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1 March 2016
Convicted Sex Offender Pleads Guilty to Illegal Possession of Firearms and AmmunitionRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Larry Garfield Letterman (63, Wildwood) yesterday pleaded guilty to one count of possession of firearms and ammunition affecting commerce by a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Letterman met with a confidential informant in a series of video-recorded transactions during October and November 2015. Each transaction took place at Letterman’s residence, where he sold the informant three firearms and ammunition, including an AR-15 rifle. Based on the transactions, federal agents executed a search warrant at the residence on December 15, 2015. They recovered an AK-47 rifle, a shotgun, a handgun, packaging from another handgun, and more than 260 rounds of assorted ammunition.
Letterman confessed to possessing all of the firearms and ammunition, and that he had multiple prior felony convictions, including possession of a firearm by a convicted felon, burglary, and sodomy of a male less than 14 years old. As a previously convicted felon, Letterman is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Convenience Store Owner Pleads Guilty to over One Million Dollars in Food Stamp FraudRead the Press Release
ATLANTA - Sholondrell Taylor has pleaded guilty to theft of government funds in a $1.6 million food stamp fraud scheme. Taylor’s stores allowed customers to exchange their food stamps for cash, buying Women, Infants, and Children (WIC) vouchers at less than face value and redeeming them at full price.
“The defendant abused the food stamp program for her own financial gain, taking advantage of families in need and stealing over a million dollars from taxpayers,” said U.S. Attorney John Horn. “Taylor’s elaborate scheme even included a driver to pick up food stamps and WIC vouchers from those willing to sell them for a fraction of their value.”
“Taylor’s plea should serve as a warning to all stores that participate in the WIC and EBT programs as vendors, that fraud and trafficking (purchasing those benefits for cash) will be vigorously investigated and prosecuted by the USDA-OIG, the US Attorney’s Office, and all of its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from tax payer funded programs,” said Karen Citizen-Wilcox, Special Agent-in-Charge, USDA-OIG-Investigations.
According to U.S. Attorney Horn, the charges and other information presented in court: From January 2008 through January 2011, Taylor operated Dandes Food Center, LLC, in Forest Park, Georgia, and Shop Rite Food Mart, LLC, located in Atlanta, Georgia, where she unlawfully allowed her customers to exchange their food stamp benefits for cash at the rate of 50 cents on the dollar. Taylor also purchased Women, Infants, and Children (WIC) vouchers from benefit recipients at less than their actual value and redeemed the vouchers for full value with the U.S. Department of Agriculture.
Taylor set the rates of redemption, and instructed her employees to keep detailed ledgers of all transactions to ensure that they were not stealing from her. She trained her employees on how to determine the available balances on food stamp cards; and required employees to obtain WIC voucher codes and usable voucher dates before purchasing the vouchers. Many of the customers who sold their WIC vouchers, and food stamp benefits, never visited Dandes or Shop Rite because Taylor employed a driver to retrieve WIC vouchers and food stamp cards in exchange for cash.
This case came to the attention of federal authorities as a result of a investigation involving Georgia Department of Human Services employees. In 2011, Gene Tell and Kristy Williams were charged with conspiracy and mail fraud for their roles in the fraudulent creation and distribution of thousands of food stamp cards. Many of the fraudulent cards were illegally redeemed at Dandes Food Center operated by Taylor.
Sentencing for Sholondrell Taylor, 47, of Ellenwood, Georgia, has not yet been scheduled.This case is being investigated by the U.S. Department of Agriculture, Office of Inspector General.
Assistant United States Attorney Loranzo M. Fleming is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cleveland man charged with threatening and stalking at least three peopleRead the Press Release
A federal grand jury returned a nine-count indictment charging Jonathan L. Chain, 35, of Cleveland, with using a cellular telephone to send threats and stalking at least three victims, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
The indictment alleges that on at least five occasions, Chain made cellular telephone calls to victims and threatened to kill, sexually assault or rape them. The indictment further alleges that the defendant, over a period of months in 2015, made a series of threatening telephone calls to at least three victims during which he threatened to sexually assault, rape or kill them.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Fairlawn Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Robert E. Bulford.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chief Executive Officer of International Metallurgical Company Arrested for Exporting Aerospace-Grade Metals to IranRead the Press Release
Defendant Exported High-Tech Material Used in Missile Production and Nuclear Applications
Earlier today Erdal Kuyumcu, 44, of Woodside, New York, was arrested on charges of illegally exporting a cobalt-nickel metallic powder from the United States to Iran, through an intermediary in Turkey. Kuyumcu will make his initial appearance this afternoon before U.S. Magistrate Judge Ramon E. Reyes Jr. of the Eastern District of New York.
The arrest and charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement’s New York Field Office.
The complaint alleges that Kuyumcu, a U.S. citizen and the CEO of Global Metallurgy LLC, twice exported a specialized metallic powder used in aerospace, missile production and nuclear applications. Exporting this specialized powder to Iran without a license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) is illegal. As detailed in the complaint, Kuyumcu and others conspired to obtain over a thousand pounds of the metallic powder from a U.S.-based supplier for export to Iran, without the requisite approval from OFAC. To conceal the true destination of the goods from the U.S. supplier, Kuyumcu and a co-conspirator arranged for the items to be shipped first to Turkey and subsequently to Iran. As described in the complaint, Kuyumcu and a co-conspirator used coded language when discussing Iran, such as calling Iran the “Neighbor,” referring to the fact that Turkey shares a border with Iran.
“According to the complaint, Kuyumcu conspired with others to illegally send specialized U.S. technology – over a thousand pounds of metallic powder with nuclear and missile applications – to Iran via Turkey,” said Assistant Attorney General Carlin. “In circumventing U.S. law, including the International Emergency Economic Powers Act, the defendant harmed our nation’s security. The department will continue to vigorously pursue and hold accountable those who evade our export laws in pursuit of profit.”
“U.S. export laws exist to prevent potentially dangerous goods and technology from falling into the wrong hands,” said U.S. Attorney Capers. “Those who seek to evade the scrutiny of the regulatory agencies by operating in the shadows present a danger to our national security and our allies abroad. We will continue to use all of our law enforcement and national security tools to hold such individuals and corporations accountable.”
“As alleged, Erdal Kuyumcu intentionally misrepresented illegal business transactions to make them appear legitimate, thereby threatening national security and violating federal statutes,” said Assistant Director in Charge Diego Rodriguez. “The FBI works with our partners, such as the Department of Commerce, to keep weapons of mass destruction and other embargoed technologies from falling into the wrong hands, to protect national assets, and to strengthen the global threat picture. Special thanks to the FBI special agents who uncovered the alleged conspiracy with their colleagues at the Departments of Commerce and Justice.”
“Today’s action is the result of outstanding collaborative investigative work by the Justice Department, the Commerce Department and the FBI to break up a network whose alleged aim was to illegally ship sophisticated U.S.-origin technology to Iran,” said Special Agent in Charge Jonathan Carson. “We will continue to pursue violators wherever they may be.”
The charges contained in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Kuyumcu faces up to 20 years in prison a $1 million fine.
The case is being prosecuted by Assistant U.S. Attorneys Tiana A. Demas and Ameet B. Kabrawala of the Eastern District of New York, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Kuyumcu Complaint
Chief Executive Officer of International Metallurgical Company Arrested for Exporting Aerospace-Grade Metals to IranRead the Press Release
Earlier today, Erdal Kuyumcu of Woodside, New York, was arrested on federal charges of illegally exporting a cobalt-nickel metallic powder from the United States to Iran through an intermediary in Turkey.[1] Kuyumcu is scheduled to make his initial appearance today at 3:00 p.m. at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge Ramon E. Reyes, Jr.
The arrest and charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Special Agent in Charge Jonathan Carson of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement’s New York Field Office.
The complaint alleges that Kuyumcu, a U.S. citizen and the CEO of Global Metallurgy LLC, twice exported a specialized metallic powder used in aerospace, missile production and nuclear applications. Exporting this specialized powder to Iran without a license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) is illegal. As detailed in the complaint, Kuyumcu and others conspired to obtain over a thousand pounds of the metallic powder from a U.S.-based supplier for export to Iran, without the requisite approval from OFAC. To conceal the true destination of the goods from the U.S. supplier, Kuyumcu and a co-conspirator arranged for the items to be shipped first to Turkey and subsequently to Iran. As described in the complaint, Kuyumcu and a co-conspirator used coded language when discussing Iran, such as calling Iran the “Neighbor,” referring to the fact that Turkey shares a border with Iran.
“According to the complaint, Kuyumcu conspired with others to illegally send specialized U.S. technology – over a thousand pounds of metallic powder with nuclear applications – to Iran via Turkey,” said Assistant Attorney General Carlin. “In circumventing U.S. law, including the International Emergency Economic Powers Act, the defendant harmed our nation’s security. The department will continue to vigorously pursue and hold accountable those who evade our export laws in pursuit of profit.”
“U.S. export laws exist to prevent potentially dangerous goods and technology from falling into the wrong hands,” said U.S. Attorney Capers. “Those who seek to evade the scrutiny of the regulatory agencies by operating in the shadows present a danger to our national security and our allies abroad. We will continue to use all of our law enforcement and national security tools to hold such individuals and corporations accountable.”
“As alleged, Erdal Kuyumcu intentionally misrepresented illegal business transactions to make them appear legitimate, thereby threatening national security and violating federal statutes. The FBI works with our partners, such as the Department of Commerce, to keep weapons of mass destruction and other embargoed technologies from falling into the wrong hands, to protect national assets, and to strengthen the global threat picture. Special thanks to the FBI special agents who uncovered the alleged conspiracy with their colleagues at the Departments of Commerce and Justice,” stated FBI Assistant Director-in-Charge Rodriguez.
“Today’s action is the result of outstanding collaborative investigative work by the Justice Department, the Commerce Department and the FBI to break up a network whose alleged aim was to illegally ship sophisticated U.S.-origin technology to Iran. We will continue to pursue violators wherever they may be,” said Carson, Special Agent-in-Charge of the Commerce Department’s New York Office of Export Enforcement.
If convicted of the charges, Kuyumcu faces up to 20 years in prison a $1 million fine.
The case is being prosecuted by Assistant U.S. Attorneys Tiana A. Demas and Ameet B. Kabrawala of the Eastern District of New York, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
ERDAL KUYUMCU
Age: 44
Woodside, New YorkE.D.N.Y. Docket No. 16-0134M
[1] The charges contained in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Buffalo Woman Arrested, Charged with Distributing HeroinRead 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 Brittaney Ridgeway, 27, of Buffalo, NY, was arrested and charged by criminal complaint with distribution of heroin. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the complaint, on March 25, 2015, Cheektowaga Police officers recovered bundles of heroin following a traffic stop of a vehicle that the defendant was riding in with her boyfriend Dellsean Hamilton. Analysis determined that some of the heroin contained fentanyl.
Subsequent investigation determined that Hamilton was a large volume heroin supplier in Buffalo and the surrounding area and Ridgeway assisted him in the distribution of the heroin. Hamilton was arrested in December 2015, also on distribution charges. Following Hamilton’s arrest, law enforcement officers learned that Ridgeway continued to distribute heroin. Officers made controlled purchases of heroin from Ridgeway on February 4 and February 11, 2016.
Ridgeway made an initial appearance this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained pending a detention hearing on March 4, 2016 at 10:00 a.m.
The criminal complaint is the culmination of an investigation by the Cheektowaga Police Department, under the direction of Chief David Zack, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Bucks County Man Sent Back to Prison for Committing Fraud While Behind BarsRead the Press Release
PHILADELPHIA - Robert Joseph Whiteman, Jr., 38, of Levittown, Pennsylvania was sentenced today to 95 months in prison for committing bank fraud and aggravated identity theft while serving a prison sentence for a similar fraud scheme. In addition to the prison term, U.S. District Court Judge Gerald J. Pappert ordered five years of supervised release, restitution in the amount of $67,834.06, and a $500 special assessment.
