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Wednesday 20 January 2016
Former Prison Guard Pleads Guilty in Corruption CaseRead the Press Release
PHILADELPHIA – John Wesley Herder, 49, of Philadelphia, PA, formerly a correctional officer at Philadelphia’s Curran Fromhold Correctional Facility (CFCF), pleaded guilty today to attempted extortion under color of official right, attempted distribution of controlled substances, and making false statements within federal jurisdiction. These charges resulted from Herder’s agreement with a prison inmate to smuggle a cellular telephone and Oxycontin pills into the CFCF in exchange for a $1,000 cash payment, and Herder’s act of lying to the FBI when questioned about his contraband smuggling activities. U.S. District Court Judge Mark A. Kearney scheduled a sentencing hearing for May 16, 2016. Herder was working as a correctional officer at the CFCF in October 2013 when, in exchange for a $1,000 payment, he agreed to smuggle Oxycontin (oxycodone) pills and a cellular telephone into the prison and deliver it to Inmate #1. To obtain his payment and the contraband, Herder agreed to meet with Inmate #1’s associate (“Person #1”) outside the prison. On October 17, 2013, Herder met with Person #1 inside a car in the parking lot of a Walgreens Pharmacy in Philadelphia. During their meeting, Person #1 handed Herder 100 pills, represented to contain OxyContin (oxycodone), a Nokia cellular telephone, and $1,000.00 in cash. At the conclusion of their meeting, Herder told Person #1: “Just tell [Inmate #1] to sit tight and I got it coming to him, ok.” Herder also told Person #1 that he was willing to bring additional contraband into the prison. Between October 17, 2013 and October 29, 2013, Herder smuggled the 100 pills and cellular telephone past prison security and into the CFCF. On October 29, 2013, Herder provided Inmate #1 with all 100 pills and the cellular telephone. On June 18, 2015, federal law enforcement agents interviewed Herder and questioned him about his contraband smuggling activities, and Herder falsely stated that he did not bring contraband into CFCF. Herder faces a statutory maximum sentence of 45 years in prison, forfeiture, possible fines, supervised release, and special assessments. The case was investigated by the FBI with assistance from the Philadelphia Department of Corrections. It is being prosecuted by Assistant United States Attorney Kevin Brenner.Former President Pleads Guilty to Embezzling from UnionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former president of the union representing Jackson County Department of Corrections employees pleaded guilty in federal court today to a wire fraud scheme in which he embezzled more than $7,000 from the union local.
Lowell Wreh, 46, of Raytown, Mo., waived his right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to an information that charges him with one count of wire fraud.
Wreh was the president of American Federation of State, County and Municipal Employees (AFSCME) Local 1707 from July 2013 until he was suspended in April 2014, and officially dismissed on Aug. 11, 2014. Prior to that, Wreh had been the acting president of Local 1707 since Oct. 20, 2012. AFSCME Local 1707 is a labor organization in Kansas City, Mo., whose members are employed at the Jackson County Department of Corrections.
By pleading guilty today, Wreh admitted that he issued $7,642 in checks from the Local 1707 bank account to himself and others for his own benefit and personal use from January 2013 through Feb. 28, 2014.
Under the terms of today’s plea agreement, Wreh must pay restitution to Local 1707 for the total amount of the loss.
Under federal statutes, Wreh is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the U.S. Department of Labor - Office of Labor-Management Standards.
Former Madison County, Alabama, Deputy Pleads Guilty to Lying Under Oath to Obstruct Investigation into BeatingRead the Press Release
The Justice Department announced today that Justin Watson, 31, a former deputy with the Madison County Sheriff’s Office in Huntsville, Alabama, has pleaded guilty to obstructing a federal investigation into the beating of a local handyman.
According to evidence presented in court, Watson, while off-duty, got into a bar fight with the handyman. Watson searched for the man over the next several weeks, and when he observed the man driving down the highway, Watson pulled him over and ordered him out of his truck. Watson proceeded to strike the man in the face, hit him with a baton and choke him until he was unconscious. At a later criminal proceeding, Watson knowingly and falsely claimed, under oath, that he had never seen the man before the traffic stop and that he had not gotten into a bar fight with the man.
“This deputy, who was sworn to uphold the law, brazenly chose to violate it,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We cannot, and will not, tolerate police officers who lie under oath to obstruct the pursuit of justice.”
“My office is committed to investigating allegations of police misconduct, and prosecuting cases where appropriate, in order to ensure that everyone in our community can expect fair treatment from law enforcement,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “Any law enforcement officer who tries to interfere with an investigation into police misconduct should expect scrutiny for that misbehavior, as well. The vast majority of police officers perform their duties with integrity, even in difficult and trying situations, and support efforts to prosecute officers who commit misconduct. We appreciate that professionalism and want the public to be aware that we are committed, alongside of our state and local law enforcement colleagues, to ensuring that police officers behave in a fair and lawful manner.”
Watson faces a maximum sentence of 20 years in federal prison. He will be sentenced at a later date.
This case was investigated by the FBI, and was prosecuted by Assistant U.S. Attorney Mary Stuart Burrell of the Northern District of Alabama and Trial Attorney Christopher Perras of the Criminal Section of the Civil Rights Division.
Watson Plea Agreement
Former Madison County Deputy Pleads Guilty to Lying Under Oath to Obstruct Investigation into BeatingRead the Press Release
HUNTSVILLE – Former Madison County Sheriff’s Deputy Justin Watson, 31, pleaded guilty today to obstructing a federal investigation into the beating of a local handyman, U.S. Attorney Joyce White Vance and the Justice Department announced.
According to evidence presented in court, Watson, while off-duty, got into a bar fight with the handyman. Watson searched for the man over the next several weeks, and when he observed the man driving down the highway, Watson pulled him over and ordered him out of his truck. Watson proceeded to strike the man in the face, hit him with a baton and choke him until he was unconscious. At a later criminal proceeding, Watson knowingly and falsely claimed, under oath, that he had never seen the man before the traffic stop and that he had not gotten into a bar fight with the man.
“This deputy, who was sworn to uphold the law, brazenly chose to violate it,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We cannot, and will not, tolerate police officers who lie under oath to obstruct the pursuit of justice.”
“My office is committed to investigating allegations of police misconduct, and prosecuting cases where appropriate, in order to ensure that everyone in our community can expect fair treatment from law enforcement,” Vance said. “Any law enforcement officer who tries to interfere with an investigation into police misconduct should expect scrutiny for that misbehavior, as well. The vast majority of police officers performs their duties with integrity, even in difficult and trying situations, and supports efforts to prosecute officers who commit misconduct. We appreciate that professionalism and want the public to be aware that we are committed, alongside of our state and local law enforcement colleagues, to ensuring that police officers behave in a fair and lawful manner.”
Watson faces a maximum sentence of 20 years in federal prison. He will be sentenced at a later date.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Mary Stuart Burrell and Trial Attorney Christopher Perras of the Criminal Section of the DOJ Civil Rights Division.
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Former Controller of Non-Profit Organization That Funds Medical Research Sentenced in Manhattan Federal Court to Four Years in Prison for Embezzling over $2 Million and Tax EvasionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that KAREN ALAMEDDINE, a/k/a “Karen Dean,” the former controller of a New York-based non-profit organization whose core mission is to cure genetic illnesses by supporting biomedical research (the “Non-Profit”), was sentenced in Manhattan federal court to four years in prison for embezzling more than $2 million from the Non-Profit, and to tax evasion for deliberately failing to report to the Internal Revenue Service (“IRS”) as income the money she embezzled. ALAMEDDINE was sentenced today by United States District Judge Gregory H. Woods.
Manhattan U.S. Attorney Preet Bharara said: “Karen Alameddine’s brazen theft of over $2 million was not just a breach of her duties of loyalty and honesty to her employer, it was a federal crime that diverted much-needed funds from biomedical research that could help to cure genetic illnesses. Thanks to the work of the IRS and the Postal Inspection Service, Alameddine will now pay the price for her faithless conduct.”
According to the Complaint, the Indictment, guilty plea, and proceedings in Manhattan federal court:
From approximately late 2008 through early 2014, while working as the controller for the Non-Profit, ALAMEDDINE diverted over $2 million of the Non-Profit’s funds to her own bank accounts and for her own personal use. ALAMEDDINE executed the scheme principally by disguising QuickBooks entries to make transfers to her personal bank account appear as if they were transfers made to pay grant recipients of the Non-Profit. ALAMEDDINE further sought to disguise the fraud by inventing a fictitious accounting firm named “Davis & Greene,” purportedly based in Washington, D.C., which was, according to ALAMEDDINE, retained to prepare certain tax returns for the Non-Profit for the 2012 and 2013 tax years.
After ALAMEDDINE fraudulently transferred the funds from an account belonging to the Non-Profit to a personal bank account, she further transferred the funds to other accounts she controlled, and thereafter used those funds for various personal expenses, including to pay personal bills. Among the personal items ALAMEDDINE paid for with the embezzled money were utility bills, car payments, jewelry, the purchase of a recreational vehicle, her personal mortgages, and leisure travel. In addition to the fraudulent diversions, ALAMEDDINE carried out her embezzlement scheme by secretly procuring a credit card in the Non-Profit’s name and using it to pay for personal expenses; by submitting fraudulent requests for reimbursement for expenses she falsely claimed to have incurred; and by making illicit transfers from the Non-Profit’s bank account purportedly to pay for expenses related to hiring of temporary help to assist with certain accounting and payroll functions but which, in truth, were never actually incurred.
In addition, for each of the calendar years 2009 through 2013, ALAMEDDINE filed tax returns with the IRS in which she deliberately omitted reporting the income she received from the fraud. Those deliberate omissions resulted in ALAMEDDINE’s evasion of a total of over $640,000 in income tax for the years 2009 through 2013.
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ALAMEDDINE, 58, of Perris, California, who has been in custody since her arrest in November 2014, pled guilty to one count of wire fraud and one count of tax evasion. In addition to her prison term, ALAMEDDINE was ordered to pay $2,674,983 in restitution, including $1,934,000 to the Non-Profit and $640,000 to the IRS. ALAMEDDINE was also ordered to forfeit $1,828,000 in proceeds she obtained from the embezzlement offense.
Mr. Bharara praised the outstanding investigative work of the IRS and the U.S. Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Stanley J. Okula is in charge of the prosecution.
Former Clerk at Cook County Recorder of Deeds Admits Accepting Cash Bribe in Exchange for Preparing Fraudulent Real Estate DeedRead the Press Release
CHICAGO — A former clerk for the Cook County Recorder of Deeds pleaded guilty today to accepting a cash bribe in exchange for preparing a back-dated deed on an Oak Park home and agreeing to record it with her office.
REGINA TAYLOR accepted the $200 bribe from an individual who purportedly wanted to add a relative’s name to the deed of a residence in Oak Park, according to a written plea agreement. Unbeknownst to Taylor, the individual was actually an undercover law enforcement agent, the plea agreement states.
