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Monday 4 January 2016
Landscaping Executive to Plead Guilty to Orchestrating Schemes to Avoid Paying Union Benefits, Falsify Unemployment DocumentsRead the Press Release
PROVIDENCE, R.I. – Steven F. Pagliarini, 57, Executive Vice-President and Treasurer of Central Landscaping Construction Company, located in Johnston, R.I., and Executive Vice-President of Central Nurseries, Inc., located in Chepachet and Johnston, R.I., has agreed to plead guilty in federal court to charges that he allegedly orchestrated a scheme in which Central Landscaping avoided paying contractually obligated union benefits for employees of two unions who worked on federally-funded projects, by paying a portion of the employees’ wages through Central Nursery, a non-union company.
In addition, Pagliarini has agreed to plead guilty to allegedly providing false information to the Rhode Island Department of Labor and Training (RIDLT) regarding the employment status of some of his Central Nursery employees. Based on the information allegedly provided to RIDLT, the employees were paid unemployment compensation they would not have been paid had accurate information regarding the employees’ employment status been provided.
According to an information and plea agreement filed in U.S. District Court in Providence, Pagliarini will plead guilty to three counts of falsification of documents and one count of wire fraud. Pagliarini is scheduled to be arraigned on Thursday.
The filing of the information and plea agreement is announced by United States Attorney Peter F. Neronha; Cheryl Garcia, Special Agent in Charge of the New York Region of the U.S. Department of Labor - Office of Labor Racketeering and Fraud Investigations; Susan A. Hensley, Regional Director, U.S. Department of Labor Employee Benefits Security Administration; Todd Damiani, Special Agent in Charge of Region One U.S. Department of Transportation Office of Inspector General; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; and Scott Jensen, Director of RIDLT.
According to court documents, it is alleged that at various times, between January 2007 and December 2010, Pagliarini submitted false documents to union welfare and pension plan administrators of two unions that represent construction equipment operators and other employees of Central Landscaping. It is alleged that the documents did not accurately reflect the actual number of hours worked by some employees and the actual amount of wages paid to those employees.
The employees worked on federally-funded projects at the Hartford Park Project in Providence and the I-195 Relocation Project.
It is also alleged in court documents that in order to avoid paying wages to some employees between November 2009 through April 2010, Pagliarini devised a scheme in which he reported to the RIDLT that the employees of Central Nurseries had been laid-off because of a lack of work. It is alleged that, in fact, Pagliarini required the employees to work part-time. Pagliarini did not pay the employees. Instead, RIDLT paid the employees a total of $68,487 in unemployment compensation.
An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Attorney’s Office, the U.S. Department of Labor - Office of Labor Racketeering and Fraud Investigations, U.S. Department of Labor Employee Benefits Security Administration, U.S. Department of Transportation Office of Inspector General the U.S. Department of Housing and Urban Development Office of Inspector General, and the Rhode Island Department of Labor and Training.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Lancaster Resident Charged with Unemployment Compensation Benefits FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal charge was filed today in U.S. District Court in Harrisburg against Angel Luis Carrasco-Rivera for fraudulently obtaining unemployment benefits.
According to U.S. Attorney Peter Smith, Carrasco-Rivera, age 54, of Lancaster, was charged in a Criminal Information with mail fraud. The charge stems from Carrasco-Rivera filing claims for unemployment compensation benefits from 2008 through late 2012 with the Pennsylvania Department of Labor and Industry in Harrisburg. Carrasco-Rivera allegedly knew he was not entitled to those benefits because he was employed full time when he applied for and received them. Carrasco-Rivera allegedly obtained more than $102,000 in benefits to which he was not entitled during that four-year period.
The government also filed a plea agreement that calls for Carrasco-Rivera to plead guilty and also pay back the more than $102,000 he illegally obtained. The plea agreement is subject to the approval of the court.
This matter was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, with assistance from the Pennsylvania Department of Labor and Industry, Internal Audits Division. Prosecution is assigned to Assistant U.S. Attorney James T. Clancy.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Justice Department reaches settlement with Kent State University to resolve allegations of discrimination in university-operated student housingRead the Press Release
The Justice Department announced today that Kent State University has agreed to pay $145,000 to settle a civil rights lawsuit alleging that the university had maintained a policy of not allowing students with psychological disabilities to keep emotional support animals in university-operated student housing. Under the settlement agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, KSU will:
• pay $100,000 to two former students who sought and were denied a reasonable accommodation to keep an emotional support dog in their university-operated apartment;
• pay $30,000 to a fair housing organization that advocated on behalf of the students;
• pay $15,000 to the United States; and
• adopt a housing policy that will allow persons with psychological disabilities to keep animals with them in university housing when such animals provide necessary therapeutic benefits to such students and allowing the animal would not fundamentally alter the nature of the housing.
“This settlement shows the department’s continued and strong commitment to ensuring that students in university housing are afforded the protections of the Fair Housing Act,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Those protections include accommodations for students with disabilities who need assistance animals in order to have an equal opportunity to enjoy the benefits of university housing.”
“Kent State University is to be commended for reaching an agreement that will benefit its students,” said U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio. “This agreement will help many people who are working hard to earn their fair share of the American dream.”
The proposed settlement would resolve a lawsuit filed by the department in 2014. In that lawsuit, the department alleged that KSU violated the Fair Housing Act when, in 2010, it denied a request to allow a student with a psychological disability and her husband to keep an emotional support dog in their university-operated student apartment. The students, along with the Fair Housing Advocates Association in Akron, Ohio, filed a complaint with the Department of Housing and Urban Development (HUD). HUD investigated the complaint, determined that KSU had violated the Fair Housing Act and referred the matter to the department. Under the proposed settlement, KSU has agreed to change its policy to accommodate similar requests going forward.
