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26 February 2016
Conspirator Sentenced to over 5 Years in Prison for $3.8 Million Mortgage Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Alberic Okou Agodio, age 31, of Bethesda, Maryland, today to 61 months in prison followed by five years of supervised release for conspiracy, wire fraud, and aggravated identity theft, arising from a mortgage fraud scheme in which he used the names of immigrants and students, along with false financial information, to obtain $3.8 million in home mortgage loans to buy approximately three dozen row houses in Baltimore, all but one of which are in default or foreclosure. Judge Bredar also entered an order that Agodio pay restitution of $3,356,581.78.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Special Agent in Charge Fran Mace, of the Federal Deposit Insurance Corporation Office of Inspector General; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, Agodio agreed to purchase row houses in Baltimore City from co-conspirator Kevin Campbell, who had acquired the houses as part of his real estate business. Agodio purchased the houses at prices far in excess of their actual market value. In return, Campbell kicked back a substantial portion of the purchase price to Agodio, which Agodio used to pay for the down payments and closing costs for most of the properties; to pay a commission to the individuals whom he persuaded to allow him to use their names to purchase the properties (“the straw purchasers”); to pay referral fees to individuals who referred other straw purchasers to him; and to compensate himself for his participation in the scheme. In all, from June 2009 to November 2010, Agodio purchased 35 row houses from Campbell. The financing received on these transactions totaled approximately $3.8 million and Agodio received commission payments from Campbell in excess of $1.2 million.
To perpetrate the scheme, Agodio persuaded approximately three dozen immigrants and students to purchase the row houses under their names. Although none of these “straw purchasers” had any experience in real estate transactions, nor the funds needed to buy the properties, Agodio told each straw purchaser that he would prepare the loan application; manage the property after its purchase by finding renters, collecting the rent and paying the mortgage; and would pay the straw purchaser $7,000 to $8,000 after the transaction closed. He further promised to sell the property in three years and give the individual up to 80% of the sale proceeds. Agodio also paid thousands of dollars in additional commissions to those straw purchasers who referred other individuals to him as potential buyers for similar transactions.
Agodio admitted that he falsely represented in the loan applications the straw purchasers’ assets and earnings, and that the property would be the primary residence of the purchaser. Agodio also provided fraudulent earnings and bank statements for the purchasers, to document the false information provided in the loan application. Agodio provided the necessary funds for the down payment and the buyer’s share of the closing costs, causing the settlement statement form to inaccurately reflect that the down payments and closing costs had been paid by the straw purchasers.
Following the closings, Agodio retained the keys to each property and assumed the responsibility for finding renters and making the required monthly mortgage payments. The named purchasers never lived in the properties. Agodio eventually allowed all of the mortgages to go into default.
After a fire occurred at one of the row house properties purchased through a straw purchaser Agodio falsely identified himself as the straw purchaser to the insurance company in order to collect $106,500 in insurance paid for the repair the property. Agodio cashed the check, which was made out to the straw purchaser and the bank holding the mortgage, and used the funds for his own purposes. Agodio did not notify the bank that the funds to make the repairs to the property had been received, nor did he arrange to make or pay for any repairs to the property.
Kevin Campbell, age 53, of Baltimore, previously pleaded guilty to conspiring to commit mail, wire and bank fraud arising from mortgage fraud schemes resulting in losses totaling approximately $1.2 million. Campbell was sentenced to 19 months in prison and ordered to pay restitution of $1,182,822. In a related case, Judge Bredar sentenced co-conspirator Jonathan L. Miles, age 45, of Perry Hall, Maryland to 18 months in prison for conspiring to commit bank fraud, and ordered Miles to pay restitution of $1,182,822.
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 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 HUD- OIG, FDIC – OIG, FHFA - OIG and the FBI for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Co-Owner of Huntington Park Towing Company Indicted on Charges of Bribing City Council Member to Secure Tow Fee IncreaseRead the Press Release
LOS ANGELES – The co-owner of a towing business was named in a federal grand jury indictment returned today that charges him with paying a bribe to a member of the Huntington Park City Council in an attempt to obtain support for a proposed fee increase for towing and vehicle storage.
Sukhbir Singh, 39, and his company, H.P. Automotive & Tow, Inc., were charged today in a two-count indictment that accuses Singh and his company of paying a bribe “to influence and reward” the city councilmember in relation to official action related to a proposed contract to increase rates to tow and store vehicles in Huntington Park.
The indictment states that the city councilperson was a “cooperating witness,” meaning s/he was working with the FBI when Singh allegedly paid the bribe.
Singh is also charged with making false statements to the FBI in October when he falsely stated that he had never discussed the proposed tow fee increase with the city councilmember and when he falsely stated that he had not discussed how payments could made so as to disguise the source of the money.
According to a criminal complaint previously filed in this case, Singh gave a total of $2,650 in checks to the city councilmember between August 2013 and March 2015, although the affidavit in support of the complaint notes that two checks totaling $800 were rejected for insufficient funds and because a signature was illegible.
“By seeking to influence a city council vote through bribes, this defendant perverted the democratic process,” said United States Attorney Eileen M. Decker. “The public deserves to be confident that its elected officials are making decisions in the best interests of the people they serve.”
“City residents deserve honest government and should not tolerate it when bribe payments dictate how their town is run,” said David Bowdich, the Assistant Director in Charge of the FBI's Field Office. “We encourage anyone with knowledge of bribes being paid or being proffered to contact the FBI to report the allegations confidentially.”
The bribery scheme followed an August 19, 2013 meeting in which the City Council voted 3-2 to deny a request by H.P. Tow to increase towing and vehicle storage fees. Ten days later, Singh met with the FBI cooperating witness in the first of a series of meetings that included discussions of Singh and H.P. Tow making campaign contributions to the city councilmember, according to the affidavit, which alleges that Singh offered to make the bribe payments through third-party checks to a campaign account.
The Huntington Park City Council approved the fee increases for H.P. Tow in January in a vote in which the cooperating witness did not participate.
Singh and H.P Tow will be summoned to appear for an arraigned on the indictment next month.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The bribery count in the indictment carries a statutory maximum penalty of 10 years in federal prison for Singh. If convicted, the company could be ordered to pay a fine as high as $250,000. The false statement charge in the indictment carries a statutory maximum penalty of five years in federal prison.
This case is the product of an investigation by the Federal Bureau of Investigation.
Chinese National Gets Probation with Home Detention for Fraudulent Test Taking SchemeRead the Press Release
PITTSBURGH - A Chinese national has been sentenced in federal court to two years probation and six months home detention on his conviction of Mail Fraud in relation to a scheme involving the fraudulent taking of college entrance exams, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Xi Fu, 27, of Portland, Oregon.
According to information presented to the court, Xi Fu was one of the individuals who was paid to take TOEFL exams for other Chinese students. Fu took approximately three tests and used counterfeit Chinese passports which were mailed to him from China as identification at the testing locations.
Prior to imposing the sentence, Judge Conti stated that her sentence reflected the seriousness of the offense in that it allowed people who otherwise would not have been eligible to enter the U.S. to enter and also affected the integrity of the American college admissions process.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security, Homeland Security Investigations and the Department of State for the investigation leading to the successful prosecution of Fu.
Cedar Rapids Man Sentenced to Prison for Distribution of HeroinRead the Press Release
A Cedar Rapids man who distributed heroin resulting in an overdose was sentenced February 25, 2016, to more than 2 1/2 years in federal prison.
David Hudson, age 31, from Cedar Rapids, Iowa, received the prison term after an October 15, 2015, guilty plea to one count of distribution of heroin and fentanyl.
Hudson admitted that on January 20, 2015, he sold a mixture of heroin and fentanyl to a heroin user. Hudson watched the user inject the heroin in the bathroom of a convenience store. After leaving the bathroom, the user collapsed on the floor due to overdosing on the heroin. Paramedics were called to the scene and were able to revive the user and save his life by administering Narcan.
Hudson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hudson was sentenced to 34 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. Hudson 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 Dan Chatham and investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-78.
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Bloods Gang Member Sentenced to over 39 Years in Prison for Armed Business RobberiesRead the Press Release
Memphis, TN – A Memphis man who robbed two businesses at gunpoint and forced a store clerk to perform a sex act has been sentenced to 477 months (over 39 years) in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to evidence presented in court, in the early morning hours of January 26, 2014, 20-year-old Khalil Davis, a member of the Bloods street gang, entered a Circle K convenience store on Poplar Avenue, masked in a bandana and armed with a firearm. Davis pointed the gun at the store clerk’s face and took money from both the cash register and safe. He then placed the gun to the female clerk’s head and forced her to perform oral sex on him before fleeing the scene.
On the same day, less than an hour later, Davis, along with a co-conspirator, 33-year-old Antonio Griffin, entered the Marathon Gas Station on Poplar Avenue. After Griffin approached the counter to make a purchase, Davis ran behind the counter and put a gun to the store clerk’s head. A struggle ensued between Davis and the clerk while Griffin grabbed money out of the cash register and fled the store. Davis was able to eventually release himself with the gun. As he exited the store, Davis fired one shot at the clerk.
In July 2015, Davis’ co-conspirator, Griffin, pled guilty to one count of committing a robbery affecting interstate commerce and one count of brandishing and discharging a firearm in relation to a crime of violence. He was sentenced by U.S. District Judge Samuel H. Mays to a 10-year prison term in November 2015.
In November 2015, a jury convicted Davis on two counts of committing a robbery affecting interstate commerce and two counts of brandishing and discharging a firearm in relation to a crime of violence.
On Thursday, February 25, 2016, Judge Mays sentenced Davis to 477 months imprisonment.
The case was investigated by Safe Streets Task Force and the Memphis Police Department.
Assistant U.S. Attorneys Samuel Stringfellow and Kevin Whitmore prosecuted this case on the government’s behalf.
Attorney General Loretta E. Lynch Appoints Three New Board Members to the Board of Immigration AppealsRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced that Attorney General Loretta E. Lynch has appointed Molly Kendall Clark, Ellen Liebowitz, and Blair T. O’Connor as board members to the Board of Immigration Appeals (BIA). The BIA is responsible for hearing appeals from certain decisions rendered by immigration judges and by district directors of the Department of Homeland Security. It is the highest administrative body for interpreting and applying federal immigration laws.
Biographical information follows.
Molly Kendall Clark, Board Member
Attorney General Loretta E. Lynch appointed Board Member Kendall Clark to begin hearing cases in February 2016. Board Member Kendall Clark received a Bachelor of Arts degree in 1974 from Colorado College and a Juris Doctor in 1978 from Suffolk University. From 1995 to 2016, she has served as a senior legal advisor to the chairman, Board of Immigration Appeals (BIA). From 1983 to 1991, and previously from 1978 to 1981, she was an attorney advisor for the BIA. From 1981 to 1982, Board Member Kendall Clark worked in the General Counsel’s Office of the former Immigration and Naturalization Service. Board Member Kendall Clark is a member of the District of Columbia Bar.
Ellen Liebowitz, Board Member
Attorney General Loretta E. Lynch appointed Board Member Liebowitz to begin hearing cases in February 2016. Board Member Liebowitz received a Bachelor of Arts degree in 1987 from the University of Delaware and a Juris Doctor in 1990 from the University of Maryland. From 2008 to January 2016, Board Member Liebowitz served as a senior legal advisor to the chairman, Board of Immigration Appeals (BIA). From 2007 to 2008, she was a senior counsel to the chairman, BIA, and from 1991 to 2007, as an attorney advisor for the BIA. Prior to joining the board, she clerked for the Circuit Court for Harford County, Maryland. Board Member Liebowitz is a member of the Maryland Bar.