Taylor, 59, of Chicago, pleaded guilty to one count of honest services mail fraud. The conviction carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
U.S. District Judge Sara L. Ellis scheduled a sentencing hearing for April 13, 2016, at 10:30 a.m.
According to the plea agreement, the fraudulent quit claim deed was created to add the purported relative as a fourth owner of the Oak Park property. Taylor directed the undercover agent not to tell anyone that the three other individuals on the deed were deceased, according to the plea agreement. Taylor then prepared the fraudulent deed and back-dated it by 18 months, confirming the purported relative as a grantee.
After giving the fraudulent deed to the undercover agent to have it stamped at the Village of Oak Park, the undercover agent gave Taylor $200 in cash, according to the plea agreement. Taylor further directed the undercover agent to bring back the stamped copy of the fraudulent deed so that Taylor could officially file it at the Office of the Cook County Recorder of Deeds.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is represented by Assistant United States Attorney Megan Cunniff Church.
Plea Agreement
First Defendant Sentenced to Federal Prison in Eagle Ford Shale Oil Theft CaseRead the Press Release
In Del Rio today, 50-year-old Juan Martin Bernal of Eagle Pass, TX, was sentenced to 21 months in federal prison for his role in a scheme to steal an estimated $1.4 Million worth of Eagle Ford Shale oil announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
In addition to the prison term, United States District Judge Alia Moses ordered that Bernal pay a monetary judgment of $150,000 and to be placed on supervised release for a period of three years after completing his prison term.
Last year, Bernal and his two co-defendants--26–year-old Carlos Samuel Pena of Del Rio and 38-year-old Victor Manuel Guerra, Jr., owner of Las Lomas Vacuum Services and AVG Vacuum Services in Laredo, TX--pleaded guilty to one count of theft from an interstate shipment. By pleading guilty, the defendants admitted that between January 2011 and August 2014, they devised a scheme to steal oil from multiple energy companies operating in the South Texas’ Eagle Ford Shale using Guerra’s wastewater removal trucks. Those companies included a company Bernal worked for, Newfield Exploration Company, and a company that employed Pena, Anadarko Petroleum Corporation.
According to court documents, Guerra’s company had no contract or permission to be on Newfield or Andranko property. However, Bernal and Pena covertly allowed Guerra’s wastewater trucks onto Newfield and Andranko properties where the drivers, in collusion with the defendants, would take oil. The pilfered oil was then transported to Guerra’s property where Guerra would sell the stolen product for financial gain to third-party buyers who would pay for the oil via wire transfer.
Guerra and Pena face up to ten years in federal prison. Guerra’s sentencing is scheduled for April 25, 2016. Pena’s sentencing is scheduled for June 20, 2016. Both hearings are scheduled to take place in Del Rio before Judge Moses.
This case resulted from an investigation conducted by agents with the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS) Criminal Investigation, Texas Attorney General’s Special Investigations Unit, Bexar County District Attorney’s Office, Texas Department of Public Safety, Texas Rangers, Dimmit County Sheriff’s Office, and the Texas Railroad Commission. Assistant United States Attorneys Bryan Nathan Reeves and Timothy Adam Duree are prosecuting this case on behalf of the Government.
Federal Grand Jury Indicts Registered Sex Offender on Child Pornography ChargesRead the Press Release
NORFOLK, Va. – Eduardo Bueno, 41, of Portsmouth, was indicted by a federal grand jury today on charges of distribution and possession of child pornography.
According to the indictment and other court documents, law enforcement authorities were alerted when a customer attempted to save images of minors engaging in sexually explicit conduct on their internet cloud account. Homeland Security Investigations and the Portsmouth Police Department identified the user of the account as Eduardo Bueno. Further investigation revealed that Bueno is a registered sex offender, previously having been convicted of child sexual abuse in Massachusetts. Bueno initially was arrested on January 5, 2016, pursuant to a criminal complaint and remains incarcerated pending trial.
Bueno faces a mandatory minimum penalty of 5 years’ imprisonment and a maximum penalty of 20 years in prison on each count if convicted. The minimum and 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; and Michael Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Norfolk Office, made the announcement after the grand jury returned the indictment. This case was investigated by Homeland Security Investigations with the assistance of the Portsmouth Police Department. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-8.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Family Members Convicted in Benefits Fraud CaseRead the Press Release
LAS VEGAS, Nev. – A brother and sister have been convicted by a federal jury of multiple felony counts for using false identities to steal almost $300,000 in unemployment funds and other federal benefits, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. Two other family members were also convicted of fraud for their part in the scheme to unlawfully obtain unemployment compensation funds.
Frederick Vernon Williams, 35, his sister Jacqueline Louisa Gentle, 27, his wife, Denise Allison Williams, 36, and his other sister, Carolyn Shelmadine Willis-Casey, 40, all of Belize, were convicted on Friday, Jan. 15. The trial lasted for 10 days and was presided over by U.S. District Judge James C. Mahan.
“The defendants used false identities and lied on passport applications to steal federal benefits from multiple agencies, including the Departments of Labor, Agriculture, Education, Health and Human Services, and the Social Security Administration,” said U.S. Attorney Bogden. “We will continue to use federal laws to prosecute benefits thieves who steal from all Americans through greed and fraud.”
Frederick Williams and Jacqueline Gentle were convicted of conspiracy to commit mail fraud, aggravated identity theft, mail fraud, theft of government money, making a false statement in application for a passport, and making false citizenship claims. Gentle was also convicted of misuse of a U.S. passport and misuse of a social security number. Denise Williams and Carolyn Willis-Casey were each convicted of one count of mail fraud.
Frederick Williams faces up to 290 years in prison, plus two to four years consecutive for the two aggravated identity theft counts, and not more than $4.75 million in fines. Gentle faces up to 83 years in prison, plus two years consecutive for the aggravated identity theft count, and not more than $2 million in fines. Denise Williams and Willis-Casey face up to 20 years in prison and not more than $250,000 in fines. They are scheduled to be sentenced on April 18, beginning at 10:00 a.m.
According to the court records and evidence submitted at trial, from about August 2010 to June 2012, defendants Frederick Williams and Jacqueline Gentle, citizens of Belize, conspired to register two fictitious companies, Luna Consulting and Centro America Export, with the State of Nevada, Department of Employment, Training, and Rehabilitation (DETR). After the companies were registered with DETR, the defendants conspired to submit fraudulent wage information for 16 fictitious employees, including themselves. After submitting the fraudulent wage information, the defendants submitted fraudulent unemployment compensation claims to DETR, and obtained unemployment compensation payments totaling approximately $218,000. The unemployment compensation payments were transferred to the defendants by means of Nevada debit cards mailed to the fictitious employees, which the defendants and co-defendants used to withdraw cash from ATM’s.
Frederick Williams and Gentle also made false statements in applications for U.S. passports by stating that their father was a U.S. citizen and by stating in other government paperwork that they were U.S. citizens, when they well knew that they were not citizens of the United States but were citizens of Belize.
Frederick Williams and Gentle also falsely stated that they were U.S. citizens in applications for other government benefit programs such as social security, federal student aid (Pell grants), food stamps, and Medicaid. Williams was able to fraudulently obtain approximately $33,184 in social security benefits, $10,900 in Pell grants, $33,814 in food stamp benefits, and $1,132 in Medicaid benefits.
Denise Williams fraudulently caused DETR to pay unemployment benefits in her name, and Carolyn Willis-Casey caused a notice for payment of unemployment benefits to be sent to her.
The case was investigated by the U.S. Department of State Diplomatic Security Service, the Offices of the Inspector General for the U.S. Department of Labor, Social Security Administration, U.S. Department of Agriculture, U.S. Department of Education, and U.S. Department of Health and Human Services, and Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney J. Gregory Damm.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
Detroit drug dealer pleads guilty to Federal heroin crimeRead the Press Release
CHARLESTON, W.Va. – A Detroit heroin dealer pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Lawrence Watson, 21, entered his guilty plea in federal court to distribution of heroin.
Watson admitted that on June 12, 2014, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at a residence on Elaine Drive in Rand. After the drug deal, officers executed a search warrant on the residence and found Watson in the house. During the search, officers discovered additional heroin and recovered the money used in the controlled drug purchase from Watson’s pocket.
Watson faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 25, 2016.
The Metropolitan Drug Enforcement Network Team investigated the case. Assistant United States Attorney John J. Frail is in charge of the prosecution. The defendant entered his guilty plea before United States District Judge Thomas E. Johnston.
This case is 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 pills and heroin in communities across the Southern District.
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Defendant Sentenced to 30 Years for Kidnapping and Violently Assaulting Three Victims on the Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of DARRELL ALAN LUSSIER, 36, to 360 months in federal prison for kidnapping and violently assaulting three victims on the Red Lake Indian Reservation. On September 3, 2015, following a four-day trial, a federal jury found LUSSIER guilty of all counts. The defendant was sentenced on January 20, 2016 before Judge Richard H. Kyle in U.S. District Court in Duluth, Minn.
As proven at trial, on February 9, 2015, LUSSIER used his fists and feet to assault victim G.L.M. after the two individuals got into a verbal argument with each other at G.L.M.’s home. The defendant continued to brutally beat the victim before wrapping a shoelace around the victim’s neck in an attempt to strangle him. LUSSIER then threw the victim into a crawlspace beneath the home. After assaulting G.L.M., LUSSIER brutally assaulted two other victims, D.M.R., who is legally blind, and D.M.R.’s sister, N.L.R., and then threw them into the crawlspace before leaving the house. The three victims were found the next day and taken to the Red Lake Hospital and subsequently transferred to Sanford Hospital in Fargo, all suffering from traumatic brain injuries and various broken bones and other injuries.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.
These cases resulted from an investigation conducted by the Federal Bureau of Investigation and the Red Lake Police Department.
This case was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Defendant Information:
DARRELL ALAN LUSSIER, 36
Red Lake, Minn.
Convicted:
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Kidnapping, 3 counts
- Assault Resulting in Serious Bodily Injury, 3 counts
Sentenced:
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360 months in prison
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Five years supervised release
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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DeWayne Watts Sentenced for Role in Darkode Computer Hacking ForumRead the Press Release
PITTSBURGH - A Florida resident has been sentenced in federal court to two years probation and six months home confinement on his conviction of violating the CAN-SPAM ACT, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on DeWayne Watts, 28, of Hernando, Florida. Watts was one of 12 individuals charged in connection with a significant computer hacking forum known as Darkode, which has been dismantled.
According to information presented to the court, Watts knowingly used a protected computer to relay or retransmit multiple commercial electronic mail messages with the intent to deceive or mislead recipients.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Watts.
Dallas Securities Broker Sentenced to 36 Months in Federal Prison on Securities Fraud ConvictionRead the Press Release
DALLAS — Wade Lawrence, 43, of Dallas, a securities broker, was sentenced this afternoon by U.S. District Judge Barbara M. G. Lynn to 36 months in federal prison, following his guilty plea in September 2015 to a felony Information charging one count of securities fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Lynn also ordered that Lawrence pay $1,542,966 in restitution and forfeit $126,074 in proceeds traceable to the offense, in the form of a money judgment, representing the proceeds from the sale of his residence. He was ordered to surrender to the Bureau of Prisons on March 15, 2016.