“Providers of on-campus housing have the same obligation to comply with the Fair Housing Act as other housing providers,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement reinforces the ongoing commitment of HUD and the Justice Department to ensuring that individuals with disabilities are granted the accommodations they need to perform daily life functions.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777 or through HUD’s website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Justice Department Reaches Settlement with Kent State University to Resolve Allegations of Discrimination in University-Operated Student HousingRead the Press Release
The Justice Department announced today that Kent State University (KSU) has agreed to pay $145,000 to settle a civil rights lawsuit alleging that the university had maintained a policy of not allowing students with psychological disabilities to keep emotional support animals in university-operated student housing. Under the settlement agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, KSU will:
• pay $100,000 to two former students who sought and were denied a reasonable accommodation to keep an emotional support dog in their university-operated apartment;
• pay $30,000 to a fair housing organization that advocated on behalf of the students;
• pay $15,000 to the United States; and
• adopt a housing policy that will allow persons with psychological disabilities to keep animals with them in university housing when such animals provide necessary therapeutic benefits to such students and allowing the animal would not fundamentally alter the nature of the housing.
“This settlement shows the department’s continued and strong commitment to ensuring that students in university housing are afforded the protections of the Fair Housing Act,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Those protections include accommodations for students with disabilities who need assistance animals in order to have an equal opportunity to enjoy the benefits of university housing.”
“Kent State University is to be commended for reaching an agreement that will benefit its students,” said U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio. “This agreement will help many people who are working hard to earn their fair share of the American dream.”
The proposed settlement would resolve a lawsuit filed by the department in 2014. In that lawsuit, the department alleged that KSU violated the Fair Housing Act when, in 2010, it denied a request to allow a student with a psychological disability and her husband to keep an emotional support dog in their university-operated student apartment. The students, along with the Fair Housing Advocates Association in Akron, Ohio, filed a complaint with the Department of Housing and Urban Development (HUD). HUD investigated the complaint, determined that KSU had violated the Fair Housing Act and referred the matter to the department. Under the proposed settlement, KSU has agreed to change its policy to accommodate similar requests going forward.
“Providers of on-campus housing have the same obligation to comply with the Fair Housing Act as other housing providers,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement reinforces the ongoing commitment of HUD and the Justice Department to ensuring that individuals with disabilities are granted the accommodations they need to perform daily life functions.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777 or through HUD’s website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Kent State Consent Decree
Jackson Man Sentenced to 73 Months for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss – Willie Lee James, 20, of Jackson, was sentenced by U.S. District Judge Daniel P. Jordan III to 73 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, U.S. Attorney Gregory K. Davis announced today. He was also ordered to pay a $1500 fine.
Willie Lee James was indicted on September 1, 2015 as part of the Jackson Violent Crime Initiative - a joint initiative between federal, state and local law enforcement agencies who are working together to reduce violent crime in the city of Jackson and to remove violent offenders from the streets of this community. The Initiative is an ongoing operation aimed at making the streets of Jackson and the surrounding communities safe for all citizens. Jackson Violent Crime Initiative partners include the Jackson Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigations (FBI), Drug Enforcement Administration (DEA), U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, and U.S. Secret Service.
This case was investigated by the Bureau of ATF and the Jackson Police Department. It was prosecuted by Assistant U.S. Attorneys John M. Dowdy, Jr. and Gregg Kennedy.
Houston, MO, Woman Pleads Guilty to Sister's Murder for HireRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Houston, Mo., woman pleaded guilty in federal court today to hiring someone to murder her sister.
Leta Faye Douglas, 52, of Houston, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Feb. 24, 2015, federal indictment.
By pleading guilty today, Douglas admitted that she agreed to pay another person – who was actually an undercover law enforcement officer – $2,000 to murder her sister. Douglas must forfeit the $2,000 that she paid the undercover officer to the government.
According to court documents, Douglas sent a letter to her ex-husband in January 2015, asking for his help. Douglas’s ex-husband, who lives in Nebraska, has been divorced from her for about 18 years and has not maintained contact with her. When he called her in response to receiving the letter, Douglas told him that she wanted her sister killed. Douglas told her ex-husband that her parents were in a home for the elderly and that her sister was in charge of their finances. He believed that Douglas wanted to have access to her parents' financial estate.
Douglas’s ex-husband contacted law enforcement authorities. An undercover employee of the Missouri State Highway Patrol contacted Douglas and made arrangements to meet in the Walmart parking lot in Houston on Feb. 9, 2015. The undercover, who was wearing an audio recording device, approached Douglas’s vehicle and got into the front passenger’s seat. During the initial conversation, she provided the undercover with a photograph of her sister and a hand-drawn map to her sister’s residence.
The entire conversation between Douglas and the undercover was recorded. Douglas told the undercover that her sister’s husband would also be home and that they had two dogs inside the house. She handed him an envelope that contained $2,000.
Douglas was arrested at her residence a few days later.
Under federal statutes, Douglas is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Missouri State Highway Patrol and the South Central Drug Task Force.
Home Renovation Company Owner Admits to Selling Fraudulent Personal Information to Obtain Loans and Lines of CreditRead the Press Release
Baltimore, Maryland – Michael Westbrook, age 37, of Parkville, Maryland, pleaded guilty today to conspiring to commit wire fraud and aggravated identity theft arising from a scheme to sell fraudulent social security cards to buyers to obtain more than $550,000 in loans and credit accounts.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Westbrook owned The Westbrook Project, LLC, a home renovation company. According to his plea, from February 2012 to October 2014, Westbrook conspired with others to receive bank loans, private loans, auto loans and lines of credit using stolen social security numbers, counterfeit social security card and personal identity information (PII) of actual persons to create a false and improved credit score.
