Coraopolis, Pennsylvania.
According to information presented to the court, the court was advised that on or about March 3, 2015, Hutchinson knowingly possessed images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for conducting the investigation leading to the successful prosecution of Hutchinson.
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.
CEO of Microcap Company Charged with Securities Fraud for Falsely Claiming Millions in Revenue from Contracts with Nigeria and Other Foreign CountriesRead the Press Release
NEWARK, N.J. – The chief executive officer of a publicly traded microcap company made his initial court appearance in San Francisco today on charges he allegedly filed false reports with the U.S. Securities and Exchange Commission and made false statements in press releases and blog posts, U.S. Attorney Paul J. Fishman announced.
Cary Lee Peterson, 36, of Texas and Arizona, is charged by complaint with two counts of false certification and one count of securities fraud. FBI agents arrested Peterson March 13, 2016, at San Francisco International Airport when he arrived on an international flight. He is scheduled to appear this afternoon before U.S. Magistrate Judge Joseph C. Spero in San Francisco federal court.
According to the complaint:
Peterson, as CEO of RVPlus Inc., filed numerous false reports with the SEC, including:
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On Aug. 21, 2012, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $1.8 billion with the “Ministry of Environment for Katsina State Within the Federal Republic of Nigeria” to provide unspecified green energy products and services (the “Nigeria Agreement”);
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On Nov. 16, 2013, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $90 million with the “Commission of the Foreign Affairs to the Senate for the Republic of Haiti” (the “Haiti Agreement”);
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On Dec. 21, 2012, Peterson falsely certified on Form 10-Q for the quarter that ended Oct. 31, 2012 that RVPlus held $8,653,846 in short-term accounts receivable for services rendered under the Nigeria Agreement.He did so despite prior warnings from RVPlus’ auditors that reporting these receivables as revenue was improper;
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On Dec. 27, 2012, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $10.5 million with the Federal Ministry of Planning & Economic Affairs for the Republic of Liberia (the “Liberia Agreement”);
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On March 28, 2013, Peterson falsely certified on SEC Form 10-Q for the quarter that ended on Jan. 31, 2013, that RVPlus held $17,590,837 in short-term accounts receivable from, among other sources, the Haiti and Liberia agreements.
The SEC suspended trading in RVPlus on July 19, 2013, due to questions concerning the accuracy of RVPlus’ periodic financial filings, including reported accounts receivable, assets, and operations.
In addition to the false SEC reports, Peterson also published false and misleading press releases and drafted blog posts under a phony name in which he touted the benefits of the Nigeria, Haiti, and Liberia agreements.
Peterson also claimed that ECCO2 Corp., a not-for-profit owned by Peterson, had licensed certain intellectual property to RVPlus and that ECCO2 Corp. was an “affiliate organization” of the United Nations Convention on Climate Change. Peterson claimed that “[t]his status held with the sectors of the United Nations opens many windows of opportunity to over $100 billion in financial aid to fund ECCO2 projects.” ECCO2 was never an “affiliate” of the U.N. Convention on Climate Change. In fact, the U.N. wrote to Peterson on two separate occasions demanding that ECCO2 stop claiming that it was.
Each count with which Peterson is charged carries a maximum penalty of 20 years in prison and a maximum fine of $5 million. The SEC also filed a civil complaint against Peterson today in New Jersey federal court in Newark alleging multiple counts of securities fraud.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi in Newark, with the investigation leading to today’s charges. Mr. Fishman thanked special agents of the FBI, under the direction of Special Agent in Charge David J. Johnson, in San Francisco, and for their assistance with Mr. Peterson’s arrest. He also thanked the Securities and Exchange Commission New York Regional office under the direction of Andrew M. Calamari, Regional Director.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office General Crimes Unit in Newark and Assistant U.S. Attorney Lloyd Farnham in San Francisco.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Bergen County, New Jersey, Doctor Who Billed for Bogus Office Visits, Altered Patient Medical Records Sentenced to More Than Three Years in PrisonRead the Press Release
NEWARK, N.J. – A family physician with offices in Cresskill and Little Falls, New Jersey, was sentenced today to 37 months in prison for defrauding Medicare, Medicaid and private insurance companies out $280,000 by billing them for non-existent office visits, U.S. Attorney Paul J. Fishman announced.
Albert Ades, 61, of Englewood, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to Count One of an indictment charging him with health care fraud. Judge Salas imposed the sentence today in Newark federal court.
According to the documents filed and statements made in court:
From 2005 through June 2014, Ades, a licensed family medicine doctor who owns and operates Albert Ades M.D., P.A., fraudulently billed Medicare, Medicaid and various private payors for face-to-face physician office visits that never happened. Ades wrote prescriptions, authorized refills or performed other tasks without ever seeing those patients on the billed dates. Ades admitted that he altered patients’ medical charts by inserting fabricated blood pressure readings, other vitals and clinical notes on patients’ charts to make it appear as if they had visited Ades’s office on the billed dates.
Ades admitted that, between 2009 and 2013, his scheme caused a loss of approximately $280,000 to federal health care benefit programs and private insurers.
In addition to the prison term, Judge Salas sentenced Ades to three years of supervised release and ordered him to forfeit $280,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and investigators with the U.S. Attorney’s Office with the investigation leading to today’s sentencing. U.S. Attorney Fishman also thanked the National Insurance Crime Bureau for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Jane H. Yoon and Danielle M. Corcione of the U.S. Attorney’s Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Alexander Spiro Esq., New York
Attorney General Loretta E. Lynch Statement on Fatal Shooting of Police Officer in Prince George’s County, MarylandRead the Press Release
Attorney General Loretta E. Lynch released the following statement regarding yesterday’s shooting at Prince George’s County Police Department:
“The attack on the Prince George’s County Police Department last night was a heinous act of violence and a cowardly crime. The Department of Justice stands in solidarity with our brothers and sisters in law enforcement around the country to condemn this horrific attack, to support the Prince George’s County community, and to grieve the loss of Officer Jacai Colson.
“Officer Colson was a consummate public servant and a proud defender of the law – a young guardian raised in the tradition of service to his community. His tragic loss is a reminder of the threats that public safety officers face every day, and the dangers that they bravely confront, in every jurisdiction across the country. The Department of Justice will offer any possible aid to the Prince George’s County community as they investigate this terrible crime, and we will continue to do all that we can to protect and support our officers and hold wrongdoers accountable.”
Anthony, N.M., Man Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Candelario Ayala, Jr., 40 of Anthony, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to violating the federal firearms laws under a plea agreement with the U.S. Attorney’s Office.
Ayala was arrested in Nov. 2015, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition on Oct. 23, 2015, in Doña Ana County, N.M. According to the complaint, on Oct. 23 and 24, 2015, Ayala was allegedly involved in the armed kidnapping of an adult. During a confrontation preceding the kidnapping, Ayala allegedly was armed with a firearm which he discharged into the floor of the residence in which he and the victim were located. At the time, Ayala was prohibited from possessing firearms and ammunition because he had previously been convicted of aggravated battery resulting in great bodily harm, conspiracy to commit aggravated battery with a deadly weapon, and bribery of a witness.
During today’s proceedings, Ayala pleaded guilty to a felony information charging him with unlawfully possessing a firearm on Nov. 3, 2015. Ayala admitted that on that day in Doña Ana County, he possessed a semi-automatic rifle. Ayala further admitted that he was prohibited from possessing firearms because he of his status as a convicted felon.
At sentencing, Ayala faces a maximum penalty of ten years in federal prison. Ayala remains in custody pending a sentencing hearing which has not yet been scheduled.
This case was investigated by the Las Cruces office of the FBI and the Doña Ana County Sheriff’s Office. Assistant U.S. Attorney Marisa Lizarraga of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Aliquippa Man Identified by Fingerprint Ridges in Sexually Explicit Photo is Sentenced to 22+ Years in PrisonRead the Press Release
PITTSBURGH - A resident of Aliquippa, Pennsylvania, has been sentenced in federal court to 270 months, followed by lifetime supervised release, on his conviction of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Tyler Seevers, 25, formerly of Aliquippa, Pennsylvania.