According to documents filed in the case, from June 2008 through July 2011, Lawrence worked as a securities broker by Oppenheimer & Co. Inc., in Dallas and was active in conducting trades in his customer brokerage accounts. In 2010 and 2011, Lawrence began to lose significant amounts of money, both in his clients’ trading accounts and his individual trading account. In August 2011, Lawrence moved to Southwest Securities in Dallas, where his trading losses continued.
Beginning in January 2012 and continuing through September 2013, Lawrence engaged in a scheme to defraud to obtain funds from individuals, with whom many he had longstanding personal and business relationships and who trusted him. He falsely offered for sale various investments, including real estate ventures and securities outside the brokerage accounts at Southwest Securities. He also offered interests in what he represented were a high-risk investment in options on the Volatility Index (VIX) on the Chicago Board Options Exchange.
Lawrence also solicited funds from several individuals by falsely representing they would be invested in a duplex. He falsely represented to other investors that their money would be invested in various securities such as in Facebook and Southwest Securities.
Lawrence represented to investors that their investments would return anywhere from 20 to 100 percent, and that it was possible to double their investment. In each case, he directed the investor to mail or wire-transfer funds to his personal account at Wells Fargo Bank, instead of a Southwest Securities account, giving various explanations for this, including that he was trying to start his own VIX fund and needed to establish a history for the fund.
Lawrence, however, only invested some of the investors’ money as represented. Instead, he spent several hundred thousand dollars of the proceeds for personal living expenses, including travel, mortgage payments on his Dallas residence, and a $10,000 piece of jewelry. In total, Lawrence obtained approximately $2,124,000 from the scheme. He returned approximately $581,034 to some of the investors.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The FBI investigated the case. Assistant U.S. Attorney Christopher Stokes prosecuted.
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Conspirators in Illegal Commercial Driver License Scheme SentencedRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Ellariy Medvednik (49, Oviedo) to one year in federal prison and a fine of $30,000 for conspiring to aid and abet the unlawful production of Florida driver licenses and commercial driver licenses (“CDLs”). Natalia Dontsova (50, Tarzana, CA) was previously sentenced to 10 months in federal prison for the same offense. A third co-conspirator, Adrian Salari, remains at large.
According to court documents, Medvednik, Dontsova, and Salari were affiliated with Larex, Inc., a commercial truck driving school. Larex marketed itself to Russian speakers online. Individuals residing out-of-state seeking to obtain Florida CDLs contacted Larex’s owner, Medvednik, to arrange for Larex’s services at a cost of approximately $2,000. Those individuals then traveled to Florida to obtain their CDLs with the intention of returning to their home states immediately afterward. However, to obtain a Florida CDL, an individual must first possess a Florida driver license. The State of Florida restricts its driver licenses and CDLs to Florida residents. Medvednik, Dontsova, and Salari conspired to provide false documentation that the individuals resided with them, so that the individuals could obtain Florida driver licenses.
Larex also assisted the students with additional requirements for obtaining a CDL. Dontsova, using covert communication equipment, provided answers to the students during the written portion of the CDL exam, the successful completion of which led to the issuance of a commercial learner’s permit. She was paid $1,000 by each applicant she had assisted.
As a result of this scheme, the State of Florida is requiring hundreds of CDL holders associated with Larex and its affiliates to be retested to ensure that they are properly certified.
“The sentencing of Ellariy Medvednik and Natalia Dontsova for aiding and abetting the unlawful production of commercial driver licenses, and Florida driver licenses, is a clear signal that strong penalties await those that would seek to decrease safety on the Nation’s roadways,” said Marlies T. Gonzalez, DOT OIG regional Special Agent-in-Charge. “Working with our law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to prevent, detect and prosecute violations of laws and regulations, CDL and otherwise, designed to ensure the public’s safety.”
This case was investigated by the U.S. Department of Transportation’s Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Embry J. Kidd.
Chicago Man Sentenced for Mailing Bomb Threats and Threats of Violence Against Southern Illinois UniversityRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today that Derrick Dawon Burns, 23, of Chicago, Illinois, was sentenced in federal court in reference to four federal charges stemming from a series of bomb threats and threats of violence directed toward the Southern Illinois University Carbondale (SIUC) students, faculty and staff on October 10, 2012, October 15, 2012, December 6, 2012, and October 1, 2013. Three of these letters were entitled "The War on SIU." Each letter was addressed to a combination of the following targets: Southern Illinois University, staff, students, SIU police, and the FBI. The United States District Court in Benton sentenced Burns to 24 months’ imprisonment, two years supervised release, and a $400 special assessment
The investigation was conducted by the SIUC Department of Public Safety, the Federal Bureau of Investigation, and the United States Postal Inspection Service. Assistance was provided by the Carbondale Police Department, the Illinois Secretary of State Bomb Squad, the Jackson County Sheriff’s Department, and the Illinois State Police. The case was prosecuted by Assistant U.S. Attorney William E. Coonan.
Chester County Man Sentenced for Possession of Explosives, Fraud, and Weapons OffensesRead the Press Release
PHILADELPHIA - Istvan Merchenthaler, 45, formerly of Downingtown, Pennsylvania, was sentenced today to 140 months in prison for wire fraud, aggravated identity theft, money laundering, filing false tax returns, interstate transportation of stolen property, possessing unregistered destructive devices, possessing firearms and ammunition as a fugitive, and possessing an illegally manufactured firearm. These charges stemmed from two indictments in this District, and one indictment, each, in the Eastern District of North Carolina and the District of Maryland. All of the cases were consolidated before United States District Court Judge Robert F. Kelly who also ordered three years of supervised release, a $2,200 special assessment, and more than $3.4 million in restitution.
Between May 2006 and February 2013, Merchenthaler claimed to be the founder of PhoneCard USA, a company that was purportedly a “premier distribution source” for prepaid phone cards, prepaid phones, and prepaid “adult entertainment cards.” Merchenthaler, who used a number of aliases, falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores including Walmart, 7-Eleven, and BJ’s Wholesale Club. In reality, Merchenthaler operated a “Ponzi” scheme, stealing over $3 million from over 250 investors and using much of these funds to buy expensive cars, jewelry, and firearms and to perpetuate his scheme. To line his pockets with these victims’ funds, Merchenthaler used stolen identities, impersonated corporate executives, forged signatures, and fabricated bogus contracts. Merchenthaler continued his scheme while he was on pretrial release in this District. He also filed false tax returns, defrauding the United States of over $400,000.
While on pretrial release, Merchenthaler also removed his electronic monitoring bracelet and fled as a fugitive. In order to evade authorities, Merchenthaler stole two (2) vehicles from car dealerships in Pennsylvania and North Carolina and fled from the scene of a traffic stop by the Pennsylvania State Police while driving one of the stolen vehicles. The United States Marshals Service Fugitive Task Force and the Maryland State Police later apprehended Merchenthaler in Bel Air, Maryland.
Moreover, prior to and after jumping bail from this District, Merchenthaler amassed approximately 17 firearms and over approximately 11,580 rounds of ammunition, as well as approximately 634 improvised explosive devices (“IEDs”), which he stored in Pennsylvania, North Carolina, and Maryland. Approximately 67 of these IEDs were comprised of PVC pipe, almost all of which contained shrapnel in the form of nails, screws, or rocks. The remaining approximately 567 IEDs were comprised of cardboard tubes in varying sizes and explosive power. All of the IEDs – PVC and cardboard – were center primed with flash powder. Merchenthaler drove these IEDs in his stolen vehicles to storage facilities in all three states. During render safe procedures at a North Carolina storage facility, several of the IEDs exploded, resulting in damage to a bomb squad robot and the storage facility.
The case was investigated by the Federal Bureau of Investigation; the Internal Revenue Service Criminal Investigations; the United States Marshals Service Fugitive Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Pennsylvania State Police; the Philadelphia Police Bomb Disposal Unit; the Montgomery County Bomb Squad; the Montgomery County Sheriff’s Office; the East Whiteland Police Department; the East Whiteland Fire Department; the Malvern Fire Department; the Maryland State Police; the North Carolina State Bureau of Investigation; the Downingtown Police Department; and the Chester County District Attorney’s Office. The case was prosecuted by Assistant United States Attorneys Vineet Gauri, Jason Kellhofer, and Adam Ake in the United States Attorney’s Offices for the Eastern District of Pennsylvania, Eastern District of North Carolina, and the District of Maryland, respectively.
Career Offender from Arizona Sentenced to 262 Months for Conviction on Federal Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE –Matthew Maley, 48, of Tucson, Ariz., was sentenced today in federal court in Las Cruces, N.M., to 262 months (almost 22 years) in prison followed by ten years of supervised release for his conviction on methamphetamine trafficking and firearms charges. Maley’s sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Lt. Bobby Holden, Commander of the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force.
In announcing Maley’s sentence, U.S. Attorney Damon P. Martinez said that Maley, a career offender whose criminal history includes three prior drug trafficking convictions, was prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Doña Ana County, N.M., under this initiative.
“Catching drug-traffickers and sending them to prison requires teamwork,” said FBI Special Agent in Charge Terry Wade. “The FBI worked closely on this case with the U.S. Attorney’s Office and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. We will continue to develop and use our law enforcement partnerships to keep our communities safe.”
“This case is a prime example of multiple agencies working together to make New Mexico a safer place for its citizens,” added Lt. Bobby Holden, Commander of the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force.
Maley and his four co-defendants Jennifer Sanders, 43, Jose Luis Niño, 41, and Aubrey Savage, 36, all of Las Cruces, and Candice Marie Carpenter, 36, of Tucson, were charged in a 14-count superseding indictment filed in March 2014. The superseding indictment charged Maley, Sanders and Savage with participating in a conspiracy to distribute methamphetamine in Doña Ana County from June 2013 through Aug. 2013, and Maley, Nino and Carpenter with conspiracy to distribute methamphetamine in Doña Ana County in Dec. 2013. The superseding indictment also charged the defendants with various substantive methamphetamine trafficking offenses, and Maley and Niño were charged with being felons in possession of firearms and ammunition. The four co-defendants entered guilty pleas to various counts of the superseding indictment while Maley elected to exercise his right to a jury trial.
Maley proceeded to trial on Sept. 22, 2014, on five methamphetamine trafficking charges and a felon in possession of a firearm and ammunition charge. Before the case was submitted to the jury, the court entered a directed verdict of acquittal on one of the drug charges. The trial concluded on Sept. 25, 2014, when the jury returned a verdict of guilty against Maley on four methamphetamine trafficking charges and the firearms charge.