Westbrook proposed to potential buyers that they re-establish a good credit score using misappropriated personal identity information. Westbrook supplied the buyer’s PII to a co-conspirator who would then associate a misappropriated social security number of an actual person with that buyer. Westbrook and his co-conspirator also provided buyers with counterfeit social security cards to match the stolen social security numbers. The buyers then used the PII, stolen social security numbers and counterfeit documents to open personal bank accounts, and to obtain loans and lines of credit from commercial lenders.
On at least eight occasions between February 2012 and August 2013, Westbrook opened bank accounts, credit card accounts and obtained auto loans using misappropriated social security numbers. The total loss caused by the conspiracy was more than $550,000 and involved more than 10 victims.
Co-defendant Donneltric Johnson, age 38, of Baltimore, previously pleaded guilty to his participation in the conspiracy and awaits sentencing.
Westbrook faces a maximum sentence of 20 years in prison for the conspiracy and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. U.S. District Judge J. Frederick Motz scheduled his sentencing for April 1, 2016, at 9:15 a.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore for its work in the investigation and thanked Special Assistant U.S. Attorney Lauren E. Perry, on detail from the Social Security Administration, who is prosecuting the case.
Green Bay Man Sentenced to 5 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
Gregory J. Haanstad, Acting United States Attorney for the Eastern District of Wisconsin, announced that on January 4, 2016, Kou Lee (age: 26) of Green Bay, Wisconsin, was sentenced by Chief United States District Judge William C. Griesbach, to 60 months in federal prison followed by 60 months of supervised release.
Lee had previously entered a guilty plea to a charge of knowingly possessing with the intent to distribute 50 grams or more of methamphetamine in violation of Title 21, United States Code, Section 841(a)(1). According to the plea agreement and other documents filed with the court, Lee was stopped for speeding in the Village of Little Chute, in Outagamie County, Wisconsin. During the traffic stop the defendant was found to be in possession of 95 grams of methamphetamine packaged for sale.
In pronouncing sentence, Chief Judge Griesbach noted that the defendant’s actions brought “poison” into the Green Bay community and ruined untold number of lives through addiction to methamphetamine.
This case was investigated by the Fox Valley Metro Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Former Youth Minister Sentenced to Serve 60 Years in Federal Prison for Producing Child PornographyRead the Press Release
WICHITA FALLS, Texas — Ryan Anthony Winner of Olney, Texas, was sentenced today by U.S. District Judge Reed C. O’Connor to 720 months (60 years) in federal prison, following his guilty plea in September 2015 to two counts of production of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Winner, 34, has been in custody since his arrest in July 2015 on a related federal complaint.
According to documents filed in the case, the investigation began when law enforcement learned that an individual, later identified as Winner, had created albums containing images of a minor male on a website that is used by persons interested in exchanging child pornography in order to meet and become child pornography trading partners.
On July 16, 2015, law enforcement executed a search warrant at two residences in Olney – one belonging to Winner and the other to his father. Law enforcement seized Winner’s laptop and identified several files depicting a nude, prepubescent minor male victim, whom Winner admitted he had taken on a camping trip where he and the minor male victim had gone “skinny dipping.” A forensic analysis of the laptop revealed the existence of another file, a still image of the same minor victim engaged in sexually explicit conduct with an adult male. That image appears to have been taken at the church where Winner worked as a youth minister.
Winner admitted that in late May 2015, he used a laptop computer to produce a video of a minor male whom he had enticed to engage in sexually explicit conduct. He also admitted that in August 2014, he used a laptop computer and a digital camera to produce a visual depiction of the same minor male engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety investigated. Assistant U.S. Attorney A. Saleem prosecuted.
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Former Pastor of Louisville Parish Guilty of Accessing and Viewing Child Pornography over the InternetRead the Press Release
LOUISVILLE, Ky. – The former pastor of a Louisville, Kentucky, parish pleaded guilty before U.S. District Court Judge David J. Hale today, in United States District Court, to charges of violating federal child exploitation laws, announced United States Attorney John E. Kuhn, Jr.
Stephen A. Pohl, age 57, voluntarily surrendered himself to the custody of the United States Marshals Service today, and will remain in custody until sentencing before Judge Hale on March 29, 2016 at 1:30 pm.
Pohl pleaded guilty to a single charge of knowingly accessing, via the Internet, with intent to view material that contained images of child pornography between January and August 2015. Pohl was initially charged with the same offense by criminal complaint on August 21, 2015. The complaint was filed after law enforcement officials executed two federal search warrants on August 12, 2015, in the work and living areas used by Pohl in the parish office and rectory of St. Margaret Mary Catholic Community, located at 7813 Shelbyville Road, in Louisville, Kentucky.
The investigation began after a child told his mother that Pohl had taken pictures of him that made him feel “weird.” When the child’s parents confronted Pohl about the pictures of their son, they saw similar pictures of another child and reported the matter to law enforcement. Law enforcement officials obtained the search warrants based on the inappropriate images. It is important to note that no child pornography images of Saint Margaret Mary school children were found on the digital devices seized and examined as a result of the search warrants. All child pornography evidence and the charge in this case relate to Pohl’s online searches and viewing.
Law enforcement officials arrested Pohl in Indian Rocks Beach, Florida, on Friday evening, August 21, 2015. Pohl was then held at the Pinellas County Jail until his transfer to the custody of the United States Marshals Service. He appeared in United States District Court for the Western District of Kentucky on September 2, 2015.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The Federal Bureau of Investigation in conjunction with Louisville Metro Police Department’s Crimes Against Children Unit conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Effigy Mounds National Monument Superintendent Admits to Stealing Human RemainsRead the Press Release
Kevin W. Techau, United States Attorney for the Northern District of Iowa, announced that the former Superintendent at the Effigy Mounds National Monument, Thomas A. Munson, age 76, from Prairie du Chien, Wisconsin, pled guilty this afternoon in federal court to one count of stealing human remains from Effigy Mounds National Monument.