Blair T. O’Connor, Board Member
Attorney General Loretta E. Lynch appointed Board Member O’Connor to begin hearing cases in February 2016. Board Member O’Connor received a Bachelor of Business Administration degree in 1992 from the University of Notre Dame and a Juris Doctor in 1995 from the Valparaiso University School of Law. From 2002 to 2016, he served as an assistant director, senior litigation counsel, and trial attorney at the Office of Immigration Litigation, Civil Division, Department of Justice. From 1996 to 2002, he served on active duty in various capacities in the Army’s Judge Advocate General Corps including as legal assistance and claims attorney, prosecutor, appellate defense attorney, and as a law clerk to the U.S. Army Court of Criminal Appeals. Board Member O’Connor is a member of the Illinois Bar.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Anna Man Indicted on 11 Child Exploitation Charges, Including Production of Child Pornography and Coercion and EnticmentRead the Press Release
DAYTON, Ohio – A federal grand jury has charged Robert Steven Jones, 28, of Anna, Ohio, with charges related to child pornography and coercion and enticement of a minor in an indictment returned yesterday in Dayton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division announced the indictment returned today.
The indictment alleges that Jones knowingly coerced and enticed five minor females to engage in sexual activity for the purpose of producing or attempting to produce child pornography. Jones also allegedly received and possessed child pornography depicting female minors under the age of 12. Jones’ alleged criminal activity occurred while he was required by law to register as a sex offender.
Jones is charged with six counts of production and attempted production of child pornography involving five different alleged victims in multiple states, two counts of coercion and enticement of minor to engage in unlawful sexual activity, one count of receipt of child pornography and one count of possession of child pornography He also faces an enhanced penalty for allegedly committing certain felony offenses involving a minor while being a registered sex offender.
Jones faces at least 10 years up to life in prison for each coercion and enticement charge. Production of child pornography carries a mandatory minimum sentence of 15 years and a potential maximum sentence of 30 years in prison. Receipt and possession of child pornography are each crimes punishable by up to 20 years in prison, with the receipt charge carrying a 5 year minimum sentence. Committing a felony offense involving a minor while being required to register as a sex offender carries a mandatory 10 year sentence, to run consecutive to any other sentence.
Jones was arrested on November 4, 2015 by criminal complaint. The magistrate court ordered him detained pending trial.
U.S. Attorney Stewart commended the investigation of this case by the FBI, and Assistant U.S. Attorneys Alex R. Sistla and Vipal Patel, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Amsterdam Man Admits to Unlawfully Possessing Guns and Distributing HeroinRead the Press Release
ALBANY, NEW YORK – Shawn Taft, age 46, of Amsterdam, New York, pled guilty today to being a felon in possession of five firearms and to distributing heroin.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration.
In May 2014, Taft sold heroin to a confidential informant on two separate occasions in the city of Schenectady.
On July 8, 2015, the U.S. Marshals Service, with assistance from the Amsterdam Police Department, went to arrest Taft at his home. While arresting him, an officer observed a .22 caliber rifle in a closet in the front bedroom of Taft’s residence. Officers went on to find four additional firearms in the residence, which were three rifles and a High Standard, model 88, .22 caliber revolver. The revolver was found in a bag of dog food on the back porch. Taft had previously been convicted of a felony and could not possess a firearm.
U.S. District Judge Mae A. D’Agostino is scheduled to sentence Taft on June 23, 2016. Distributing heroin carries a maximum sentence of 20 years in prison, a fine of up to $1 million and a term of supervised release of up to life. Being a felon in possession of a firearm carries a maximum sentence of 10 years in prison, a fine of up to $250,000 and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
This case was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives and the U.S. Marshals Service, in conjunction with the Schenectady Police Department and the Amsterdam Police Department. The case is being prosecuted by Assistant U.S. Attorney Elizabeth R. Rabe.
25 February 2016
Youngstown man convicted of raping 11-year-oldRead the Press Release
A Youngstown man faces up to life in prison after he was convicted of crossing state lines to rape an 11-year old, law enforcement officials said.
Iraephraim Underwood, 59, was convicted following a jury trial of one count of crossing a state line to engage in a sexual act with a person who had not attained the age of 12 years old and one count of transporting a child under 18 years of age in interstate commerce with the intent to engage in an illegal sexual act.
Underwood is expected to be sentenced later this year.
This case was prosecuted by Assistant U.S. Attorneys Michael A. Sullivan and Benedict Gullo following an investigation by FBI, with assistance from the Youngstown and Boardman police departments.
Wisconsin Man Sentenced to 20 Years for Attempted Sexual Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Ross Edward Paulson (60, Wittenberg, WI) to 20 years in federal prison for attempted sexual enticement of a minor. The Court also ordered him to forfeit the cellphone and laptop he had used to facilitate the offense. Paulson pleaded guilty on November 30, 2015.
According to court documents, while visiting Florida in July 2015, Paulson responded to a Craigslist ad. The ad had been placed by an undercover officer posing as the father of a 13-year-old girl who was looking for other men to have sex with his daughter. During a series of online communications, Paulson graphically discussed the sexual activities that he wanted to engage in with the “child.” On July 23, 2015, Paulson agreed to meet the “father” and “child” in a parking lot in Brevard County so that he could have sex with the “child.” When Paulson arrived at the meeting place, he was arrested.
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kara M. Wick.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
West Seneca Man Sentenced on Extortion ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Thi Nguyen, 40, of West Seneca, NY, who was convicted of conspiracy to collect extension of credit by extortion, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that a individual placed bets on NFL football games with Nguyen and other individuals during the 2012 season. On May 7, 2013, the defendant, and co-defendant Eric Battistoni, told the individual his outstanding debt of $24,000 needed to be settled. On May 15, 2013, at a pre-arranged meeting, it was determined the individual would make $300 payments every Friday until the debt was settled. Battistoni also threatened violence if a payment was not made.
Nguyen and Battistoni were arrested on May 31, 2013. During the execution of a search warrant at Nguyen’s residence, officers seized numerous ledgers used in the defendant’s bookmaking activities.
Battistoni was convicted and will be sentenced on May 11, 2016.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Upper Marlboro Man Sentenced to 17 Years in Prison for Three Bank RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Derek Lamar Tompkins, age 20, of Upper Marlboro, Maryland today to 17 years in prison, followed by five years of supervised release, for bank robbery and forcing a bank employee to accompany him without the employee’s consent; and to brandishing a firearm during a crime of violence. Judge Bredar also ordered Tompkins to pay restitution of $85,695.05.
The sentence 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; Chief Timothy Bozman of the Princess Anne Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to Tompkins’ plea agreement, from February through August 2014, Tompkins robbed three banks, stealing a total of $164,615.05.
Specifically, on February 11, 2014, Tompkins entered the BB&T Bank in Princess Anne, Maryland, and passed the teller a note that read, “I have been watching you, I know you have $10,000 in cash. Give me the money or I will shoot you or kill you.” Fearing for her safety, the teller emptied her drawer, handing $1,539.05 to Tompkins who fled the bank.
On May 21, 2014, Tompkins and a second robber entered the M&T Bank located in Largo, Maryland. The robbers went to the victim employee’s office and demanded money and told her that they had a weapon. After the victim told them that she did not have any money, they ordered her to open the door to the teller line. Tompkins and the other robber demanded money from two victim tellers, and ordered them to open a small safe. Tompkins and the second robber took approximately $84,120, and fled the bank.
On August 18, 2014, Tompkins and a second robber entered the First Mariner Bank in Owings Mills, Maryland, wearing masks and hoods. Tompkins was wielding a 9 mm handgun, which he and the second robber passed brandished as they passed the gun back and forth between them. The robbers ordered the tellers to open their drawers, and Tompkins ordered one of the employees, at gun point, to get the key and move to the area where the vault was located. Once at the vault, Tompkins ordered her to open the vault and then he removed cash from the vault. Tompkins and the second robber then ordered the bank employees into the vault and closed the door. The robbers fled the bank in two separate vehicles with $78,956 of the bank’s money.
Police in the area were able to identify and stop the vehicle Tompkins had fled in on August 18. From the vehicle, officers located a large amount of cash (with First Mariner straps), the 9 mm handgun used during the robbery, as well as clothes, a pair of gloves, a mask, and two hooded sweatshirts, all of which matched the description of the items worn during the armed bank robbery. After being advised of his rights, Tompkins admitted that he participated in the armed robbery of the First Mariner, that he had entered with the handgun, and that he was the one who had entered the vault with the victim employee to get the money.
A subsequent trace of the 9 mm handgun showed that it had been stolen from an off duty Metropolitan (DC) Police Officer in Washington, DC, on May 6, 2014.
United States Attorney Rod J. Rosenstein commended the FBI, Princess Anne Police Department, Prince George’s County Police Department, and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Aaron S. J. Zelinsky, who prosecuted the case.
United States Seeks to Forfeit and Return A Roman Statue Stolen from the Villa Torlonia in 1983Read the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a civil forfeiture complaint against a Roman marble peplophoros statue (the “Torlonia Peplophoros”) stolen from the Villa Torlonia in Rome in 1983. The Torlonia Peplophoros had been sold in Manhattan in 2001 after being unlawfully brought into the United States in the late 1990s. The current owner of the Torlonia Peplophoros, having discovered that it was stolen, voluntarily turned it over the United States.
Manhattan U.S. Attorney Preet Bharara said: “The Torlonia Peplophoros was stolen in a brazen theft more than 30 years ago, and we are proud to have recovered it so it can finally be returned to its rightful owners. We will continue to work with our law enforcement partners to recover and return stolen treasures no matter how long they have been missing.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “Stolen artwork and culture items belong with their rightful owners no matter how much time has passed since the theft. The FBI is pleased to help with the return of the Torlonia Peplophoros to its rightful home in the Villa Torlonia museum in Rome.”
According to the allegations in the Civil Complaint unsealed today:
In 1797, Giovanni Torlonia, a famous Vatican banker in Rome, purchased what is now called the Villa Torlonia (the “Villa”) after inheriting the title of Marchese. The Torlonia family owned the Villa until 1977, though it was used by Benito Mussolini as his personal residence from 1925 to 1943, and then occupied by the Allied High Command from 1944 to 1947. After 1947, the Villa was abandoned and deteriorated until the Municipality of Rome purchased it from the Torlonia family in 1977.
Since 1978, the Villa has been opened to the public and restored by the Municipality of Rome. It contained various works of art and other significant cultural property, including the Torlonia Peplophoros, a statue depicting a woman wearing a body-length garment, known as a peplos (or peplum), that was common in ancient Greece.
During the night of November 11, 1983, and the following morning, an unknown number of thieves stole 15 statues and other items from the Villa. The Torlonia Peplophoros was among the stolen statues.
In the late 1990s, the Torlonia Peplophoros was imported into the United States by the owner of a New York City art gallery (the “Gallery”). In 2001, the Gallery sold the Torlonia Peplophoros to an individual residing in New York City (the “Buyer”) for approximately $75,000.
The Buyer became aware that the Torlonia Peplophoros was stolen when the Buyer attempted to offer it for sale through a New York City auction house, and voluntarily turned it over to the FBI in late 2015.
* * *
Mr. Bharara thanked the FBI’s Art Crime Team for its outstanding work on this matter.
The case is being handled by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Alexander Wilson is in charge of the case.
United States Attorney provides Municipality of Anchorage with check for $1,110,559 in restitution arising from cigarette tax evasion convictionsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler today presented a check for $1,110,559 to Anchorage Mayor Ethan Berkowitz in a ceremony held at the United States Attorney’s Office. The check represents proceeds of the forfeiture of funds obtained through seizure warrants executed in the investigation of six individuals for various crimes arising out of a scheme to defraud the Municipality of Anchorage (MOA) of cigarette taxes owed for sales within the MOA. Pursuant to plea agreements with two of the defendants the monies were forfeited to the United States Treasury. Then through a restoration request, the Attorney General restored the approximately 1.1 million dollars to the Municipality as payment of restitution ordered at sentencing.