According to information presented to the court at the time Seevers entered a plea of guilty, on July 20 and 21, 2014, Seevers produced sexually explicit photographs of a female child, 3 years of age, using an iPod Touch. The iPod Touch was turned over to law enforcement by Seever’s girlfriend, the victim’s mother, who had discovered the photographs of her daughter. Forensic analysis of the contents of the iPod Touch revealed images of both the 3-year-old and her older sister. One such sexually exploitive photograph depicted the ridges of the photographer’s fingertips. A fingerprint analyst with the Pennsylvania State Police was able to identify Seevers’ hand as that depicted in the photograph.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Prior to imposing sentencing, Judge Ambrose stated that this case and other cases involving the sexual exploitation of children and the production of images depicting that exploitation are the most serious that come before the court.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, and the Hopewell Township Police Department for the investigation leading to the successful prosecution of Seevers.
Albuquerque Man Pleads Guilty to Producing Child Pornography Involving Two ToddlersRead the Press Release
ALBUQUERQUE – Michael Dameon Blackburn, 30, of Albuquerque, N.M. pleaded guilty today in federal court to producing, distributing, receiving and possessing child pornography involving two toddlers. Blackburn entered his guilty plea under a plea agreement that permits him to appeal from a court order denying his motion to suppress evidence. Blackburn will be permitted to withdraw his guilty plea if he prevails on his appeal.
The guilty plea was announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Tex., Bernalillo County Sheriff Manuel Gonzales, III, and Albuquerque Police Chief Gorden Eden, Jr.
Blackburn was arrested in Dec. 2013, by HSI agents on the criminal complaint charging him with producing and distributing visual depictions of minors engaged in sexually explicit conduct in Bernalillo County, N.M., between March 2013 and Dec. 2013. In Jan. 2014, a federal grand jury filed a five-count indictment charging Blackburn was distribution, receipt and possession of child pornography, and two counts of producing child pornography. The indictment alleged that Blackburn committed all five offenses in Bernalillo County between Jan. 2013 and Dec. 2013.
The investigation leading to the charges against Blackburn began on Nov. 15, 2013, when HSI in Albuquerque received information from the HSI Cyber Crimes Center about a pornographic image of a young child victim who might be in the Albuquerque area. HSI’s investigative efforts identified a residence in northeast Albuquerque as a possible location for the person who may have distributed the pornographic image of the young child victim.
Court filings indicate that on Dec. 17, 2013, law enforcement officers conducted a welfare check at the residence and made contact with Blackburn and two young children, a girl and a boy both two years of age, who apparently were left in Blackburn’s care while their parents were out of town. The officers learned that Blackburn had been sexually molesting the toddlers from at least March 2013 through Dec. 2013, and taking photographs and making videos of the toddlers while he molested them. They also learned that Blackburn emailed the pornographic images and videos of the toddlers to others. The two young victims were immediately removed from the residence and put into protective custody.
During today’s change of plea hearing, Blackburn pled guilty to all five counts of the indictment. In his plea agreement, Blackburn admitted distributing a video of a female toddler being forced to perform a sexual act on an adult male. He also admitted receiving a video of a male toddler being forced to perform a sexual act with an adult male, and possessing a pornographic image of a female toddler. Blackburn also acknowledged producing pornographic images of a female toddler and a male toddler.
At sentencing, Blackburn faces a mandatory minimum of 15 years and a maximum of 30 years in prison on each of the production of child pornography charges, and a mandatory minimum of five years and a maximum of 20 years in prison for the distribution and receipt of child pornography charges. He also faces up to 20 years in prison for the possession of child pornography charges. Additionally, Blackburn will be required to register as a sex offender after he completes his prison sentence and pay restitution to the victims as ordered by the court.
Blackburn has been in custody since his arrest and remains detained pending a sentencing hearing, which has not yet been scheduled.
This case was investigated by the Albuquerque office of HSI, Bernalillo County Sheriff’s Office and the Albuquerque Police Department, all members of the New Mexico Internet Crimes Against Children (ICAC) Task Force, and is being prosecuted by Assistant U.S. Attorneys Shammara H. Henderson and Marisa A. Lizarraga as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 82 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Airport Baggage Handlers Sentenced for Theft ConspiracyRead the Press Release
NORFOLK, Va. – Chris Arthur Perry, Jr., 26, of Chesapeake, and Gregory Paul Wingard, Jr., 27, of Norfolk, were sentenced today for their roles in a conspiracy to steal valuable items from passengers’ bags at the Norfolk International Airport. Perry was sentenced to 17 months in prison and Wingard was sentenced to 12 months and one day in prison.
Perry and Wingard pleaded guilty Nov. 18, 2015. According to court documents, from approximately December 2013 to June 4, 2015, Perry and Wingard used their positions as baggage handlers to break into checked baggage in the secure area of the Norfolk International Airport. They removed money, electronics, and other valuable items and then sold the items to members of the community or to pawn shops in the Tidewater area. Perry and Wingard specifically targeted firearm containers while searching for bags to break into. Part of the conspiracy was to steal firearms by switching baggage tags, causing firearm containers to be transported away from the original intended destination and preventing detection from law enforcement.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. This case was investigated by the FBI’s Norfolk Field Office with the assistance of Transportation Security Administration and U.S. Airways. Assistant U.S. Attorney Joseph E. DePadilla prosecuted this case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-131.
11 March 2016
Women sentenced for Natchitoches bank fraud schemeRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that two women were sentenced Tuesday for conspiring to steal money from the bank where they worked.
Deirdre Christophe Nelson, 36, of Natchez, La., and Valerie K. Culpepper, 36, of Natchitoches, La., were sentenced to 21 months and one month respectively by U.S. District Judge Dee D. Drell. Nelson was sentenced on one count of conspiracy to commit bank fraud, and Culpepper was sentenced on one count of conspiracy to make false statements in bank records. They were also sentenced to three years of supervised release and ordered to pay $355,649 in restitution. According to the guilty pleas, Nelson, who worked as a bank manager at a Natchitoches bank, conspired with Joe Lee Colbert Jr., 38, of Baton Rouge, to take more than $300,000 from 2011 until July of 2014 from the bank. Nelson would steal cash money and issue money orders from the bank to be deposited into Colbert’s account. Culpepper, the head bank teller, falsified bank records to hide money stolen during that time.
Colbert was sentenced on January 26, 2016 to 21 months in prison and three years of supervised release. He must also share in the payment of restitution Nelson and Culpepper were ordered to pay. Nelson pleaded guilty on September 10, 2015, and Culpepper pleaded guilty on July 17, 2015.
The FBI and conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
William D. Cantrell, Jr. Ordered to Pay 1,226,989.04 in RestitutionRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that, on March 10, 2016, William D. Cantrell, Jr, 61, of Valparaiso, Indiana, was sentenced before District Court Judge Joseph S. Van Bokkelen for mail fraud.
Cantrell was sentenced to 84 months imprisonment, 5 years of supervised release and ordered to pay 1,226,989.04 in restitution.
According to documents filed in the case, Cantrell operated an investment firm and stole the retirement funds of 9 individual investors totaling more than 1.2 million dollars. One of the victims, who lost over $800,000.00, the total amount of her retirement money, contacted law enforcement after attempts to retrieve some of her savings. The attempts to retrieve money were met with fraudulent excuses, empty payment envelopes and ultimately an admission of theft by the defendant.
Several days after law enforcement contacted the defendant regarding the allegations of his thefts, he flew from Indiana to the State of California and was arrested while attempting to break into one of the victim’s home at 3:00 a.m. He was armed with a knife and has been held in custody since his arrest in California.