The facts admitted at the plea hearing, and set forth in the plea agreement revealed that on about July 16, 1990, Munson voluntarily, intentionally and knowingly removed prehistoric skeletal human remains from the Effigy Mounds National Monument collection. He carried a box of human remains from the curatorial facility to his car, and directed a subordinate to do the same. Munson then drove the stolen items to his home in Wisconsin where he concealed them for more than twenty years. When the boxes were finally recovered, investigators discovered that several of the human bones were broken or fragmented beyond recognition.
As a direct result of Munson's crime, the National Park Service has spent $83,905 in restoration and repair costs and will spend at least another $25,000. Munson is responsible for at least $108,905 in restitution to the National Park Service.
Munson was an employee of the National Park Service from July of 1964 to May 1994. He served as Superintendent at Effigy Mounds National Monument from February 1971, until his retirement in May of 1994. At all times during his employment, Munson was entrusted with preserving and protecting the sacred site.
United States Attorney Kevin W. Techau said following the plea, “It is a very sad day when a public official betrays the public’s trust. This was a serious crime and the betrayal was compounded by a violation of the most sacred trust placed in Mr. Munson as the Superintendent of Effigy Mounds National Monument.”
The guilty plea proceedings were held before United States Chief Magistrate Judge Jon S. Scoles. Sentencing will also be held before Judge Scoles. The date for sentencing will be set after a presentence report has been prepared. Munson remains on pretrial release pending sentencing.
Munson faces a possible maximum sentence of one year’s imprisonment, a $100,000 fine, $25 in special assessments, and one year of supervised release following any imprisonment.
The Effigy Mounds National Monument located in Allamakee County, Iowa and operated by the National Park Service was established by a Presidential Proclamation by Harry S. Truman on October 25, 1949 under the Antiquities Act of 1906. The monument was established primarily to protect over 200 known prehistoric earthen burial mounds, some in the shape of animals, constructed between 700 and 2,500 years ago. The monument land is held in fee simple by the National Park Service, United States Department of the Interior. The monument is an area of concurrent federal jurisdiction.
The following Tribes affiliate themselves with Effigy Mounds National Monument:
Crow Creek Sioux Tribe
Flandeau Santee Sioux
Ho-Chunk Nation
Iowa Tribe of Kansas & Nebraska
Iowa Tribe of Oklahoma
Lower Sioux Indian Community
Omaha Nation
Otoe-Missouria Tribe
Ponca Tribe of Nebraska
Prairie Island Indian Community
Sac and Fox Nation of Missouri in Kansas and Nebraska
Sac and Fox Nation of Oklahoma
Sac and Fox Tribe of the Mississippi in Iowa
Santee Sioux Nation
Shakopee Mdewakanton Sioux Community of Minnesota
Sisseton Wahpeton Oyate Tribe
Standing Rock Sioux Tribe
Upper Sioux Indian Community
Winnebago Tribe of Nebraska and
Yankton Sioux Tribe
The case was investigated by the National Park Service and is being prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR15-1030.
Follow us on Twitter @USAO_NDIA.
Former Credit Union Manager, Kathryn Sue Simmerman, Sentenced to Six and A Half Years in Prison for EmbezzlementRead the Press Release
Kathryn Sue Simmerman Embezzled Almost $2 Million From Shoreline Federal Credit Union
GRAND RAPIDS, MICHIGAN — Kathryn Sue Simmerman, 55, of Muskegon, Michigan, was sentenced to 78 months (six and a half years) in federal prison today for embezzling $1.9 million from her former employer, Shoreline Federal Credit Union. She was also ordered to pay $1.9 million in restitution and serve two years of court supervision following her release from prison. U.S. District Judge Robert Holmes Bell imposed the sentence. He remanded Simmerman to prison immediately after issuing the sentence.
For more than 15 years, Simmerman embezzled $1,945,000 from Shoreline by removing cash from its vault and placing it in her purse. She deposited some of the cash into Shoreline accounts she controlled, and took the remainder of it home to spend on her own use and enjoyment. She hid her activity by manipulating Shoreline’s books and records.
The case was investigated by the Norton Shores Police Department and Special Agents from the FBI and IRS. It was prosecuted by Assistant U.S. Attorney Clay Stiffler.
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District Man Sentenced to Five Years in Prison for Role in Armed Robbery in Northeast WashingtonRead the Press Release
WASHINGTON - Darius Briscoe, 19, of Washington, D.C., has been sentenced to a five-year prison term on charges stemming from an armed robbery that occurred in Northeast Washington last year, announced U.S. Attorney Channing D. Phillips.
Briscoe was found guilty by a jury in October 2015 of one count of armed robbery, one count of assault with a dangerous weapon, and two counts of possession of a firearm during the commission of a crime of violence. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced on Dec. 18, 2015, by the Honorable Milton C. Lee. Following his prison term, Briscoe will be placed on three years of supervised release.
According to the government’s evidence, on June 21, 2015 - Father’s Day - at about 11 p.m., the victim stopped at a convenience store in the 1200 block of Mount Olivet Road NE to play the lottery after spending the day with his daughter. As the victim left the store at approximately 11:30 p.m., he saw Briscoe just outside the establishment on a bicycle.