The trial evidence established that Maley was the head of a drug trafficking organization that distributed significant quantities of methamphetamine in New Mexico and Arizona. During July and Aug. 2013, undercover officers made several controlled purchases of methamphetamine from Maley, Sanders and Savage, including the purchase of a pound of methamphetamine on Aug. 21, 2013. From Oct. through Dec. 2013, an informant purchased methamphetamine from Niño, who obtained the methamphetamine from Maley, and on Dec. 4, 2013, officers seized approximately 274 grams of methamphetamine when they executed a search warrant at Niño’s residence in Las Cruces.
On June 11, 2014, Savage pled guilty to a conspiracy count, and was sentenced on Feb. 25, 2015, to 60 months in federal prison followed by four years of supervised release.
On July 16, 2014, Niño pled guilty to conspiracy, possession of methamphetamine with intent to distribute, and felon in possession of ammunition. At sentencing, Niño faces a mandatory minimum of ten years in prison and a maximum of life in prison. His sentencing hearing has not yet been scheduled.
On July 18, 2014, Sanders pled guilty to conspiracy and seven counts of distribution of methamphetamine. At sentencing, Sanders faces a mandatory minimum of ten years in prison and a maximum of life in prison. Her sentencing hearing has yet to be scheduled.
On Sept. 18, 2014, Carpenter pled guilty to conspiracy to distribute methamphetamine and distribution of methamphetamine.
This case was investigated by the Las Cruces office of the FBI and HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
California Men Charged with Bank Fraud Conspiracy Related to Trademark ScamRead the Press Release
Two residents of Glendale, California, were charged in a superseding indictment in connection with a bank fraud scheme involving the proceeds of a mass mailing scam targeting holders of U.S. trademarks.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Inspector in Charge Robert Wemyss of the U.S. Postal Inspection Service (USPIS) Los Angeles Division, Inspector in Charge David G. Bowers of the USPIS Washington, D.C., Division and Special Agent in Charge Erick Martinez of the Internal Revenue Service-Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
Artashes Darbinyan, 36, and Orbel Hakobyan, 41, were charged in a superseding indictment that was unsealed today in the Central District of California with one count of conspiracy to commit bank fraud. Darbinyan was also charged with four counts of mail fraud, three counts of aggravated identity theft, two counts of concealment money laundering and one count of bank fraud for a separate scheme. Hakobyan was also charged with one count of bank fraud.
According to the superseding indictment, Darbinyan operated and controlled Trademark Compliance Center (TCC) and Trademark Compliance Office (TCO), which purported to offer trademark registration and monitoring services. The superseding indictment alleges that, through TCC and TCO, Darbinyan sent mass solicitations offering, for a fee, trademark registration and monitoring services to holders of trademarks recently registered with the U.S. Patent and Trademark Office, services which Darbinyan did not intend to, and did not, provide. To accomplish this scheme, Darbinyan used the names of other persons to open accounts for TCC and TCO at “virtual office centers” (i.e., businesses that offered call answering and mail forwarding services) in the Washington, D.C., and Los Angeles areas, and directed employees of the Washington, D.C.-area virtual office centers to forward mail addressed to TCC and TCO – envelopes containing payments from trademark holders – to the virtual office centers in the Los Angeles area, the superseding indictment alleges.
The superseding indictment alleges that from September 2013 through September 2015, the defendants perpetrated a bank fraud scheme by passing the mass mailing scam’s proceeds through fake bank accounts, primarily at a Wells Fargo branch in Glendale. According to allegations in the superseding indictment, Darbinyan opened bank accounts using false identities; Hakobyan and Darbinyan deposited the trademark holders’ payments into the Wells Fargo bank accounts and, with the assistance of Wells Fargo bank employees, transferred the funds to other accounts under Darbinyan’s control and either made cash withdrawals or purchased gold with cashier’s checks and wire transfers.
Hakobyan’s separate bank fraud charge arises from allegations that he made a fraudulent withdrawal while impersonating one of the supposed account holders.
The charges and allegations in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The USPIS and IRS-CI investigated the case. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section is prosecuting the case.
CEO of New Jersey Engineering Consulting Firm Sentenced to One Year in Prison for Role in Unemployment Insurance Fraud ConspiracyRead the Press Release
Also Failed to Collect More Than $100,000 in Payroll Taxes
TRENTON, N.J. – The head of an engineering consulting firm in Wall Township, New Jersey, was sentenced today to 12 months and a day in prison for a scheme in which several of his employees fraudulently collected unemployment benefits while he paid the remaining portion of their salaries, U.S. Attorney Paul J. Fishman announced.
Lino DeAlmeida Jr., 67, of Point Pleasant, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to defraud the N.J. State Division of Unemployment Insurance (NJUI) and one count of failing to collect Social Security, Medicare, and income payroll taxes. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
DeAlmeida operated an engineering consulting firm, Consolidated Construction Management Services (CCMS) in Wall Township. In late 2011, DeAlmeida told his four employees that due to financial difficulties, he could not continue paying their salaries. He proposed a scheme in which the employees would claim to have been terminated from CCMS and seek unemployment benefits from the NJUI. In return, he promised to continue to pay them “under the table” for the remaining portion of their salaries that would not be covered by the benefits. Three of the CCMS employees agreed to the scheme and submitted false applications with the NJUI.
DeAlmeida’s employee/conspirators received a total of $130,363 in benefits between July 2011 and January 2013 while receiving CCMS checks from DeAlmeida. In addition, DeAlmeida failed to pay payroll taxes of $109,068 on the undisclosed wages of $790,860 he and his conspirators received during the scheme.
In addition to the prison term, Judge Wolfson sentenced DeAlmeida to two years of supervised release, fined him $10,000, ordered him to pay restitution of $138,532 to NJUI and pay his unpaid federal corporate and personal taxes.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by V. Grady O’Malley, Senior Litigation Counsel of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
Defense counsel: Jeffrey D. Smith Esq., Teaneck, New Jersey
Businessman Sentenced for Marketing and Selling Unapproved Remedies for CancerRead the Press Release
PROVIDENCE, R.I. – James Feijo, 68, owner and operator of Daniel Chapter One, a Portsmouth, R.I., based company, was sentenced yesterday to 6 months in federal prison to be followed by 6 months home confinement for marketing and selling products not approved by the U.S. Food and Drug Administration (FDA) and failing to pay more than $218,000 in employment taxes due the IRS, announced United States Attorney Peter F. Neronha, George M. Karavetsos, Director, FDA’s Office of Criminal Investigations, and Kristina O’Connell, Acting Special Agent in Charge of IRS Criminal Investigation.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Feijo to serve 3 years supervised release and to pay restitution in the amount of $218,408.04 owed to the IRS. Feijo pleaded guilty on September 11, 2015, to introduction of a new unapproved drug and tax evasion.
“People facing difficult, even life-threatening, health challenges are often susceptible to the kinds of deceptive schemes cooked up by the defendant here,” said United States Attorney Peter F. Neronha. “Whether in this context or in others, those who prey on the hopes and fears of the most vulnerable deserve the full attention of law enforcement. A stretch in federal prison is more than appropriate for this defendant. The people who relied on his greed-motivated, baseless claims of ‘cure’ deserved much better.”
“The FDA’s drug approval process ensures that patients receive safe and effective medications,” said George M. Karavetsos, Director, FDA’s Office of Criminal Investigations. “When criminals evade the FDA process and sell their non-FDA approved products to our most vulnerable consumers, we will take action to protect the public’s health.”
At the time of his guilty plea, Feijo admitted to the court that he engaged in the marketing, sale and distribution of unapproved cancer treatment health products and supplements which were not generally recognized as safe and effective for use by the FDA. Additionally, the products, as marketed, were not generally recognized as safe and effective by qualified experts for the cure, mitigation, treatment, or prevention of cancer. The products were marketed and sold through various websites, in-store advertisements, a call center, on Feijos’ daily radio program, and through the use of promotional materials and publications.
In addition, at the time of his guilty plea, Feijo admitted to the court that from 2006 through 2011, he falsely represented to Daniel Chapter One employees that they were independent contractors, when in truth they were employees of Daniel Chapter One. During that time, Feijo failed to issue IRS Wage and Tax Statements accounting for employees’ wages and taxes withheld. Feijo admitted that Daniel Chapter One employees were paid by checks written out to cash, and that for at least sixteen quarters he failed to collect, account for and pay over employment taxes due the IRS totaling $218,408.04.
“Business owners like Mr. Feijo have an important responsibility to collect and turn over all withholding taxes,” said Kristina O’Connell, IRS Criminal Investigation Acting Special Agent in Charge. “Those who fail to do so gain a competitive advantage which will not be tolerated. Employment tax fraud also impacts employees, who may see future benefits such as Social Security reduced because their employer did not comply with the law."
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the Rhode Island FDA Task Force and IRS Criminal Investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Bookkeeper Sentenced for Stealing $414,000 from Bethesda Company EmployerRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Amy Ranee Powell, age 41, of Huntingtown, Maryland today to 30 months in prison followed by three years of supervised release for interstate transportation of stolen money in connection with a scheme to embezzle over $414,000 from her employer. Judge Messitte also entered an order that Powell forfeit and pay restitution of $414,122.02.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea agreement, from 2003 to 2013, Powell worked for an architectural firm in Bethesda, Maryland as a bookkeeper and office manager. She wrote checks from the company’s bank account to pay the company’s bills. The company’s owner endorsed the number of blank checks needed to pay the bills, and then gave the checks to Powell to be completed.
Powell admitted that from December 2010 through September 2013, she wrote at least 82 unauthorized checks from the company’s account, payable to herself. The checks ranged in amounts from $500 to $8,000. On occasion, Powell concealed her fraud by falsifying the check stubs for the unauthorized checks, making it appear that legitimate bills had been paid.
Powell admitted that she diverted at least $414,122.02 from the company’s bank account and deposited those funds into her own bank account. According to evidence presented to the court, Powell spent all or nearly all of the funds she stole, including the following: at least $18,070 on tickets for Washington’s NFL team, at least $17,157 on wedding expenses, at least $2,994 at a florist, $2,855 at a consumer electronics store, and thousands of dollars more on vacations and numerous expensive meals.
United States Attorney Rod J. Rosenstein commended the Montgomery County Police Department, Financial Crimes Section for its work in the investigation and thanked Special Assistant U.S. Attorney Sumon Dantiki and Assistant U.S. Attorney Sujit M. Raman, who prosecuted the case.
Atlantic County, New Jersey, Man Admits Role in Large-Scale Crack Cocaine Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. – A Pleasantville, New Jersey, man today admitted participating in a nearly three-year conspiracy to distribute cocaine and crack cocaine in the Atlantic City, New Jersey area, U.S. Attorney Paul J. Fishman announced.
Ronald Douglas Byrd, 51, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to Count One of an indictment charging him with conspiring with others to distribute more than 280 grams of crack cocaine.