This case was the result of an investigation by the Federal Bureau of Investigation. This case was handled by Assistant United States Attorney Randall M. Stewart.
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West Palm Beach Man Convicted of Illegally Transporting Undocumented AliensRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Yohany Hernandez-Hernandez (36, West Palm Beach) guilty of illegally transporting undocumented aliens. He faces a maximum penalty of 10 years in federal prison. A sentencing hearing is scheduled for July 20, 2016.
Hernandez-Hernandez was indicted on May 13, 2015.
According to evidence presented at trial, on May 7, 2015, Hernandez-Hernandez was stopped by deputies from the Lee County Sheriff’s Office for committing a traffic infraction on I-75. During the traffic stop, the deputies became aware that he was transporting six undocumented aliens. Law enforcement later learned that Hernandez-Hernandez and the undocumented aliens had travelled from a safe house in Houston to Lee County. They had driven for approximately 22 hours, with limited stops, in an attempt to avoid being detected by immigration officials. The investigation further revealed that two other undocumented aliens had previously been dropped off in other parts of Florida. The aliens had been transported to further their stay in the United States and for Hernandez-Hernandez’s financial gain.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Michael C. Baggé-Hernández.
Vero Beach Bank Robber Pleads GuiltyRead the Press Release
Tyler Scott Topolski, 20, of Vero Beach, pled guilty today before Chief United States Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, and David E. Currey, Chief, Vero Beach Police Department, made the announcement.
Topolski pled guilty to an indictment charging him with bank robbery, in violation of Title 18, United States Code Section 2113(a). Sentencing is scheduled for June 3, 2016 before United States District Judge Kenneth A. Marra in Ft. Pierce. At sentencing, Topolski faces a possible maximum statutory sentence of 20 years in prison.
According to Court records, on November 6, 2015, at approximately 2:28 p.m., Topolski entered the Florida Community Bank, located at 4000 20th Street, Vero Beach, with a demand note, which read, “NO dye Paacs, I need All the 50’s & 100’s In the Bag! Fan the bills out first. Any restiance I will kill you & myself.” Topolski left with approximately $973.00 in cash. The note was later recovered in a nearby parking lot.
After Vero Beach Police Department detectives received information from the community, identifying Topolski from bank surveillance photographs, they obtained a South Carolina driver’s license in order to confirm his identity. Several bank witnesses positively identified Toploski from photographic lineups. As a result, the detectives obtained a State of Florida Arrest Warrant for Topolski and notified the Horry County Police Department in South Carolina. On November 7, 2015, Topolski was successfully captured, after he was located, hiding in his mother’s closet in Myrtle Beach, South Carolina. Topolski gave detectives a full confession, admitting that he had cut his facial hair, in order to conceal his identity.
Mr. Ferrer commended the investigative efforts of the FBI, Indian River County Sheriff’s Office, Vero Beach Police Department, and Horry County Sheriff’s Office in South Carolina for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney, IRS Criminal Investigation, and the Treasury Inspector General for Tax Administration Discuss Fraudulent Scams -- Including Scam IRS Calls Threatening ArrestRead the Press Release
DENVER – U.S. Attorney John Walsh, with IRS Criminal Investigation (IRS CI) Special Agent in Charge Stephen Boyd and Treasury Inspector General for Tax Administration (TIGTA) Preston “Cordale” Lamb, discussed IRS fraud scams, focusing on the fraudulent calls threatening arrest if the call recipient fails to pay.
According to TIGTA, which started tracking the threatening phone scam, or variations of it, in October of 2013, they have nationwide received 1,029,601 calls from people reporting receiving the scam phone call. Of that number, 5,508 were victims, who lost a total of $29,100,604.00
In Colorado, according to TIGTA, the state is ranked 13th in the number of victims. There have been 111 victims who have lost $632,000.00.
There was one example of a fraudulent call, and two TIGTA public service announcements (one in English and one in Spanish) that were mentioned during the event. The links to those examples are below:
Sample call (open source): https://www.youtube.com/watch?v=TjQ7K3FwL44
TIGTA PSA (government source): https://www.youtube.com/channel/UC4dSU0BElmzA_o7atb929AA
If an individual receives a call they believe to be suspicious, the best thing to do is hang up. The individual can also call 1-800-829-1040 to see if the IRS is actually attempting to get in contact with them. If they are fairly certain the call is fake, and they have detailed information about the call, or believe they have been victimized by the scam, they can report the call by either calling TIGTA at 1-800-366-4484 or sending an email to [email protected]
Two Men Sentenced to Jail for Health Care FraudRead the Press Release
WASHINGTON – Russell J. Sveda, 70, and Richard V. Schachter, 56, of Alexandria, Virginia, were each sentenced yesterday to 15 months incarceration for their scheme to steal from the Federal Employees Health Benefits Program, announced U.S. Attorney Channing D. Phillips, Norbert E. Vint, Acting Inspector General for the U.S. Office of Personnel Management (OPM), Maria L. Kelokates, Inspector in Charge of the U.S. Postal Inspection Service’s (USPIS), Washington Division, and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.
Both Sveda and Schachter pled guilty in October 2015 to Health Care Fraud in the U.S. District Court for the District of Columbia. They were sentenced on Thursday, March 10, 2016, by the Honorable Thomas F. Hogan. Upon completion of their prison terms, both defendants will be placed on 36 months of supervised release. They must jointly pay $257,000 to OPM and forfeit money judgments of $257,000.
According to statements of the offense, signed by the defendants as well as the government, Sveda is a former U.S. State Department employee, now retired. He is entitled to participate in the Federal Employees Health Benefits Program, which is the federally-funded health benefit program provided by the U.S. government for federal employees, retirees, and their eligible spouses and dependents. State Department Foreign Service employees and retirees, like Sveda, and federal employees living overseas, have the option of choosing the Foreign Service Benefit Plan of Washington, D.C., as their health insurance plan. Participants of this plan, like Sveda, pay for medical services and medications up front and then submit claims via facsimile or mail and are reimbursed by a check sent through the U.S. Postal Service or a payment electronically transferred into their bank account.
Schachter is Sveda’s spouse and acted on behalf of Sveda in demanding payments for medical insurance claims. Between February 2007 and October 2010, Sveda and Schachter submitted to the insurance carrier for the Foreign Service Benefit Plan claims for pharmaceutical items and services purportedly obtained from a German pharmacy, Stadt-Apotheke Fussen, located in Fussen, Germany. Similarly, from May 2007 through October 2012, Sveda and Schachter submitted claims for medical services Sveda allegedly obtained from various German doctors, clinics, and hospitals. Sveda’s claims used the names and addresses of various doctors, clinics, hospitals, and pharmacies, and other health care service providers, located in Germany.
Since at least 2007, Sveda and Schachter have engaged in extensive foreign travel and extended stays at spas. Government travel records — such as passport stamps and U.S. government’s records of border crossings — as well as documents obtained from airlines, ocean line operators, credit and debit card payments, and a major spa company, establish that Sveda was traveling across the Atlantic, receiving spa treatments in Massachusetts, or otherwise traveling outside of Germany on the dates when Sveda and Schachter claimed Sveda was in Germany receiving medical services from doctors, clinics, hospitals, or other health care providers. Based on information the government has received to date, $257,000 of those claimed medical services, purportedly performed in Germany, are known to be false given the dates when travel and other records establish that Sveda was not in Germany.
In announcing the sentences, U.S. Attorney Phillips, Acting Inspector General Vint, Assistant Director in Charge Abbate, and Inspector in Charge Kelokates expressed appreciation for the work performed by Special Agents and analysts from OPM’s Office of the Inspector General and the FBI, and Postal Inspectors and analysts with the USPIS. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Kristy Penny, John Lowell, Jessica Mundi, and Corinne Kleinman, Assistant U.S. Attorneys Ted Radway and Diane Lucas, and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
Two Men Added to Indictment for $254,000 Tax Refund SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas man and a Colorado man have been indicted by a federal grand jury for their roles in a conspiracy to claim more than $254,000 in fraudulent tax refunds.