Previously, on March 18, 2015, U.S. District Judge Sharon L. Gleason ordered Michael Butler, 44, along with Sun Sims, 52, Kyong Hee Kim, 57, Jae Ho Lee, 60, Jae Gak Lee, 62, and Jerry Lee, 60, to pay a total of $2,007, 250, plus interest, in restitution to the Municipality of Anchorage following their convictions on charges that they were participants in a conspiracy to defraud the MOA by evading the payment of cigarette excise tax. The conspirators were indicted on July 18, 2013, on charges including mail fraud, conspiracy to commit money laundering, and conspiracy to make false statements regarding the distribution of cigarettes. Kyong Hee Kim, Sun Sims, Kimberly Sims, Jae Ho Lee, Jae Gak Lee, and Jerry Lee previously pleaded guilty in U.S. District Court for their roles in the conspiracy and other criminal violations. Michael Butler was convicted at trial in November 2014.
According to the court documents, Michael Butler and Sun Sims operated and managed Up in Smoke, located in the MOA, and Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, both located outside the MOA. Because they owned Golden Eagle Tobacco and Longmere Lake Grocery and Liquor, Butler and Sims could legitimately purchase MOA excise tax exempt cigarettes from tobacco wholesale distributors located in the MOA, but only if those cigarettes were actually transported outside of the MOA and offered for sale at those two stores. However, cigarettes that they purchased within the MOA and intended to sell at Up in Smoke or distribute to others within the MOA were not excise tax exempt.
Between 2009 and October 10, 2012, Michael Butler and Sun Sims used their Golden Eagle Tobacco and Longmere Lake Grocery and Liquor store accounts with tobacco wholesale distributors within the MOA to purchase excise tax exempt cigarettes that they intended to sell and distribute within the MOA. Thus, they avoided paying the MOA excise tax and increased their own profits.
The other co-conspirators paid a fee to Michael Butler and Sun Sims for the purchase of excise tax exempt cigarettes. They paid this fee for the tax exempt cigarette in an effort to avoid paying the tax owed to the MOA. Butler and Sims would collect payment from Kyong Hee Kim and other retailers. They would then convert the money collected into cashier’s checks that appeared to be purchased by either Golden Eagle Tobacco or Longmere Lake Grocery and Liquor. They then used these cashier’s checks to purchase more tax exempt cigarettes, which they then delivered to the following retail stores within the MOA:
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Up in Smoke, owned and operated by Michael Butler and Sun Sims and managed by Kimberly Sims
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Mini Stop, owned and operated by Kyong Hee Kim
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Party Time Liquor, owned and operated by Jae Gak Lee
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Cheap Smokes, owned and operated by Jae Ho Lee
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Lucky Seven Foodmart, owned and operated by Jerry Lee
The defendants received the following sentences:
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Michael Butler sentenced on 3/13/15 to 36 months incarceration, 3 years supervised release.
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Sun Sims sentenced on 2/4/15 to 34 months incarceration, 3 years supervised release, $18,000 fine.
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Jae Gak Lee sentenced on 2/2/15 to 16 months incarceration, 3 years supervised release, $100,000 fine.
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Jae Ho Lee, sentenced on 1/21/15 to 16 months incarceration, 3 years supervised release.
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Kimberly Crandell, sentenced on 1/21/15 to 3 years’ probation, $1,500 fine.
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Jerry Lee, sentenced on 1/20/15 to 9 months incarceration, 3 years supervised release.
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Kyong Hee Kim sentenced 12/4/14 to 5 years’ probation.
Assistant U.S. Attorney Stephan A. Collins of the U.S. Attorney’s Office, District of Alaska, prosecuted the case. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), Alcohol Tobacco and Firearms (ATF), and the Anchorage Police Department.
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U.S. Attorney Rose Announces over $7.7 Million in Federal Grants Awarded in 2015 to Grantees in the Western DistrictRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that over $7.7 million in federal grants were awarded in 2015 to local law enforcement agencies, non-profit organizations, educational institutions and tribal government programs in the Western District. The federal grants were awarded by the Office of Justice Programs (OJP), the Office of Violence against Women (OVW), the Office of Community Oriented Policing Services (COPS Office), and the Bureau of Justice Assistance (BJA).
In making today’s announcement, U.S. Attorney Rose stated, “Federal grant funding is an important resource for local law enforcement, community groups and non-profit service providers. The much-needed funding is used to support law enforcement initiatives, fund tribal programs, enhance public safety, and provide victim assistance services within local and tribal communities.”
Grantees in 12 of the western district’s 32 counties received federal funding. The funding will be used by local law enforcement to support a broad range of activities, including conducting state and local initiatives, technical assistance, training, equipment, supplies, court programs, prevention and education programs, drug treatment and enforcement programs and crime victim and witness programs, among others. Grants provided to educational institutions will be used for research purposes to assist law enforcement and to fund outreach and public awareness efforts, such as combating violence against women on campus.
Funding allocated to non-profit organizations will be used for comprehensive victim-centered services, including victim assistance and advocacy, and legal services to victims of sexual assault and dating violence. Funding provided to tribal government programs will be used to enhance civil and criminal tribal court systems and to improve access to those systems, as well as creating a domestic program to improve the support services available to Indian women victims, to develop ongoing education and prevention campaigns, to provide community outreach and legal assistance to Indian women.
The Office of Justice Programs (OJP) provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime fighting strategies. Current OJP funding opportunities can be found at: http://ojp.gov/funding/Explore/CurrentFundingOpportunities.htm.
The Office on Violence Against Women (OVW) currently administers 24 grant programs authorized by the Violence Against Women Act (VAWA) of 1994 and subsequent legislation. For a list of OVW grant programs and additional grant funding information please visit: http://www.justice.gov/ovw/grant-programs.
The Office of Community Oriented Policing Services (COPS Office) is the component of the U.S. Department of Justice responsible for advancing the practice of community policing by the nation’s state, local, territorial, and tribal law enforcement agencies through information and grant resources. Since 1995, COPS Office has invested over $14 billion to advance community policing. For the latest applicant and grantee information please go to: http://www.cops.usdoj.gov/grants.
The Bureau of Justice Assistance (BJA) provides leadership and assistance to local criminal justice programs that improve and reinforce the nation’s criminal justice system. BJA’s goals are to reduce and prevent crime, violence, and drug abuse and to improve the way in which the criminal justice system functions. In order to achieve such goals, BJA programs illustrate the coordination and cooperation of local, state, and federal governments. BJA works closely with programs that bolster law enforcement operations, expand drug courts, and provide benefits to safety officers. BJA Funding announcements are posted at: https://www.bja.gov/funding.aspx
Two sentenced for drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two individuals were sentenced in federal court for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Khalil Brown, 34, of Philadelphia, Pennsylvania, sold heroin in 2014 near West Virginia University in Monongalia County, West Virginia, as part of an extensive drug trafficking network designed to transport heroin and oxycodone across state lines from Philadelphia, Pennsylvania to Morgantown, West Virginia for redistribution and sale throughout the region. He pled guilty in October 2015 to one count of “Distribution of Heroin within 1000 feet of a Protected Location.” He was sentenced to 92 months in prison.
Harvey Orlando Higgs, 30, of Morgantown, West Virginia, sold cocaine in March 2015 in Monongalia County. He pled guilty in October 2015 to one count of “Distribution of Cocaine Base.” He was sentenced to 37 months in prison.
Assistant U.S. Attorney Zelda Wesley prosecuted the cases on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Twelve Members of Orlando-Area Heroin Trafficking Crew Charged with Federal Drug OffensesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that 12 members of a drug trafficking organization have been charged with distributing street-level quantities of heroin in the Orlando area. A criminal complaint has been unsealed charging Steven Joseph Malham (55, Orlando), Angel Manuel Fontanez (31, Clermont), Pedro Juan Rivera-Aviles (63, Orlando), Jason Paul Manore (36, Orlando), Aref Hamdan (39, Orlando), Wilbert Joel Alequin-Pagan (21, Orlando), Robert Bryan Sautner (28, Winter Garden), Emmanuel Verges (26, Orlando), Constantine Kotsianidis (37, Orlando), Zuleyka Jeanette Colon-Rivera (24, Orlando), Ernesto Cabanas-Torres, (41, Orlando), and Domingo Perez-Lamboy (42, Orlando) with conspiracy to distribute and to possess with intent to distribute heroin. If convicted, each faces a maximum penalty of 20 years in federal prison.
According to the complaint, a drug trafficking organization whose members referred to themselves as “La Compania” or “the Company” acquired heroin from out of state. They then used a telephone number that changed frequently (the heroin line) to sell heroin to customers in Orlando, primarily in the tourist district, near International Drive. Using information provided by informants, the Drug Enforcement Administration identified the organization’s heroin line and had informants and undercover agents call to set up controlled purchases of heroin. Between November 2013 and October 2015, controlled purchases of heroin were made from each of the individuals charged in the criminal complaint. These drug sales ranged from 5 baggies of heroin for $100 to 200 bags for $2,000. More than 100 grams of heroin was sold to law enforcement officers during this investigation.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “La Compania.” The investigation was conducted by the Drug Enforcement Administration, with assistance from the Orange County Sheriff’s Office, the Metropolitan Bureau of Investigation, the United States Marshals Service, the Federal Bureau of Investigation, and the Orlando Police Department. It will be prosecuted by Assistant United States Attorneys Andrew C. Searle and Embry J. Kidd.
Topsfield Man Sentenced to Prison for Tax Evasion and Bankruptcy FraudRead the Press Release
BOSTON – A Topsfield man was sentenced today in connection with evading nearly $400,000 in federal income taxes and making false statements in bankruptcy filings.
Robert P. Bonefant, Jr., 58, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 15 months in prison, one year of supervised release and ordered to cooperate with the IRS to assess and pay his outstanding taxes. In September 2015, Bonefant pleaded guilty to two counts of tax evasion, three counts of filing a false tax return and three counts of bankruptcy fraud.
At the sentencing hearing, Judge Saris noted the need to deter others from evading their legal obligation to pay taxes. Judge Saris also pointed out that the loss caused by tax offenses like those committed by Bonefant is not suffered by the Internal Revenue Service, but instead by everyone who pays their taxes.
In 2008, the IRS assessed Bonefant $194,430 in taxes owed for 2004 and 2005. Bonefant then began to take steps to prevent the IRS from determining his entire income and actual tax liabilities. Those steps included depositing $1 million into his father’s bank accounts, including both taxable income and non-taxable business expense reimbursements, filing tax returns that failed to report significant income, and failing to file a return for 2010 when he had income of more than $250,000. In total, including the amounts assessed for 2004 and 2005 and the amounts owed for 2009 through 2012, Bonefant failed to pay approximately $389,030 in taxes.
In 2012, Bonefant filed for bankruptcy in Massachusetts seeking to discharge various debts, including the outstanding 2004 and 2005 federal tax liability. In documents filed with the Bankruptcy Court, Bonefant made false statements concerning his income and assets, as well as his use of his father’s bank accounts.
United States Attorney Carmen M. Ortiz; Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Trustee’s Office in Boston also provided assistance. The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Three defendants sentenced to prison in Federal court in BeckleyRead the Press Release
BECKLEY, W.Va. – Three defendants were sentenced today in federal court in Beckley, announced Acting United States Attorney Carol Casto.
Rafael Carrera-Fuentes, 36, was sentenced to a year and nine months for possession of a weapon by an inmate of a federal prison. Carrera-Fuentes previously pleaded guilty to the federal crime in November 2015. He admitted that on April 25, 2015, while he was an inmate at the Federal Correctional Institution at Beckley, a Bureau of Prisons staff member discovered a six-inch piece of sharpened metal hidden in his shoe. Carrera-Fuentes further admitted that he possessed the handcrafted weapon, commonly referred to as a “shank.” The new term of incarceration will run consecutive to the sentence of 11 years for a 2011 federal drug conviction that Carrera-Fuentes is currently serving.