As he was walking home, the victim was approached by Briscoe near an alley in the rear of 1200 Raum Street NE. Briscoe pointed a handgun in the victim’s face. He then directed the victim to empty his pockets while ordering three accomplices to search him. One of the accomplices loosened the victim’s belt and pulled his shorts partially down while Briscoe continued to point the gun at him. The assailants took a cell phone and a wallet that contained identification cards, credit cards and currency. Once Briscoe realized the victim did not have any additional money, he became frustrated and squeezed the trigger on the handgun. The victim heard the click and quickly fled the scene once he realized the gun had jammed.
Because the victim did not immediately report the robbery, Briscoe was not arrested until several days later. No others have been apprehended. None of the robbery proceeds were recovered.
In announcing the sentence, U.S. Attorney Phillips praised the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Allison Daniels and Victim/Witness Coordinator Diana Lim. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Jennifer Kerkhoff and Nebiyu Feleke, who investigated and indicted the case, as well as Assistant U.S. Attorney Tamika Griffin who prosecuted the matter with Assistant U.S. Attorney Feleke.
Court Permanently Enjoins Baltimore-Area Importer of Stone from Accruing Payroll Tax LiabilitiesRead the Press Release
A federal court has ordered a Baltimore-area importer of marble and granite to pay its payroll taxes as they become due, the Justice Department announced today. Judge Ellen L. Hollander of the U.S. District Court for the District of Maryland entered a permanent injunction requiring Alexander Stone Inc. d/b/a MMG Marble & Granite and its owners, Soultana Efthimiadis and Kyriakos Efthimiadis, to pay their federal payroll tax liabilities as they became due and owing.
According to the United States’ complaint, Alexander Stone has repeatedly failed to make timely and adequate federal employment tax deposits since 2008 and has amassed substantial employment tax liabilities. The defendants agreed to entry of the injunction but did not admit or deny the substance of the allegations in the United States’ civil complaint.
Under the terms of the injunction, the business must deposit its payroll taxes and file its employment tax returns on a timely basis. The defendants are also required to notify the Internal Revenue Service (IRS) that the requisite tax deposits have been made and tell the IRS if they begin operating any new business. The defendants are precluded from assigning property or making any payments to other creditors until the employment tax and withholding liabilities are paid. The injunction is effective immediately and will ensure that Alexander Stone stays current on its federal employment tax obligations. Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanked IRS Field Collection and its revenue officer for investigating and preparing the civil case.
Columbia, Missouri Man Sentenced on Bank Robbery ChargesRead the Press Release
St. Louis, MO – JEREMY BURNETT, Columbia, MO, was sentenced to 10 years in prison in connection with the August 22, 2014, armed robbery of the Bank Midwest in Randolph County. Burnett appeared today in St. Louis for sentencing before United States District Judge Henry Autrey.
Co-defendants Daniel Mark Rudroff was sentenced to 78 months in prison in September 2015, and Clarence Lamont Williams was sentenced to 92 months in prison on August 17, 2015.
This case was investigated by the Kirksville Office of the Federal Bureau of Investigation, Kirksville Police Department, Moberly Police Department, Missouri State Highway Patrol, Randolph County Sheriff’s Office and the Tazewell County, Illinois Sheriff’s Office, with assistance from additional law enforcement agencies. Assistant United States Attorney Tom Mehan handled the case for the U.S. Attorney's Office.
Cedar Rapids Man Sentenced to Prison for Possessing a Firearm and AmmunitionRead the Press Release
An admitted marijuana user who possessed a firearm and ammunition on the streets of Cedar Rapids was sentenced last week to 57 months in federal prison. Marcus Alexander Thomas, age 22, from Cedar Rapids, Iowa, received the prison term after an August 4, 2015, guilty plea.
At his plea hearing, Thomas admitted to possessing a Smith & Wesson 9mm semi-automatic handgun loaded with 9mm caliber Luger ammunition on March 16, 2015. He also admitted to be a marijuana user. The weapon was found in the trunk of the car Thomas was driving. He had been stopped by Cedar Rapids police for being suspected of prowling homes. Then, on May 21, 2015, police officers responded to a report of “shots fired.” Thomas was observed fleeing the area and seen throwing another firearm over a fence. One shot hit the windshield of a car. At his sentencing hearing, Thomas admitted he possessed and discharged this second firearm, which was stolen.
Thomas was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Thomas was sentenced to 57 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.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Cedar Rapids Police Department and the Federal Bureau of Investigation. The case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 15-CR-56-LRR and 15-MJ-188-JSS.
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Cedar Rapids Felon and Domestic Abuser Sentenced to Federal Prison for Unlawfully Possessing a FirearmRead the Press Release
A man who unlawfully possessed a loaded handgun in April 2015 was sentenced on December 31, 2015, to seven years in federal prison.
Darius Devon Flowers, age 26, from Cedar Rapids, received the prison term after a September 4, 2015, guilty plea to being a felon and domestic abuser in possession of a firearm and ammunition.
At the guilty plea hearing, Flowers admitted that prior to possessing the loaded handgun in April 2015, he had previously been convicted of two felony offenses and two misdemeanor domestic abuse offenses. Prior public filings show that on April 22, 2015, Cedar Rapids police was dispatched to a call of a male in possession of a firearm. A witness at the scene reported Flowers, who appeared to be intoxicated, displaying a firearm while informing a female to call him if she needed him to “handle anything.” The female called the Cedar Rapids Police Department and provided a description of the vehicle in which Flowers was a passenger. Cedar Rapids Police found the vehicle shortly thereafter, and found the loaded handgun underneath Flowers’s seat.
Flowers was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Flowers was sentenced to 84 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.
Flowers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids Safe Street Task Force. The task force is composed of representatives from the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Immigration and Customs Enforcement; United States Marshals Service; Iowa Division of Criminal Investigation; Cedar Rapids Police Department; Marion Police Department; Sixth Judicial District Department of Correctional Services; Linn County Sheriff’s Office; and Iowa Department of Inspections and Appeals. The case is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are 15-CR-0068-LRR and 15-MJ-00189.