Pete Scott, 37, of Junction City, Kan., and Leroy Pruitt, 33, of Colorado Springs, Colo., were charged along with Kalena LaToya Winston, 39, of Killeen, Texas, and Shree C. Furby, 39, of Talladega, Ala., in a 21-count superseding indictment returned by a federal grand jury in Kansas City, Mo., on Thursday, March 10, 2016. The superseding indictment replaces the original indictment that was returned on Jan. 12, 2016, and adds Scott and Pruitt as defendants.
The federal indictment alleges that Winston, Furby, Scott and Pruitt participated in a conspiracy to file false claims for federal income tax refunds from January 2011 to April 12, 2012. According to the indictment, the tax refund scheme resulted in a criminal tax loss of at least $254,893.
Winston allegedly prepared fraudulent 2010 and 2011 tax returns that included false information in order to increase the taxpayers’ earned income credit. Furby allegedly assisted Winston by filing two false tax returns and allowing Winston to use her address on 11 tax returns in order to receive the refunds. Pruitt allegedly used false identity information to establish Internet service that Winston used to transmit the fraudulent returns to the IRS. Scott allegedly distributed the refund debit cards to the taxpayers after the money had already been withdrawn from the cards.
In addition to the conspiracy, Winston and Furby are charged together in two counts of making fraudulent claims to the IRS in order to receive a tax refund to which the individual was not entitled. Winston is charged in an additional 18 counts of making false claims.
All of the federal tax returns were filed at the Internal Revenue Service Center located in Kansas City, Mo.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Three Plead Guilty in Connection with Scheme to Unlawfully Ship Firearms to LebanonRead the Press Release
Ali Afif Al Herz, age 51, Sarah Zeaiter, age 25, and Adam Ben Ali Al Herz, age 23, all from Cedar Rapids, Iowa, have each pleaded guilty in United States District Court in Cedar Rapids, to charges relating to a scheme to illegally ship firearms and ammunition to Lebanon.
The three people were originally charged in a criminal complaint filed in May 2015. The affidavit supporting the complaint alleged that between about August 2014 and May 11, 2015, three shipping containers originating from Cedar Rapids were loaded with Bobcat skid loaders, clothing, and various other items with an intended destination of Beirut, Lebanon. The first container was not interdicted. On about March 26, 2015, the second container was interdicted at the outbound port in Norfolk, Virginia, where it was found to contain 53 firearms and more than 6800 rounds of ammunition secreted in three Bobcat skid loaders inside the container. On May 8, 2015, a third container, loaded and shipped from a Cedar Rapids business, was searched and found to contain an additional 99 firearms and over 9500 rounds of ammunition. The firearms and ammunition were again secreted within two Bobcat skid loaders in the container.
Adam Al Herz and Sarah Majid Zeaiter each pleaded guilty to: (a) one count of conspiring to: deal in firearms without a license; ship and transport firearms and ammunition in interstate commerce; make false statements to licensed firearms dealers; fail to give notice to common carriers; and violate the Arms Export Control Act; (b) one count of conspiracy to commit money laundering; and (c) one count of violating the Arms Export Control Act. In total, Adam Al Herz and Sarah Majid Zeaiter could each be sentenced to serve 45 years imprisonment; pay a $1,750,000 fine and $300 in special assessments; and serve 13 years of supervised release.
Ali Afif Al Herz pleaded guilty to: (a) one count of possessing firearms after having been previously convicted of a misdemeanor crime of domestic violence; (b) one count of conspiring to: deal in firearms without a license; ship and transport firearms and ammunition in interstate commerce; make false statements to licensed firearms dealers; fail to give notice to common carriers; and violate the Arms Export Control Act; (c) one count of conspiracy to commit money laundering; and (d) one count of violating the Arms Export Control Act. In total, Ali Afif Al Herz could be sentenced to serve 55 years imprisonment; pay a $2,000,000 fine and $400 in special assessments; and serve 16 years of supervised release.
Sentencing proceedings in each case will be set at a later date.
The case is being prosecuted by Assistant United States Attorney Richard Murphy and was investigated by U.S. Immigration and Customs Enforcement, Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Anyone with information concerning this matter is requested to contact Homeland Security Investigations at 319-286-4680.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 15-CR-0054-LRR.
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Three Missouri Individuals Plead Guilty to Participating in Stolen Property Fraud RingRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced that three individuals pled guilty this morning in Federal Court in Southern Illinois to charges arising from their participation in a large stolen property ring. The individuals who pled guilty this morning are Tony G. Robertson, 44, of O’Fallon, MO, Alice J. Hembree, 43, of Moscow Mills, MO, and Nicholas A. Brockman, 20, of Wentzville, MO.
The charges arise from an indictment that was returned by a federal grand jury in East St. Louis, IL, on October 20, 2015. The indictment alleges that the leader of this fraud ring, Jason J. Parmeley, 42, formerly of O’Fallon, MO, conducted this fraud scheme from Mexico. According to the indictment, Parmeley used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowes, Menards, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names of, and under the credit accounts, of the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, expensive tools, and construction equipment. The indictment charges that, after he placed the orders, Parmeley dispatched drivers to go to the stores and pick up the items. According to the indictment, the items were then sold at prices substantially below retail. The profits were then wire transferred to Parmeley in Mexico.
During their plea hearings today, both Robertson and Brockman admitted that they worked as drivers for the conspiracy. Robertson acknowledged that he worked for the conspiracy from 2012 through 2015, while Brockman agreed that he drove for the group from October through December of 2013. Both Robertson and Brockman admitted that they picked up fraudulently ordered merchandise at various retail stores and then delivered those items to Parmeley’s customers. Robertson also admitted that he engaged in money laundering by wire transferring money to Parmeley in Mexico under a fake name.
During her plea hearing, Hembree admitted that her primary role for the conspiracy was to locate buyers for the stolen merchandise. Hembree also performed various other jobs for the conspiracy, including selling fraudulently ordered gift cards, storing some of the stolen merchandise at her house, and performing some bookkeeping functions for the group.
The indictment charged twelve other individuals with participating in the conspiracy. They are: Jason J. Parmeley, 42, James D. Litchfield, 58, owner of Big Jim’s Autorama in Madison, IL, Angel Speed, 25, formerly of O’Fallon, MO, Sean A. Shields, 47, of Ozark, MO, Shanna Flora, 41, of Vienna, IL, Steven J. Belcher, 44, of Wentzville, MO, Jesse S. Urias, 36, of Los Angeles, CA, Ryan P. Litchfield, 37, of O’Fallon, MO, Rigoberto Gutierrez, 26, of Compton, CA, Russell J. Witt, 33, of New Baltimore, MI, Bryce E. Atkinson, 21, of Lake Saint Louis, MO, and Benedict G. Pellerito, 55, of Troy, MO.
On February 11, 2016, James D. Litchfield, Ryan P. Litchfield, and Benedict G. Pellerito all pled guilty to the charges against them contained in the indictment. They are scheduled to be sentenced in June.
The sentencing hearings for Robertson, Hembree, and Brockman will all be conducted on July 19, 2016 at 10:30 a.m. at the Federal Courthouse in Benton, IL. The trial of the remaining defendants is scheduled for April 18, 2016.
The charges contained in the indictment include conspiracy to commit wire fraud, conspiracy to transport property obtained by fraud in interstate commerce, wire fraud, interstate transportation of property obtained by fraud, possession of property obtained by fraud, money laundering, and aggravated identity theft. The indictment also seeks forfeiture of the proceeds of the fraud scheme.
NOTE: Those individuals who are awaiting trial are presumed innocent unless or until they are proven guilty beyond a reasonable doubt.