According to documents filed in this case and statements made in court:
From February 2012 through Dec. 10, 2014, Byrd admitted that he and others engaged in a drug trafficking conspiracy through which Byrd distributed more than one kilogram of crack cocaine. Members of the conspiracy used Byrd’s Pleasantville residence and at least two other residences in Pleasantville and Absecon to store and package cocaine and crack cocaine.
The distribution conspiracy charge to which Byrd pleaded guilty is punishable by a minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine. Sentencing is scheduled for June 10, 2016.
Byrd is the sixth person to plead guilty to participating in this drug trafficking conspiracy. Kareem Taylor, 41, of Atlantic City; Talib Tiller, 43, of Mays Landing, New Jersey; John Wellman, 41, of Somers Point, New Jersey; and Phillip Horton, 50, of Los Angeles, California, have all pleaded guilty and await sentencing. Francisco Alberto Rascon-Muracami, 22, of Obregon, Mexico, was sentenced Oct. 30, 2015 to 70 months in prison. Trial for the remaining defendants is scheduled for May 23, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s plea.
He also thanked the N.J. State Police; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Michael Huff Esq., Philadelphia
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Michael Stewart, 56, of Albuquerque, N.M., pleaded guilty today in federal court to a methamphetamine trafficking charge. Under the terms of his plea agreement, Stewart will be sentenced to 135 months in federal prison followed by a term of supervised release to be determined by the court.
Stewart, whose lengthy criminal history includes felony convictions for cocaine and methamphetamine trafficking, robbery, kidnapping and theft, is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Stewart was arrested on Feb. 19, 2015, after DEA task force officers seized 611.9 gross grams of methamphetamine and more than $24,000.00 in cash from him and his vehicle during a traffic stop in northwest Albuquerque. Stewart was subsequently indicted on the same charge on March 10, 2015.
The indictment also included forfeiture allegations requiring Stewart to forfeit $25,370.00 to the United States. The court previously entered an order in a related civil proceeding forfeiting the cash to the United States.
During today’s change of plea hearing, Stewart pled guilty to the indictment and admitted that on Feb. 18, 2015, he was in possession of 543.3 grams of actual methamphetamine which he intended to distribute to others. Stewart remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque offices of the DEA and Homeland Security Investigations and the Bernalillo County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Shana B. Long. Assistant U.S. Attorney Stephen R. Kotz handled the civil forfeiture proceedings.
Tuesday 19 January 2016
Yemeni National Pleads Guilty to Conspiring to Kill U.S. Soldiers in AfghanistanRead the Press Release
Defendant Received Military-Type Training from al-Qaeda and then Went to Afghanistan with the Taliban to Fight against U.S. Forces
Ali Alvi al-Hamidi, 31, a Yemeni national, pleaded guilty today to conspiring to murder U.S. nationals abroad, conspiring to provide material support to al-Qaeda and receiving military-type training from al-Qaeda. The guilty plea took place before U.S. District Judge Nicholas G. Garaufis of the Eastern District of New York. At sentencing, al-Hamidi faces a maximum of life imprisonment.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York and Assistant
Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office.
“Ali Alvi al-Hamidi went to the FATA to join al-Qaeda, received training from the terrorist organization, and later fought alongside the Taliban against coalition forces in Afghanistan,” said Assistant Attorney General Carlin. “With this plea, he will be held accountable for his terrorist activity, including conspiring to kill members of our military. The highest priority of the National Security Division is countering terrorist threats, and we will continue to use all tools available to bring justice to those who seek to harm American servicemen and women who bravely risk their lives in defense of our nation.”
“Today’s significant guilty plea demonstrates this office’s unwavering commitment to bring to justice those who fight against U.S. forces or assist al-Qaeda and others in their efforts to kill Americans at home or abroad,” said U.S. Attorney Capers.
“As we witnessed today, those who support designated foreign terrorist organizations like al Qaeda and seek to harm people will be held fully accountable under the law,” said Assistant Director in Charge Abbate. “On a daily basis, the FBI and its partners face the challenge of an ever evolving threat environment. Through our partnerships, both international and domestic, the FBI continues to track down those who aid and abet terrorist groups and ensure that they are brought to justice.”
In early 2008, al-Hamidi traveled to the Federally Administered Tribal Areas (FATA) of Pakistan to join al-Qaeda. Once there, he received training from al-Qaeda in the use of weapons, explosives and detonators. During late spring and summer of 2008, al-Hamidi moved on to Afghanistan with Taliban forces for the purpose of fighting members of the U.S. military and coalition forces stationed there.
The defendant also aided Bryant Neal Vinas, a U.S. citizen, in joining al-Qaeda. Vinas traveled to Pakistan from Long Island, New York, hoping to join al-Qaeda and fight U.S. military forces in Afghanistan. After participating in al-Qaeda’s military training program, Vinas and senior al-Qaeda external operations leadership devised a plan to conduct an attack on the Long Island Railroad in New York. Vinas was arrested in 2008 before he could carry out this attack, and pleaded guilty in 2009 to conspiracy to murder U.S. nationals, providing material support to a foreign terrorist organization and receiving military-type training from a foreign terrorist organization. Vinas is currently incarcerated pending sentence.
Assistant Attorney General Carlin joined U.S. Attorney Capers in extending his grateful appreciation to the FBI’s Washington Field Office. The case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda of the Eastern District of New York, with assistance provided by Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section.
Yemeni National Pleads Guilty to Conspiring to Kill U.S. Soldiers in AfghanistanRead the Press Release
Earlier today, Ali Alvi al-Hamidi, a Yemeni national, pleaded guilty to conspiring to murder U.S. nationals abroad, conspiring to provide material support to al-Qaeda, and receiving military-type training from al-Qaeda. Today’s guilty plea took place before United States District Judge Nicholas G. Garaufis. At sentencing, al-Hamidi faces a maximum of life imprisonment.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, John P. Carlin, Assistant Attorney General for National Security, and Paul M. Abbate, Assistant Director in Charge, Federal Bureau of Investigation, Washington Field Office.
“Today’s significant guilty plea demonstrates this office’s unwavering commitment to bring to justice those who fight against U.S. forces or assist al-Qaeda and others in their efforts to kill Americans at home or abroad,” stated United States Attorney Capers. Mr. Capers extended his grateful appreciation to the FBI’s Washington Field Office for their efforts.
“Ali Alvi al-Hamidi went to the FATA to join al-Qaeda, received training from the terrorist organization, and later fought alongside the Taliban against coalition forces in Afghanistan. With this plea, he will be held accountable for his terrorist activity, including conspiring to kill members of our military,” said Assistant Attorney General Carlin. “The highest priority of the National Security Division is countering terrorist threats, and we will continue to use all tools available to bring justice to those who seek to harm American servicemen and women who bravely risk their lives in defense of our nation,” said Assistant Attorney General Carlin.
“As we witnessed today, those who support designated foreign terrorist organizations like al Qaeda and seek to harm people will be held fully accountable under the law,” said FBI Assistant Director in Charge, Abbate. “On a daily basis, the FBI and its partners face the challenge of an ever evolving threat environment. Through our partnerships, both international and domestic, the FBI continues to track down those who aid and abet terrorist groups and ensure that they are brought to justice.”
In early 2008, al-Hamidi traveled to the Federally Administered Tribal Areas (FATA) of Pakistan to join al-Qaeda. Once there, he received training from al-Qaeda in the use of weapons, explosives, and detonators. During late spring and summer 2008, al-Hamidi moved on to Afghanistan with Taliban forces for the purpose of fighting members of the United States military and coalition forces stationed there.
Alvi also aided U.S. citizen Bryant Neal Vinas entry into al-Qaeda. Vinas had traveled to Pakistan from Long Island hoping to join al-Qaeda and fight U.S. military forces in Afghanistan. After participating in al-Qaeda’s military training program, Vinas and senior al-Qaeda external operations leadership devised a plan to conduct an attack on the Long Island Railroad in New York. Vinas was arrested in 2008 before he could carry out this attack. Vinas pleaded guilty in 2009 to conspiracy to murder U.S. nationals, providing material support to a foreign terrorist organization, and receiving military type training from a foreign terrorist organization. He is currently incarcerated pending sentence.
The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Zainab Ahmad, Michael P. Canty, and Douglas M. Pravda are in charge of the prosecution, with assistance provided by Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section.
The Defendant:
ALI ALVI AL-HAMIDI
Age: 31
Nationality: YemeniE.D.N.Y. Docket No. 15-CR-56
Wilkes-Barre Man Indicted for Drug Trafficking and Firearm OffensesRead the Press Release
SCRANTON. The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted a man from Wilkes-Barre, Pennsylvania for drug trafficking and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Thomas Abreu, Jr., age 34, with possessing with intent to distribute heroin on July 26, 2015. The indictment also charges Abreu, a convicted felon, with possessing three stolen firearms in furtherance of his heroin trafficking activities.
The investigation is being conducted by the Bureau of Alcohol, Tobacco and Firearms Enforcement, and by the Wilkes-Barre Police Department. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district-wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend and prosecute individuals who commit violent crimes.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic of the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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West Michigan Jury Convicts Chicago-Based Bank Robber, Dominick T. Johnson, of Participating in Three Kalamazoo-Area RobberiesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced that Dominick T. Johnson, 33, of Chicago, Illinois, has been convicted by a federal jury of seven crimes: conspiracy to commit bank robbery, three counts of armed bank robbery, and three counts of brandishing a firearm during and in relation to a crime of violence. The Honorable Gordon J. Quist presided over the two-week trial. Under existing law, Johnson faces a mandatory minimum of 67 years in federal prison when he is sentenced.
According to the proofs at trial, Johnson planned and served as the get-away driver for three completed bank robberies in and around Kalamazoo: the May 29, 2014, robbery of PNC Bank in Galesburg, the July 29, 2014, robbery of Comerica Bank in Comstock Township, and the January 8, 2015, robbery of Old National Bank in Oshtemo Township. Johnson’s half-brother, Nathan Benson, previously pled guilty for his role in the robberies. In all three robberies, Benson brandished a loaded firearm and pointed it at bank employees. In two of the robberies, Benson forced the employees into the bank’s vault. The conspiracy also involved three planned bank robberies that were unsuccessful; two were disrupted by law enforcement and one was prevented by a traffic accident.
U.S. Attorney Miles praised law enforcement’s thorough investigation and commitment to solving and preventing the consummated and planned robberies. "Going into a bank or any business with a loaded weapon to steal money creates extraordinary risk and can have a lasting effect on the victims even when no one is hurt," said U.S. Attorney Miles. "The planner and organizer of these kinds of robberies—who emboldens and encourages his criminal associates—is just as dangerous, sometimes even more so, as the person he persuades to enter the bank."
"It goes without saying that this level of threat and violence cannot, and will not, be tolerated in our communities," said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Seeing that Mr. Johnson and his co-conspirator are off the streets raises the level of safety of our community, both for our citizens and our businesses."
The investigation was led by the FBI and the Kalamazoo County Sheriff’s Office. Other assisting agencies were the Michigan State Police, the Kalamazoo Department of Public Safety, the Baroda-Lake Township Police Department, the Galesburg Police Department, and the Van Buren County Prosecutor’s Office.