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Cedar Falls Men Sentenced to Federal Prison on Child Pornography ChargesRead the Press Release
Two men who downloaded and possessed child pornography were sentenced to federal prison on December 31, 2015.
Frank Martinez, age 50, from Cedar Falls, Iowa, received a sentence of over 10 years’ imprisonment after an August 10, 2015 guilty plea to one count of receipt of child pornography. His husband Donald Wall, age 51, from Cedar Falls, received a sentence of over 6 years’ imprisonment after an August 21, 2015 guilty plea to one count of possession of child pornography. Information presented at the sentencing hearings showed that both defendants used the Internet to download child pornography.
Both defendants were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Martinez was sentenced to 121 months’ imprisonment, he was fined $10,000, a special assessment of $100 was imposed, and he was ordered to make $2,500 in restitution. Wall was sentenced to 78 months’ imprisonment, he was fined $10,000, and a special assessment of $100 was imposed. Each defendant must serve a 10-year term of supervised release and must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-2022.
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Canadian Man Sentenced to Prison for $10 Million Income Tax Refund Fraud SchemeRead the Press Release
Conspired With Other Canadian Citizens to File False Tax Returns Using Fraudulent Forms 1099-OID
A Ontario, Canada, man was sentenced to 135 months in prison today following his conviction for one count of conspiracy to defraud the United States and commit theft of government funds, one count of making a false claim against the United States and two counts of transferring stolen money in foreign commerce, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney William J. Hochul Jr. of the Western District of New York.
Kevin Cyster, 52, of Burlington, Ontario, was convicted in September by a federal jury after a six-day trial in Rochester, New York. According to court documents and testimony at trial, Cyster was part of a group of Canadian citizens that filed tax returns with the Internal Revenue Service (IRS) that contained fraudulent Forms 1099-OID. On these tax returns, Cyster and his co-conspirators falsely claimed that nearly $10 million in federal income taxes had been withheld on their behalf by various Canadian financial institutions and paid over to the IRS. The testimony at trial established that these false Forms 1099-OID were created and filed with the IRS by an individual in California named Ronald Brekke, 55, of Orange County, California, and not by the financial institutions. No federal income taxes were paid over to the IRS on behalf of Cyster and his co-conspirators and they were not entitled to the refunds claimed on their tax returns. The IRS paid out more than $3.5 million of the requested refunds before detecting the fraud. Renee Jarvis, 51, of Ontario one of Cyster’s co-conspirators, testified that co-conspirators held meetings at Cyster’s home at which Cyster promoted the 1099-OID scheme.
Jarvis pleaded guilty in June 2014 to conspiracy to defraud the United States and to commit theft of government funds. Her sentencing is set for Jan. 12, 2016. Brekke was sentenced in June 2012 to 12 years in prison after a jury convicted him of promoting a 1099-OID fraud scheme.
Chief U.S. District Judge Frank P. Geraci, Jr. of the Western District of New York, who also presided over Cyster’s trial, imposed the sentence. In addition to the prison term, Cyster was ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $3,553,303.35.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Hochul commended the special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, who investigated the case and Assistant U.S. Attorney John J. Field of the Western District of New York and Trial Attorneys Jeffrey A. McLellan and Thomas F. Koelbl of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Canadian Man Sentenced for $10 Million Conspiracy to Defraud the United StatesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced today that Kevin Cyster, 52, of Burlington, Ontario, Canada, who was convicted after a six day jury trial of conspiracy, making a false claim against the United States, and illegally transferring stolen money in foreign commerce, was sentenced to 135 months in prison by Chief U.S. District Judge Frank P. Geraci.“This defendant promoted a criminal scheme based on the claim that Canadian citizens were entitled to vast amounts of money from American taxpayers,” said U.S. Attorney Hochul. “While not believable on its face, the subsequent lies and fraudulent tax filings of the defendant and his conspirators resulted in actual losses to the government of over $3.5 million dollars. Fortunately, the ability of this defendant to continue his crimes has come to an end with this appropriate jail sentence.”
Assistant U.S. Attorney John J. Field and Trial Attorneys Jeffrey A. McLellan and Thomas F. Koelbl, from U.S. Department of Justice Tax Division, who handled the prosecution of the case, stated that Cyster was a ringleader of a group of Canadian citizens who forged Internal Revenue Service (IRS) forms to falsely claim that almost $10,000,000 of income had been withheld on their behalf by various Canadian financial institutions. They arranged for the false forms to be filed electronically with the IRS by Ronald Brekke.
Subsequently, Cyster and his co-conspirators used the false filings to file false federal income tax returns seeking refunds based on the fictitious withholding amounts. Although the IRS identified some of the fraudulent returns, refunds totaling more than $3,500,000 were sent to Cyster and his co-conspirators before the scope of the fraud was detected.
Cyster was charged along with Renee Jarvis, Jonathan Neufeld, Christina Starkbaum, Daveanan Sookdeo, Jose Compuesto, and Timothy Johnson. Jarvis has been convicted. Neufeld and Starkbaum are deceased. Charges are pending against Sookdeo, Compuesto and Johnson. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Ronald Brekke was convicted on federal fraud charges in Washington State.
The sentencing is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Bedford woman sentenced to more than two years in prison for identity theft and tax crimesRead the Press Release
A Bedford woman was sentenced to more than two years in prison and ordered to pay nearly $150,000 in restitution for an identity theft and tax fraud scheme, law enforcement officials announced.
Michelle Devine was sentenced to 28 months in prison by U.S. District Judge Dan Polster, and ordered to pay $149,616 in restitution. Devin, 44, pleaded guilty last year to one count of aggravated identity theft, four counts of theft of government property and one count of filing false claims for income tax refunds.