John Samuel Lowe, Jr., 35, of White Sulphur Springs, was sentenced to four years and nine months in federal prison for using a phone to facilitate drug trafficking and for simple possession of heroin. Lowe previously pleaded guilty in October 2015 to the federal drug crimes. He admitted that on April 3, 2015, he used a phone in the White Sulphur Springs area to help set up a drug deal with a confidential informant, and that later the same day he distributed heroin to the informant. Lowe further admitted that on April 17, 2015, law enforcement seized a small amount of heroin that Lowe intended to use from his White Sulphur Springs residence.
Stephanie Renee Dunsmore, 30, of White Sulphur Springs, was sentenced to four years in federal prison for using a phone on two occasions to help set up drug transactions with a confidential informant. Dunsmore previously pleaded guilty in October 2015 to the federal drug crimes. She admitted that on March 2, 2015, and again on March 3, 2015, while she was in the White Sulphur Springs area, she called an informant to set up a drug deal, and then later distributed heroin to the informant. She further admitted that her drug crimes involved up to 400 grams of heroin, and that she possessed firearms while involved in her drug dealing activity.
The Carrera-Fuentes case was investigated by the Federal Bureau of Prisons. The cases against Lowe and Dunsmore were investigated by the Greenbrier Valley Drug and Violent Crime Task Force. Assistant United States Attorney John File handled the prosecutions. United States District Judge Irene C. Berger imposed the sentences.
The Lowe and Dunsmore cases were prosecuted as part of the Greenbrier Valley Heroin and Pill Initiative, an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal drug trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Third Defendant Pleads Guilty in Mortgage Loan Modification SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that SERJ GEUTSSOYAN, also known as “Anthony Kirk,” 33, of Santa Ana, Calif., pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to conspiring to defraud homeowners across the United States who were seeking mortgage loan modifications.
According to court documents and statements made in court, GEUTSSOYAN and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Acting as representatives of these entities, GEUTSSOYAN and his co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
GEUTSSOYAN and others involved in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
On January 21, 2016, a grand jury in New Haven returned an indictment charging GEUTSSOYAN and six other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
GEUTSSOYAN pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. He also has agreed to pay restitution of approximately $3 million. Sentencing is scheduled for May 19, 2016.
Two other defendants, Mehdi Moarefian, a.k.a. “Michael Miller,” 36, and Daniel Shiau, a.k.a. “Scott Decker,” 30, both of Irvine, Calif., pleaded guilty to the same charge last week.
To date, investigators have seized approximately $350,000 from various bank accounts, approximately $362,000 from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
This matter is being investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Sarah P. Karwan.
Texas Tax Return Preparer Indicted for Preparing False Income Tax ReturnsRead the Press Release
A Houston, Texas, income tax return preparer was indicted by a federal grand jury today in the Southern District of Texas on 18 counts of aiding and assisting in the preparation of false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
The indictment alleges that Felix Martin prepared false and fraudulent individual income tax returns for others for the tax years 2009 and 2010. It is alleged that these tax returns included false education and American Opportunity credits, as well as false statements regarding business income.
If convicted, Martin faces a statutory maximum sentence of three years in prison for each count of aiding and assisting in the preparation of false tax returns, as well as potential fines and restitution to the Internal Revenue Service (IRS).
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Michael Hatzimichalis and Mara Strier of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Ten Charged for Drug Conspiracy Operating in Union CountyRead the Press Release
CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose announced that 10 individuals are facing multiple federal drug charges for their involvement in a drug conspiracy operating in Union County. Nine of the 10 charged are in custody. A criminal indictment was returned on February 17, 2016, and was unsealed in federal court following today’s arrests.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina; Sheriff Eddie Cathey of the Union County Sheriff’s Office; and Chief Bryan Gilliard of the Monroe Police Department join U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the criminal indictment, from on or about May 2003 to November 10, 2015, the defendants operated as a drug conspiracy responsible for trafficking at least 136 kilograms of cocaine and 53 kilograms of crack cocaine, primarily in and around Union County.During this morning’s round-up, law enforcement also recovered six handguns.
The 10 defendants named in the 67-count indictment are each charged with conspiracy to distribute crack cocaine and related drug offenses. They are:
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Ernest Cuevas Bivens, 34, of Waxhaw, N.C. (arrested today)
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Robert Doneil Clyburn, Jr., 26, of Monroe, N.C. (arrested today)
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Jeffrey Darrell Crowder, Jr., 29, of Wingate, N.C. (arrested today)
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Ruthus Azam Ivey, 31, of Monroe. (arrested today)
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Dario Kinta Richardson, 30, of Mineral Springs, N.C. (arrested on 2/22/16)
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Quantravis Lavar Richardson, 28, of Monroe. (arrested today)
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Reginald Donovan Richardson, 31, address unknown, (arrested today).
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Adrian Lamar Sanders, 33, of Monroe. (previously in state custody)
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Maurice Dupree Starnes, 36, of Monroe. (arrested today)
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Eric Scott Truesdale, 45, address unknown. (not arrested yet)
(See chart below for federal charges and penalties for each defendant).
The arrests are the result of mutgny investitontargeted the trafficking of cocaine and crack cocaine in and around Union County ondutedy, the Union County Sheriff’s Office, and the Monroe Police Department, with the assistance of the North Carolina State Bureau of Investigation (SBI) and the North Carolina Division of Community Corrections.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement, U.S. Attorney Rose said, “This morning’s arrests are part of my office’s ongoing effort to combat drug trafficking throughout our district.The law enforcement agencies that participated in this OCDETF investigation joined forces to fight drug distribution and to put an end to the violence that comes with drug trafficking.”
“These individuals were the target of our joint investigation because they distributed large quantities of cocaine and crack in the Union County area. ATF will continue to work with our federal, state and local law enforcement partners to remove drug traffickers and their co-conspirators from our communities,” said ATF Special Agent in Charge Hyman.
“These federal charges should send a clear message to drug traffickers in North Carolina. The FBI and our law enforcement partners will not tolerate the damage that drugs do in our communities because some drug dealer wants to make a quick buck,” said FBI’s Special Agent in Charge Strong.
“I am grateful for all the federal, state and local agencies that assisted in this investigation,” said Sheriff Cathey.“I want to assure the public that the Sheriff’s Office will continue to partner with other agencies to eradicate drug traffickers from Union County and to make our county a safer place to live.”
“This investigation was a great team effort and I credit all agencies involved for its successful outcome. Everyone’s hard work and cooperation enabled us to conduct a thorough investigation across jurisdictional boundaries with outstanding results. I would also like to remind citizens that anyone with information concerning drug activity is encouraged to contact anonymously the Monroe Police Department at 704-282-4700,” said Chief Gilliard.
The defendants will appear in federal court before a U.S. Magistrate Judge in Charlotte. The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Rose thanked all the law enforcement agencies for their assistance in this ongoing investigation.
Assistant U.S. Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte is handling the prosecution.
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Tarkio High School Student Charged with Possessing Machine GunsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Tarkio R-1 High School student who brought a loaded semi-automatic pistol to school earlier this month, causing the school to be locked down, has been charged in federal court with illegally possessing two machine guns that were found at his residence.
Michael T. Knoth, 19, of Tarkio, Mo., was charged with two counts of possessing a machine gun in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., on Wednesday, Feb. 24, 2016. Knoth, who has been in state custody since his arrest on Feb. 11, 2016, was transferred to federal custody today for his initial court appearance. Knoth remains in federal custody pending a detention hearing.
According to an affidavit filed in support of the federal criminal complaint, Knoth – who came to school on Feb. 11, 2016, wearing military-style clothing, boots and ballistic body armor – reportedly displayed a fully loaded magazine to another student that day. That student alerted a teacher, and the school contacted the Tarkio, Mo., Police Department. School officials then discovered a loaded Glock 9mm semi-automatic pistol in Knoth’s backpack, along with six loaded 9mm pistol magazines, three loaded .223- or .556-caliber magazines, a spring-assisted knife, a seatbelt cutter and a window punch.
Knoth was arrested and handcuffed. The school was placed on lockdown.
Investigators searched Knoth’s vehicle, which was parked in the school parking lot. They found two loaded 9mm magazines and 15 loaded .223/.556-caliber magazines.
Investigators also searched Knoth’s home. During a search of the southwest bedroom, investigators found a loaded machine gun in the closet, an AR-style .223/.556 pistol, containing no visible serial numbers or manufacturer stamp. They found a second machine gun, an UZI-style 9mm firearm (unknown manufacture), in the dresser. Investigators found a receipt from M&A Parts, Inc., which listed various firearm parts, including an M16 LPK part kit with auto sear. (An auto sear is a device used to turn a semi-automatic rifle into a fully automatic rifle.) Investigators also found numerous rounds of ammunition and numerous loaded .223/.556 and 9mm magazines throughout the residence.
Dickinson cautioned that the charges contained in this complaint 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 Joseph M. Marquez. It was investigated by the Tarkio, Mo., Police Department, the Atchison County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Tampa Man Pleads Guilty for His Role in Scheme to Steal More Than $2 Million in Social Security ChecksRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Richard Lee Anderson (37, Tampa) today pleaded guilty to receiving stolen government property. He faces a maximum penalty of 10 years in federal prison. Anderson also faces drug and firearms charges in a separate federal case (8:15-CR-473-T-35AEP).
According to the plea agreement, between May and October 2012, Anderson received stolen Social Security benefit checks, totaling at least $2,275,000, from a United States Postal Service mail handler who worked at the Processing and Distribution Center (PDC) facility in St. Petersburg. The checks were all addressed to beneficiaries living in Pinellas County. Anderson then sold the checks to various individuals for a percentage of their face value and those individuals, in turn, cashed the checks or employed others to do so for them. Anderson paid the mail handler a percentage of the checks’ face value.
This case was investigated by the Social Security Administration Office of the Inspector General, the United States Postal Service Office of Inspector General, the United States Postal Inspection Service, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.
Statement by Attorney General Loretta E. Lynch on the Departure of Kelly T. Currie from the U.S. Attorney’s Office for Eastern District of New YorkRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the departure of Kelly T. Currie of the Eastern District of New York:
“Kelly Currie is a consummate public servant: dedicated, selfless, and fair. As a senior advisor to former U.S. Senator George Mitchell, Kelly played a crucial role in achieving the Good Friday Agreement, which brought lasting peace to the people of Northern Ireland and the United Kingdom. During two stints as an attorney in the Eastern District of New York – including his tenure as my Chief Assistant during my time there as U.S. Attorney – he was instrumental to the office’s prosecution of cases involving corruption, securities fraud and terrorism. And when I became Attorney General last April, Kelly graciously served as Acting U.S. Attorney – a role he filled with characteristic skill, energy and integrity. Through these and many other contributions, Kelly has helped to make our country – and our world – safer and more just. I want to thank him for his outstanding work, and I wish him the best as he begins a new chapter in his career.”
St. Thomas Man Sentenced to 34 Months in Prison for Firearms Conspiracy and Related ChargesRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced today Tequan Joseph, 23, to 34 months’ imprisonment and three years of supervised release for conspiracy to ship firearms with obliterated serial numbers, unlawful transportation of firearms, and a Middle District of Florida charge of false statements in connection with the purchase of firearms, United States Attorney Ronald W. Sharpe announced. Judge Gomez ordered Joseph to pay a $300 special assessment and to perform 400 hours of community service.
On October 26, 2015, Joseph pleaded guilty to conspiracy to ship firearms with obliterated serial numbers, unlawful transportation of those firearms, and to a Middle District of Florida charge of false statements. According to the plea agreement filed with the court, between August 6, 2013, and October 7, 2013, Joseph conspired with other individuals to unlawfully mail two firearms with obliterated serial numbers from Jacksonville, Florida, to St. Thomas. A total of six firearms were shipped and recovered during that period. The investigation revealed that Joseph had bought all six guns from a licensed firearms dealer in Jacksonville, Florida. Joseph is not a federally licensed firearms dealer and is not authorized to possess the firearms in the Virgin Islands.
“Trafficking in firearms is the first step in the cycle of violence that’s plaguing our communities. We stand with our law enforcement partners to combat violent gun crime and those who want to destroy our communities,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in-Charge Carlos A. Canino.