Assistant U.S. Attorneys Justin M. Presant and Hagen W. Frank prosecuted the case.
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Virginia Man Charged with Anti-Gay Hate Crime for AssaultRead the Press Release
RICHMOND, Va. – James William Hill III, 34, of Chester, was charged today with a federal hate crime under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for a May 2015 assault on a victim known as C.T. in the indictment.
According to the indictment, on or about May 22, 2015, Hill did willfully cause bodily injury to C.T by assaulting C.T., including by punching the victim, because of C.T.’s actual and perceived sexual orientation.
Hill faces a maximum penalty of 10 years in prison, if convicted. 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; Principal Deputy Assistant Attorney General Vanita Gupta; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the indictment was returned. Assistant U.S. Attorney S. David Schiller, and Trial Attorney Ryan Murguía of the Civil Rights Division’s Criminal Section are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for the defendant’s name.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Virginia Man Charged with Anti-Gay Hate Crime for AssaultRead the Press Release
James William Hill III, 34, of Chester, Virginia, was charged today with a federal hate crime under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for a May 2015 assault on a victim known as C.T. in the indictment.
The indictment was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
According to the indictment, on or about May 22, 2015, Hill did willfully cause bodily injury to C.T by assaulting C.T., including by punching the victim, because of C.T.’s actual and perceived sexual orientation.
If convicted, the defendant faces a maximum sentence of 10 years in prison and a $250,000 fine.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI’s Richmond Division. The case is being prosecuted by Assistant U. S. Attorney S. David Schiller of the Eastern District of Virginia and Trial Attorney Ryan Murguía of the Civil Rights Division’s Criminal Section.
Hill Indictment
United States Attorney Benjamin B. Wagner’s Statement on the Passing of Former U.S. Marshal Jerry EnomotoRead the Press Release
United States Attorney Benjamin B. Wagner released the following statement today on the passing of Retired U.S. Marshal and prominent civil rights leader Jerry Enomoto:
“With the passing of Retired U.S. Marshal Jerry Enomoto, this region has lost a courageous advocate for social justice and equal opportunity. Despite living through one of the most shameful times in our history, as one of the thousands of Japanese-Americans interned during World War II, Jerry’s life was not defined by the adversity he faced, but by his advocacy for civil rights and peaceful progress.
Jerry dedicating his life to the service of others, earning many ‘firsts,’ including being the first Asian American to receive a presidential appointment to the Office of United States Marshal. It was in this role that I first worked with Jerry, and I had the pleasure of collaborating with him often over the years on a variety of civil rights issues. In 2002, Jerry retired from his post as U.S. Marshal, but he continued to serve the Sacramento region through his chairmanship of the U.S. Attorney’s Greater Sacramento Hate Crimes Task Force, and his work as co-chair, along with his wife Dorothy, of the annual Martin Luther King Jr. Celebration Event.
Jerry was one of Sacramento’s most honorable citizens, and his enduring legacy is in the countless lives he touched, and the next generation of civil rights leaders he helped to inspire.”
Ulster County Real Estate Developer Pleads Guilty to Conspiring to Receive A Kickback and to Defraud Construction LenderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL BARNETT, a real estate developer, pled guilty to conspiring to defraud lenders and make false statements to the U.S. Department of Housing and Urban Development (“HUD”) in connection with his development of Vineyard Commons, a luxury residential complex in Ulster County, New York.
Manhattan U.S. Attorney Preet Bharara said: “Michael Barnett admitted today to engaging in a fraudulent scheme to defraud both his construction lender and HUD in order to receive hundreds of thousands of dollars in kickbacks. Thanks to the investigative efforts of the HUD Inspector General’s Office, Barnett will now be made to pay for his criminal conduct.”
According to BARNETT’s admissions in court during his plea allocution and the allegations made in the Superseding Indictment:
BARNETT, who was the developer of Vineyard Commons, sought kickbacks and investments from subcontractors and vendors on the project and made false statements to the project’s lender so that he could draw down on the project’s line of credit. BARNETT arranged with two executives of a vendor who provided rough carpentry and lumber supplies on the project (the “Lumber Company”) to have the Lumber Company pay Barnett a kickback in exchange for BARNETT’S award to the Lumber Company of the Vineyard Commons contract, as well as future business on other developments BARNETT was planning. To raise funds for the kickback, BARNETT and the two Lumber Company executives agreed that the Lumber Company would inflate its bid for labor and materials by approximately $865,000.
BARNETT and the Lumber Company executives intended that the kickback would be funded unwittingly by the construction lender, and ultimately by HUD through its guaranty of the construction loan, through the submission of false and inflated requests to draw down the construction loan.
In January 2010, the Lumber Company made a partial kickback payment of $200,000 to BARNETT, and the Lumber Company executives disguised the transaction on the Lumber Company’s books by making it appear to be a customer rebate payable to a company controlled by BARNETT that was not involved in the development of Vineyard Commons. BARNETT then used the $200,000 as a partial payment of an obligation he had to the general contractor on Vineyard Commons.
BARNETT also solicited subcontractors and vendors on the Vineyard Commons project, including the Lumber Company, to provide labor and materials to build a pool house at his home. Some of these subcontractors and vendors, including the Lumber Company, agreed to do so.
Finally, BARNETT submitted false invoices to the construction lender in order to enrich himself fraudulently by drawing down the loan.
BARNETT faces up to five years in prison, a fine of up to $250,000 or twice the gross loss or gain from the offense, an order of $1,334,620 in restitution, and an order to forfeit $200,000.
Mr. Bharara thanked the Department of Housing and Urban Development, Office of the Inspector General, for its outstanding work on the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael Maimin and James McMahon are in charge of the prosecution.
Two pill dealers prosecuted for Federal drug crimes in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – Two defendants were prosecuted today in federal court for drug crimes involving pain pills, announced Acting United States Attorney Carol Casto.
Karen Sue Fields, 45, of Olive Hill, Kentucky, was sentenced to three years and a month in federal prison for possession with intent to distribute oxycodone and alprazolam. Fields previously pleaded guilty to the federal drug crime in September of 2015. On July 6, 2014, a motorist flagged down an officer with the Huntington Police Department on 5th Street in Huntington. The motorist alerted the officer to another vehicle driving erratically on 5th Street. The officer located the vehicle, operated by Fields, and conducted a traffic stop after Fields made several abrupt turns in an attempt to evade the officer. During the course of the stop, the officer observed multiple bags of pills in the floorboard of the vehicle. After conducting a search, the officer located over 800 oxycodone tablets and over 50 alprazolam tablets. Fields admitted she had purchased the pills for $17,500 and was on her way back to Kentucky to deliver the pills to another individual.
Derrick Bernard Pritchett, 32, of Detroit, pleaded guilty to illegally selling prescription pills. On August 10, 2015, a confidential informant working with the DEA Task Force contacted Pritchett to arrange a drug deal. Pritchett met the informant on the 1200 block of Jackson Avenue in Huntington and sold the informant nine 30 mg oxycodone pills and one 2 mg alprazolam pill. Pritchett faces up to 20 years in federal prison and a $1 million fine when he is sentenced on April 25, 2016.
The Huntington FBI Drug Task Force and Huntington Police Department conducted the investigation of Fields. The investigation of Pritchett was conducted by the DEA Task Force. Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. The hearings were held before Chief United States District Judge Robert C. Chambers.
These cases are 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 pills and heroin in communities across the Southern District.
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Two Men Sentenced to Prison Marijuana Cultivation Operation that Damaged Sequoia National ForestRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony Antonio W. Ishii sentenced Antonio Garcia-Villa (Garcia), 46, to seven years in prison and Uriel Silva-Garcia (Silva), 24, to six years and six months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana and possessing firearms in furtherance of a large-scale cultivation operation near Little Poso Creek in the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced.
Both men pleaded guilty last fall. According to court documents, the defendants were paid to tend more than about 8,500 marijuana plants found at the grow site. To facilitate the cultivation activities, they possessed a loaded rifle and handgun. The cultivation activities caused extensive damage to the public land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Pesticides, including Malathion, fertilizer, water lines, trash, clothing and camping equipment were scattered throughout the site. Judge Ishii ordered the men to pay $4,267 in restitution to the U.S. Forest Service to cover the cost of cleaning up the site. Both defendants are from Michoacan, Mexico.
This case is the product of an investigation by the U.S. Forest Service, Kern County Sheriff’s Office, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Karen Escobar prosecuted the case.
Two Broward County Residents Pled Guilty for their Involvement in a Stolen Identity Tax Fraud SchemeRead the Press Release
Two Broward County residents pled guilty for their involvement in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Stacy A. Gaines, 39, and Nicaya T. Cooper, 35, both of Tamarac, each pled guilty to one count of mail fraud conspiracy, in violation of Title 18, United States Code, Section 1349. As part of their plea agreements, Gaines and Cooper agreed to restitution in the amounts of $266,866.39 and $284,162.49, respectively. At sentencing, the defendants each face a maximum statutory sentence of twenty years in prison.
According to court documents, Cooper opened two bank accounts and gave Gaines access to those accounts to deposit various fraudulent tax refunds. Gaines also opened a bank account in her name for the purpose of depositing additional fraudulent tax refunds. From February 2010 through May 2013, Gaines mailed 139 fraudulent tax returns to the IRS seeking refunds in the amount of $299,433.88 by utilizing the personal identification information (PII) of various individuals. Gaines and Cooper received approximately $279,866.39 in fraudulent refunds from the IRS based upon the fraudulent returns. The true taxpayers did not give Gaines or Cooper permission to file fraudulent tax returns on their behalf.
Gaines is scheduled to be sentenced on March 22, 2016 at 1:15 p.m. and Cooper is scheduled to be sentenced on March 31, 2016 at 1:15 p.m., both before U.S. District Judge William P. Dimitrouleas.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS South Florida Organized Fraud Task Force (SFOTF), and BSO. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Two Brothers Admit Filing Fraudulent Tax Returns Seeking Refunds of over $218 MillionRead the Press Release
Criminals Received $16 Million in Refunds After Filing Bogus Tax Returns
Two brothers pleaded guilty today in the District of Maryland in a scheme in which they filed approximately 37 fraudulent tax returns seeking refunds of over $218 million. The guilty plea was announced by Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI)., Washington, D.C. Field Office.
Sean Aude Gallman, 39, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, 42, of Huntersville, North Carolina, pleaded guilty today to a conspiracy to commit mail and wire fraud, mail fraud and conspiracy to commit money laundering. Sean Gallman also pleaded guilty to aggravated identity theft and money laundering charges.
“With the 2016 tax filing season officially underway today, taxpayers can take comfort that the Department of Justice and IRS are aggressively pursuing those who seek to defraud the government through the filing of false tax returns,” said Acting Assistant Attorney General Ciraolo.