"This woman preyed on people's trust by posing as a legitimate tax preparer," said U.S Attorney Steven M. Dettelbach. "Instead, she abused that trust and stole money."
“Identity theft is a contemptible modern-day scourge,” said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit deserve to be punished to the fullest extent of the law.”
This case was prosecuted by Assistant U.S. Attorney M. Kendra Klump following at investigation by the Internal Revenue Service -- Criminal Investigations.
Attorney General Loretta E. Lynch Memorandum on Federal Efforts to Improve the Safety of Domestic Violence VictimsRead the Press Release
Earlier today the Attorney General sent the attached memorandum to U.S. Attorneys thanking them for their impressive work on ending the scourge of violence against women. The memorandum also outlines enforcement steps that have been taken and encourages them to continue building partnerships with state, local and tribal law enforcement and community groups to stop domestic violence.
Memorandum on Federal Efforts to Improve Safety of Domestic Violence Victims (791.24 KB)
Thursday 31 December 2015
Sentencings for December 29, 2015Read the Press Release
Alejo Mijares-Chaves, aka Alejo Minares-Chavez, Pedro Najera-Mijares, Nacho Mijares-Chaves, 44, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 29, 2015, for illegal re-entry of a previously deported alien into the United States. Mijares-Chaves was arrested in Wheatland, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Arturo Bustos-Alcantar, aka Arturo Alcantar Bustos, Arturo Diego-Bustos, Alcantar Arturo, 42, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 29, 2015, for illegal re-entry of a previously deported alien into the United States. Bustos-Alcantar was arrested in Wheatland, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Rochester Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
Emanuel L. Lutchman, 25, was arrested and charged by criminal complaint with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney William J. Hochul Jr. of the Western District of New York and Special Agent in Charge Adam S. Cohen of the Federal Investigation Bureau’s (FBI) Buffalo Division.
“According to the complaint, as part of Emanuel Lutchman’s attempt to provide material support to ISIL, he planned to kill innocent civilians on New Year’s Eve in the name of the terrorist organization.” said Assistant Attorney General Carlin. “Thankfully, law enforcement was able to intervene and thwart Lutchman's deadly plans.”
“This New Year’s Eve prosecution underscores the threat of ISIL even in upstate New York but demonstrates our determination to immediately stop any who would cause harm in its name,” said U.S. Attorney Hochul. “What began as an ISIL directive to harm the community ended with the arrest of this defendant and a message for any other individuals considering similar behavior - you will be caught, you will be prosecuted, and you will be punished. While law enforcement is well equipped for such investigations, the public is reminded to remain vigilant and report any suspicious activity. I assure members of the public that the excellent work of our law enforcement partners with the cooperation of the public is the best way to ensure the safety of our community.”
“The FBI thwarted Emanuel Lutchman’s intent to kill civilians on New Year's Eve,” said Special Agent in Charge Cohen. “The FBI remains concerned about people overseas who use the Internet to inspire people in the United States to commit acts of violence where they live.”
According to court records, the defendant, claiming to receive direction from an overseas ISIL member, planned to commit an armed attack against civilians at a restaurant/bar located in the Rochester, New York, area today, New Year’s Eve on behalf of ISIL and in furtherance of his plan to join ISIL overseas.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson of the U.S. Western District of New York.
The case is being investigated by the FBI’s Rochester Joint Terrorism Task Force (JTTF). The case is being prosecuted by Assistant U.S. Attorney Brett A. Harvey with the assistance of Trial Attorney Lawrence Schneider of the National Security Division’s Counterterrorism Section.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Oklahoma City Man to Serve 21 Months in Prison and Pay over $58,000 in Restitution to the IRS for Stolen Identity Tax FraudRead the Press Release
Oklahoma City, Oklahoma – JIMMY BOSTIC, of Oklahoma City, Oklahoma, has been sentenced for stealing identities to file false tax returns and deposit the tax refunds into his bank account, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
United States District Judge David L. Russell sentenced Bostic to serve 21 months in federal prison, followed by three years of supervised release. In addition, Judge Russell ordered Bostic to pay $58,021.55 in restitution to the IRS for tax refunds Bostic received as part of his scheme.
Bostic was charged on May 19, 2015, with filing false federal tax returns between February 2012 and March 2013 in the names of individuals, without their knowledge or permission, attaching false W-2s for employers that did not employ those individuals. Those false returns directed the Internal Revenue Service to deposit the claimed tax refunds into Bostic’s bank account. In total, the IRS deposited $58,021.55 into Bostic’s account as purported tax refunds for those individuals. Bostic pleaded guilty on October 1, 2015, to five counts of theft of public money, in violation of 18 U.S.C. § 641. In his plea, Bostic agreed that the intended loss amount was $145,736.00, which includes additional refunds that Bostic claimed, but the IRS did not pay.
This case is the result of an investigation by the IRS-Criminal Investigation and was prosecuted by Assistant U.S. Attorney K. McKenzie Anderson.
Modesto Pair Indicted for Selling Large-Caliber FirearmsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Orlando Rangel, 31, and George Boone, 38, both of Modesto, charging them with being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced. In addition, Rangel was charged with possession of a stolen firearm.
According to court documents, agents learned that Boone and Rangel, previously convicted felons, were selling a .50‑caliber rifle. Over the course of several days in November and December 2015, undercover agents purchased the .50-caliber rifle, which was equipped with a scope and bipod. Rangel admitted that he had stolen the firearm.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Modesto Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Justice Department Announces Two Banks Reach Resolutions under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Bank Lombard Odier & Co Ltd (Lombard Odier) and DZ Privatbank (Schweiz) AG (DZ Privatbank) reached resolutions under the department’s Swiss Bank Program. These banks collectively will pay penalties of more than $107 million.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
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Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of the non-prosecution agreements signed today, each bank agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a penalty in return for the department’s agreement not to prosecute these banks for tax-related criminal offenses.