This case was investigated by ATF and the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Sentencings for February 18 - February 25, 2016Read the Press Release
Patrick Dort, 44, of Odessa, New York, was sentenced by Federal District Court Judge Alan B. Johnson on February 25, 2016, for failure to register as a sex offender. Dort was arrested in Ithaca, New York. He received 22 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the U.S. Marshals Service.
Ricky Lee Good Left, 33, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 24, 2016, for felony child abuse. Good Left was arrested in Fort Washakie, Wyoming. He received 16 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Federal Bureau of Investigation.
Robert James Ybarra, 28, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 24, 2016, on two counts of distribution of methamphetamine. Ybarra was arrested in Casper, Wyoming. He received 41 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Luke Horneck, 22, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 23, 2016, for travel with intent to engage in illegal sexual conduct. Horneck was arrested in Casper, Wyoming. He received five months imprisonment, to be followed by five years of supervised release, and was ordered to pay restitution in the amount of $4,877.40 and a $100.00 special assessment. This case was investigated by the Casper Police Department, the Natrona County Sheriff’s Office and the Federal Bureau of Investigation.
Ashley Larae Tidzump, 33, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 19, 2016, for assault with a dangerous weapon with intent to do bodily harm. Tidzump was arrested in Fort Washakie, Wyoming. She received 31 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Indian Affairs.
JC Christopher Pulham, 43, of Evanston, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 18, 2016, for possession of child pornography. Pulham was arrested in Evanston, Wyoming. He received 97 months imprisonment, to be followed by 10 years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Michael Miles, 67, of Las Vegas, Nevada, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 18, 2016, for sexual contact with a minor. Miles was arrested in Las Vegas, Nevada. He received 60 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay a Victims of Trafficking Act special assessment of $5,000.00 and restitution in the amount of $514.00. This case was investigated by the Federal Bureau of Investigation.
Russellville Man Indicted for String of 2015 Bank RobberiesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Russellville man for a string of bank robberies and attempted bank robberies in north Alabama this past fall, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
A six-count indictment filed in U.S. District Court charges KERRY DEWAYNE HARBIN, 45, with four counts of bank robbery and two counts of attempted bank robbery between Sept. 1 and Oct. 15.
The indictment charges Harbin with robbing the BBVA Compass Bank on State Farm Parkway in Homewood on Sept. 1, the Union State Bank on Lorna Road in Hoover on Sept. 10, the Wells Fargo Bank on West Valley Avenue in Homewood on Sept. 17, and the Cullman Savings Banks on Second Avenue in Cullman on Oct. 14. The indictment also charges Harbin with attempted bank robbery at the BB&T Bank on Red Lane Road in Birmingham on Sept. 9 and the BBVA Compass Bank on Green Springs Highway in Homewood on Sept. 10.
The maximum penalty for bank robbery and attempted bank robbery is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney William G. Simpson is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Rochester Man Sentenced to 39 Months on Bank Robbery ChargeRead the Press Release
CONCORD, NEW HAMPSHIRE: Thomas Hegarty, 21, of Rochester, New Hampshire, was sentenced in the United States District Court for the District of New Hampshire for bank robbery, announced United States Attorney Emily Gray Rice. The Court imposed a term of 39 months imprisonment, three years of supervised release, and full restitution to the victim bank.
Hegarty walked into a Bank of America in Rochester, New Hampshire, on January 20, 2015, held an object under his sweatshirt to simulate a weapon, and handed the teller a note demanding money. He then made off with $400 in stolen funds. Surveillance cameras captured images of the robbery and law enforcement quickly identified Hegarty. He was apprehended later that day.
This case was investigated by the Rochester Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Georgiana Konesky.
Richmond Man Sentenced for Conspiring to Distribute over 80 Kilograms of MarijuanaRead the Press Release
NEWPORT NEWS, Va. – Michael Newman, 37, of Richmond, was sentenced today to 70 months in prison for conspiring to distribute marijuana and ethylone.
Newman was found guilty on Oct. 22, 2015. According to court documents, James City County Police encountered Newman and another individual parked at a closed gas station in James City County on May 10, 2015, and found Newman to be in possession of marijuana, ethylone, drug scales and more than $3,000 in cash. The marijuana and ethylone were both intended for distribution, and Newman admitted to federal agents that he had been selling drugs since his release from state custody. Newman is responsible for a converted drug weight of between 80 and 100 kilograms of marijuana.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; David G. Bowers, Acting Inspector in Charge of the U.S. Postal Inspection Services’ Washington Division; and Bradley Rinehimer, Chief of James City County Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr56.
Rhode Island Resident Admits Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Adam C. Cobb, 47, of Portsmouth, RI, pleaded guilty in federal court in Providence on February 24, 2015, to one count of child pornography. Cobb was arrested in April 2015, following an investigation by agents from Homeland Security Investigations (HSI) and members of the Rhode Island State Police Internet Crimes Against Children Task Force (RI ICAC).
Cobb’s guilty plea is announced by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of HSI for New England; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to court documents and information presented to the court, in January 2015, The National Center for Missing and Exploited Children reported to the RI ICAC that an individual in Rhode Island uploaded images of child pornography to Tumblr.com. The investigation determined that an Internet address at Adam Cobb’s Portsmouth residence was the address used to upload the images.
On March 5, 2015, ICAC Task Force members and HSI agents, supported by Naval Criminal Investigative Service agents, executed a court-authorized search warrant at Cobb’s Portsmouth residence and seized various digital media, computers and cellular phones. Additionally, the next day, a cell phone was seized from Mr. Cobb by Customs and Border Patrol agents at the Dallas/Fort Worth International Airport as Mr. Cobb entered the United States, having traveled from Tokyo, Japan.
A forensic examination of the digital media seized resulted in the discovery of photos and videos of child pornography depicting two juvenile females. With the assistance of the Baltimore, Maryland Police Department and HSI offices in Baltimore and in London, England, the RI ICAC determined the identity of both females. Investigators determined that both juvenile females were known to Mr. Cobb.
Adam Cobb, who was arrested on April 3, 2015, charged by way of a federal criminal complaint, is detained in federal custody. He is scheduled to be sentenced on May 19, 2016, by U.S. District Court Judge John J. McConnell, Jr.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
Prosecution of Tax Cases Continues as Filing Season is UnderwayRead the Press Release
DENVER – U.S. Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announce the prosecution of several recent criminal tax offenders in the District of Colorado. With tax filing season in full swing, federal officials remind citizens that it is important to file complete and accurate tax returns and choose wisely when selecting a return preparer. Those who commit tax fraud and related crimes can and will be criminally prosecuted. Recent tax cases prosecuted in the District of Colorado include the following:
Erica Godoy, age 39, of Tucson, AZ pled guilty on February 18, 2016 before U.S. District Court Judge Christine M. Arguello to conspiracy to defraud the IRS. In the State of Colorado and elsewhere in January of 2010 through April of 2014, Erica Godoy and her husband conspired to defraud the IRS in the assessment and collection of personal income taxes for calendar years 2010 through 2013. During this time period, her husband owned and operated a semi-truck which he used to transport illicit loads of narcotics from the Tucson area to the Philadelphia area. Several months into their marital relationship, Godoy learned he was making income from such activity. They conspired together to ensure that the IRS was not aware of the income being generated from the illicit activity. Specifically, Godoy, failed to file any personal income tax returns for calendar years, 2010 through 2013 while her husband filed false income tax returns as "married filing jointly", listing a former ex-wife. Those joint returns, failed include any of the substantial income that he was generating from his illicit drug distribution. Godoy’s failure to file income returns and pay income taxes over the four years resulted in a tax loss to the IRS of $244,674. This case is being prosecuted by Assistant United States Attorney Tim Neff.
Hieu Mattison, age 52, of Lakewood, CO, had his initial appearance on February 18, 2016 before U.S. Magistrate Judge Kristen L. Mix. Mattison was indicted by a Federal Grand Jury in Denver on January 28, 2016 for preparing and filing false income tax returns. From February 2010 through May 2012, Hieu Mattison, falsely prepared and filed with the IRS twenty-four U.S. Individual Form 1040 Income Tax Returns for various taxpayers in calendar years 2009, 2010 and 2011. The returns were materially false and fraudulent. Specifically, the returns included false income and tax credits in an effort to created inflated fraudulent refunds. This case is being prosecuted by Assistant United States Attorney Martha A. Paluch.
Robert and Lorrie Marie Gomez, age 60 and 57, of Henderson, Colorado, pled guilty on February 20, 2016 before U.S. Magistrate Judge Kristen L. Mix to two counts of failing to file tax returns. Robert and Lorrie are husband and wife and have co-owned and operated Gomez Burritos since 2004. Gomez Burritos is a Mexican food restaurant that serves breakfast and lunch six days a week with four storefront locations in the Denver, Colorado metro area since 2004. Between April 2008 and January 2014, Robert and Lorrie failed to pay the IRS Gomez Burritos' payroll taxes, which totaled $484,396. This amount includes both the employees' share that was withheld by Gomez Burritos from its employees' paychecks and the employer's share of payroll taxes. This case is being prosecuted by Assistant United States Attorney Pegeen D. Rhyne.
Kathy Jo Eads, age 58, of Aurora, Colorado, pled guilty on February 24, 2016 to preparing and filing a false income tax return. Beginning in January 2010 and continuing through April 2013, conducting business as Money Matters Financial Services, Eads prepared 33 false federal income tax returns for 15 clients which included either a false Schedule C or a false Schedule C-EZ. All 33 false returns requested refunds, and the IRS paid 28 of them in full and the other five refunds were applied against previous taxes that the taxpayers owed. The 33 false returns resulted in a tax loss of $96,376. Eads charged her clients a return-preparation fee which varied. On one occasion a client went to Eads’ office to get her 2010 refund, and Eads suggested that the client cash the check at a nearby check-cashing business, but the client declined, Eads asked, "Where's my tip?" The client thought the question was a joke and walked out of the office, but Eads became upset and followed her into a parking lot, where she told her, "The only reason I put the business on your tax return was because I wanted a thousand dollars out of it." This case is being prosecuted by an Assistant United States Attorney in the Economic Crimes Section.
“Individuals who commit tax fraud are not only defrauding the government, but they are also stealing from their friends, family and neighbors. We owe it to every American taxpayer to identify and prosecute those who evade their taxes and defraud the IRS,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
For tips on choosing a Tax Professional and filing your return go to www.irs.gov.
The charges contained in the Indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Prison Term and Nearly $1 Million in Judgments Ordered Against Midamar Founder, Midamar, and ISARead the Press Release
William B. Aossey, Jr., age 74, of Cedar Rapids, Iowa, the founder of Midamar Corporation (Midamar) and ISA, Inc. (d/b/a Islamic Services of America, Inc.), who was convicted in July of last year of 15 counts of conspiracy, making false statements on export certificates, and wire fraud, was sentenced today to serve two years in federal prison. The corporate entities founded by Aossey were also sentenced.
A 19-count Indictment was filed against Aossey on October 23, 2014. Aossey was released on pretrial supervision subject to special conditions pending trial. A federal jury convicted Aossey on 15 of the 19 counts on July 13, 2015. He was acquitted on four counts alleging money laundering and conspiracy to commit money laundering. After the jury returned its verdict, the Court held a detention hearing and ordered Aossey held without bond pending further court order.
On July 22, 2015, the Court ordered Aossey detained pending sentencing and in its written Order found that Aossey “must remain detained pending sentencing because he has not established by clear and convincing evidence that he is not likely to flee if released under suitable conditions.” The Order also noted that Aossey had not earned the trust of the Court since he had violated the terms of his pretrial release by failing to notify his probation officer of contact with law enforcement. This failure related to local, state and federal law enforcement raiding his business while investigating illegal firearm shipments to Lebanon.