In 2006, Whiteman was sentenced to 10 years in prison for bank fraud. While serving that sentence, between 2010 and 2012, Whiteman obtained and attempted to obtain credit in his name and the names of others under false pretenses. Whiteman frequently did this by causing false credit card applications to be submitted in his name and the names of fellow inmates. Whiteman also caused female associates to be included as authorized users for these cards. After the cards were approved, Whiteman caused these female accomplices to use the credit cards to make charges and to take cash advances. When the conspirators reached the cards’ limit, Whiteman caused fraudulent payments to be made on the credit cards, temporarily and falsely increasing the cards’ available credit. Whiteman and his accomplices then resumed their fraud. Moreover, even after the banks and credit card companies stopped allowing Whiteman to make additional charges, he continued to defraud these financial institutions. Whiteman generally wrote fraudulent letters to the institutions falsely claiming that the charges were unauthorized in order to cause the institutions to forgive the charges. In addition, Whiteman submitted false tax returns and fictitious police reports to the financial institutions in order to advance his scheme. His fraud caused over $65,000 in actual losses to his victims and attempted to cause approximately $165,000 more. One of these victims was his own father.
Furthermore, while awaiting sentencing on the most recent charges, Whiteman, again, tried to continue his fraud from the Federal Detention Center in Philadelphia, Pennsylvania.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Patrick J. Murray.
Brief Filed in United States v. State of TexasRead the Press Release
PDF version of the brief recently filed in United States v. State of Texas.
Blackstone Woman Charged with Stealing Customers’ Personal InformationRead the Press Release
BOSTON – A Blackstone woman was charged today in U.S. District Court in Boston in connection with her role in a scheme to steal personal and bank account information from clients of her former employer.
Jasmine Banks, 29, was charged in an Information with one count of conspiracy to commit identity theft and access device fraud.
The Information alleges that, in 2014, Banks was a customer service employee for Mercer, Inc., in Norwood, and assisted customers with technical questions regarding their retirement plans that were administered by Mercer. In connection with her work, she had access to detailed account information and personally identifiable information (PII) for customers’ retirement accounts.
According to court documents, from approximately February 2014 through April 2014, Banks accessed Mercer account information at her computer and provided the names, addresses, and bank account and routing numbers of approximately 270 Mercer account holders to one of her co-conspirators via email and text message. In many cases, she also provided dates of birth and social security numbers. Banks allegedly reviewed 401(k) accounts for large balances, chose four with significant assets, and sent the co-conspirator detailed account access information for those four accounts. Based on the information Banks provided, a fraudulent withdrawal of $23,485 was made from one of the retirement accounts.
Mercer fully cooperated with law enforcement to prevent further account breaches and withdrawals.
The charge provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney David J. D’Addio of Ortiz’s Cybercrime Unit.
The details in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Baggage Handler Sentenced to over 9 Years in Prison for Smuggling Methamphetamine Through Oakland AirportRead the Press Release
OAKLAND – Siosiua Fihaki was sentenced to 112 months in prison today for his role in smuggling nine pounds of methamphetamine through a secured door at the Oakland International Airport announced Acting United States Attorney Brian Stretch and Drug Enforcement Administration Special Agent in Charge John J. Martin.
Fihaki, 32, of Hayward, Calif., pleaded guilty on December 15, 2015, to one count of distributing methamphetamine. In pleading guilty, Fihaki admitted that on May 29, 2014, he was working as a baggage handler at the Oakland International Airport for a flight bound for Honolulu. Early that morning, Fihaki used his airport employee credentials to access a secure door at the airport while carrying a duffel bag full of methamphetamine. Fihaki admitted that he put the duffel bag into the belly of the airplane with other checked luggage. The duffel bag was seized by U.S. Drug Enforcement Administration agents in Honolulu and the subsequent search revealed nine pounds of methamphetamine.
The sentence was handed down by the Honorable Jeffrey S. White, U.S. District Judge. In handing down the sentence, Judge White noted that the case was particularly troubling given that the defendant, as a baggage handler, was entrusted with the safety of everyone who flies through the airport. Judge White also stated that he was extremely concerned that in an era of enhanced security for airlines, Fihaki chose to abuse the trust of the flying public. Judge White’s sentence also included a three-year period of supervised release.
Assistant U.S. Attorney Aaron Wegner is prosecuting the case with the assistance of Vanessa Vargas. The prosecution is the result of an investigation by the U.S. Drug Enforcement Administration, the Internal Revenue Service, and the Alameda County Sheriff’s Office. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force, a multi-agency task force that coordinates long-term narcotics trafficking investigations.
Atlanta Store Owner Pleads Guilty to Trafficking in Food StampsRead the Press Release
ATLANTA - Samuel Kwushue has pleaded guilty to eight counts of wire fraud for illegally exchanging food stamp benefits for cash in his convenience store. Between late 2010 to approximately June 2015, Kwushe exchanged food stamp benefits for pennies on the dollar.
“The federal food stamp program is intended to help low-income citizens obtain needed nutritional assistance for themselves and their families,” said U. S. Attorney John Horn. “Instead, Kwushue abused the program by exchanging food stamp benefits for cash so he could enrich himself.”
“The federally funded food stamp program was designed with the best of intentions for those individuals truly in need. Kwushue was not one of those truly in need. This guilty plea in federal court will now firmly hold him accountable for his greed driven criminal acts of preying on those in need and stealing from a government program,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U. S. Attorney Horn, the charges and other information presented in court: from August 2011 until at least June 2015, Kwushue owned and operated KD Metro Tropical Market, a convenience store in Atlanta, Georgia, where he unlawfully exchanged his customers’ food stamp benefits for cash at the rate of approximately 60 cents on the dollar. Stores that participate in the food stamp program are prohibited by law from exchanging cash for food stamp benefits or accepting food stamp benefits for the purchase of alcohol, tobacco, and non-food items.
During the investigation, law enforcement obtained data showing that KD Metro Tropical Market, a small convenience store, gradually raised its food stamp benefits transactions each month from approximately $1,100 in October 2010, to approximately $200,000 in June 2015. During undercover transactions where Kwushue paid agents cash in exchange for food stamp benefits, agents saw a collection of foodstuffs that could not justify the substantial sums Kwushue charged to the food stamp program each month. The scheme allegedly netted Kwushue approximately $2 million. He also allegedly handed out nearly $3 million in cash to customers.
Sentencing for Samuel Kwushue, 54, of Union City, Georgia, has not yet been scheduled.
This case is being investigated by the United States Department of Agriculture – Office of Inspector General and the Federal Bureau of Investigation.
Assistant United States Attorney Samir Kaushal is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed Career Criminal Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Terrance Tyrone Davis, 47, of Mobile, was sentenced in federal court this morning as an “armed career criminal.” As such, under a federal statute punishing gun violations, he was subject to a mandatory minimum sentence of 15 years imprisonment. To qualify under this statute, a defendant who violates the gun law must have three prior convictions for violent felonies. Court documents identified Davis’ violent felonies as Robbery Third Degree, Assault Second Degree and Sexual Abuse First Degree. Davis was indicted in federal court in July of 2015, and pled guilty to the sole charge in the indictment, felon in possession of a firearm, in September of 2015.
United States District Court Judge Callie V. S. Granade imposed a sentence slightly in excess of the mandatory minimum, 188 months, which was the low end of the advisory guideline range that applied to Davis’ case. Judge Granade also ordered that Davis serve a term of five years on supervised release when he comes out of prison. No fine was imposed, but Davis was ordered to pay $100 in special mandatory assessments.
The case was investigated by the Prichard Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorneys Gina Vann and Gloria Bedwell.
Albuquerque Women Plead Guilty to Federal Mail Theft ChargesRead the Press Release
ALBUQUERQUE – Crystal Devon Romero, 33, and Michelle Josephine Candelaria, 25, both of Albuquerque, N.M., pleaded guilty yesterday in federal court to theft of mail charges.
Romero and Candelaria were arrested on Jan. 19, 2016, on a criminal complaint charging them with theft of mail and conspiracy. The complaint alleged that the two women conspired with each other to steal mail in Jan. 2015, in Bernalillo County, N.M. Romero and Candelaria allegedly pried open cluster mailboxes and stole mail from them. A search of the truck Romero and Candelaria allegedly used to carry out their mail theft scheme uncovered stolen mail, including checks that had been altered and debit/credit cards.
During yesterday’s proceedings, Romero and Candelaria pled guilty to felony informations charging them stealing mail from Jan. 12, 2016 through Jan. 15, 2016. The guilty pleas were entered without the benefit of plea agreements.
At sentencing, Romero and Candelaria each face a maximum of five years in federal prison. Their sentencing hearings have yet to be scheduled.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei.
Albany Man Pleads Guilty to Child Pornography DistributionRead the Press Release
ALBANY, NEW YORK – Michael G. Isaacson, age 33, of Albany, pled guilty today to distributing and possessing child pornography, announced U.S. Attorney Richard S. Hartunian.
Isaacson faces at least 5 years and up to 20 years in prison, and a term of post-imprisonment supervised release of between 5 years and life, when he is sentenced on July 6, 2016 by U.S. District Judge Gary L. Sharpe. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Isaacson will also be required to register as a sex offender upon his release from prison.
As part of his plea, Isaacson admitted that he distributed child pornography files over the Internet to a Colonie Police Department Investigator. He also admitted to possessing more than 1,000 image files, and more than 30 video files, depicting minors engaged in sexually explicit poses or conduct.
This case was investigated by the Colonie Police Department and the Federal Bureau of Investigation’s Albany Division, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Akron man indicted for distribution of heroin and methamphetamineRead the Press Release
A federal grand jury returned a two-count indictment charging Chesseray T. Whatley, 39, of Akron, with possession with intent to distribute heroin and methamphetamine, said Acting U.S. Attorney Carole S. Rendon.
The indictment alleges that on February 8, 2016, Whatley possessed with the intent to distribute one kilogram or more of heroin and one kilogram or more of methamphetamine.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Ohio State Highway Patrol and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Robert E. Bulford.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Agency Village Man Charged with Multiple Counts of AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that an Agency Village, South Dakota, man has been charged with an Information for Assault by Striking, Beating, and Wounding; Assaulting, Resisting, and Impeding a Federal Officer; and Simple Assault.
Javier Arteaga, age 38, was charged on January 22, 2016. He appeared before U.S. Magistrate Veronica L. Duffy on February 25, 2016, and pled not guilty to the Information.
The maximum penalty upon conviction is up to one year in custody and/or a $100,000 fine, one year of supervised release, and up to $60 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Information alleges that on or about July 5, 2015, Arteaga unlawfully assaulted his spouse by striking, beating, and wounding her. The Information also alleges that on or about November 4, 2015, Arteaga forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a law enforcement officer while the officer was employed by the Sisseton Wahpeton Oyate Law Enforcement. Arteaga is also alleged to have committed the offense of simple assault on his spouse on or about November 4, 2015.
The charges are merely accusations and Arteaga is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Arteaga was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
34 Defendants Charged with Conspiracy to Commit Fraud in Battle CreekRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that a federal grand jury returned an Indictment charging 34 defendants for their alleged roles in a conspiracy to defraud the IRS through the filing of false tax forms, mostly through using other people’s identification information. The charges result from a joint investigation led by the IRS, Veterans Affairs – Office of the Inspector General, U.S. Postal Inspection Service, the Bureau of Alcohol Tobacco and Firearms, Department of Homeland Security, Battle Creek Police Department, Albion Police Department, Calhoun County Sheriff’s Department, and Michigan State Police.
The Indictment alleges that the defendants utilized other individuals’ personal identification information (PII)—obtained in part from patients and employees of the Battle Creek Veterans Affairs Medical Center and from inmates of the Michigan Department of Corrections—to file false tax returns. In total, the Indictment alleges that for tax years 2007 through 2014, the co-conspirators, led by lead defendant DERRICK J. GIBSON, filed at least 4,668 federal income tax returns claiming false, fictitious, and fraudulent refunds totaling over $22 Million.