The investigation is being conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI has received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Three Men Indicted on District’s First Bitcoin-Related CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned an indictment charging Richard Petix, 30, of Rochester, NY, with operating an unlicensed money transmitting business and making material false statements, and a separate indictment charging Zhe Wang, 20, and Kevin Szura, 20, both of Queens, NY, with conspiracy to distribute controlled substances, money laundering conspiracy, money laundering, and conducting a monetary transaction in criminally derived property. Petix faces five years in prison on each of his charges. Wang and Szura face up to 20 years in prison.“This case demonstrates the ever-growing ways in which the virtual world is intersecting with, and being exploited by, real life crime and criminals,” said U.S. Attorney Hochul. “Those involved in such illicit activities should know that law enforcement is prepared to track them into the deep and dark portions of the web in order to bring criminals to justice.”
"Dismantling the fraudulent financial operations of transnational criminal organizations is critical because these groups can succeed only so long as they can funnel their illicit proceeds freely and without detection,” said J. Michael Kennedy, Acting Special Agent in Charge of Homeland Security Investigations. "HSI will continue to aggressively target illegally functioning new alternatives to traditional financial institutions that deliberately enable businesses and individuals to further their criminal schemes."
Assistant U.S. Attorney Wei Xiang, who is handling the cases, stated that according to the indictment against Petix and a previously filed criminal complaint, the defendant lied to federal probation officers and law enforcement agents about his ownership and use of a laptop computer and a smartphone. Petix is on supervised release for a 2009 federal child pornography conviction and must notify probation of any computers he uses. The defendant must also allow law enforcement to examine any computer if suspicious activity is suspected. On October 20, 2015, Petix told his probation officer that he did not use any computers or the Internet.
However, on December 3, 2015, Petix conducted a bitcoin sale with an undercover federal agent. Using his laptop computer and smartphone, the defendant transferred 37 bitcoins worth approximately $13,000 to the agent. But when confronted by federal probation officers at the scene, Petix claimed that the laptop and smartphone were not his. Between August 2014 and December 3, 2015, Petix is accused of unlawfully operating a bitcoin-exchange business that sold approximately $200,000 in bitcoins.
According to the indictment of Wang and Szura and a previously filed criminal complaint, between March 2015 and March 7, 2016, the defendants did and conspired to purchase and attempt to purchase approximately $74,000 in bitcoins. Wang and Szura used proceeds of drug sales to buy the bitcoins, and then used the bitcoins to buy bulk quantities of drugs off the dark web for further distribution. Wang and Szura mainly dealt with Xanax bars, which contain the controlled substance alprazolam, that they allegedly imported from Canada, but also conspired to distribute mollies (MDMA).
According to the complaint, in October 2015, defendant Wang was one of four individuals arrested by the Erie County Sheriff’s Office on state controlled substance charges. During the execution of a search warrant at 72 Winspear Avenue in Buffalo, officers seized approximately 2,500 bars of Xanax.
When Wang and Szura were arrested on March 7, 2016 by federal agents, they were attempting to purchase approximately $8,000 in bitcoins to buy more Xanax. The defendants had a total of over $30,000 in their possession. Defendant Szura had also brought some Xanax pills for an undercover agent to sample.
Bitcoin is a “virtual” currency, that is, a medium of exchange that operates like a currency in some primarily Internet-based environments, but does not have all the attributes of real currency, such as legal tender status. Bitcoin is a “convertible” virtual currency in that it has an equivalent value in real currency and acts as a substitute for real currency. This equivalent value is not determined by any authority or entity; rather, it floats on the open market, with its price subject to variations in global supply and demand. Between August 2014 and March 2016, the trading value of a bitcoin fluctuated between approximately $200 and $600 in United States dollars.
In order for a user to acquire bitcoins, they must be sent to the user’s Bitcoin address. This address is an alphanumeric string whose use is somewhat analogous to a bank account number. The user can then conduct transactions with other Bitcoin users, by transferring bitcoins to their Bitcoin addresses, via the Internet. Little to no personally identifiable information about the payer or payee is transmitted in a Bitcoin transaction. Only the Bitcoin addresses of the parties are needed for the transaction, which by themselves do not reveal any identifying information.
Bitcoin is not inherently illegal. However, its anonymity has popularized it as a payment form of choice in black markets for illegal goods and services. Virtual currencies such as Bitcoin have created a shadow banking system for criminals who use Internet-based black markets. Bitcoin has been a preferred method of payment for leading dark web markets such as Silk Road. In the same way that the Internet revolutionized consumer commerce (for lawful purposes), an anonymized global payment system on an anonymized global black market has paved the way for people to access with ease a world’s array of contraband with the click of a button, rather than having to find and go to a drug dealer on a street corner.
Defendant Petix will be arraigned before U.S. Magistrate Judge Hugh B. Scott on March 15, 2016 at 10:00 a.m. Defendants Wang and Szura were arraigned before U.S. Magistrate Judge Michael J. Roemer on March 10, 2016.
The indictments are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The Mental Health Response Advisory Committee launches public survey and community input sessions to gather information for Cleveland Police policy recommendationsRead the Press Release
The Mental Health Response Advisory Committee (MHRAC) announced that it is seeking input from the public on “crisis situations” that involve the Cleveland Police to gather information that will be used to help develop police policies. The MHRAC, in partnership with the City of Cleveland, Cleveland Division of Police and the Alcohol, Drug Addiction and Mental Health Services (ADAMHS) Board of Cuyahoga County, launched an online survey and has organized three “community input sessions” open to all members of the public. The settlement agreement that the City signed with the Department of Justice describes “crisis situations” as incidents that involve mental illness, addiction, substance abuse, developmental disabilities or some other overwhelming personal crisis.
“We want people to tell us about their experiences that involved both the Cleveland Police and a mental health, addiction or some other personal crisis,” explained William M. Denihan, Chair of the MHRAC and Chief Executive Officer of the ADAMHS Board of Cuyahoga County. “Learning from these experiences will help our committee craft and recommend police policies that will help to make our communities safer for everyone.”
“Using an online survey and hosting these three events gives everyone an opportunity to participate in the Committee’s work,” noted Edward Eckart, Jr., Vice-chair of the MHRAC and Assistant Director of Public Safety for the City of Cleveland.
Cleveland Police Chief Calvin Williams joined Mr. Denihan, and Mr. Eckart in encouraging the public to complete the survey and join these community input sessions. “Cleveland Police support and welcome every opportunity to strengthen this committee’s work with public input and guidance,” he said. “We want to improve the way that our officers respond to crisis situations, and that means learning from the people who have been involved in those situations in the past.”
"The Justice Department encourages anyone who lives or works in Cleveland to participate in this open process," Acting U.S. Attorney Carole S. Rendon said. “The City and the Cleveland Police are building the foundations of trust and dialogue with the people they serve. It requires an honest conversation about these types of crisis situations.”
Online Survey:
The online survey can be accessed by visiting http://bit.ly/CLECrisisResponseSurvey. It will be open through Wednesday, March 23, 2016.
Hard Copies of the Survey:
People can download and print the survey by visiting http://bit.ly/print_CLECrisisResponseSurvey. Completed surveys must be mailed or returned by Wednesday, March 23, 2016, to:
ADAMHS Board of Cuyahoga County c/o MHRAC Survey
2012 West 25th Street, 6th Floor
Cleveland, OH 44113
Three Community Input Sessions:
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Southeast Side: Wednesday, March 16, from 6:30 to 8:30 PM at Community Assessment & Treatment Services (CATS), 8411 Broadway Avenue, Cleveland OH 44105.
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Northeast / Central: Saturday, March 19th, from 10:00 AM to 12:00 PM at the Tri-C Jerry Sue Thornton Center (formerly the Visiting Nurses Association), 2500 East 22nd Street, Cleveland OH 44115.