Evidence at trial showed that foreign governments imposed strict requirements on the import of religiously slaughtered halal beef. In addition to prescribing the approved methods of slaughter, the governments of Indonesia and Malaysia restricted halal beef imports to those products that originated from slaughter facilities specifically inspected and approved by each country. Midamar, a halal food distribution company, directed its employees to change markings on packages of beef product originating from an unapproved slaughter facility to make it appear as if the products originated from an approved slaughter facility.
As part of the scheme to ship misbranded meat products, USDA export documents were falsified and fake health certificates were generated by Midamar and ISA employees USDA, Food Safety and Inspection Service (FSIS) letterhead. ISA was responsible for certifying that the product originated from an approved facility, among other things. As a result of the fraud committed by Aossey, Midamar, and ISA, 22 shipments of beef products not otherwise eligible for import into Malaysia and Indonesia were accepted into commerce in those countries, contrary to the regulations of those countries. The scheme continued for about two and a half years.
Midamar and ISA each previously pleaded guilty to one count of conspiracy to: commit mail and wire fraud; cover up material facts by a scheme; make and use false statements and documents in a matter within the jurisdiction of the U.S. Department of Agriculture; make false statements on export certificates with the intent to defraud; and, sell misbranded meat in interstate commerce with the intent to defraud. The scheme to which Midamar and ISA pleaded included the acts charged against Aossey as well as numerous other fraudulent acts and practices concerning the sale and certification of halal beef around the world over about a five year period.
Aossey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 24 months’ imprisonment and fined $60,000. Aossey was also ordered to forfeit $184,983 representing proceeds of the fraud. In addition, he was ordered to pay costs of prosecution of $16,824 and a special assessment of $1500. Aossey will be required to serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
At the sentencing hearing, the court found Aossey repeatedly perjured himself at his trial and thereby sought to obstruct justice. The court also found the scheme was sophisticated. However the court varied down from a guideline sentencing range of 87-108 months, citing Aossey’s advanced age and lack of criminal history.
Midamar was fined $20,000 and ordered to forfeit $600,000. Midamar was also placed on probation for five years. As a special condition of probation, Midamar will be require to abide by all terms of a consent decree entered into with the USDA Food Safety Inspection Service. The consent decree requires Midamar to take a variety of corrective actions and to remove certain corporate officials including Jalel Aossey and William B. Aossey from the business. Midamar was also ordered to pay a special assessment of $400.
ISA was fined $60,000 and ordered to pay special assessment of $400. ISA was also ordered to forfeit $600,000. The forfeiture judgment was ordered joint and several with Midamar. ISA must also abide by a 5 year term of probation.
United States Attorney Kevin W. Techau stated following sentencing, “These are serious offenses that were not an aberration—something that occurred once or twice. This defendant’s conduct was orchestrated, coordinated and planned. Most importantly, the conduct was driven by greed.” Techau went on to note, “Mr. Aossey directed his employees to change labels and falsify accompanying records to get beef products into foreign countries contrary to the import restrictions of those countries. By doing this, he placed his profit motive above the interests of foreign consumers of halal beef who wrongly believed the products they purchased and consumed had originated from slaughter facilities that met the strict religious slaughter requirements imposed, and specifically approved, by the regulatory agencies in each country.”
“IRS Criminal Investigation is committed to unraveling complex financial transactions and schemes of this nature to assist our law enforcement partners,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “The proceeds of illegal activity are used as fuel to continue their criminal conduct.”
Aossey is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Aossey’s sons Jalel, age 41, and Yahya, age 46, also both from Cedar Rapids, have also been convicted in connection with same scheme as Midamar and ISA. Their sentencing date is March 11, 2016.
The case was prosecuted by Assistant United States Attorney Richard L. Murphy and Timothy L. Vavricek and investigated by the United States Department of Agriculture Office of Inspector General Investigations and Internal Revenue Service Criminal Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers: 14-CR-00116-LRR (William B. Aossey, Jr.); 14-CR-00138-LRR (Midamar & ISA).
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Portsmouth Man Pleads Guilty to Armed RobberyRead the Press Release
NORFOLK, Va. – Sherrod Cannon, 24, of Portsmouth, pleaded guilty today to conspiracy to interfere with commerce by means of robbery and to brandishing a firearm during a crime of violence. The charge stems from three separate armed robberies Cannon committed in Portsmouth and Chesapeake in April 2015.
Cannon was indicted by a federal grand jury on Oct. 22, 2015. According to court documents, videotape surveillance at the third 7-Eleven that was robbed showed Cannon’s co-conspirator casing the store just minutes before Cannon entered and pointed a revolver at the employees. Shortly after the robbery, officers identified two suspects matching the description provided by the victim, who later identified Cannon as the gunman. Police found cash matching the amount taking from the registers evenly split between Cannon and his co-conspirator. Cannon also had a $2 bill, which the victim confirmed was stolen from the cash register during the robbery. Police later recovered the loaded .38 caliber revolver that was used during the armed robbery.
The date and location of each robbery is listed below:
Date
Location
April 10, 2015
7-Eleven, 5001 Portsmouth Boulevard, Portsmouth
April 13, 2015
7 Eleven, 3445 Western Branch, Chesapeake
April 27, 2015
7-Eleven, 3500 Deep Creek Boulevard, Portsmouth
Cannon faces a mandatory minimum penalty of seven years in prison, and a maximum penalty of life in prison when he is sentenced on June 2, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) Washington Field Division; Kelvin L. Wright, Chief of Chesapeake Police; and Tonya D. Chapman, Chief of Portsmouth Police, made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla, and Special Assistant U.S. Attorney John F. Butler are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-121.
Pekin Man Pleads Guilty to Distribution of Child Pornography and Impersonating a U.S. MarshalRead the Press Release
Peoria, Ill. – Arthur D. Wheeler, 30, of the 600 block of Harberts, South Pekin, Ill., pleaded guilty in U.S. District Court today to one count of distribution of child pornography and one count of impersonating a federal officer. Wheeler entered his plea before Chief U.S. District Judge James E. Shadid. The agreement includes a stipulated sentence of 20 years in federal prison for distributing child pornography to run concurrent with a sentence of three years for impersonating a federal officer, subject to acceptance by the court. Sentencing has been scheduled for June 23, 2016.
Assistant U.S. Attorney Ronald L. Hanna is prosecuting the case. The charges are the result of an investigation conducted by the U.S. Secret Service; task force members of the Central Illinois Cyber Crime Unit, including the Peoria County Sheriff’s Office and the Bloomington Police Department; the Pekin Police Department; Illinois State Police; and the U.S. Marshal’s Service.
According to court documents, in May 2015, Wheeler obtained nude photos from a minor female in Missouri by receiving them on his phone and by accessing the minor’s Facebook account. Wheeler appeared June 1, 2015, in the Circuit Court of Tazewell County seeking an order of protection against the minor’s family. Wheeler stated to the court that the minor’s family had threatened him because of his communications with the minor during the preceding two weeks. During the court proceeding, Wheeler produced his phone, which was ultimately seized and examined by law enforcement. The forensic review revealed that on three separate occasions, in late May and early June 2015, Wheeler used the cellphone’s text function to send naked images of the minor to approximately 120 people in the area code where the minor lives.
Wheeler also acknowledged during his plea hearing that on June 1, 2015, he impersonated a U.S. Marshal in an attempt to get information from an individual about the minor’s whereabouts.
Wheeler is a registered sex offender as a result of a prior conviction for a sex crime involving a minor in Illinois in 2011. He has remained in the custody of the U.S. Marshals Service since he was arrested on Aug. 24, 2015.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
North Carolina Man Sentenced for Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Kelly Atkinson, 32, of Raleigh, N.C., who was convicted of conspiracy to commit bank fraud, was sentenced to 12 months in prison by U.S. District Judge, Richard J. Arcara. The defendant has also been ordered to pay $443,995 in restitution.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant conspired with Brian Avery Smith, a Buffalo man, who was also convicted of bank fraud, to defraud credit unions and other lenders of hundreds of thousands of dollars. The scheme was accomplished through the submission of fraudulent loan applications, which claimed to be for the purchase of automobiles, computers, and furniture, along with fraudulent supporting documentation for the loans.
To accomplish the scheme, Atkinson and Smith also opened bank accounts in Buffalo in the names of fictitious companies. Much of the loan proceeds were distributed into these accounts and retrieved by Atkinson and Smith.
The sentencing was the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Nine Defendants in Vast Cocaine Conspiracy SentencedRead the Press Release
G.F. “Pete” Peterman, III, Acting United States Attorney for the Middle District of Georgia, announced that nine defendants in a far-reaching conspiracy to distribute cocaine were sentenced as of Wednesday, February 25, 2016, by the Honorable Hugh Lawson, Senior United States District Judge. These individuals and their respective sentences include:
Andrew Carter, age 38 of Omega, Georgia- 360 months
Juan Pablo Cuevas, age 54 of Atlanta, Georgia - 240 months
Maurice Todd Carter, age 35 of Omega, Georgia- 240 months
Jose Alfredo Martinez, age 40 of Omega, Georgia- 200 months
Kenyatta Mitchell, age 33 of Tifton, Georgia- 150 months
Lataris Waters, age 26 of Omega, Georgia- 60 months
Jessica Tellez, age 32 of Omega, Georgia- 66 months
James Waters, age 52 of Tifton, Georgia- 60 months, and
Juan Sanchez Hidalgo, 57 of Tifton, Georgia- 42 months.
From January 1, 2013, through October 28, 2014, the defendants acquired kilogram quantities of cocaine ultimately distributed throughout Cook, Colquitt and Tift County, Georgia. Between August 29, 2014, and September 28, 2014, intercepted communications revealed Defendants acquired between 10 to 15 kilograms of cocaine per week. On September 25, 2014, a traffic stop of Jose Martinez, Jessica Tellez, and Juan Sanchez Hidalgo resulted in the seizure of $225,937 of drug money en route to Juan Pablo Cuevas. Search warrants executed that same date on residences of Maurice Todd Carter, James Waters, and other defendants resulted in the seizure of an additional approximately $50,000, 3 kilograms of cocaine and 11 firearms.
“The teamwork of local, state and federal law enforcement, working together, shut down this major drug running business in South Georgia. There is no parole in the federal prison system. With these sentences, our community, our citizens and our children will be safe from the criminal activities of these individuals for up to thirty years in the case of the ring leader. This is outstanding work by our law enforcement officers and prosecutors,” stated Acting U.S. Attorney G.F. Peterman, III.
Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division stated, “Today is a victory, not only for the multitude of law enforcement agencies who dismantled this organization, but for the citizens of the affected communities. Now that these criminals have been removed from the streets, our communities are much safer. This effort would not have been successful without the high-level of cooperation between our federal, state and local law enforcement counterparts.”
“This investigation is an example of local, state, and federal law enforcement agencies working together to make a positive impact in the local communities of southwest Georgia. The blending of these resources has resulted in the successful dismantling and prosecution of a major drug trafficking organization,” commented Special Agent in Charge Kim Baker of the GBI Region 15 Field Office.
“This is the result of a unified effort to combat illegal drugs in Tift County. I want to thank all agencies and their personnel for their dedicated service to our community,” said Sheriff Gene Scarbrough of the Tifton County Sheriff’s Office.
The case was investigated by the Drug Enforcement Administration, Georgia Bureau of Investigation, Mid-South Narcotics Task Force, and the Tift, Crisp, Cook, and Colquitt County Sheriff’s Offices. Assistant United States Attorney Julia Bowen is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-752-3511.
New Orleans man pleads guilty to possessing fake credit/debit cardsRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a New Orleans man pleaded guilty to possessing dozens of fake credit and debit cards.
Terrance Milton, 23, of New Orleans, La., gave a conditional guilty plea before U.S. Magistrate Judge Kathleen Kay to one count of possession of 15 or more counterfeit or unauthorized access devices. The plea will become final when accepted by Judge Patricia Minaldi. According to the guilty plea, Milton was traveling with the driver of a vehicle May 15, 2014 on Interstate 10 eastbound in Calcasieu Parish when the vehicle was stopped for a traffic violation. The law enforcement officer found 36 credit/debit cards on Milton’s person. The defendant also possessed a fake driver’s license matching the fictitious name printed on the credit/debit cards.