"In a modern world in which personal identification information can be acquired in various ways and misused, and where government funds are growing ever scarcer, my office will continue to lead investigations into cases where identification information was misused as a tool to commit tax fraud," said US Attorney Miles. "My office will bring to justice those willing to misuse other people’s identification information, often victimizing them, in order to steal money from the government."
Special Agent in Charge Jarod J. Koopman, IRS-Criminal Investigations, added: "The American tax system is designed to provide important services to the American people. It will not be used as the personal piggy bank for thieves and those who assist them. The allegations in this case show a blatant disregard of the law. The filing of false returns is notoriously disruptive to those whose information was misused without their knowledge and to the IRS’s mission. This indictment is the direct result of the hard work and dedication of numerous law enforcement agencies and the U.S. Attorney’s office to protect the American public and the principles of this country."
The alleged roles of the defendants are detailed in the Indictment, unsealed Monday, as part of initial court proceedings. Twenty-four of the defendants have been arrested on the charge so far. The individual named defendants, all from Battle Creek, are listed below.
- DERRICK J. GIBSON, 52
- CHARMICA GRIFFIN, 44
- STEPHANIE T. BAKER, 34
- LATIA M. WILLIAMS, 41
- ALVIN E. STEPHENSON II, 46
- SANDRIA M. BLAKLEY, 34
- EDWARD WARDEN, JR., 47
- CHANEL MCCLENNEY, 35
- DARWIN GIBSON, 25
- BOBBY CRABTREE, 45
- DEQYNN GIBSON, 24
- DARRIEN GIBSON, 25
- ROCHELLE R. VELASQUEZ, 29
- SCHERRIE MCNUTT, 35
- DEVOINE GIBSON, 51
- PRENTIS H. GIBSON, 74
- LAMONT JOYNER, 25
- SHAMEIKA N. CARR-MCCLENNEY, 33
- CHARLEETA CORK, 39
- KEITH CORK, 41
- MAIYA R. JACKSON, 21
- SHAWN MCKNIGHT, 36
- DAVID HAYMER, 48
- DIALLO DOTSON, 42
- ROMELL BOLDEN, 25
- LABRISHA PORTER, 23
- KYPREE TAYLOR, 22
- ROSEMARY BOYD, 53
- PATRICIA RIDDLE-MCCLINTON, 60
- JOSEPH JEREMY JOHNSON, 29
- KISHA N. EVANS, 36
- RASHALL FORD, 47
- SIMONE WATKINS, 47 and
- ROMARO CARSWELL, 45.
Each defendant faces up to 10 years imprisonment and a fine of $250,000, if convicted.
The public is reminded that the charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
13 Defendants Sentenced for Springfield Tax Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that all 13 co-defendants have been sentenced in federal court for their roles in a fraudulent tax return preparation scheme that claimed nearly $340,000 in fraudulent income tax refunds.
Cherie Christine Dupuis, 43, of Springfield, was sentenced by U.S. District Judge Brian C. Wimes on Monday, Feb. 29, 2016, to two years and nine months in federal prison without parole. The court also ordered Dupuis to pay $272,819 in restitution.
Dupuis was among 13 defendants who were sentenced yesterday and today. Dupuis pleaded guilty to leading the fraudulent tax return preparation conspiracy and her co-defendants pleaded guilty to making false and fraudulent income tax returns.
Dupuis and her co-conspirators defrauded the government by filing false claims for income tax refunds from February 2009 to March 2012. In the false and fraudulent federal income tax returns they prepared and filed, conspirators claimed refunds from the IRS totaling approximately $340,630, of which approximately $336,839 was false. Over the course of the scheme, the total actual tax loss to the IRS was $284,169.
Conspirators recruited individuals to assist in filing fraudulent returns, and obtained their identifying information, including their names and Social Security numbers. They used that information to file federal income tax returns that included fictitious employment information and reported wages that had not been earned and employment taxes that had not been withheld. Conspirators shared employer information for the purpose of creating fictitious W-2 forms. They also shared dependent information to enable them to falsely claim dependents on their returns.
Dupuis utilized tax preparation software called Taxact.com to prepare these false federal income tax returns on her own laptop computer, public library computers and on a co-conspirator’s laptop computer. She used a co-conspirator’s mailing address on some false federal income tax returns.
Dupuis admitted that she filed fraudulent federal income tax returns in her own name and for at least 19 other individuals. Dupuis would usually split the fraudulent refunds with her co-conspirators. The total amount of the false claims Dupuis personally prepared and/or filed was approximately $298,708, with approximately $256,281 being paid on these false claims and a loss to the government of approximately $213,711.
Seven additional defendants sentenced on Monday, Feb. 29, 2016, included:
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Johnny L. Cooper, 28, of Springfield, to seven months in prison and $10,100 in restitution;
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Shawna Marie Hughey, 37, of Joplin, Mo., formerly of Springfield, to six months in prison and $22,626 in restitution;
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Delbert L. Allen, 37, of Pleasant Hope, Mo., formerly of Springfield, to five months in prison and $4,541 in restitution;
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Jeannette R. Dunn, 48, of Huntsville, Ark., formerly of Springfield, to two months in prison and $10,430 in restitution;
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Lisa Lorre DeHaven, 35, of Springfield, to time served and $19,791 in restitution;
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Asia Michelle Couchman, 26, of Oak Grove, Mo., to five years of probation and $9,456 in restitution; and
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Heather Nicole Drennen, 32, of Cameron, Mo., formerly of Springfield, to five years of probation and $5,203 in restitution.
Five additional defendants sentenced today included:
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Travis L. Ashmead, 30, of Springfield, to 10 months in prison and $9,906 in restitution;
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Amanda Leigh Boyd, 34, of Springfield, to six months in prison and $29,409 in restitution;
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William J. Coonce, 29, of Otterville, Mo.; to four months in prison and $15,750 in restitution;
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Claudia Dorsey, 34, of Springfield, to five years of probation and $27,791 in restitution; and
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Jeannie Marie Rhodes, 34, of Springfield, to five years of probation and $6,881 in restitution.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation.
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29 February 2016
Woodland Man Sentenced to 36 Months for Bath Salts Distribution ConspiracyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Preston Brown, Sr., 51, of Woodland, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 36 months in prison to be followed by 3 years of supervised release for conspiracy to possess with intent to distribute and to distribute bath salts and ordered to pay a $1,000 fine.
According to court records, between about June 2012 and June 2014, Brown conspired with others in Aroostook County to obtain and distribute bath salts. On multiple occasions, Brown ordered bath salts over the internet from China for personal use and to sell to other conspirators.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine
Drug Enforcement Agency with assistance from the Aroostook County Sheriff’s Office and the U.S. Postal Inspection Service.Woman Who Operated Large Scale Heroin Processing Mill in Hartford Pleads GuiltyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that AMANDA GAMBARDELLA, 26, formerly of Hartford and Cheshire, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of possession with intent to distribute heroin.
This matter stems from an ongoing investigation being conducted by the Drug Enforcement Administration’s Hartford Task Force, which includes participants from the Hartford, Wethersfield, Bristol, East Hartford, Manchester, New Britain and Willimantic Police Departments.
According to court documents and statements made in court, the DEA Task Force received information that a drug trafficking organization was obtaining large quantities of heroin in New York City, transporting the drug to Connecticut in a vehicle equipped with a hidden compartment, and distributing it in the Hartford area. The investigation revealed that GAMBARDELLA was employed by the organization to store and package heroin at her apartment on Adelaide Street in Hartford, and that she had rented a storage unit in East Hartford on behalf of the organization.
On November 4, 2015, investigators conducted a court-authorized search of the East Hartford storage unit and seized approximately $795,990 in cash. On November 5, 2015, investigators searched the Adelaide Street apartment and seized a approximately 778 grams of heroin, as well as cutting agents, packaging materials and other paraphernalia associated with a large scale heroin processing mill. The seized heroin included more than 17,000 bags packaged for street sale and approximately 200 grams of unpackaged heroin.
GAMBARDELLA has been detained since her arrest on November 5, 2015.
Judge Arterton scheduled sentencing for May 23, 2016, at which time GAMBARDELLA faces a maximum term of imprisonment of 20 years.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Wichita Man Sentenced on Federal Firearm ChargeRead the Press Release
TOPEKA, KAN. – A Wichita man who said in a phone call he never goes to a club unarmed was sentenced Monday to four years in prison on a federal firearms charge, U.S. Attorney Barry Grissom said. After he serves his sentenced he will serve three years on supervised release.
Dontreal D. Banks, 29, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm following a felony conviction. In his plea, he admitted that during a monitored phone conservation with an inmate at the Hutchinson Reformatory he said he never goes to a club without his “burner,” slang for a firearm. At the time, Banks was on parole on a felony conviction. Kansas Department of Corrections investigators found a Norinco AK-47 semi-automatic assault rifle in a closet at Banks’ residence. The attached magazine was loaded with ammunition. Because of his prior conviction, Banks was prohibited from possessing a firearm.
Grissom commended the Kansas Department of Corrections, the Wichita Police Department and Assistant U.S. Attorney Lanny Welch for their work on the case.
Westminster Investment Advisor Sentenced to 10 Years in Prison for Scheme to Steal Almost $2 Million of Clients’ MoneyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Jasper Buck, age 60, formerly of Westminster, Maryland and elsewhere including Sanford and Lake Mary, Florida, today to 10 years in prison, followed by three years of supervised release, for mail fraud arising from an investment fraud scheme in which Buck stole more than $1.96 million from clients. Judge Russell also entered an order requiring Buck to forfeit $1,961,364, the amount Buck obtained from his victims, and to pay $1,258,266.98 in restitution to the victims.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
According to his plea agreement, Buck worked for mortgage companies, but held himself out to investors as an experienced investment advisor. Buck admitted that from October 2006 through at least December 2014, he told his victims that he was a representative of Portfolio Financial Group (PFG). Buck told the victims that PFG would loan money provided by the victims to borrowers who needed funds quickly or who were unable to obtain traditional bank loans and were therefore willing to pay a higher interest rate on the loans. In fact, there were no such borrowers, and Buck used the victims’ money for his own personal use or to further his fraud scheme.
Buck told his victims that there were other owners and employees of PFG. However, bank accounts for PFG listed Buck as a signatory, and PFG’s addresses were listed as either Buck’s personal residence or shipping and packaging stores such as UPS.
Buck convinced some victims to invest all or a portion of their retirement savings, often by persuading the victims to take loans out of their IRA or 401(k), or to refinance their home mortgages and use lines of credit, in order to invest the proceeds with Buck through PFG. Buck promised the victims that they would receive a monthly return on their investments greater than the victims’ monthly loan payments. In addition, he convinced some victims to move their retirement savings into an account with a self-directed IRA custodian for the purpose of then having those funds transferred to him. Rather than investing the money turned over to him, Buck used some of the money on himself, as well as to pay other victims in order to convince those victims that their investments were earning the promised returns.
To conceal the scheme, Buck issued payments to some victims, using funds received from other victims, to convince them that their investments were earning the expected returns. Buck made telephone calls and sent text messages and emails to victims making false statements regarding purported investments, to lull the victims into believing that their loan principal was safe and that their purported investments were sound.
Beginning in January 2014 when Buck had exhausted all of the victims’ funds in his PFG account and could no longer make any payments to the victims, he falsely represented that: there was no issue with PFG financially; PFG was updating software, or was slowed by new federal regulations, or was being sold to another company and no assets could be released until the sale was complete; victim money was in PFG’s possession, but Buck could not physically access it; or that Buck was pursuing legal action against PFG.
As a result of the scheme, Buck obtained at least $1,961,364 from more than 10 victims.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Sean Delaney, who prosecuted the case.
Washington D.C. Man Sentenced to over 10 Years in Prison for Committing Three Armed Robberies in Maryland in Six WeeksRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Recardo Beatty, age 50, of Washington, D.C., today to 130 months in prison followed by five years of supervised release on three counts of robbery, and carrying and brandishing a firearm during a robbery.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief Douglas Holland of the Hyattsville Police Department.