“These two criminals filed bogus tax returns claiming ‘refunds’ that were not owed, and stole over $16 million from the IRS,” said U.S. Attorney Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the U.S. Treasury.”
According to evidence the government would have used at trial to prove the criminal conduct, Sean and Eric Gallman established trusts and business entities and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
For example, in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on Feb. 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
Altogether, the Gallman brothers filed a total of approximately 37 fraudulent tax returns seeking refunds totaling $218,094,765, for which the IRS paid two refunds totaling $16,512,492.
The government seeks the forfeiture of the two refunds paid by the IRS, including $11,529,954 seized from numerous bank accounts; foreign currency and gold and silver coins, seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland; North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.
The defendants face a statutory maximum sentence of 20 years in prison for conspiring to commit mail and wire fraud, conspiring to commit money laundering and mail fraud. Sean Gallman also faces a statutory maximum sentence of 20 years in prison for an additional count for mail fraud and for money laundering; and a mandatory two years in prison consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge Paul W. Grimm has scheduled sentencing for May 17, 2016 at 10:00 a.m.
Acting Assistant Attorney General Ciraolo, U.S. Attorney Rosenstein and Special Agent in Charge Jankowski thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Thomas P. Windom of the District of Maryland and Trial Attorney Erin Pulice of the Tax Division, who are prosecuting the case.
Two Brothers Admit Filing Fraudulent Tax Returns Seeking Refunds of over $218 MillionRead the Press Release
Greenbelt, Maryland - Sean Aude Gallman, age 39, of Upper Marlboro, Maryland, and his brother Eric Maurice Gallman, age 42, of Huntersville, North Carolina, pleaded guilty today to a conspiracy to commit mail and wire fraud, mail fraud, and conspiracy to commit money laundering, arising from a scheme in which they filed 30 fraudulent tax returns seeking refunds of over $218 million. Sean Gallman also pleaded guilty to aggravated identity theft and money laundering.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division of the Department of Justice; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“These two criminals filed bogus tax returns claiming ‘refunds’ that were not owed, and stole over $16 million from the IRS,” said U.S. Attorney Rod J. Rosenstein. “Federal agents and prosecutors have a duty to pursue perpetrators of such fraud schemes and try to recover money stolen from the United States Treasury.”
“With the 2016 tax filing season officially underway today, taxpayers can take comfort that the Department of Justice and IRS are aggressively pursuing those who seek to defraud the government through the filing of false tax returns,” said Acting Assistant Attorney General Ciraolo.
According to court documents and evidence presented at the sentencing hearing Sean and Eric Gallman admitted that they established trusts and business entities, and used mailboxes at numerous private commercial postal carrier stores in Maryland and North Carolina as the addresses for the trusts and business entities. The defendants, acting as trustees and agents, mailed fraudulent tax returns to the IRS in the names of the trusts and businesses requesting refunds.
For example, in January 2013, Sean Gallman mailed to the IRS a fraudulent 2012 tax return in the name of the Gallman Charitable Trust, requesting a refund of $8,218,930. Also around this time, the defendants mailed to the IRS a fraudulent 2012 tax return in the name of LEA Group Holdings Trust, requesting a refund of $8,293,562. The defendants knew that the trusts were not entitled to the tax refunds. After receiving refund checks in these amounts, on February 15 and March 11, 2013, the defendants deposited the two refunds in bank accounts they controlled. To hide their receipt of these refunds, the defendants used cashier’s checks and other financial instruments to transfer a portion of the money to third parties and other bank accounts.
Altogether, the Gallman brothers filed approximately 37 fraudulent tax returns seeking refunds totaling $218,094,765, for which the IRS paid two refunds totaling $16,512,492.
The government seeks the forfeiture of the two refunds paid by the IRS, including $11,529,954 seized from numerous bank accounts; foreign currency, and gold and silver coins, seized from a residence in Upper Marlboro; nine residential properties located in Upper Marlboro and Laurel, Maryland, North Carolina and South Carolina; and two Mercedes-Benz vehicles and a Hyundai vehicle.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail and wire fraud, conspiring to commit money laundering, and mail fraud. Sean Gallman also faces a maximum sentence of 20 years in prison for an additional count for mail fraud and for money laundering; and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge Paul W. Grimm has scheduled sentencing for May 17, 2016, at 10:00 a.m.
United States Attorney Rosenstein and Acting Assistant Attorney General Ciraolo praised IRS-Criminal Investigation for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who are prosecuting the case.
Sutton Man Convicted of Attempted Extortion of Family FarmRead the Press Release
BOSTON – A former salesman for a cattle farm in Maine, was convicted by a federal jury on Friday, Jan. 15 in U.S. District Court in Worcester for attempting to extort the farm’s owners.
James P. DiDonna, 50, of Sutton, Mass., was convicted following a week-long trial on one count of attempted extortion and one count of attempted collection of an extension of credit by extortionate means. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for April 8, 2016.
In 2011, DiDonna was hired by Archer Angus, a family run cattle farm in Chesterville, Maine, as an independent salesman of its beef products. Archer Angus terminated DiDonna in July 2012. Between June and October 2013, DiDonna threatened the owners that if he was not paid, he would reveal supposedly damaging information about the farm – the complete nature of which he refused to reveal. Ultimately, DiDonna demanded $40,000 for his silence.
The charges each provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys William F. Bloomer and Giselle J. Joffre of Ortiz’s Major Crimes Unit.
Springfield Man, Woman Indicted for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Springfield, Mo., residents were indicted by a federal grand jury today for producing and distributing child pornography.
Tracy Ann Smith, 41, and Christopher Parker Peck, 39, both of Springfield, were charged in a four-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Smith used a minor, identified as Jane Doe #1, to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Smith is also charged with receiving and distributing child pornography during that time.
Today’s indictment alleges that Peck used two minors, Jane Doe #1 and another minor identified as John Doe #1, to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Peck is also charged with receiving and distributing child pornography during that time.
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 James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Project Safe Childhood
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."
Southern District of Georgia Collects over $18.4 Million in Civil, Criminal and Asset Forfeiture Cases in 2015Read the Press Release
SAVANNAH, GA - U.S. Attorney Edward Tarver announced today that the Southern District of Georgia collected over $18.4 million in civil, criminal and asset forfeiture actions during the 2015 calendar year. Of this amount, $15,037,112.54 was collected in affirmative civil enforcement actions; $1,683,605.83 was collected in criminal actions; and, $1,763,626.79 in assets were forfeited.
U.S. Attorney Tarver stated, “The amount of money collected in criminal, civil and asset forfeiture actions by the men and women of the United States Attorney’s Office in 2015 was the second largest collection year in this District’s history. The amounts collected are enough to pay the District’s yearly budget several times over. In other words, this United States Attorney’s Office earns its keep and then some.”
The Offices of the nation’s U.S. Attorneys, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. Forfeited assets are deposited into the Department of Justice Assets Forfeiture Fund and are used to restore funds to crime victims and for a variety of law enforcement purposes.
For additional questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Sierra National Forest Marijuana Cultivator Pleads GuiltyRead the Press Release
FRESNO, Calif. — Humberto Ceballos-Rangel (Ceballos), 37, of Mexico, pleaded guilty today in connection with his involvement in a large marijuana cultivation operation found by law enforcement last summer in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.
Ceballos pleaded guilty to one count of conspiracy to manufacture, to distribute, and to possess with the intent to distribute 50 or more marijuana plants. According to court documents, Ceballos and his co-conspirators caused significant damage to public land and natural resources. Ceballos was found at a campsite within a marijuana cultivation site with 5,904 marijuana plants. A firearm and ammunition were recovered from a vehicle associated with the cultivation operation. The cultivation operation caused significant harm to the environmental landscape. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was also diverted from a nearby creek to irrigate the marijuana plants. Agents found and removed from the site insecticide, propane tanks, and a large quantity of trash and hose line. Ceballos has agreed to make restitution to the U.S. Forest Service for the costs of cleaning up the site.
The charges against Ceballos’ co-defendants, Francisco Javier Gomez-Rodriguez, 38, Alejandro Ramirez-Rojo, aka Alejandro Ramires, 31, also citizens of Mexico, and Anthony Isaac Santibanez, 20, of Woodlake, California, remain pending. These charges are only allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Ceballos is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on April 18, 2016. He faces a maximum penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.
Shenandoah Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 50-year-old Shenandoah resident connected to a large-scale heroin trafficking ring that operated in Schuylkill County during 2012 through September 2015, pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton.
According to United States Attorney Peter Smith, Paul Jadus pleaded guilty to conspiracy to distribute more than 100 grams of heroin. Jadus admitted to distributing heroin and allowing his residence in Shenandoah to be used as a “stash house” to store drugs and money for co-conspirators. Jadus was involved in storing and distributing more than 700 grams of heroin, which is equivalent to more than 23,000 retail bags of heroin,
Jadus was indicted by a federal grand jury in Scranton in September 2015, as a result of an investigation by agents of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, and local police in Schuylkill County.
Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for April 15, 2016. Jadus faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 40 years in prison.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the cases.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Selby Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Selby, South Dakota, woman has been indicted by a federal grand jury for three counts of Assaulting, Resisting, Opposing and Impeding a Federal Officer.
Amanda Iron Wing, age 27, was indicted on August 11, 2015. She appeared before United States Magistrate Mark A. Moreno on January 13, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on or about June 6, 2015, Iron Wing used her vehicle to forcibly assault, resist, oppose, impede, intimidate, and interfere with two law enforcement officers when they were performing their official duties. A third count alleges that Iron Wing forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federal officer while he was performing his official duties resulting in the infliction of bodily injury to that law enforcement officer.
The charges are merely an accusation and Iron Wing is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Iron Wing was released on bond pending trial. A trial date has not been set.
Rochester Schools Employee Sentenced for Being “Money Mule”Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ricky Miller, Jr., 58, of Rochester, NY, who was convicted of conspiracy to commit mail fraud, was sentenced by U.S. District Judge David G. Larimer to 20 months in prison. The defendant was also ordered to pay restitution of approximately $105,000 to the victims of the fraud scheme.Assistant U.S. Attorney John J. Field, who is handling the case, stated that Miller and co-defendant Charles Hanks served as “money mules” for a Jamaican group that operated a fraudulent sweepstakes telemarketing scheme. The scheme targeted elderly individuals who received telephone calls claiming that they had won a sweepstakes prize or lottery. Victims were asked to pay an upfront fee in order to release the purported winnings. Miller, who was and is a custodian with the Rochester City School District, and Hanks acted as points of contact in the United States to receive the money from the victims which they then sent to Jamaica after taking a substantial cut.
Charles Hanks was convicted and sentenced to 12 months in prison.
Sentencing is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski, Boston Division.