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West Side: Wednesday, March 23, from 6:30 to 8:30 PM at Stella Maris, 1320 Washington Avenue, Cleveland OH 44113
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Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
With spring approaching, parents are beginning to think about sending their children to summer camps. To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office for the District of Vermont recently sent the attached flyer to hundreds of summer camps located within the State of Vermont, reminding them of their obligations under the Americans with Disabilities Act (“ADA”). Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs. In connection with the release of the attached flyer, U.S. Attorney Eric S. Miller said, “Summer camp is a wonderful opportunity for children – a place to try new things and to gain confidence in themselves. All children who attend summer camp should have these opportunities. The ADA requires camps to provide equal opportunities to children with disabilities whose needs can be reasonably accommodated.” Additional information about the ADA is available at www.ada.gov, or through contacting the U.S. Attorney’s Office at (802) 951-6725 or [email protected].
Suffolk Man Sentenced for Distribution of HeroinRead the Press Release
NORFOLK, Va. – Garth Salkey, 65, of Suffolk, was sentenced today to 135 months in prison for conspiracy to distribute and possess with intent to distribute heroin.
Salkey pleaded guilty on Nov. 17, 2015. According to court documents, from the summer of 2012 through May 2015, Salkey conspired with his son, Christopher, to distribute heroin in Suffolk and Portsmouth. Garth Salkey, who has been convicted of drug crimes on three prior occasions, received a significant quantity of heroin from his supplier on a regular basis. Garth Salkey would then add chemical cutting agents to the heroin, cap the drug into capsules, sell the capsules from two residences he owned and other locations, and collect drug proceeds. Garth Salkey recruited his son and others to help him in these activities.
According to court documents, four controlled purchases were made at Salkey’s Suffolk residence in April and May of 2015. Based on the controlled purchases, the Suffolk Police Department and federal agents from the Drug Enforcement Administration (DEA) executed a search warrant on May 20, 2015, at Salkey’s residence in Suffolk. Law enforcement recovered a quantity of heroin and packaging material used for distribution. During the execution of the search warrant, Salkey threw about an ounce of heroin out of his bedroom window in an attempt to hide it from law enforcement. Additionally, agents also discovered a sophisticated marijuana grow operation with 129 marijuana plants belonging to Salkey’s son. During the course of the conspiracy it is estimated that Salkey and his son distributed at least eight kilograms of heroin, while Garth Salkey was personally responsible for more than four kilograms of heroin.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the DEA’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-146.
Subway Franchise Managers and Shell Gas Station Manager Plead Guilty to Multi-Million Dollar Conspiracy to Defraud the IRSRead the Press Release
ALEXANDRIA, Va. – Mohammed Ali, 54, of Herndon, and Obdayel Hoque, 49, of Alexandria, who owned and operated multiple Subway restaurant franchises in Washington, D.C. and Arlington, pleaded guilty today to aiding and assisting in the filing of false tax returns. Mohammed Rahman, 43, and Mohammed Siddique, 53, both of Alexandria, also pleaded guilty in the case.
“Individuals who provide false information for the preparation of fraudulent corporate tax returns will be caught and held responsible,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “The guilty pleas today represent exactly that. My thanks to our partners at IRS-Criminal Investigations for their efforts on this case.”
“Today’s guilty pleas send a clear message that business owners and operators who seek to evade their tax obligations and avoid paying their fair share will be held accountable,” said Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division. “Individuals engaged in this criminal conduct will face prosecution and substantial penalties, including incarceration.”
According to court documents, Ali owned and operated multiple Subway restaurant franchises in Washington, D.C. and Arlington with Hoque. Ali ran the day-to-day operations of the Subway franchises located on 10th Street North, Arlington, and Pennsylvania Avenue, SE, Washington, D.C. These franchises were operated under the name Subway Sandwich & Salad, Inc. Rahman was a working partner with Ali and Hoque and the day-to-day manager of a Subway franchise located on 7th Street, NW, Washington, D.C. This Subway franchise was operated under the name 7th Street Sub Shop LLC. Siddique was a working partner with Hoque and the day-to-day manager of a gas station in Alexandria called Skyhill Shell.
As part of their guilty pleas, Ali, Rahman and Siddique admitted that at Hoque’s direction they did not deposit all of the Subway franchises’ or the gas station’s gross receipts into the corporate or partnership bank accounts. Instead, Hoque, Ali, Rahman and Siddique retained a portion of the gross receipts for their personal benefit. Ali, Rahman and Siddique maintained detailed records of the Subway franchises’ and gas station’s total sales, the amounts deposited into the bank accounts and the amounts distributed to each of them for their personal benefit. Ali and Rahman admitted that, at Hoque’s direction, they destroyed these records.
Ali, Rhaman and Siddique further admitted that they were directed by Hoque to provide false information about the Subway franchises’ and gas station’s gross receipts to the accounting firm that prepared corporate and partnership tax returns for the businesses. For the period of 2008 through 2013, point of sales records for the Subway Sandwich and Salad franchises reflected total sales of $6,439,832. However, Ali provided false monthly sales figures to the accounting firm to prepare Subway Sandwich and Salad’s corporate tax returns. As a result, Ali caused false corporate tax returns to be filed with the Internal Revenue Service (IRS) for Subway Sandwich and Salad, which reported sales of only $3,749,142. For the period of 2008 through 2013, point of sales records for the 7th Street Sub Shop franchise reflected total sales of $4,949,266. However, Rahman provided false monthly sales figures to the accounting firm to prepare 7th Street Sub Shop’s partnership tax returns. As a result, Rahman caused false partnership tax returns to be filed for 7th Street Sub Shop, which reported sales of only $3,193,212. For the period 2008 through 2012, Siddique provided false monthly sales figures to the accounting firm to prepare Skyhill Shell’s corporate tax returns. As a result, Siddique caused false corporate tax returns to be filed for Skyhill Shell for 2008 and 2009, which failed to report at least $572,000 of net income from the business. Skyhill Shell failed to file corporate tax returns for 2010, 2011, and 2012.
Ali, Rahman and Siddique admitted that they failed to report to the IRS on their individual income tax returns their receipt of unreported gross receipts. Ali admitted that his conduct caused a tax loss of more than $550,000 but less than $1.5 million. Rahman admitted that his conduct caused a tax loss of more than $250,000 but less than $550,000. Siddique admitted that his conduct caused a tax loss of more than $100,000 but less than $250,000.
Hoque pleaded guilty on Jan. 27 to conspiracy to defraud the United States and admitted that his conduct caused a tax loss to the IRS of between $1.5 million and $3.5 million. Hoque is scheduled to be sentenced on May 13.
Rahman, Ali and Siddique each face a statutory maximum sentence of three years in prison and a $250,000 fine when sentenced on July 15. As part of their plea agreements, Rahman, Ali and Siddique agreed to pay restitution to the IRS for their personal tax liabilities.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Uzo Asonye is prosecuting the case along with Assistant Chief Caryn Finley and Trial Attorney Kimberly Shartar of the Tax Division.
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. 1:16-cr-9.
Subway Franchise Managers and Gas Station Manager Plead Guilty to Filing False Tax ReturnsRead the Press Release
Two Subway franchise managers and a gas station manager, all residents of Virginia, pleaded guilty today to aiding and assisting in the filing of false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
According to court documents, Mohammed Ali, 54, of Herndon, Virginia, owned and operated multiple Subway restaurant franchises in Washington, D.C. and Arlington, Virginia, with Obdayel Hoque, 49, of Alexandria, Virginia. Ali ran the day-to-day operations of the Subway franchises located on 10th Street North, Arlington, and Pennsylvania Avenue, SE, Washington, D.C. These franchises were operated under the name Subway Sandwich & Salad, Inc. Mohammed Rahman, 43, of Alexandria and Arlington, was a working partner with Ali and Hoque and the day-to-day manager of a Subway franchise located on 7th Street, NW, Washington, D.C. This Subway franchise was operated under the name 7th Street Sub Shop LLC. Mohammed Siddique, 53, of Alexandria, was a working partner with Hoque and the day-to-day manager of a gas station in Alexandria called Skyhill Shell.