According to his plea agreement, on August 8, 2013, Beatty and co-conspirator James Davis drove to the Hyattsville Post Office. Beatty first entered the post office to scout the inside. Davis then entered, while Beatty waited outside in their getaway vehicle. Davis pointed a paintball gun at an employee. The employee and another employee fled from their cash registers, while Davis grabbed money and money orders out of the register. Davis and Beatty fled in their vehicle.
On August 15, 2013, the pair traveled to a food store in Mt. Rainer, Maryland. As Beatty waited outside in the vehicle, Davis entered the store, walked behind a counter where an employee was working and displayed a paintball gun. Davis ordered the employee to open the cash register and Davis removed money. Davis and Beatty fled in their vehicle.
On September 17, 2013, Beatty and Davis traveled to a discount store in Brentwood, Maryland and entered the store together, both carrying real firearms. Davis demanded that an employee open a cash register, from which he took money and a cash box. Beatty saw another employee approach a store exit door. A fight ensued, and the employee was hit on the head. Davis and Beatty fled the store in their vehicle.
On the same day as the Dollars and Sense robbery, the police investigation led to the recovery of the firearm from Beatty that was used in the robbery. The next day, September 18, 2013, officers executed a search warrant at Beatty’s residence where Davis was staying, and recovered a paintball gun and clothing used in the robberies.
Judge Hazel sentenced James Davis, age 57, formerly of Washington, D.C., on February 17, 2016 to 16 years in prison for his participation in the conspiracy.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Postal Inspection Service and the Prince George’s County and Hyattsville Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leah Jo Bressack and Special Assistant United States Attorney Matthew L. Paeffgen, who prosecuted the case.
U.S. Attorney's Office Honors 200 Officers and Agents for Outstanding Work in Law EnforcementRead the Press Release
WASHINGTON - The U.S. Attorney’s Office tonight honored about 200 law enforcement officers, agents and investigators for their outstanding work on dozens of cases that led to the convictions of murderers, terrorists, sexual predators, drug dealers, and other criminals. The event, at the Cannon House Office Building, drew a large crowd of prosecutors and others from the U.S. Attorney’s Office, as well as leaders of numerous law enforcement agencies.
U.S. Attorney Channing D. Phillips said the Office’s 33rd Law Enforcement Awards Ceremony recognized the exceptional work performed by honorees on a wide variety of investigations, including those involving violent crimes, narcotics trafficking, fraud and public corruption and national security matters. The efforts represent only a small portion of the remarkable work performed by law enforcement on behalf of the community.
“The many men and women being honored tonight exemplify the professionalism, dedication and commitment to public service shown by law enforcement throughout our community each and every day,” said U.S. Attorney Phillips. “Their work has led to the arrest and prosecution of criminals operating here and overseas. This ceremony is a way to express our appreciation to the officers and agents on the front lines of justice.”
The ceremony honored the achievements of people from 20 agencies, including the Metropolitan Police Department (MPD), the FBI=s Washington Field Office, the U.S. Marshals Service, the U.S. Secret Service and other law enforcement partners. Their efforts led to convictions in nearly 50 cases that had an impact locally, nationally, and internationally.
The honorees included a team from the FBI’s Washington Field Office, the Metropolitan Police Department, and the Montgomery County, Md. Police Department that conducted the investigation of Eric Justin Toth, a former private school teacher and camp counselor who ultimately pled guilty to federal child pornography and other charges. Toth left Washington, D.C., in 2008, amid an investigation that began with the discovery of pornographic images on a school camera that had been in his possession. He was apprehended in 2013 in Nicaragua, pled guilty, and was sentenced to 25 years in prison.
A team of detectives from the Metropolitan Police Department was honored for the apprehension of a man responsible for a shooting on a busy public street that killed one man and wounded another. Bernard Fleming is now serving a 35-year prison sentence for shooting the victims on July 7, 2012 in the 1700 block of Seventh Street NW. Ballistics evidence indicated that Fleming fired at least 11 shots at the group. The gunfire killed Michael Jones, 30.
Another MPD team was recognized for work leading to the arrests of the three men responsible for the Aug. 17, 2012 attack of a man in a robbery near the Eastern Market. One of the defendants, Tommy Branch, struck the victim in the head, causing a splintering fracture to his skull. The men stole the victim’s iPhone, keys, and a credit card, and then fled.
The ceremony also recognized an FBI team that conducted an 18-month-long investigation that led to the dismantling of a major cocaine distribution network in the Washington, D.C. area. The investigation led to large seizures of cocaine, firearms and cash, and the prosecution of 27 people connected to the drug operation. One of the key suppliers, Darnell Antonio Parker, was sentenced to nearly 20 years in prison for his role in the network.
Finally, the U.S. Attorney’s Office honored agents and officers from several law enforcement agencies who responded on Sept. 16, 2013 to reports of an active shooter at the Washington Navy Yard. The gunman, Aaron Alexis, killed 12 people and wounded four others before he was fatally shot in a confrontation with law enforcement. The honorees included agents and officers from the Metropolitan Police Department; U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Naval Criminal Investigative Service; Naval Support Activity, Washington; the U.S. Marshals Service, and the U.S. Park Police.
Two men sentenced for illegally reentering the United StatesRead the Press Release
HUNTINGTON, W.Va. - Two men, Nero Fernandez-Fernando and Ramiro Lopez Chilel, pleaded guilty and were sentenced today for illegally reentering the United States, announced Acting United States Attorney Carol Casto. Both men were sentenced to credit for time served and transferred to the custody of the Department of Homeland Security for deportation proceedings.
Fernandez-Fernando and Lopez-Chilel were both employees of the Casa Grande Restaurant in Eleanor in Putnam County. Department of Homeland Security investigators encountered both men during the course of an investigation in the Eleanor area. Fernandez-Fernando, a citizen of Mexico, was taken into custody on December 2, 2015. In 2009, he was convicted in Arizona of solicitation to commit smuggling. After this conviction, he was deported to Mexico and he later illegally crossed the border back into the United States. Lopez-Chilel, a citizen of Guatemala, was taken into custody on October 30, 2015. Lopez-Chilel had previously been convicted in Virginia of illegally reentering the United States in 2012, and was subsequently deported. Sometime after his deportation, Lopez-Chilel also illegally reentered the United States.
The Department of Homeland Security and the Putnam County Sheriff’s Office conducted the investigation. Assistant United States Attorney Erik S. Goes handled the prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.
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Two felons appear in Federal court for gun crimesRead the Press Release
HUNTINGTON, W.Va. – Two felons appeared in court in Huntington today for federal gun crimes, announced Acting United States Attorney Carol Casto.
Bradney Allen Adkins, a felon from South Point, Ohio, who shot himself in the foot while driving on Interstate 64 in February 2015, was sentenced to three years and five months in federal prison. Adkins, 32, pleaded guilty in November 2015 to unlawful possession of a firearm by a convicted felon. On February 5, 2015, Adkins, while in possession of two handguns, was traveling westbound on Interstate 64 in Barboursville. While driving, Adkins accidently shot himself in the foot with one of the handguns. Adkins went to Cabell Huntington Hospital to seek treatment for the gunshot wound. Troopers with the West Virginia State Police responded to the hospital and recovered both handguns from a dumpster. Adkins, who was in the process of bringing the guns to Huntington to trade for heroin, was prohibited from possessing any firearm under federal law because of six previous felony convictions in Ohio and Indiana.
In a separate hearing, Troy Walter Simpson, a felon from Putnam County who illegally possessed two firearms at his residence, pleaded guilty to a federal gun charge. Simpson, 38, of Liberty, entered his guilty plea to unlawful possession of a firearm by a convicted felon. On December 15, 2014, law enforcement went to interview Simpson at his residence located at 198 Fisher’s Ridge Road in Liberty. Agents had previously received a report that Simpson had multiple firearms in his residence. When agents spoke with Simpson, he admitted having the guns and gave agents permission to enter his residence to retrieve them. Agents subsequently located and seized a .30-30 rifle and a .410 shotgun. Simpson was prohibited from possessing any firearm under federal law based on a 2007 felony conviction in Putnam County Circuit Court for conspiracy to distribute marijuana. Simpson faces up to 10 years in federal prison when he is sentenced on June 13, 2016.
The case against Adkins was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Putnam County Sheriff’s Department conducted the investigation of Simpson. Assistant United States Attorney Joseph F. Adams handled the prosecutions. The hearings were held before Chief United States District Judge Robert C. Chambers.
These prosecutions were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Topeka Man Who Sold Stolen Guns Sentenced to Federal PrisonRead the Press Release
TOPEKA, KAN. – A Topeka man who sold stolen guns to undercover federal agents was sentenced Monday to two years in federal prison, U.S. Attorney Barry Grissom said. After serving his sentence, the defendant will spend three years on supervised release.
Jeremy C. Paulsen, 32, Topeka, Kan., pleaded guilty to one count of possessing stolen firearms. In his plea, he admitted selling three firearms – a 20 gauge shotgun, a .300 caliber rifle and a 16 gauge shotgun – to an agent of Alcohol, Tobacco, Firearms and Explosives who was working undercover. The firearms were reported stolen in a residential burglary investigated by the Shawnee County Sheriff’s Department.
Grissom commended the Shawnee County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Duston Slinkard for their work on the case.
Three Springfield Women Indicted for $300,000 Tax Fraud ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Springfield, Mo., women have been indicted for their roles in a nearly $300,000 tax fraud conspiracy.
Nancy L. Walker, 54, Carolyn Alice Cobb, 54, and Clementine Lockett, 41, all of Springfield, were charged in a 25-count indictment returned under seal by a federal grand jury in Springfield on Feb. 23, 2016. That indictment was unsealed and made public upon the arrest and initial court appearance of Lockett on Friday, Feb. 26, 2016. Lockett remains in federal custody pending a detention hearing on Wednesday, March 2, 2016. Cobb is in state custody on an unrelated case and Walker remains a fugitive.
The federal indictment alleges that Walker, Cobb and Lockett participated in a tax fraud conspiracy from January 2010 to April 23, 2013. The conspiracy allegedly netted at least $297,173 in fraudulently-obtained tax refunds.
According to the indictment, Walker, Cobb and Lockett used the names and Social Security numbers of other persons to electronically file false and fraudulent federal income tax returns. Additionally, Walker allegedly used stolen identities to electronically file other false and fraudulent federal income tax returns. Conspirators used fictitious W-2 information, listing employers who did not employ the individual listed on the federal income tax return, and reporting wages not earned and employment taxes not withheld from the individual. Further, several of these false and fraudulent federal income tax returns included fictitious education-related expenses, which the individuals did not incur and were not entitled to deduct as credits.
Refunds received from the fraudulent returns were deposited into bank accounts controlled by Walker and Cobb, among others, or deposited onto prepaid debit cards, the indictment says.
Conspirators concealed and attempted to conceal the existence of the conspiracy by failing to accurately list the person(s) who prepared the false and fraudulent federal income tax returns, using nominee bank accounts to receive the refund deposits and providing false and misleading statements to law enforcement when questioned about their roles and actions in the conspiracy.
In addition to the conspiracy, Walker is charged with three counts of identity theft and 15 counts of making false claims. Cobb and Lockett are each charged with Walker in two false claims counts.
Walker is also charged with six counts of stealing public money. Cobb is charged with her in one of those counts.
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 Casey Clark. It was investigated by IRS-Criminal Investigation.
Sumter Man Pleads Guilty for His Role in Fraudulent Tax Return SchemeRead the Press Release
Contact Person: Benjamin Garner (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Hercules E. Baker of Sumter, South Carolina entered a guilty plea in federal court in Columbia, to Conspiracy to Defraud the United States with Respect to Claims, in violation of Title 18, United States Code, Section 286. United States District Judge J. Michelle Childs accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that, beginning January 2011 and continuing to at least April 2014, Baker and others conspired to defraud the Internal Revenue Service by filing federal income tax returns that claimed false tax refunds. During the course of the conspiracy, Baker approached third-party tax payers and persuaded them to provide their means of identification and other personal information, all for use in preparing and filing false federal income tax returns. Members of the conspiracy then directed the Internal Revenue Service to electronically deposit fraudulently obtained refunds into various bank accounts controlled by Baker and others.