Milton faces up to 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date of June 2, 2016 was set.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
New Orleans East Man Pleads Guilty to Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KENNETH MIXON, age 31, of New Orleans, pled guilty yesterday to conspiracy to distribute and to possess with the intent to distribute heroin.
MIXON is facing a maximum sentence of twenty years in prison and a possible fine up to $1,000,000. U.S. District Judge Ivan L.R. Lemelle set sentencing on May 25, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is responsible for the prosecution.
New Jersey Man Guilty of $148 Million Investment Fraud SchemeRead the Press Release
Baltimore, Maryland – Jonathan E. Rosenberg, age 47, of West Orange, New Jersey, pleaded guilty today to conspiring to commit wire fraud in connection with a complex scheme to defraud investors and lenders by selling fraudulent investment portfolios of debts purportedly owed by hospital patients. Rosenberg has agreed to the entry of an order to pay restitution of $148,251,859, the amount of the investors’ losses.
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; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“Jonathan Rosenberg and his co-conspirators perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $148 million,” said U.S. Attorney Rod J. Rosenstein. “The conspirators pretended that they were repaying investors with revenue earned by collecting patient debts, but they were really using the money of new victims to repay previous investors.”
Rosenberg and co-conspirator Douglas Kuber operated Account Receivable Services, LLC (ARS) in New York, New York. Beginning in February 2007, they entered into an agreement with International Portfolio, Inc. (IPI), which was operated by co-defendant Robert Feldman and Feldman’s business partner, to promote the sale of IPI debt portfolio. Pursuant to their agreement, IPI acquired accounts receivables from hospitals (past due patient accounts), bundled them into investment portfolios, and then sold the portfolios to ARS at a discounted rate. ARS’s purchases of the medical debt portfolios from IPI came from investors who agreed to lend money to ARS on a fixed-term basis in return for a high, fixed interest rate. IPI agreed to manage the collection activity for each debt portfolio that IPI sold. Any funds collected by IPI were to be forwarded to escrow accounts opened and maintained by ARS, which, in turn, would use the funds to cover the periodic interest payments and outstanding balances owed to the investors.
Fraudulent Inflation of Purchase Prices for IPI Debt Portfolios to Obtain Larger Investor Loans
According to his plea agreement, Rosenberg and Kuber misrepresented to investors that a loan secured by IPI debt portfolios would not be used to pay up-front fees and commissions associated with the investment offering. In fact, however, ARS and IPI devised an elaborate process involving the use of multiple escrow accounts and independent accountants to feign a transparent tracking of the deposit of the loan proceeds, the revenue from collection activity, the repayment of interest, and the sale of portfolios. Funds to pay a 5% to 10% fee would come from the investor’s loan proceeds. Pursuant to this undisclosed fee arrangement, ARS and IPI would agree to a concealed purchase price for a debt portfolio. Then they would tell the investor that the portfolio price was 5% to 10% higher than concealed price.
IPI agreed to kickback the loan proceeds in excess of the true purchase prices to Rosenberg and Kuber. The kickbacks were characterized as a refund or a rebate. In so doing, ARS and IPI avoided the intricate escrow arrangement they had created to convince investors to finance the joint venture. From June 2007 to March 2009, Rosenberg and Kuber made kickbacks of investor loan proceeds to themselves totaling in excess of $8 million.
In reliance on those misrepresentations, investors provided loans to ARS of approximately $145 million to purchase IPI debt portfolios, which IPI managed. Other investors purchased approximately $122,500,000 worth of IPI debt portfolios, which IPI also managed.
Fraudulent Inflation of Collection Results
In order to induce existing investors to maintain and increase their participation in the investment scheme and to persuade new investors to join, ARS and IPI falsely represented the amount of income being generated from the collection activity for the medical debt portfolios. It became apparent almost from the start that collections were significantly inadequate, not only in their failure to cover periodic interest payments that ARS owed its investors, but also to repay the investors’ principal.
Rosenberg agreed that IPI would advance ARS the money needed to make ARS’s periodic interest payments to the investors. From July 2008 to December 2009, and without the investors’ knowledge, Rosenberg, Feldman and Kuber wired or caused to be wired approximately 209 advances from IPI into the bank accounts of the ARS debt portfolios, which were subsequently used to pay periodic interest payments due to an investor and/or inflate the collection history of the respective investor debt portfolios. Misleading collection reports were created to deceive the investors.
After their plan to subsidize ARS with monthly advances was implemented, an investor was induced to fund the purchase of 12 more portfolios between July and November 2008, totaling approximately $65 million in new investments. Another investor representative living in West River, Maryland was induced to fund the purchase of a portfolio on November 8, 2008 for $10 million, and another portfolio on May 26, 2009 for $5 million.
To conceal poor collection results and artificial resale prices for IPI debt portfolios, and to assure a continuing flow of new funding into the investment scheme, Rosenberg, Feldman, and Kuber continued to solicit existing and prospective investors to purchase or finance IPI debt portfolios. In so doing, they fraudulently used new investor funds to make interest and resale payments in order to meet the investment benchmarks of prior investors.
Rosenberg Owned Three Other Companies that Purchased IPI Debt Portfolios
Finally, Rosenberg owned and controlled three other companies that recruited investors for medical accounts receivable portfolios purchased from IPI: JER Receivables, LLC (JER); International Portfolio Access, LLC (IPA); and Receivable Partners, LLC.
A wealth management company owner (Owner) invested with JER under an agreement which was structured as a loan but provided a guaranteed 30% rate of return over 16 months. From July 2008 to February 2010, the wealth management company invested $18.7 million in nine transactions with JER to purchase portfolios of health care accounts receivable from IPI. JER used all of the proceeds to purchase medical debt portfolios from IPI, and the wealth management company made a $930,000 profit from two of the transactions. In October 2010, however, the wealth management company issued demand notices to JER on a number of the outstanding transactions due to JER failing to make required payments.
The Owner formed a new wealth management company which entered into a $750,000 loan agreement with IPA in October 2009. The loan was to be used to secure a larger credit line to purchase additional healthcare accounts receivable portfolios. The credit line never materialized. From February 2011 to January 2012, this new company made a series of loans totaling $18.6 to Receivable Partners. These loans were used to pay back some of the investors of the original wealth management company who purchased portfolios through JER.
Rosenberg faces a maximum sentence of 20 years in prison. U.S. District Judge James K. Bredar scheduled sentencing for June 14, 2016, at 9:30 a.m.
Robert Feldman, age 68, of Beach Haven, New Jersey, and Douglas A. Kuber, age 55, of Livingston, New Jersey, previously pleaded guilty to their participation in the conspiracy and face a maximum sentence of 20 years in prison. Feldman and Kuber are scheduled to be sentenced on June 2 and 30, 2016, respectively.
Co-defendant Richard Shusterman, age 53, of Highland Beach, Florida, has pleaded not guilty to charges filed against him relating to the scheme. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 thanked the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.
New Cumberland Defense Depot Worker Indicted on Indecent Sexual Contact ChargesRead the Press Release
HARRISBURG - The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that a former worker at the DLA Distribution Center Susquehanna in New Cumberland was indicted yesterday by a federal grand jury in Harrisburg on charges he had illegal and unwanted sexual contact with three co-workers.
According to United States Attorney Peter Smith, Ricardo Reyes, age 35, of Harrisburg, Pennsylvania was an employee at the Defense Distribution Center Susquehanna in New Cumberland and in June of 2015, Reyes allegedly had indecent, unwanted sexual contact with three women, identified by the grand jury only by their initials.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is a 2 year term of imprisonment on each count, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case was investigated by the DLA Office of Inspector General. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
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Nashville Woman Sentenced to Five Years in Prison for Trying to Bribe WitnessRead the Press Release
NASHVILLE, Tenn. – February 25, 2016 – Laquanda Boyce,33, of Nashville, Tenn., was sentenced today to serve five years in prison for her role in attempting to bribe the victim of a shooting, announced David Rivera, United States Attorney for the Middle District of Tennessee. Boyce pleaded guilty on September 4, 2015, to conspiracy to tamper with a witness. The shooter, Michael Calloway, was sentenced last week to serve 15 years in prison for being a felon in possession of ammunition, conspiracy to tamper with a witness and attempting to obstruct justice.
According to the statement of facts, on the morning of April 12, 2015, Calloway and Boyce were assaulting a woman at the J.C. Napier housing development when another person intervened and tried to protect the woman being assaulted. Later in the afternoon, Calloway and Boyce returned with Calloway carrying a firearm. Upon seeing the witness again, Calloway fired eight or nine shots at him, striking him once in the leg. The gunshot victim was treated at Vanderbilt Hospital and subsequently identified Calloway as the shooter.
Calloway was arrested the following day and learned that he would likely face federal firearms charges. He and Boyce then devised a scheme to pay the witness $1200 in exchange for his refusal to testify or for testifying that he had mistakenly identified Calloway as the person who had shot him.
Calloway and Boyce were subsequently indicted on witness tampering and obstruction charges.
These cases were investigated by the Metropolitan Nashville Police Department Gang Unit and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
NY Man Arraigned in RI in Alleged Conspiracy to House Sophisticated Marijuana GrowsRead the Press Release
PROVIDENCE, R.I. – Samin Chang, 38, of New York, NY, was arraigned in U.S. District Court in Providence, RI, today on charges that he allegedly participated in a conspiracy to house numerous sophisticated indoor marijuana grow operations inside a converted Providence mill building and a Providence residence. In August 2015, federal, state and local law enforcement discovered at least 1,400 marijuana plants in various stages of growth located inside the former mill building and the residence.
Named with seven others in a four-count superseding indictment returned on February 16, 2016, Samin Chang is charged with conspiracy, using and maintaining a drug involved premises, and manufacturing more than 100 marijuana plants. A not guilty plea was entered at Chang’s arraignment before U.S. District Court Magistrate Judge Patricia A. Sullivan, at which time the government alleged that Chang was the leader of the conspiracy.
Chang was arrested in New York City on February 16, 2016, on a federal arrest warrant issued by the U.S. District Court in Rhode Island. He has been detained in federal custody since his arrest.
The superseding indictment and Chang’s arraignment are announced by United States Attorney Peter F. Neronha; Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI; Michael Ferguson, Special Agent in Charge of the DEA’s New England Field Division; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Providence Police Chief Colonel Hugh T. Clements, Jr.
On August 12, 2015, FBI agents, assisted by the DEA, Rhode Island State Police and the Providence Police Department, executed nine court authorized search warrants in and around a former mill building at 725 Branch Avenue in Providence, where it is alleged that law enforcement discovered at least 1,400 marijuana plants in various stages of growth. The grows were located inside numerous, otherwise vacant, apartments and offices inside the converted mill building. A tenth search warrant was executed at a residence at 60 Valley Street in Providence, where law enforcement discovered approximately 100 marijuana plants in various stages of growth. Law enforcement also seized a significant quantity of equipment and supplies allegedly used in the cultivation of marijuana plants.
Also named in the superseding indictment are Richard A. Yang, 36, Ilhwan Cha, 33, Ki T. Kwon, 32, Brian Lee, 28, Zipora Sardjuli, 55, Doddy Sambuaga, 45, and Irwan Anwar, 53, all of New York, NY.
While executing the court authorized search warrants inside the converted mill building, law enforcement seized a .22 caliber firearm and ammunition. The owner of the building, William L. Ricci, 69, of Providence, was charged by way of a criminal complaint with being a felon in possession of a firearm. According to a plea agreement filed with the court, Ricci has agreed to plead guilty to a charge of being a felon in possession of a firearm. A change-of-plea hearing has been scheduled for March 11, 2016.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Midland Woman Sentenced to Five Years in Federal Prison for Wire Fraud Scheme and Obstructing JusticeRead the Press Release
In Midland today, 55-year-old former federal fugitive Judy Kay Fryar was sentenced to five years in federal prison for her role in a wire fraud scheme that caused an estimated $140,000 loss to her employer and for obstructing justice announced United States Attorney Richard L. Durbin, Jr., FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division, United States Marshal Robert Almonte and Midland Police Chief Price Robinson.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Fryar pay $138,589 restitution and be placed on supervised release for a period of three years after completing her prison term.