“Today’s guilty pleas send a clear message that business owners and operators who seek to evade their tax obligations and avoid paying their fair share will be held accountable,” said Acting Assistant Attorney General Ciraolo. “Individuals engaged in this criminal conduct will face prosecution and substantial penalties, including incarceration.”
“Individuals who provide false information for the preparation of fraudulent corporate tax returns will be caught and held responsible,” said U.S. Attorney Boente. “The guilty pleas today represent exactly that. My thanks to our partners at IRS-Criminal Investigations for their efforts on this case.”
As part of their guilty pleas, Ali, Rahman and Siddique admitted that at Hoque’s direction they did not deposit all of the Subway franchises’ or the gas station’s gross receipts into the corporate or partnership bank accounts. Instead, Hoque, Ali, Rahman and Siddique retained a portion of the gross receipts for their personal benefit. Ali, Rahman and Siddique maintained detailed records of the Subway franchises’ and gas station’s total sales, the amounts deposited into the bank accounts and the amounts distributed to each of them for their personal benefit. Ali and Rahman admitted that, at Hoque’s direction, they destroyed these records.
Ali, Rhaman and Siddique further admitted that they were directed by Hoque to provide false information about the Subway franchises’ and gas station’s gross receipts to the accounting firm that prepared corporate and partnership tax returns for the businesses. For the period of 2008 through 2013, point of sales records for the Subway Sandwich and Salad franchises reflected total sales of $6,439,832. However, Ali provided false monthly sales figures to the accounting firm to prepare Subway Sandwich and Salad’s corporate tax returns. As a result, Ali caused false corporate tax returns to be filed with the Internal Revenue Service (IRS) for Subway Sandwich and Salad, which reported sales of only $3,749,142. For the period of 2008 through 2013, point of sales records for the 7th Street Sub Shop franchise reflected total sales of $4,949,266. However, Rahman provided false monthly sales figures to the accounting firm to prepare 7th Street Sub Shop’s partnership tax returns. As a result, Rahman caused false partnership tax returns to be filed for 7th Street Sub Shop, which reported sales of only $3,193,212. For the period 2008 through 2012, Siddique provided false monthly sales figures to the accounting firm to prepare Skyhill Shell’s corporate tax returns. As a result, Siddique caused false corporate tax returns to be filed for Skyhill Shell for 2008 and 2009, which failed to report at least $572,000 of net income from the business. Skyhill Shell failed to file corporate tax returns for 2010, 2011, and 2012.
Ali, Rahman and Siddique admitted that they failed to report to the IRS on their individual income tax returns their receipt of unreported gross receipts. Ali admitted that his conduct caused a tax loss of more than $550,000 but less than $1.5 million. Rahman admitted that his conduct caused a tax loss of more than $250,000 but less than $550,000. Siddique admitted that his conduct caused a tax loss of more than $100,000 but less than $250,000.
Hoque pleaded guilty on Jan. 27 to conspiracy to defraud the United States and admitted that his conduct caused a tax loss to the IRS of between $1.5 million and $3.5 million. Hoque is scheduled to be sentenced on May 13.
Rahman, Ali and Siddique each face a statutory maximum sentence of three years in prison and a $250,000 fine. As part of their plea agreements, Rahman, Ali and Siddique agreed to pay restitution to the IRS for their personal tax liabilities. U.S. District Judge Liam O’Grady set sentencing for July 15.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Boente thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant Chief Caryn Finley and Trial Attorney Kimberly Shartar of the Tax Division, and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Stonington Man Pleads Guilty to Arson of Lobster BoatRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jeremy Eaton, 39, of Stonington, Maine, pleaded guilty today in U.S. District Court to setting fire to a lobster boat.
Court records reveal that on the evening of April 16, 2014, Eaton walked to Stonington Harbor, removed gasoline cans from a skiff docked in the harbor and then used a small boat to transport himself and the gas cans to a fiberglass lobster boat which was moored in the harbor. Eaton then emptied the cans of gasoline into the lobster boat and started a fire which destroyed the boat. Eaton later admitted that he had burned the boat.
Eaton faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine State Fire Marshal’s Office and the U.S. Coast Guard.
Sanford Man Sentenced to Eight Months for Distribution of OxycodoneRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that James Levesque, 55, of Sanford, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 8 months in prison and 3 years of supervised release for distribution of oxycodone. Levesque pleaded guilty to the charge on September 28, 2015.
Court records reveal that on March 7, 2014, in Sanford, Levesque sold forty 80-milligram oxycodone pills, through a middleman, to a cooperating source working with law enforcement.
This case was investigated by the U.S. Drug Enforcement Administration and the York County Sheriff’s Office.
Russian National Pleads Guilty in Connection with Conspiracy to Work for Russian IntelligenceRead the Press Release
Evgeny Buryakov, aka Zhenya, 41, pleaded guilty today to conspiring to act in the United States as an agent of the Russian Federation without providing prior notice to the Attorney General.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara of the Southern District of New York.
“Evgeny Buryakov pleaded guilty to covertly working as a Russian agent in the United States without notifying the Attorney General,” said Assistant Attorney General Carlin. “Foreign nations who attempt to illegally gather economic and other intelligence information through espionage pose a direct threat to U.S. national security. The National Security Division will continue to work with our law enforcement partners to identify and hold accountable those who illegally operate as covert agents within the United States.”
“An unregistered intelligence agent, under cover of being a legitimate banker, gathers intelligence on the streets of New York City, trading coded messages with Russian spies who send the clandestinely collected information back to Moscow,” said U.S. Attorney Bharara. “This sounds like a plotline for a Cold War-era movie, but in reality, Evgeny Buryakov pled guilty today to a federal crime for his role in just such a scheme. More than two decades after the end of the Cold War, Russian spies still seek to operate in our midst under the cover of secrecy. But in New York, thanks to the work of the FBI and the prosecutors in my office, attempts to conduct unlawful espionage will not be overlooked. They will be investigated and prosecuted.”
According to indictment, other court filings and statements made during court proceedings:
Beginning in at least 2012, Buryakov worked in the United States as an agent of Russia’s foreign intelligence agency, known as the SVR. Buryakov operated under non-official cover, meaning he entered and remained in the United States as a private citizen, posing as an employee in the New York office of a Russian bank, Vnesheconombank (VEB). SVR agents operating under such non-official cover (NOCs) are typically subject to less scrutiny by the host government and, in many cases, are never identified as intelligence agents by the host government. As a result, an NOC is an extremely valuable intelligence asset for the SVR.
Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the Attorney General. Department of Justice records indicate that Buryakov never notified the Attorney General that he was, in fact, an agent of the Russia Federation.
Buryakov worked in New York with at least two other SVR agents, Igor Sporyshev and Victor Podobnyy. From on or about Nov. 22, 2010, to on or about Nov. 21, 2014, Sporyshev officially served as a trade representative of the Russian Federation in New York. From on or about Dec. 13, 2012, to on or about Sept. 12, 2013, Podobnyy officially served as an attaché to the Permanent Mission of the Russian Federation to the United Nations. The investigation, however, showed that Sporyshev and Podobnyy also worked as officers of the SVR. Sporyshev and Podobnyy were charged along with Buryakov in January 2015, however, Sporyshev and Podobnyy no longer lived in the United States at that time and were not arrested.
The directives from the SVR to Buryakov, Sporyshev and Podobnyy, as well as to other covert SVR agents acting within the United States, included requests to gather intelligence on, among other subjects, potential U.S. sanctions against Russian banks and the United States’ efforts to develop alternative energy resources.
During the course of their work as covert SVR agents in the United States, Buryakov, Sporyshev and Podobnyy regularly met and communicated using clandestine methods and coded messages in order to exchange intelligence-related information while shielding their associations with one another as SVR agents. Sporyshev was responsible for relaying intelligence assignments from the SVR to Buryakov.