Mr. Nettles stated that the maximum penalty for Conspiring to Defraud the United States with Respect to Claims is imprisonment for ten years and/or a fine of $250,000.
The case was investigated by agents of the Internal Revenue Service Criminal Investigations. Assistant United States Attorney Ben Garner of the Columbia office is prosecuting the case.
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Sex Offender Sentenced to Two Years in Prison for Failure to RegisterRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that on February 26, United States District Judge Nancy Torresen sentenced Clyde M. Hall Jr., to 24 months incarceration followed by 10 years of supervised release.
According to court documents, Clyde M. Hall Jr. is required to register as a sex offender because of three previous convictions for sex offenses in Maine and New York. After serving a sentence on a New York conviction, Hall was released from prison there in March, 2012. Hall failed to report as required to a halfway house upon his release and failed to register as a sex offender in New York. In October, 2013, Hall was arrested in Portland, Maine, where he had also failed to register. He was transported to New York to serve a sentence there for violating his probation. Hall was returned to Maine upon the completion of that sentence and pleaded guilty in federal court on October 20, 2015.
United States Attorney Delahanty said that the investigation of the case was conducted by the United States Marshals Service.
Revenge Shooting Sends Felon Possessing a Firearm to PrisonRead the Press Release
A felon who possessed a loaded firearm in Cedar Rapids in July 2014 was sentenced last week to eight years in federal prison.
Fabian Taylor, Jr., age 28, most recently from Marion, Iowa, received the prison term after his October 15, 2015, guilty plea to the federal crime of felon in possession of a firearm. At the guilty plea hearing, Taylor admitted he knowingly possessed a loaded Ruger .357 revolver. He also admitted having a prior first-degree burglary conviction from Minnesota state court. At sentencing, the district court found Taylor possessed the loaded firearm in a car and, in fact, fired it at a man who had recently assaulted him.
Taylor was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade to 96 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Taylor is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, United States Marshal Service, and the Cedar Rapids Police Department.
Court file information at: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-0057.
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Restitution Ordered in Jackson, Mississippi, Hate Crime Case Involving Death of James Craig AndersonRead the Press Release
The Justice Department announced today that U.S. District Judge Carlton Reeves of the Southern District of Mississippi ordered restitution in the amount of $840,000 to be paid the estate of James Craig Anderson in the cases of defendants Deryl Paul Dedmon, 23; John Aaron Rice, 23; Dylan Wade Butler, 24; and William Kirk Montgomery, 26.
In 2012, Dedmon, Rice, Butler and Montgomery were convicted of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for their participation in the conspiracy and racially-motivated attack on Anderson that resulted in his death. The assault of Anderson was the last in a series of violent attacks by the defendants and their six co-conspirators, in which they physically assaulted vulnerable African-Americans in and around Jackson, Mississippi. The defendants and six other co-conspirators specifically targeted African Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less resistant and less likely to report an assault.
On June 26, 2011, Dedmon, Rice, Butler, Montgomery and three of their co-conspirators targeted Anderson, who was alone and defenseless in the parking lot of the Metro Inn Motel in Jackson. Rice and Dedmon beat Anderson, and then Dedmon used his Ford F-250 truck to fatally strike Anderson.
Judge Reeves previously sentenced Dedmon to serve 50 years in prison, Montgomery to serve over 19 years in prison, Rice to serve over 18 years in prison and Butler to serve seven years in prison. The amount of restitution imposed accounts for the estimated lost future wages that Anderson would have accumulated and used to support his family had he not been killed in 2011.
“When these defendants committed this brutal hate crime they not only took a man’s life, they also hurt a family,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Although no amount of money will ever be able to account for the true value of James Craig Anderson’s life, we hope that this restitution will help ease the burden on his family.”
This case was investigated by the FBI’s Jackson Division. It is being prosecuted by Trial Attorney Sheldon L. Beer and Acting Chief Paige Fitzgerald of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Glenda R. Haynes of the Southern District of Mississippi.
Remaining defendant pleads guilty to labor trafficking at Ohio egg farmRead the Press Release
Ana Angelica Pedro Juan, 22, of Guatemala, the remaining indicted defendant in a human-trafficking ring, pleaded guilty today in federal court to conspiring to lure Guatemalan minors and adults into the United States on false pretenses, then coercing their labor at egg farms in Ohio. The guilty plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Pedro Juan pleaded guilty to a labor trafficking conspiracy. Her co-conspirators, Aroldo Castillo Serrano, 33, of Guatemala, and Conrado Salgado Soto, 53, of Mexico, pleaded guilty in August 2015 to participating in the same conspiracy in addition to immigration offenses.
According to the indictment, which was unsealed on July 2, 2015, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. Eight minors and two adults were identified in the indictment as victims of the forced labor scheme.
As set forth in the indictment, Pedro Juan’s role in the scheme included falsely representing herself to government officials as a family friend of the minor victims in order to have them released to her custody. In doing so, she pledged under oath to ensure that the victims went to school and were protected from abuse. She also arranged to have victims released to the custody of other associates in exchange for money. Pedro Juan also oversaw the trailers where the victims were housed and arranged for their wages to be transferred to co-conspirators in Guatemala and elsewhere.
“These defendants preyed on vulnerable children by falsely promising them good jobs and quality schools only to abuse and exploit them for profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “As shown today, the Department of Justice will continue to use the full resources of the federal government to aggressively prosecute the heinous crime of human trafficking.”
“This case is a stark reminder that human trafficking hides in plain sight all around us,” said Acting U.S. Attorney Rendon. “It underscores the need for all of us to be vigilant where we live and work. When something seems suspicious, we need to report it, not ignore it.”
“Ana Angelica Pedro Juan, along with two other defendants, forced adults and children to work and live in deplorable conditions in exchange for false promises,” said Special Agent in Charge Anthony. “These reprehensible actions are unacceptable, and the FBI will continue to work with our partners to bring to justice those who engage in human trafficking.”
Pedro Juan’s sentencing hearing will be scheduled at a later date. The charge against her carries a statutory maximum sentence of 20 years in prison. Castillo-Serrano, Salgado Soto and another defendant, Pablo Duran Jr., will be sentenced on April 11. Duran Jr. pleaded guilty to an immigration offense on Dec. 14, 2015. Two other defendants, Conrado Salgado-Borbon and Bartolo Dominguez, have pleaded guilty to immigration offenses in connection with this case and were sentenced to six and 12 months, respectively.
The case is being investigated by the FBI Cleveland Division’s Mansfield Resident Agency and the Department of Homeland Security. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
Remaining Defendant Pleads Guilty to Forced Labor Scheme that Exploited Guatemalan Minors at Ohio Egg FarmsRead the Press Release
Ana Angelica Pedro Juan, 22, of Guatemala, the remaining indicted defendant in a human-trafficking ring, pleaded guilty today in federal court to conspiring to lure Guatemalan minors and adults into the United States on false pretenses, then coercing their labor at egg farms in Ohio. The guilty plea was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
Pedro Juan pleaded guilty to a labor trafficking conspiracy. Her co-conspirators, Aroldo Castillo Serrano, 33, of Guatemala, and Conrado Salgado Soto, 53, of Mexico, pleaded guilty in August 2015 to participating in the same conspiracy in addition to immigration offenses. The guilty pleas are pending approval from a federal court judge and are not final until that approval is granted.
According to the indictment, which was unsealed on July 2, 2015, the defendants and their associates recruited workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States. The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and to work at physically demanding jobs at Trillium Farms for up to 12 hours a day. The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. Eight minors and two adults were identified in the indictment as victims of the forced labor scheme.
As set forth in the indictment, Pedro Juan’s role in the scheme included falsely representing herself to government officials as a family friend of the minor victims in order to have them released to her custody. In doing so, she pledged under oath to ensure that the victims went to school and were protected from abuse. She also arranged to have victims released to the custody of other associates in exchange for money. Pedro Juan also oversaw the trailers where the victims were housed and arranged for their wages to be transferred to co-conspirators in Guatemala and elsewhere.
“These defendants preyed on vulnerable children by falsely promising them good jobs and quality schools only to abuse and exploit them for profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “As shown today, the Department of Justice will continue to use the full resources of the federal government to aggressively prosecute the heinous crime of human trafficking.”
“This case is a stark reminder that human trafficking hides in plain sight all around us,” said Acting U.S. Attorney Rendon. “It underscores the need for all of us to be vigilant where we live and work. When something seems suspicious, we need to report it, not ignore it.”
“Ana Angelica Pedro Juan, along with two other defendants, forced adults and children to work and live in deplorable conditions in exchange for false promises,” said Special Agent in Charge Anthony. “These reprehensible actions are unacceptable, and the FBI will continue to work with our partners to bring to justice those who engage in human trafficking.”
Pedro Juan’s sentencing hearing will be scheduled at a later date. The charge against her carries a statutory maximum sentence of 20 years in prison. Castillo-Serrano, Salgado Soto and another defendant, Pablo Duran Jr., will be sentenced on April 11. Duran Jr. pleaded guilty to an immigration offense on Dec. 14, 2015. Two other defendants, Conrado Salgado-Borbon and Bartolo Dominguez, have pleaded guilty to immigration offenses in connection with this case and were sentenced to six and 12 months, respectively.
The case is being investigated by the FBI Cleveland Division’s Mansfield Resident Agency and the Department of Homeland Security. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio.
President of Aviation Parts Company Arrested for Fraudulently Supplying Defective Airplane Parts to U.S. GovernmentRead the Press Release
Earlier today, Paul Skiscim, President of Aerospec, Inc., was arrested on federal charges of supplying defective airplane parts to the federal government for use in its aircraft, including military aircraft.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Kenneth J. Siegler, Resident Agent-in-Charge of the Defense Criminal Investigative Service (DCIS), New York Resident Agency.
According to the complaint, Aerospec had been a supplier of airplane parts to the United States from 2003 until 2013, when the company and Skiscim were debarred after supplying the government with defective airplane parts. After his debarment, Skiscim allegedly continued to bid, contract, and supply defective airplane parts to the federal government through a series of shell companies using the names of relatives and fictitious people to mask his involvement from the United States Department of Defense, Defense Logistics Agency. Since 2013, the shell companies received over $2.8 million for the supply of airplane parts, including parts that have been shown to be defective.
“It is critical that federal aircraft, including military aircraft, be built with the best parts available. The defendant’s alleged scheme of supplying defective parts not only violated the law but showed a callous disregard for the safety of federal employees and our military personnel,” stated United States Attorney Capers. “I thank the DCIS, the agency responsible for leading the government’s investigation.”
“America's warfighters deserve the very best to perform their jobs in these difficult times. It is inexcusable that individuals endeavor to enrich themselves by stealing from the U.S. taxpayer through fraud, especially by denying critical goods to our service men and women combating terrorism in a hostile overseas environment. The Defense Criminal Investigative Service remains resolute in our commitment to aggressively investigate these crimes and to support their prosecution to the fullest,” stated DCIS Resident Agent-in-Charge Siegler.
The defendant is scheduled to be arraigned this afternoon before United States Magistrate Judge Anne Y. Shields at the federal courthouse in Central Islip. The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Charles P. Kelly and Robert Schumacher.
The Defendant:
PAUL SKISCIM
Age: 62
East Northport, New YorkE.D.N.Y. Docket No. 16-0155M
Orange County Real Estate CEO Sentenced to 14 Years in Prison for Fraud Scheme that Ended in $169 Million BankruptcyRead the Press Release
SANTA ANA, California – The owner and CEO of a now-defunct Southern California real estate investment firm was sentenced today to 168 months in prison for perpetrating a scheme that ended with the bankruptcy of the company and hundreds of investors collectively losing as much as $169 million.
Michael J. Stewart, 68, of San Clemente, received the 14-year sentence from United States District Judge Cormac J. Carney, who also ordered the defendant to pay $9,234,914 in restitution to 120 victims.