On December 9, 2015, Fryar pleaded guilty to one count of wire fraud and one count of obstruction of justice. By pleading guilty, Fryar admitted that from October 2009 to June 2011, she devised a scheme to embezzle money including monthly lease payments owed to her employer, SKP Holdings in California.
According to court records, Fryar, as the former onsite property manager for the West Park Apartments in Midland, repeatedly accepted cash payments from tenants and used those monies for her own personal benefit. Fryar also altered various tenant lease payments in the company’s online property management records in an attempt to conceal her scheme. Fryar’s scheme was revealed in 2011 when an owner who was conducting an on-site visit encountered a West Park Apartment tenant attempting to make a rental payment with cash.
According to the factual basis filed in this case, Fryar obstructed justice by falsely fabricating a medical condition to obtain favor, sympathy and ten consecutive continuances between January 2013 and July 2015 for jury selection and trial on the above mentioned wire fraud charge. The Court reset jury selection and trial dates based on materially false representations that Fryar had been diagnosed with Stage 4 Lung Cancer and was undergoing extensive radiation, chemotherapy and other experimental treatments. According to Fryar, her alleged cancer progressed to the point that she no longer had sufficient mental and physical abilities to effectively participate in a trial. During this time, Fryar forged two letters and medical records from M.D. Anderson Cancer Center to support her materially false representations. Prior to the filing of her first of ten continuance motions, on August 30, 2012, M.D. Anderson Cancer Center notified Fryar that she was negative for carcinoma, melanoma and sarcoma, thus, Fryar did not require cancer treatment and/or any other related services at M.D. Anderson Cancer Center.
On July 21, 2015, Fryar was arrested by the U.S. Marshals Lone Star Fugitive Task Force at her family’s lake house in Coke County following the issuance of a bench warrant after she failed to appear in court for a pre-trial hearing earlier in the month. She has remained in custody since her arrest.
This investigation was conducted by the Federal Bureau of Investigation, Midland Police Department Fraud Unit and the United States Marshals Service. Assistant United States Attorneys Yvonne Gonzalez and Stanley Serwatka prosecuted this case on behalf of the Government.
Mescalero Apache Man Sentenced to 78 Months for Federal Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Jerrick Blake, 22, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this morning in Las Cruces, N.M., to 78 months in federal prison followed by three years of supervised release for his voluntary manslaughter conviction.
According to court filings, Blake killed the victim on the afternoon of Nov. 3, 2014, by stabbing him in the chest with a knife. The crime occurred during an argument between Blake and the victim on the Mescalero Apache Reservation in Otero County, N.M.
On June 16, 2015, Blake pled guilty to a felony information charging him with voluntary manslaughter. In entering his guilty plea, Blake admitted killing the victim by stabbing him in the chest during a sudden quarrel.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and the Mescalero Apache Tribal Police Department. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Member of Cherry Hill Group ‘UDH’ Pleads Guilty to Racketeering Conspiracy, Including MurderRead the Press Release
Baltimore, Maryland – Cornell Harvey, a/k/a “Little Head,” age 28, of Baltimore, pleaded guilty today to conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore. Harvey also admitted his participation in a murder.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
“Disputes between rival drug gangs lead to many shootings and murders in Baltimore City,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a lengthy and intensive investigation, we will hold accountable the criminals who turned Cherry Hill into a war zone.”
According to his plea agreement, from at least 2007 to 2013 Harvey was a member of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
Harvey admitted that as a member of UDH he sold crack cocaine, heroin and other narcotics with UDH members. In addition to selling drugs, Harvey admitted that on October 5, 2010, he and co-defendant Dominic Evans committed an armed robbery of two individuals who were selling marijuana in the area, but who were not UDH members. After stealing $150 from one of the victims, Harvey began to shoot at the two individuals. One of the victims was shot once and survived his wound, but the other victim, who was shot at least three times, died from her wounds. The murder was captured on CCTV. A Baltimore City jury acquitted Harvey and Evans of this murder.
Finally, on January 29, 2011, at approximately 1:30 am, Harvey, and other gang members were arrested riding around Cherry Hill in a 1997 green Cadillac Seville stolen just over 24 hours earlier. Upon trying to stop the vehicle, a chase ensued, and all four occupants bailed out in the rear of the 2800 block of Bookert. Harvey was chased by an officer who saw him toss a fully loaded 9mm .357 Glock firearm. Officers also recovered from the vehicle: a box containing 39 rounds of .38 special ammunition; a plastic bag containing 33 rounds of 9mm ammunition; a ski mask; and a glove.
According to Harvey’s plea agreement, the green Cadillac Seville was stolen late on January 27, 2011, after the victim was approached by three men as he was filling the vehicle at a gas station at North Avenue and McCulloh Street, in Baltimore City, Maryland. The three men asked the victim for a ride. Shortly thereafter in the 1800 block of Eutaw Place, the men donned masks and the victim was ordered out of the vehicle at gunpoint where he was shot and left for dead.
Throughout the course of Harvey’s involvement in the UDH drug conspiracy Harvey knew that the conspiracy involved between 840 grams and 2.8 kilograms of crack cocaine and between 3 and 10 kilograms of heroin
Harvey and the government have agreed that if the Court accepts the plea agreement Harvey will be sentenced to 262 months in prison. U.S. District Judge George L. Russell, III has scheduled sentencing for June 17, 2016, at 11:00 a.m.
Co-defendant Dominic Evans, a/k/a “FlatLine,” age 25, of Baltimore, previously pleaded guilty to his role in the racketeering conspiracy and was sentenced to 30 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
McAlester Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MALCOLM DEWAYNE ELLIS, age 38, of McAlester, Oklahoma pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
The charge is a result of an investigation by the McAlester Police Department. The defendant was indicted in January, 2016.
The Indictment alleged that on or about April 6, 2015, within the Eastern District of Oklahoma, the defendant, MALCOLM DEWAYNE ELLIS, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Bersa, Model Mini 9 Firestorm, 9mm caliber semi-automatic pistol, serial number 621726, manufactured in Argentina, Imported by “RSA Enterprises INC”, which had been shipped and transported in interstate commerce.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
Assistant United States Attorney Dean Burris represented the United States.
Massachusetts Company Pleads Guilty in Connection with Disadvantaged Business Enterprise FraudRead the Press Release
BOSTON – Transit Safety Management, Inc., a Georgetown, Mass. consulting company, pleaded guilty today to making a false statement in connection with its certification for favored contracting status.
Transit Safety Management, Inc. (TSM), pleaded guilty to one count of making a false statement to a state agency in order to maintain its status as a "disadvantaged business enterprise" (DBE). U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for May 25, 2016.
In order to qualify as a DBE, a company’s management must be controlled by a socially or economically disadvantaged individual such as a woman or minority. The purpose of the program is to give an economic advantage to minorities and women who run their own companies. However, the manager of the DBE cannot also engage in employment that would prevent him or her from devoting sufficient attention to the affairs of the DBE. In this case, investigators discovered that TSM’s purported owner was a full-time employee of a federal agency and the business was really operated by her husband making it ineligible for certification as a DBE.
TSM provided consulting services to the railroad industry, focusing on safety and operations management. Shortly after it was founded in 1999, TSM's owner certified the company as a "disadvantaged business enterprise" (DBE). As a result, TSM was able to take advantage of federal regulations aimed at promoting the participation of minority and disadvantaged businesses in federally-funded public construction contracts. Under the DBE regulations, a contractor to transportation projects must either subcontract a percentage of its work to a DBE or show that it made a good faith effort to subcontract work to a DBE but was unable to do so. This requirement makes the DBE status a valuable and potentially lucrative designation.
In order to maintain its DBE certification, TSM had to make yearly affirmations that it was still eligible and that nothing had changed that would affect its eligibility for the favored DBE status. Despite this, TSM lied about whether it met the criteria for DBE status. According to court documents, TSM’s owner was hired as a full-time employee with a federal agency in 2005. As a full time federal employee, TSM’s purported manager could not control TSM under the regulations. Nevertheless, TSM failed to disclose this change and continued to make its yearly affirmations to maintain is DBE status.
As part of its plea agreement, TSM has agreed to pay a fine of $84,000 and dissolve its operations.
United States Attorney Carmen M. Ortiz; Todd Damiani, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, Office of Investigations; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Maryland Woman Pleads Guilty to Conspiring to Taking Part in Scheme Involving Prescription and Health Care FraudRead the Press Release
WASHINGTON - Claire Elizabeth Rice, 68, of Silver Spring, Md., pled guilty today to federal charges of conspiracy to obtain controlled substances by prescription fraud and participating in a health care fraud scheme, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
Rice entered the plea in the U.S. District Court for the District of Columbia. She faces a maximum sentence of four years in prison for the conspiracy count and up to 10 additional years for the health care fraud scheme. The Honorable Richard J. Leon scheduled sentencing for June 3, 2016. As part of the plea agreement, Rice also agreed to pay $16,175, representing her share of illegal proceeds obtained from two health care plans.
Both offenses were charged in a federal indictment returned in 2014. In her plea, Rice admitted to a statement of offense under oath concerning her conduct. From 2008 through 2013, Rice presented and filled 91 forged prescriptions for drugs, including oxycodone, a synthetic opiate, in the name of a practicing cardiologist with offices in Northwest Washington. Rice was never a patient of this doctor.
According to the statement of offense, Rice got the prescriptions from her co-defendant, Novella White. White, 53, also known as Novella Brown, of Accokeek, Md., has denied her role in the offenses and is facing a jury trial set for April 18, 2016. White was a former employee of the cardiologist, and according to the doctor, did not have authority to write prescriptions for herself or for Claire Rice. White is charged with presenting forged prescriptions for oxycodone and other drugs in her own name.
Rice caused the forged prescriptions that she obtained to be billed to health care plans such as Express Scripts and Blue Cross and Blue Shield. The health plans were defrauded the costs of filling these various prescriptions.
In announcing the guilty plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Special Agent in Charge DiGiulio commended the work of those who investigated the case from the FBI’s Washington Field Office and the HHS Office of the Inspector General. They also expressed appreciation for the work of Assistant U.S. Attorneys John P. Dominguez and Jennifer Kerkhoff, who prosecuted the case.
Marion Man Sentenced on Federal Firearm and Drug ChargesRead the Press Release
Contact Person: Chris Taylor (843) 665-6688
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Gabriel Emanuel Foxworth, age 27, of Marion, South Carolina, was sentenced to a total of 156 months imprisonment in federal court in Florence, South Carolina. Foxworth’s term of imprisonment will be followed by an appropriate term of supervised release. In October 2015 Foxworth pled guilty to possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime, all in violation of 21 U.S.C. § 841(a)(1)(b)(1)(C) and 18 U.S.C. § 924(c)(1)(A). Chief United States District Judge R. Bryan Harwell of Florence sentenced Foxworth to 36 months for the marijuana charge and 120 months for the firearm charge.
Evidence presented at the earlier change of plea hearing established that on August 27, 2014, a Marion County Combined Drug Unit officer saw Foxworth driving a car on Gregg Avenue. Foxworth was stopped and subsequently arrested because his license was suspended and police had an active warrant for his arrest. During a pat down search of Foxworth, police found a 9mm pistol loaded with 14 rounds of ammunition in Foxworth's waistband. Police searched Foxworth’s car and located a quantity of marijuana inside the car. Foxworth has prior convictions for distributing cocaine (2007) and possession with intent to distribute marijuana (2012).
The case was investigated by agents of the ATF and Marion County Combined Drug Unit. This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.
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