On or about March 28, 2014, Sporyshev was recorded telling Buryakov that he needed help researching the “effects of economic sanctions on our country,” among other things. A few days later, on April 2, 2014, Sporyshev called Buryakov and stated, in an intercepted conversation, that he had not seen Buryakov in a while, and asked to meet Buryakov outside VEB’s office in New York in 20 minutes. A court-authorized search of Buryakov’s computer at VEB revealed that, at around the time of this telephone call, Buryakov conducted the following internet searches: “sanctions Russia consiquences” [sic] and “sanctions Russia impact.”
Two days later, on April 4, 2014, Buryakov called Sporyshev and in an intercepted conversation, stated that he “wrote you an order list,” and suggested that they meet. Approximately 20 minutes later, Sporyshev met Buryakov in the driveway of Buryakov’s home. Their encounter, which was captured by a video surveillance camera located near Buryakov’s residence, lasted approximately two minutes. On the video footage, the defendants appeared to exchange a small object.
In the summer of 2014, Buryakov met multiple times with a confidential source working for the FBI and an FBI undercover employee, both of whom purported to be working on a casino development project in Russia. During these meetings, Buryakov accepted documents that were purportedly obtained from a U.S. government agency and which supposedly contained information potentially useful to Russia, including information about U.S. sanctions against Russia.
Buryakov will be sentenced on May 25, 2016, where he faces a statutory maximum sentence of five years in prison.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the investigative work of the FBI’s Counterintelligence Division.
The prosecution is being handled by Assistant U.S. Attorneys Emil J. Bove III, Brendan F. Quigley and Stephen J. Ritchin of the Southern District of New York, with assistance provided by Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.
Buryakov Plea Agreement
Rocky Mount Man Receives over 10 Years for Drug and Gun PossessionRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday in federal court, Senior United States District Judge Malcolm J. Howard sentenced DETRAY MAURICE WILLIAMS, 37, of Rocky Mount, North Carolina, to 144 months imprisonment, followed by 5 years of supervised release.
DETRAY MAURICE WILLIAMS was named in an eight count Indictment returned on May 19, 2015. On October 5, 2015, WILLIAMS pled guilty to possession with intent to distribute cocaine base, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.
According to the investigation, on January 22, 2014, officers attempted to stop WILLIAMS and he fled from officers on foot. During their pursuit, officers observed WILLIAMS remove a handgun from his jacket pocket and throw it to the ground. Officers retrieved the pistol and also located a bag containing crack cocaine on the ground in the area where WILLIAMS was ultimately arrested. On October 9, 2014, WILLIAMS, a convicted felon, was again stopped by law enforcement who located a rifle in the backseat of his vehicle.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Rocky Mount Police Department and Nash County Sheriff’s Office. Assistant United States Attorney Carrie Randa represented the government.
Richmond Men Sentenced for Multiple Armed RobberiesRead the Press Release
RICHMOND, Va. – Tramaine Standberry, 21, and Joshua Wright, 22, of Richmond, were sentenced today to 192 and 276 months in prison, respectively, for a robbery and brandishing a firearm during a robbery.
Standberry and Wright were found guilty on Dec. 9, 2015. According to court documents, Standberry and Wright were under surveillance for suspicion of having committed several robberies in and around Richmond in April 2015. While under surveillance on April 29, 2015, the men robbed a 7-Eleven at 3600 Mechanicsville Turnpike stealing money and lottery tickets. Officers gave pursuit on the ground and from the air and arrested the men hiding in a neighborhood near the 7-Eleven. One of the firearms found was directly connected by forensic evidence to a robbery on April 4, 2015, where one of the men fired at a safe containing lottery tickets. Officers also later discovered the men on film cashing lottery tickets stolen during the April 4 robbery, and found event tickets stolen from the April 4 robbery in Standberry’s home.
At sentencing, U.S. District Judge Henry E. Hudson found that the men also participated in robberies which occurred on April 4, 2015, and April 19, 2015, in Henrico.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge Hudson. This case was investigated by officers and detectives with the ATF; Henrico County Police Division; Chesterfield County Police; and the Richmond Police Department in conjunction with the FBI’s Central Virginia Violent Crime Task Force. Assistant U.S. Attorneys Stephen E. Anthony and Peter S. Duffey prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-CR-102.
Richmond Man Sentenced for Stealing Social Security Survivors BenefitsRead the Press Release
RICHMOND, Va. – Marcel Joshua Kiza, 58, of Richmond, was sentenced today to 18 months in prison for engaging in a sophisticated scheme to defraud the Social Security Administration’s (SSA) Old-Age, Survivors, and Disability Insurance Program. Kiza was ordered to pay $35,187.80 in restitution.
Kiza was found guilty by a federal jury on Oct. 6, 2015. According to court documents and evidence presented at trial, upon entering the United States in 1991, Marcel Kiza applied for a Social Security number under a name he was using at the time, Amuri Kiza. During this time Marcel Kiza was also using the name Ntambwe Amuri, which he used on his U.S. Customs and Immigration paperwork. After being assigned a valid Social Security number for the name Amuri Kiza, Marcel Kiza applied for Supplemental Security Income (SSI) in 2005 and was denied. In May 2007, he attempted to obtain Disability Insurance Benefits from SSA and was again denied. Marcel Kiza became a naturalized U.S. citizen in April 2007, and at that time he petitioned for and was granted a name change to Marcel Joshua Kiza.
Evidence at trial proved that Marcel Kiza then created a scheme to use his new legal name to create a new identity and receive government benefits. He applied for a new Social Security number under the name Marcel Joshua Kiza, and represented on the application that he had not previously been assigned a Social Security number, which was untrue. Then, in 2010, Marcel Kiza applied for SSA Survivors Benefits for his children, by representing that their father, Amuri Kiza, was deceased. He named himself the representative payee on behalf of the children, and as a result of this fraud he received $51,608 in SSA’s Survivors Benefits to which he was not entitled.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael McGill, Special Agent in Charge, Social Security Administration Office of the Inspector General, made the announcement after sentencing by U.S. District Judge Robert E. Payne. Assistant U.S. Attorney Heather L. Hart and Special Assistant U.S. Attorney Margaret Reed prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-46.
Redwood City Man Indicted for Alleged Scheme to Defraud Produce VendorsRead the Press Release
SAN JOSE, CA— Remon Issa Daniel was indicted on charges of wire fraud for allegedly defrauding produce vendors of over one million dollars of fruit and vegetables announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
According to the indictment filed yesterday, Daniel, 35, of Redwood City, obtained fruit and vegetables from at least 10 different vendors during the course of his scheme, which began in 2014. He ordered this produce primarily from companies in Southern California, Arizona, and Texas, and usually claimed to be from one of three genuine produce wholesalers in Northern California: Bay Produce, New San Jose Wholesale, or General Produce. According to the indictment, Daniel had no association with any of these companies. Further, Daniel often used his own name but also allegedly used the false identity of Rick Stevens. The indictment alleges that Daniel sometimes sent the vendor a copy of a deposit slip, as proof that he had made a payment for the product. Only after the vendor released the produce to Daniel would the vendor learn that the deposited check was returned for insufficient funds. The indictment charges Daniel with fourteen counts of wire fraud, in violation of 18 U.S.C. § 1343.
Daniel was arrested on February 25, 2016, based on a federal complaint alleging similar conduct. He is currently in federal custody and will be arraigned on the indictment on March 14, 2016, at 1:30, before the Honorable Howard R. Lloyd, U.S. Magistrate Judge, in San Jose.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Daniel faces a maximum statutory penalty for each count of wire fraud of 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense. Additional fines, supervised release and restitution may be ordered, however, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Amber Rosen is prosecuting the case with the assistance of Susan Kreider and Yolanda Singletary. The prosecution is the result of an investigation by the Federal Bureau of Investigation.