Following a nine-day jury trial before Judge Carney, Stewart was found guilty in August 2015 of 11 counts of mail fraud. Stewart was remanded into custody at that time.
Stewart owned and was the chief executive of Pacific Property Assets (PPA), which had offices in Long Beach and Irvine. Along with co-defendant John Packard, Stewart created PPA in 1999 to purchase, renovate, operate, and resell or refinance apartment complexes in Southern California and Arizona. Typically, PPA financed property acquisitions through mortgages, and it raised money from private investors to pay for renovations to the properties. After several years, PPA would refinance (or sometimes sell) each property.
Although PPA’s apartment rental operations were not profitable, the company was able to raise cash through refinancing and selling properties. As real estate values were generally increasing until approximately 2007, the properties were refinanced at ever-higher values, which enabled PPA to use the extra refinancing proceeds to not only pay off the original mortgages, but also to make payments on other loans, make payments to investors, to pay other business expenses, and to pay Stewart and Packard.
When the real estate market collapse and credit dried up, Stewart and Packard turned to fraud to prop up their failing company and to continuing earning their large salaries. They engaged in what was nothing more than a Ponzi scheme that ultimately collapsed.
“While all investments carry some risks, victims who were lured into this scheme in 2008 and 2009 faced a guaranteed loss of their funds,” said United States Attorney Eileen M. Decker. “Investors are entitled to know how their money is being spent and the true financial state of a company, but Mr. Stewart did everything in his power to conceal the truth. His fraudulent conduct has earned him the lengthy prison sentence handed down today.”
In its 10 years of operation, PPA acquired more than 100 real estate properties and raised hundreds of millions of dollars from hundreds of investors. As Stewart told prospective investors, from 2004 to 2007, PPA was named three times to Inc. magazine’s list of the fastest growing privately held companies in the United States, was a regional finalist in Ernst & Young’s Entrepreneur of the Year Program, and was listed by the Orange County Business Journal as one of fastest growing businesses in Orange County.
But as the government argued at trial, by the end of 2007, when the real estate market began to decline and credit became scarce, PPA’s business model was no longer feasible. As the value of PPA’s properties was falling, PPA could no longer raise money by refinancing its properties with larger mortgages or selling properties at a profit. Furthermore, PPA faced large debt payments to its mortgage lenders and private investors, while it was continuing to lose money in its business operations. In May 2008, PPA’s controller warned Stewart and Packard that without a new source of funds, PPA faced losing as much as $2 million dollars per month, and emails between the owners revealed that they projected that trend to continue.
To keep PPA afloat, from early 2008 through April 2009, Stewart and Packard raised more than $34 million dollars from new investors, many of them elderly and retired persons who were investing their retirement funds in the company. For example, one 74-year-old investor testified at trial that in early 2009, shortly after her husband passed away, Stewart’s staff persuaded her to invest virtually all her retirement savings in PPA.
The defendants used those new funds to pay earlier investors, mortgage lenders, other company expenses, and Stewart and Packard themselves – including annual salaries for the two co-owners of $750,000 and hundreds of thousands of dollars in additional compensation. Packard testified at trial that in 2008, he and Stewart knew that PPA was dependent on these investor loans to make its monthly debt payments and continue operating, and was unable to raise money through other means. PPA’s former Director of Investor Relations further testified that during that period, Stewart began to pressure her and others to raise more money from investors.
Evidence introduced at trial also showed that Stewart misrepresented PPA’s financial condition by claiming that its business model was still working, and that PPA was still financially stable and able to raise money through refinancing. In particular, Stewart created and provided to investors fraudulent financial statements, claiming that PPA had made millions of dollars in income in the first half of 2008 when the company had actually lost millions. Stewart also arranged with Packard to temporarily deposit $2 million dollars into a company bank account to make the company’s cash position look stronger for investors – money that was quickly withdrawn from the account without reflecting the withdrawal in the balance sheet given to investors. Stewart and Packard also concealed from investors the fact that the business had effectively become a Ponzi scheme, using funds from new investors to pay back earlier investors.
In the last investor offering in early 2009, known as the Opportunity Fund, Stewart told investors that their funds would be used to purchase new real estate properties. In fact, none of the more than $9 million raised was used for that purpose. Instead, the money was used to pay earlier investors and banks, to pay Stewart and Packard, and to pay PPA’s bankruptcy attorney. Stewart continued to raise money from investors until late April 2009, when he abruptly informed investors that PPA was suspending their monthly interest payments. Several investors testified at trial that even in mid-April 2009, after PPA had begun to default on some of its bank and investor loans, Stewart personally solicited investments from them in the Opportunity Fund, claiming that PPA was financially sound and their funds would be used for new real estate projects.
PPA and a group of related companies filed for bankruptcy in June 2009. When the bankruptcy was filed, PPA stated that it owed 647 private investors more than $91 million, and it owed banks approximately $100 million. The Chapter 11 trustee appointed in the bankruptcy case later estimated the total investor losses at $169 million, and predicted that investors would receive, at best, “pennies on the dollar” through the bankruptcy process.
As the government stated in a sentencing brief filed with the court, Stewart “acted deliberately and repeatedly in misleading hundreds of people into entrusting their retirement savings to him, and the outcome for many was nothing less than devastating.”
PPA co-owner John Packard pleaded guilty to one count of mail fraud in November 2014 and cooperated with the government. He is scheduled to be sentenced by Judge Carney on March 28.
This investigation was conducted by the Federal Bureau of Investigation, which received assistance from the United States Trustee’s Office and the United States Securities and Exchange Commission.
Orange County Attorney Who Pleaded Guilty to Federal Charges in $8 Million Fraud Scheme Sentenced to over Five Years in PrisonRead the Press Release
LOS ANGELES – An attorney who pleaded guilty to wire fraud and tax evasion charges – and who prosecutors say defrauded a dozen clients out of at least $8 million in an investment fraud scheme – was sentenced today to 63 months in federal prison.
Stephen Young Kang, 46, of Newport Beach, was sentenced by United States District Judge George H. Wu, who rejected the defendant’s request for a three-year sentence.
During today’s sentencing hearing, several of Kang’s victims described in detail the devastating financial and emotional impact of the fraud scheme. Two of the victims commented that Kang’s fraud led to the “darkest years” of their lives.
Kang pleaded guilty in November to two counts of wire fraud and one count of tax evasion. When he pleaded guilty, Kang admitted to orchestrating a three-year-long scheme that defrauded clients who had engaged the attorney to provide legal or investment services. Prosecutors said that Kang used his position as an attorney to gain the trust of his clients, and then Kang bilked them in a Ponzi-like scheme in which none of the money designated for investments was actually invested.
Kang specifically admitted that he defrauded a food distribution company, Ottogi America, Inc., which had hired him to help the company purchase properties near its distribution center in Gardena. Ottogi wire transferred funds to a trust account in Houston, Texas, to be used for the purchase of the properties. But Kang admitted that he did not use the money to invest in properties. Rather, Kang admitted that he caused the funds to be transferred to other bank accounts that he controlled. Prosecutors argued in court that Kang used a substantial portion of Ottogi’s funds to pay for personal expenses and business ventures, as well as to make partial payment to other victims.
Kang also admitted that he defrauded a Texas victim out of $500,000 in 2013 by falsely representing that he would invest the $500,000 in a company called Pegasus Capital Ltd., LLC. When the victim demanded repayment, Kang agreed in September 2015 – which was after he was initially indicted in this fraud case – to provide the victim with a “first priority security interest” in a term life insurance policy. Kang, however, failed to disclose to the victim that the life insurance was worth only $250,000, that Kang’s wife was the sole beneficiary of the policy, that the policy was first applied for and approved on August 28, 2015, and that defendant had not yet made any payments on that policy. Prosecutors said that Kang offered to sign over the exact same life insurance policy to three other victims.
“Attorneys must be held to a higher standard of conduct, because their clients heavily rely on their advice,” said United States Attorney Eileen M. Decker. “This defendant chose his own personal gain over the interests of his clients, and they suffered greatly as a result. This crime and the resulting harm warranted the significant sentence imposed by the Court today.”
“The defendant conned his victims, in part, by using the veneer of his legal practice to lend legitimacy to his scheme,” said David Bowdich, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Multiple agencies worked collaboratively to successfully investigate this case, including IRS agents and detectives with LAPD, whose contribution was significant."
In relation to the tax evasion count, Kang admitted that he received more than $1.5 million in income in 2013, but he willfully attempted to evade the assessment of income tax by failing to file a federal income tax return for calendar year 2013 and using corporate accounts to conceal the income he received.
“Professionals, including attorneys, who use their position of trust to create elaborate schemes that have no purpose other than to mislead others and defraud the IRS will be prosecuted to the full extent of the law,” stated Acting Special Agent in Charge Anthony Orlando of IRS Criminal Investigation. “Today’s sentence reinforces our commitment to every American taxpayer to identify and prosecute those who devise illegal investment schemes designed to promote their own wealth and evade their tax obligations.”
Kang was ordered to return to court on March 28 for a hearing to determine the amount of restitution he will be ordered to pay to his victims.
The case against Kang is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. This case was prosecuted by Assistant United States Attorneys Julian L. André, Anil J. Antony and Poonam G. Kumar.
Oklahoma City Daycare Worker and Babysitter Pleads Guilty to Producing Child PornographyRead the Press Release
Oklahoma City, Oklahoma – Today, JASON MARC JANATSCH, 26, of Oklahoma City, pleaded guilty to producing child pornography depicting a female toddler whom he babysat, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to court records, in September 2015, undercover Homeland Security Investigations (HSI) agents downloaded child pornography via Kik, a smartphone instant messaging application, from a man in Christchurch, New Zealand. Authorities in New Zealand located the man and forensic analysis of his Kik account revealed that he had exchanged child pornography with a Kik user with the screen name "TheLoverOfTheLittle." HSI agents in the United States traced this Kik screen name to Janatsch, who worked at an Oklahoma City daycare center. Janatsch also worked as a freelance babysitter who advertised his services on www.sitter.com.
Janatsch was indicted by a federal grand jury on January 6, 2016. During the plea hearing today before United States District Judge Stephen P. Friot, Janatsch admitted that on June 11, 2015, he used a female toddler whom he was babysitting to engage in sexually explicit conduct and took photographs with his iPhone. Then Janatsch, using his iPhone, transmitted the photographs to the New Zealand man. According to court records, he also received child pornography from the New Zealand man in return.
At sentencing, Janatsch faces a mandatory minimum of 15 years and up to 30 years in prison. A sentencing hearing will be set by the court in approximately 90 days.
This case is the result of an investigation by Homeland Security Investigations and the New Zealand Police Online Child Exploitation Across New Zealand team. The case is being prosecuted by Assistant U.S. Attorney Brandon Hale.
North Potomac Mortgage Broker Admits to Defrauding Investors of over $400,000Read the Press Release
Greenbelt, Maryland – Sultana Siddiqui, aka “Sultana Ahmad,” age 56, of North Potomac, Maryland, pleaded guilty today to conspiring to commit wire and mail fraud arising from an investment fraud scheme. Siddiqui has agreed to the entry of an order to forfeit and pay restitution of at least $405,000, the minimum amount of actual loss resulting from the scheme.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; and Montgomery County State’s Attorney John McCarthy.
According to her plea, Siddiqui was a mortgage broker who falsely represented to individual victims that co-conspirator Alexander Matthews was an investor or developer who could secure substantial returns on the victims' investments in a short time period. Siddiqui solicited investments from each of the victims, vouched for Matthews's trustworthiness and business acumen, and received money from the victims. She deposited most of the money from the victims into her personal bank account. Then she and/or Matthews would provide each victim with a post-dated check in the amount of the victim's investment plus the promised return. None of the post-dated checks were negotiable on the promised return date. After the victims discovered that the post-dated checks were not negotiable, Siddiqui and/or Matthews sent lulling payments and/or email communications to the victims.
For example, in 2008, a real estate agent and her husband agreed to invest $300,000, which they would draw on their home equity line of credit, to renovate a home in Clifton, Virginia, which would then be leased by the FBI. Siddiqui, however, deposited the money in her personal bank account, and no lease agreement existed with the FBI. Siddiqui and Matthews used the money for their own benefit, other than providing a small number of lulling payments to the victims.