Rochester Man Sentenced for Selling Fake VaporizersRead 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 Scott Scaccia, 34, of Rochester, NY, who was convicted of trafficking counterfeit goods, was sentenced to two years probation, including six months of home detention, by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that in April 2015, agents with Immigration and Customs Enforcement, Homeland Security Investigations executed a search warrant at A Plus Vapes & Deals, a storefront located in Batavia, NY. The store marketed and sold counterfeit tobacco vaporizers manufactured in and distributed from China. Scaccia obtained the counterfeit vaporizers from his brother in California and through the Chinese website, AliExpress.com. In total, approximately 90 counterfeit vaporizers were seized.
The sentencing is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Rochester Man Sentenced for Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Matthew DiFlorio, 28, of Rochester, NY, who was convicted of enticement of a minor using a means and facility of interstate commerce, was sentenced to 10 years in prison and 20 years supervised release by U.S. District Judge Elizabeth A. Wolford.Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that in June 2015, the mother of a thirteen year old minor advised the Rochester Police Department that her child had been communicating with two men. According to the mother, one of the two men, DiFlorio, was working as a Lifetouch school photographer and the mother had, at one point, attempted to contact DiFlorio to tell him to stay away from her child. According to the minor, the minor had communicated with the defendant using the application “Kik” and ended up meeting him in February 2015.
After taking over the minor’s phone, law enforcement officers received a text message from DiFlorio on June 22, 2015. An officer, assumed the minor’s identity and engaged in texts with DiFlorio. The two arranged a meeting for June 23, 2015 at a local fast food restaurant. The defendant arrived at the meeting and was confronted by law enforcement officers. DiFlorio admitted to having had sex with the minor and admitted to engaging in communications with the minor through text messages in order to meet.
The plea is the result of an investigation by the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes members of the FBI, the Rochester Police Department, the Monroe County Sheriff’s Office, Immigration and Customs Enforcement, Homeland Security Investigations, and the Monroe County District Attorney’s Office.
Registered Nurse Co-Owner of Ultimate Care Home Health Services, Inc. Sentenced to 10 Years in Federal Prison for Role in Healthcare Fraud ConspiracyRead the Press Release
DALLAS — A 52-year-old registered nurse and home health company owner from Cedar Hill, Texas, was sentenced this morning in federal court in Dallas on a health care fraud conspiracy conviction, announced U.S. Attorney John Parker of the Northern District of Texas.
Patricia Akamnonu was sentenced by U.S. District Judge Sam A. Lindsay to the statutory maximum sentence of 10 years in federal prison. She pleaded guilty in April 2015 to one count of conspiracy to commit health care fraud. Patricia Akamnonu, along with her husband, Cyprian (Cy) Akamnonu, owned Ultimate Care Home Health Services, Inc. (Ultimate). Cy Akamnonu pleaded guilty to the same offense and is currently serving a 10-year federal prison sentence. Both were ordered to pay approximately $25 million in restitution.
According to the filed factual resume, Patricia Akamnonu maintained a valid Medicare group provider number for Ultimate in order to submit Medicare claims for home health services that were medically unnecessary or that were not provided to Medicare beneficiaries.
In her capacity as co-owner and head of nursing for Ultimate, Patricia Akamnonu attended at least one meeting where she and co-defendants Dr. Jacques Roy, Teri Sivils and Cy Akamnonu discussed recruiting additional Medicare beneficiaries to Ultimate to receive home health care services for which they did not qualify and did not need. This meeting also included a discussion about illegal patient recruiting being performed by co-defendants James Veasey and Cynthia Stiger.
As part of the conspiracy, Ultimate exchanged paperwork with Medistat Group Associates, P.A. (Medistat) that was controlled by Dr. Roy for these beneficiaries. These documents were then executed under Dr. Roy’s signature, certifying the patient was under his care. Several of the documents used to certify home health care for these individuals are signed under the name of Patricia Akamnonu.
Over the course of a five-year period, from January 2006 through November 2011, more than 78% of Ultimate’s beneficiaries were certified by Dr. Roy or another Medistat physician acting at his direction. Ultimate billed more than $43 million to Medicare for skilled nursing services for these beneficiaries.
Of the seven defendants who were charged in the $375 million health care fraud scheme led by Dr. Roy, three defendants have now pleaded guilty. Teri Sivils, 47, of Midlothian, Texas, who was Medistat’s office manager, pleaded guilty in April 2015 to one count of conspiracy to commit health care fraud. She faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine; sentencing is currently set for March 7, 2016.
A March 7, 2016, trial date has also been set for the remaining defendants, Dr. Roy, Cynthia Stiger, 51, of Dallas, Wilbert James Veasey, Jr., 63, of Dallas, and Charity Eleda, R.N., 54, of Rowlett, Texas,
The case is being investigated by the FBI, the U.S. Department of Health and Human Services – Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorney P.J. Meitl and Special Assistant U.S. Attorney Nicole Dana are prosecuting.
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Parkersburg man pleads guilty to Federal child pornography chargeRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man faces up to 20 years in prison after pleading guilty today to possessing over 600 images and videos of child pornography, announced Acting United States Attorney Carol Casto. Charles Tom Davisson, II, 55, entered his guilty plea in federal court to the child pornography crime.
Davisson admitted that on January 22, 2015, he possessed images and videos of prepubescent minors engaged in sexual acts. The images and videos were contained on his personal computer, as well as thumb drives located at his residence in Parkersburg. The investigation revealed that Davisson was using peer-to-peer file sharing programs to download, receive, and distribute child pornography. Sentencing is scheduled for April 19, 2016, in Charleston.
The West Virginia Internet Crimes Against Children Task Force and the Wood County Sheriff’s Department conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution. The defendant entered his plea before United States District Judge John T. Copenhaver, Jr.
This case is being brought as part of an ongoing initiative by the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Owner of Union County, New Jersey, Home Health Care Agency Admits Role in Scheme That Bilked Medicaid Out of $7 MillionRead the Press Release
NEWARK, N.J. - A Springfield, New Jersey, man today admitted his role in a scheme that used bogus records and unqualified home health aides to defraud Medicare out of $7 million, U.S. Attorney Paul J. Fishman announced.
Paul Mil, 66, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with conspiracy to commit health care fraud, money laundering and tax evasion.
According to documents filed in this case and statements made in court:
Mil was the owner of People Choice Home Care Inc., a home health care agency located in Elizabeth, New Jersey, that provided home health aides and health care services to New Jersey residents. Mil was also the registered agent for HHCH Health Care Inc. in Linden, New Jersey, a home health care agency owned by Irina Krutoyarsky, 61, of Springfield, New Jersey. Home health aides visit patients at their homes and provide a variety of services, such as assistance with eating, dressing and grooming. These services were subsidized under the New Jersey Medical Assistance Program (Medicaid).
Mil, Krutoyarsky and others defrauded Medicaid through a variety of ways. First, they submitted false documents to the New Jersey Board of Nursing, the state agency responsible for issuing home health aide certifications. Krutoyarsky falsely represented that prospective home health aides had attended and satisfactorily completed required training and testing. In truth, Krutoyarsky charged prospective home health aides hundreds of dollars for fraudulently obtaining their certifications.
Second, Mil, Krutoyarsky and others fraudulently billed Medicaid for services not actually rendered to patients. Numerous HHCH home health aides routinely falsified records that claimed they had visited patients and provided them health care services. In truth, these home health aides had other jobs, were on vacations overseas, or were in other parts of the state during the times they claimed they were with patients. In certain instances, home health aides gave cash kickbacks to patients who were also participating in the scheme.
Third, Mil, Krutoyarsky and others hired individuals with no home health certifications and no status in the country and then sent them to patients’ homes. They then billed Medicaid, fraudulently claiming that the services had been provided by duly certified home health aides.
In total, Mil and others defrauded Medicaid out of $7 million. After Medicaid paid the claims and transferred the funds into bank accounts controlled by Mil, he used the proceeds to purchase real estate and personal property.
Additionally, between 2007 and 2011, Mil cheated the IRS out of approximately $918,000 in taxes due and owing. As part of the scheme, home health aides were sent to the homes of patients who were not eligible for Medicaid. These patients wrote checks payable to HHCH and People Choice. Mil then cashed these checks at check cashing businesses and equally divided the cash with Krutoyarsky. On his corporate tax returns, he falsely characterized these payments as legitimate business deductions, thus reducing his business’ corporate taxes. He then filed federal individual income tax returns that concealed this income.
Nine other individuals, including Krutoyarsky, have already pleaded guilty to their respective roles in the scheme.
The conspiracy and money laundering counts to which Mil pleaded guilty each carry a maximum potential penalty of 10 years in prison. The tax evasion count carries a maximum potential penalty of five years in prison. Each charge carries a potential $250,000 fine. Sentencing is scheduled for May 3, 2016. In addition, Mil will be ordered to pay a $7 million forfeiture money judgment to the United States and to forfeit six homes and properties in New Jersey and New York, as well as hundreds of thousands of dollars seized from bank accounts he controlled.
U.S. Attorney Fishman credited agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; U.S. Citizenship and Immigration Services; New Jersey Office of the State Comptroller, Medicaid Fraud Division under the direction of Director Josh Lichtblau; The Enforcement Bureau of the New Jersey Attorney General’s Office on behalf of the Board of Nursing, Acting Attorney General John Jay Hoffman; the New Jersey Department of Labor under the direction of Commissioner Hal Wirths; the Marlboro Police Department, under the direction of Chief Bruce Hall; and the U.S. Department of State-Diplomatic Security for the investigation leading to today’s plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorneys Peter Gaeta and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Nicholas G. Kaizer Esq., New York
Orono Man Sentenced to 41 Months for Wire and Bank Fraud ConspiraciesRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jason Robinson, 30, of Orono, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 41months in prison and 5 years of supervised release for wire and bank fraud conspiracies. He was also ordered to pay over $13,000 in restitution to victims.
According to court records, from about February 2014 to May 2015, Robinson conspired with others to steal merchandise from Walmart, Hannaford, and other stores in Maine, and sell it on eBay; to return stolen merchandise to Lowe’s and Home Depot in return for store credit; and to defraud federally insured financial institutions by depositing worthless checks and withdrawing the money before those checks bounced.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Maine State Police, the Bangor Police Department, and the Penobscot County Sheriff’s Office.
Operator of Northeastern Pennsylvania Check Cashing Business Charged in Stolen Identity Tax Refund Fraud CaseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Diomedes Rodriguez-Nunez, age 27, of Allentown was charged in a Criminal Information filed January 15, 2016 in federal court in Scranton with conspiracy to make false claims against the government.
According to United States Attorney Peter Smith, the Information alleges that Rodriguez-Nunez operated Dio Multiservices in Taylor, Pennsylvania, and that co-conspirators of Rodriguez-Nunez used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns. The Information also alleges that Rodriguez-Nunez deposited and cashed fraudulently obtained tax refund checks totaling more than $100,000 between July and September 2013.
The government also filed a plea agreement with the defendant which is subject to the approval of the court.
The charge is the result of an ongoing investigation by the Scranton Office of the Internal Revenue Service, Criminal Investigation with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices. The case is assigned to Assistant United States Attorney William Houser for prosecution.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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