In November 2010, at Siddiqui’s urging another victim agreed to invest $50,000 with Matthews and give Siddiqui a $5,000 personal loan. In return, Siddiqui gave the victim a promissory note for the investment signed by Matthews, and two post-dated checks: one for $6,000 from a bank account held by Siddiqui; and one for $60,000 from an account held by Matthews. When the victim attempted to cash the checks, a bank official told her they were not negotiable. Siddiqui sent several lulling emails to the victim, claiming that she would be repaid, but the victim has not received any payment.
Siddiqui and Matthews defrauded the victims of approximately $355,000.
Siddiqui admitted to defrauding another individual of $50,000 in a transaction in 2014.
Siddiqui faces a maximum sentence of 20 years in prison. U.S. District Judge Theodore D. Chuang scheduled her sentencing for July 25, 2016, at 2:30 p.m.
Alexander Matthews, age 50, of Dunn Loring, Virginia, pleaded guilty in 2011 in federal court in the Eastern District of Virginia to his participation in the conspiracy and was sentenced to 10 years in prison.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI, Federal Housing Finance Agency Office of Inspector General, and Montgomery County State’s Attorney’s Office for their work in the investigation and thanked Assistant U.S. Attorney Ray D. McKenzie, who is prosecuting the case.
New Hampshire Woman Pleads Guilty to Heroin ChargesRead the Press Release
CONCORD, N.H. – Crystal Watson, 35, of Barrington, New Hampshire, plead guilty in United States District Court for the District of New Hampshire to possessing a firearm in furtherance of a drug trafficking crime and to five charges relating to distribution of heroin, announced United States Attorney Emily Gray Rice.
In the winter of 2014-2015, law enforcement officers received information that Watson was distributing heroin in the Rochester and Barrington, New Hampshire areas. In March, 2015, three controlled purchases of heroin were made from Watson at her residence in Barrington, New Hampshire. On April 7, 2015, law enforcement officers executed a search warrant at Watson’s residence and seized $244,028.00 in cash, over 500 grams of heroin, and three firearms. Watson admitted upon her arrest that she sold heroin in New Hampshire since at least March, 2014. She stated that she purchased approximately two kilograms of heroin at a time in Massachusetts and sold it in New Hampshire for a profit of approximately $20,000.00 per kilogram.
Watson has agreed to forfeit the cash recovered during the search warrant, her interest in land located at the Baxter Lake Recreation Area, two log cabin style park trailers, and one Chevrolet Silverado 1500 truck, proceeds of her drug trafficking activities. Watson also forfeited the three firearms recovered in her residence.
The statutory maximum sentence for the heroin distribution charges is twenty years. The firearms charge requires a mandatory minimum sentence of five years to be served on and after any other sentence imposed. The actual sentence to be imposed will be determined by the court at sentencing after a presentence investigation report is completed. Watson is scheduled to be sentenced on June 1, 2016.
The case was investigated by the Strafford County Drug Trask Force and the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
Myrtle Beach Counterfeiter Pleads GuiltyRead the Press Release
Contact Person: Brad Parham (843) 665-6688
Florence, South Carolina ---- United States Attorney Bill Nettles stated today that James Christopher Barrett, a/k/a Harry Patterson, has entered a guilty plea in federal court in Florence, SC, to conspiracy to manufacture counterfeit currency of the United States, a violation of 18 U.S.C. § 371. United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that between July and December 2014, Barrett and other individuals manufactured $20.00, $50.00 and $100.00 counterfeit bills. Barrett was also caught passing some of the counterfeit $100.00 bills at various businesses in Myrtle Beach, SC.
Mr. Nettles stated the maximum penalty for conspiracy to manufacture counterfeit currency is imprisonment for 5 years and/or a fine of $250,000.00
The case was investigated by agents of the Myrtle Beach Police Department and the U.S. Secret Service. Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.
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Muskegon Man, Fletcher Lee Salazar, Sentenced to 15 Years as Armed Career CriminalRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced that Fletcher Lee Salazar, 31, of Muskegon, was sentenced to 180 months’ imprisonment by U.S. District Judge Janet T. Neff. In April, Salazar pled guilty to being a felon in possession of ammunition. As part of a plea agreement, the United States dismissed allegations that Salazar illegally possessed a firearm, which stemmed from an incident in November 2014 during which Salazar fled from a vehicle, leaving behind a semiautomatic pistol with an obliterated serial number and an extended magazine. Salazar was sentenced under the Armed Career Criminal Act, which requires a sentence of at least 15 years because he had previously been convicted three times of a serious drug offense. Salazar’s criminal history includes three convictions under Michigan law for distribution of cocaine.
"Armed felons with a serious history of drug dealing present an immediate danger to their communities, and the penalties of the Armed Career Criminal Act ought to deter other felons from making the same decisions this defendant made,” U.S. Attorney Miles said.
“Today’s significant sentence should send a clear message to armed career criminals, you will do hard time in prison for violating Federal gun laws,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Special Agent in Charge, S. Robin Shoemaker. “This case also highlights ATF’s efforts to protect our community from violent offenders and our partnership with the Western District of Michigan’s United States Attorney’s Office, the Michigan State Police, the Michigan Department of Corrections, the Muskegon Parole Office, the Muskegon Police Department, and the U.S. Marshals Service.”
Assistant U.S. Attorney Justin M. Presant prosecuted the case.
END
Mexican Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Samuel Olmas-Arredando, of Mexico, was sentenced to thirty months in federal prison, after pleading guilty to illegally reentering the United States after having been previously deported.
On September 19, 2015, officers from U.S. Immigration and Customs Enforcement and Removal Operations received information from the Bedford, New Hampshire H Police Department that the defendant, known to be a Mexican citizen illegally in the United States, was living at a motel in Bedford, and working at a construction site. The officers went to the motel, where they encountered the defendant speaking to the desk clerk as they arrived. One of the officers identified himself as a U.S. Immigration Officer and asked the defendant what his name was. The defendant responded that his name was Samuel Olmas-Arredando. The officer then asked the defendant if he was from Mexico, and the defendant replied “Si”. The defendant was then asked if he had any immigration documents that allowed him to be in the U.S. legally, to which he replied “No”. The defendant was taken into ICE custody and transported to the Manchester, New Hampshire ICE Office. Mr. Olmas-Arredando’s identity was confirmed through fingerprint comparisons and records that established he had been deported to Mexico from Oklahoma in 2009.
Olmas-Arredando pled guilty to the charge on November 23, 2015.
The case was investigated by the Bedford Police Department and the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Massachusetts Woman Pleads Guilty to Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – Bicky Zapata-Nivar, 29, a citizen of the Dominican Republic residing in Lawrence, Massachusetts, plead guilty in United States District Court for the District of New Hampshire to conspiring to distribute the Schedule II controlled substance fentanyl, announced United States Attorney Emily Gray Rice.
During the spring and summer of 2015, law enforcement officers investigated a drug trafficking organization operating in Massachusetts and Southern New Hampshire. As part of the investigation, cooperating individuals and an undercover law enforcement officer purchased approximately 290 grams of fentanyl from members of the organization. On September 17, 2015, the Drug Enforcement Administration executed search warrants at three residences in Lawrence, Massachusetts associated with the organization. In one residence, officers located the defendant and her minor child in a bedroom. When the defendant heard law enforcement enter, she attempted to hide a suitcase containing drugs and packaging materials under a bed. The suitcase contained approximately 246 grams of a mixture containing the controlled substance fentanyl, an instrument used to compress drugs into ten-gram quantities for sale, blenders, and other packaging materials. Earlier that day, in the same bedroom, the defendant had packaged loose fentanyl for her co-conspirators to sell. The defendant admitted that she packaged drugs for members of this drug trafficking organization on prior occasions and was paid for doing so. A search warrant was also executed at the defendant’s residence where an additional quantity of suspected fentanyl was found, though lab results have not yet confirmed the nature of that substance.
Zapata-Nivar will be detained pending sentencing, which is presently scheduled for June 8, 2016 at 10:00 a.m. The statutory maximum sentence for this offense is forty years in prison and criminal fines of up to $5,000,000. Zapata-Nivar’s actual sentence will be determined by the court at sentencing after a presentence investigation report is completed.
“Prosecuting those individuals who illegally introduce controlled substances into our communities is a priority of my office,” stated United States Attorney Emily Gray Rice. “Fentanyl, in particular, is an incredibly dangerous substance responsible for many overdose deaths in New Hampshire. We will continue to work tirelessly to prosecute those who seek to profit from the sale of this dangerous drug.”
The case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
Massachusetts Man Sentenced for Conspiring to Transport an Individual for ProstitutionRead the Press Release
CONCORD, NEW HAMPSHIRE - Andy Pena, 21, of Jamaica Plain, Massachusetts, was sentenced in the United States District Court for the District of New Hampshire on one count of transporting an individual in interstate commerce for prostitution, announced U.S. Attorney Emily Gray Rice. The Court imposed a sentence of 8 years’ imprisonment, to be followed by a period of supervised release.
In February of 2014, Homeland Security Investigations, Manchester, New Hampshire, and the Salem, New Hampshire Police Department, with the assistance of the Boston Police Department, rescued a fifteen-year-old female who was engaging in prostitution from a Salem hotel room. Upon further investigation, authorities identified multiple individuals – including Pena – who were involved in the scheme to transport the female from Boston, Massachusetts to Salem, New Hampshire for prostitution.
The case was investigated by Homeland Security Investigations (Manchester, NH) and the Salem Police Department, in conjunction with the police departments of Boston, Massachusetts and Manchester, New Hampshire, as well as the New Hampshire Internet Crimes Against Children Task Force (NH ICAC). This case is being prosecuted by Assistant United States Attorneys Nick Abramson and Helen Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Mason Woman, Megan Kolberg, Sentenced to 27 Months' Imprisonment for Embezzling from Mason State Bank over Several YearsRead the Press Release
Megan Kolberg Stole Over $100K and Repeatedly Lied that an Armed Bank Robber Had Stolen the Money
GRAND RAPIDS, MICHIGAN — United States Attorney Patrick A. Miles, Jr., announced today that Megan Kolberg, age 37, of Mason, Michigan, was sentenced to 27 months’ imprisonment in the U.S. District Court for the Western District of Michigan by the Honorable Robert J. Jonker, Chief U.S. District Court Judge. In sentencing her to prison at the top of the sentencing guideline range, Judge Jonker noted that her embezzlement lasted for several years and her concealment of the offense brought other individuals into harm’s way as potential subjects of the investigation.
The Judge adjourned a final determination of restitution for ninety days, but noted that Kolberg will be ordered to pay $131,580.00 to Mason State Bank and its insurers. Kolberg admitted to embezzling over $130,000.00 from Mason State Bank’s Cedar Street branch between December 2009 and May 21, 2013, where she worked as a teller. She regularly embezzled cash from the bank and concealed her embezzlement by making false entries in the bank’s books and records. On May 21, 2013, as bank officials and law enforcement began to uncover her embezzlement, Kolberg faked an armed bank robbery through a series of elaborate steps, including: franticly calling her husband claiming a robbery was occurring, thereby causing a 911 call to the Mason Police; reporting that she was forced at gunpoint to remove cash from an outdoor ATM; claiming she was forced back inside the bank and confined to a bathroom while the robber stole additional money from her teller drawer; further reporting that the robber forced her to destroy a bank surveillance tape; and, later meeting with an FBI forensic artist in an effort to develop a composite drawing of the alleged robber. Kolberg claimed that the bank robber stole $120,000.00 in an effort to explain why the actual cash on hand at the bank was significantly less than the balance carried on the books and records. Kolberg embezzled over $4,000.00 per month on many occasions, and as much as $7,677 in the month of January, 2012.
“My office will continue to vigorously prosecute crimes that affect our federally insured financial institutions,” said U.S. Attorney Miles. “Kolberg’s significant embezzlement, which spanned several years, along with her decision to falsely claim that an armed bank robbery occurred in the hopes of concealing her crime, clearly commanded a prison sentence. Her actions caused unnecessary risk to the public and the responding police agencies as the police officers sped to the bank believing that an armed bank robbery was in progress, and resulted in limited law enforcement resources being directed to the investigation of a bank robbery that never actually occurred.” “Ms. Kolberg’s crime of continued and repeated embezzlement of funds was compounded by her false claim of an armed bank robbery,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. “This case serves as an unfortunate reminder to all organizations that not every threat comes from outside the organization.” “The Mason Police Department remains steadfast in its commitment to hold accountable those who, out of greed and without remorse prey on their victims,” commented Mason Police Chief, John Stressman. “As in this case, we seek all avenues of assistance to insure successful prosecution. The Department wishes to thank the Federal Bureau of Investigation’s Lansing Officeand the Office of United States Attorney of the Western District of Michigan, Patrick A. Miles, Jr., for all the hours of effort, investigation and the outstanding organization of case materials, without which the final accounting of Megan Kolberg’s crime would not be possible. This criminal case exemplifies the immense value of federal law enforcement at all levels of policing.”
The investigation was conducted by the Lansing office of the FBI and the Mason Police Department. The prosecution was handled by Assistant U.S. Attorney Ronald M. Stella.
END
Man Sentenced for Stealing from the Nez Perce Indian TribeRead the Press Release
COEUR D'ALENE - Daniel Wayne Winslow, 32, of Clarkston, Washington, was sentenced today to five years of probation, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Winslow to pay $199,000 in restitution. Winslow pleaded guilty to the charge on November 17, 2015.
According to the plea agreement, Winslow admitted that he was a cashier at the Nez Perce Express, which is owned by the Nez Perce Tribal Enterprises, an organization of the Nez Perce Tribe, a federally recognized Indian Tribe. During the defendant’s employment, he would sell cigarettes to customers and take the cash money. The defendant then used his cash register to void the sale and converted the money the customer paid for the cigarettes to his own use. This practice of voiding the sales allowed the defendant to show a balanced cash drawer at the end of his shift. An audit revealed the defendant has stolen approximately $199,000 of tribal funds over several years during his employment at Nez Perce Express.
The case was investigated by Nez Perce Indian Tribe and the Federal Bureau of Investigation.
Lynn Tax Preparer Sentenced for Federal Tax FraudRead the Press Release
BOSTON – A Lynn tax preparer was sentenced today in U.S. District Court in Boston for filing fraudulent personal federal tax returns and attempting to obstruct the Internal Revenue Service (IRS).
Arismendy Ramos, a/k/a Arismendi Ramos, a/k/a Aris Almonte, 42, was sentenced by U.S. District Court Judge Denise J. Casper to 18 months in prison, one year of supervised release and restitution of $171,951. In October 2015, Ramos pleaded guilty to an Information charging him with four counts of filing false tax returns and two counts of obstructing the IRS.
Ramos owned and operated Almonte Tax, a tax preparation service in Lynn, and personally prepared tax returns for numerous clients. From 2008 through 2013, Ramos filed false forms with the IRS claiming that he paid clients to work for him when in fact they had never been employed or paid by him. Ramos then claimed the bogus wages as business expenses on his own tax returns, thereby reducing his personal tax liabilities. Furthermore, Ramos instructed two clients that they should lie if they were asked about the false wages.
United States Attorney Carmen M. Ortiz and Kristina O’Connell, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.
Lockheed Martin Agrees to Pay $5 Million to Settle Alleged Violations of the False Claims Act and the Resource Conservation and Recovery ActRead the Press Release
Lockheed Martin Corporation and subsidiaries Lockheed Martin Energy Systems and Lockheed Martin Utility Services (collectively, Lockheed Martin) have agreed to pay the United States $5 million to resolve allegations that they violated the Resource Conservation and Recovery Act (RCRA) and, in misrepresenting their compliance with RCRA to the Department of Energy (DOE), knowingly submitted false claims for payment under their contracts with DOE to operate the Paducah Gaseous Diffusion Plant in Paducah, Kentucky, the Justice Department announced today. Headquartered in Bethesda, Maryland, Lockheed Martin is a global security, aerospace, and information technology company that provides energy, environmental, and other services to government and commercial customers.
“We depend on the private sector to provide services critical to the government’s energy needs and to provide those services by means that are environmentally sound,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As the settlement announced today demonstrates, the department will vigorously pursue all appropriate remedies to ensure that those who provide these vital services do so honestly and safely and in accordance with the law.”
“This settlement reflects our commitment to pursuing companies that violate the hazardous waste laws, and to securing a fair recovery of civil penalties for the people of the United States,” said Assistant Attorney General John Cruden, head of the Justice Department’s Environment and Natural Resources Division. “The $1 million in RCRA civil penalties that the defendants are paying under this settlement is significant and is appropriate for the violations the United States has alleged.”
The government’s lawsuit alleged that Lockheed Martin violated RCRA, the statute that establishes how hazardous wastes must be managed, by failing to identify and report hazardous waste produced and stored at the facility, and failing to properly handle and dispose of the waste. The government further alleged that this conduct resulted in false claims for payment under Lockheed Martin’s contracts with the Department of Energy.
Of the $5 million settlement amount, Lockheed Martin will pay $4 million to resolve the government’s False Claims Act allegations and its subsidiaries (Lockheed Martin Energy Systems and Lockheed Martin Utility Services) will each pay $500,000 – $1 million total – in RCRA civil penalties.
“Government contractors are required to follow the same federal laws that apply to everyone else,” said U.S. Attorney John E. Kuhn, Jr. for the Western District of Kentucky. “These companies do not get a pass on compliance, especially when their responsibilities include managing and disposing of hazardous waste. Today’s settlement should serve as a reminder that my office and the Department of Justice will pursue all credible allegations of false claims and of environmental regulatory violations.”
“Managing hazardous waste is important, and this case makes clear EPA’s commitment to upholding laws that protect communities where waste is disposed,” said EPA Regional Administrator Heather McTeer Toney of EPA Region 4, the Southeast region.
Lockheed Martin operated the Paducah Gaseous Diffusion Plant under contracts with the Department of Energy and a government corporation, the U.S. Enrichment Corporation, from 1984 to 1999. During that time, Lockheed Martin was responsible for the facility’s uranium enrichment operations. Enriching uranium increases the proportion of uranium atoms that can be used to produce nuclear fuel for weapons and civilian energy production. As the name of the plant suggests, the process used was called “gaseous diffusion.”
In addition to uranium enrichment, Lockheed Martin was responsible for environmental restoration, waste management, and custodial care at the site, which occupies 3,500 acres in McCracken County, Kentucky. Uranium enrichment operations ceased at the plant in 2013. The government is working with other contractors to remediate contamination at and near the site consistent with the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
The settlement resolves two lawsuits filed under the qui tam, or whistleblower, provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The lawsuits were filed by the Natural Resources Defense Council, Inc. and several former employees of Lockheed Martin who worked at the Paducah facility. The United States partially intervened in the lawsuits, which were then consolidated into one action. The whistleblowers will collectively receive $920,000 from the United States’ portion of the settlement.
The case was a coordinated effort of the U.S. Attorney’s Office for the Western District of Kentucky, the Civil Division’s Commercial Litigation Branch, the Environment and Natural Resources Division’s Environmental Enforcement Section, the U.S. Environmental Protection Agency, the Department of Energy, and the Department of Energy Office of Inspector General.
The case is captioned United States, ex rel. John David Tillson, Natural Resources Defense Council, Inc., et al. v. Lockheed Martin Corp., et al., Civil Action No. 5:99CV00170-GNS (W.D. Ky.). The claims resolved by this settlement are allegations only; there has been no determination of liability.
Lockheed Martin Agrees to Pay $5 Million to Settle Alleged Violations of the False Claims Act and the Resource Conservation and Recovery ActRead the Press Release
WASHINGTON – Lockheed Martin Corporation and subsidiaries Lockheed Martin Energy Systems and Lockheed Martin Utility Services (collectively, Lockheed Martin) have agreed to pay the United States $5 million to resolve allegations that they violated the Resource Conservation and Recovery Act (RCRA) and, in misrepresenting their compliance with RCRA to the Department of Energy (DOE), knowingly submitted false claims for payment under their contracts with DOE to operate the Paducah Gaseous Diffusion Plant in Paducah, Kentucky, the Justice Department announced today. Headquartered in Bethesda, Maryland, Lockheed Martin is a global security, aerospace, and information technology company that provides energy, environmental, and other services to government and commercial customers.
“We depend on the private sector to provide services critical to the government’s energy needs and to provide those services by means that are environmentally sound,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As the settlement announced today demonstrates, the department will vigorously pursue all appropriate remedies to ensure that those who provide these vital services do so honestly and safely and in accordance with the law.”
“This settlement reflects our commitment to pursuing companies that violate the hazardous waste laws, and to securing a fair recovery of civil penalties for the people of the United States,” said Assistant Attorney General John Cruden, head of the Justice Department’s Environment and Natural Resources Division. “The $1 million in RCRA civil penalties that the defendants are paying under this settlement is significant and is appropriate for the violations the United States has alleged.”
The government’s lawsuit alleged that Lockheed Martin violated RCRA, the statute that establishes how hazardous wastes must be managed, by failing to identify and report hazardous waste produced and stored at the facility, and failing to properly handle and dispose of the waste. The government further alleged that this conduct resulted in false claims for payment under Lockheed Martin’s contracts with the Department of Energy.
Of the $5 million settlement amount, Lockheed Martin will pay $4 million to resolve the government’s False Claims Act allegations and its subsidiaries (Lockheed Martin Energy Systems and Lockheed Martin Utility Services) will each pay $500,000 – $1 million total – in RCRA civil penalties.
“Government contractors are required to follow the same federal laws that apply to everyone else,” said U.S. Attorney John E. Kuhn, Jr. for the Western District of Kentucky. “These companies do not get a pass on compliance, especially when their responsibilities include managing and disposing of hazardous waste. Today’s settlement should serve as a reminder that my office and the Department of Justice will pursue all credible allegations of false claims and of environmental regulatory violations.”
“Managing hazardous waste is important, and this case makes clear EPA’s commitment to upholding laws that protect communities where waste is disposed,” said EPA Regional Administrator Heather McTeer Toney of EPA Region 4, the Southeast region.
Lockheed Martin operated the Paducah Gaseous Diffusion Plant under contracts with the Department of Energy and a government corporation, the U.S. Enrichment Corporation, from 1984 to 1999. During that time, Lockheed Martin was responsible for the facility’s uranium enrichment operations. Enriching uranium increases the proportion of uranium atoms that can be used to produce nuclear fuel for weapons and civilian energy production. As the name of the plant suggests, the process used was called “gaseous diffusion.”
In addition to uranium enrichment, Lockheed Martin was responsible for environmental restoration, waste management, and custodial care at the site, which occupies 3,500 acres in McCracken County, Kentucky. Uranium enrichment operations ceased at the plant in 2013. The government is working with other contractors to remediate contamination at and near the site consistent with the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
The settlement resolves two lawsuits filed under the qui tam, or whistleblower, provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The lawsuits were filed by the Natural Resources Defense Council, Inc. and several former employees of Lockheed Martin who worked at the Paducah facility. The United States partially intervened in the lawsuits, which were then consolidated into one action. The whistleblowers will collectively receive $920,000 from the United States’ portion of the settlement.
The case was a coordinated effort of the U.S. Attorney’s Office for the Western District of Kentucky, the Civil Division’s Commercial Litigation Branch, the Environment and Natural Resources Division’s Environmental Enforcement Section, the U.S. Environmental Protection Agency, the Department of Energy, and the Department of Energy Office of Inspector General.
The case is captioned United States, ex rel. John David Tillson, Natural Resources Defense Council, Inc., et al. v. Lockheed Martin Corp., et al., Civil Action No. 5:99CV00170-GNS (W.D. Ky.). The claims resolved by this settlement are allegations only; there has been no determination of liability.