Lombard Odier is a partner-owned private bank that was founded in 1796 and is based in Geneva, Switzerland. It is organized under the laws of Switzerland and is part of the Lombard Odier Group, which consists of 23 operating entities owned by LO Holding S.A., a Swiss holding company. Lombard Odier provides private banking, asset management and technology and business infrastructure services to individuals and entities located inside and outside Switzerland.
Lombard Odier was aware that U.S. taxpayers had a legal duty to report to the Internal Revenue Service (IRS) and pay taxes on all of their income, including income earned in accounts that these U.S. taxpayers maintained at Lombard Odier. Lombard Odier nonetheless opened, maintained and serviced accounts for U.S. persons that it knew or had reason to know were likely not declared to the IRS or the Treasury Department, as required by U.S. law.
Lombard Odier offered traditional Swiss banking services, such as numbered accounts and holding clients’ mail, that assisted U.S. clients in the concealment of assets and income from the IRS. Lombard Odier also assisted U.S. clients in concealing their assets and income by opening and maintaining accounts in the names of non-U.S. corporations, foundations, trusts or other entities that it knew were beneficially owned by U.S. persons. Lombard Odier maintained at least 32 entity accounts that were operated without compliance with the requisite corporate formalities. The non-U.S. jurisdictions in which the entities were incorporated or formed included the British Virgin Islands, Liechtenstein and Panama. In some instances, Lombard Odier referred clients to its Swiss-based affiliate, Favona SA, which is also part of the Lombard Odier Group, to set up entity structures. In addition, Favona provided administrative services, including accounting services and supplying corporate directors.
A Zurich-based law firm (the Zurich firm) and a Zurich-based lawyer (the Zurich lawyer) referred U.S.-related accounts to Lombard Odier with aggregate assets under management of over $63 million. The Zurich lawyer was the accountholder and had signature authority and/or power of attorney over all of the U.S.-related accounts that he referred, and was also a director of the Panama corporation that was the accountholder of one of those accounts. In some instances, the Zurich firm and Zurich lawyer operated in cooperation with a U.S. lawyer in New York, New York. The Zurich firm and Zurich lawyer referred 13 accounts to Lombard Odier that the U.S. lawyer – or that person’s friends or family members – beneficially owned.
Effective in or about January 2001, Lombard Odier entered into a Qualified Intermediary (QI) Agreement with the IRS. The QI Agreement was designed to help ensure that non-U.S. persons were subject to the proper U.S. withholding tax rates and that U.S. persons were properly paying U.S. tax with respect to U.S. securities held in an account with Lombard Odier. As a consequence of Lombard Odier entering into a QI Agreement with the IRS, certain relationship managers and supervisory relationship managers opened accounts for U.S. clients in the names of sham offshore entities. In connection with these accounts, Lombard Odier employees knowingly accepted and included in its account records IRS Forms W-8BEN or Lombard Odier’s substitute forms provided by the directors of the offshore companies that falsely represented under penalty of perjury that such companies were the beneficial owners of the assets in the accounts for U.S. federal income tax purposes. Certain relationship managers, supervisory relationship managers and others caused Lombard Odier to certify compliance with the QI Agreement even though the true beneficial owners were not reflected in the Forms W-8BEN in the account files.
Since Aug. 1, 2008, Lombard Odier maintained accounts with an aggregate value of more than $24 million that were owned by insurance companies and which held assets relating to insurance products that were issued to U.S. taxpayer clients of the respective insurance companies. Such accounts, commonly known as “insurance wrappers,” were titled in the names of insurance companies, but were funded with assets that were transferred to the accounts for the beneficial owners of the insurance products.
Lombard Odier’s senior management decided, in June 2008, to prohibit new U.S. taxpayer clients coming from UBS and to refrain from hiring UBS relationship managers with U.S. taxpayer clients. Shortly thereafter, Lombard Odier implemented a Regularize or Leave Action Plan, the tenets of which were described in a written policy, dated Oct. 8, 2008, to be communicated verbally to the group heads of Lombard Odier’s private banking business unit. Pursuant to the plan, Lombard Odier’s management required that relationship managers instruct each of their U.S. clients to sign a Form W-9, voluntarily disclose their accounts to the IRS or close their accounts. According to the written policy, relationship managers were to propose that U.S. clients who wished to close their accounts do so via withdrawal of cash, checks or gold; transfers to another bank; or donations to non-U.S. relatives or charitable institutions. In connection with the plan, Lombard Odier closed 50 U.S.-related accounts with cash withdrawals exceeding $51 million. Lombard Odier also closed at least 12 U.S.-related accounts via fictitious donations, where the clients transferred the funds in their accounts to other accounts at Lombard Odier, or to external accounts that were controlled by the U.S. clients but held by their non-U.S. relatives or associates.
Since Aug. 1, 2008, Lombard Odier had 1,121 U.S.-related accounts, comprising maximum assets under management of approximately $4.45 billion, including assets of declared accounts. Lombard Odier will pay a penalty of $99.809 million.
DZ Privatbank was founded in 1975 as BEG Bank Europäischer Genossenschaftsbanken, a public limited liability company under Swiss law. In early 2006, following several internal reorganizations and name changes, its name was changed to DZ Privatbank (Schweiz) AG. DZ Privatbank’s sole office is in Zurich, Switzerland. DZ Privatbank’s ultimate owners are regionally-based German cooperative banks, whose customers are primarily individuals and small- to medium-sized companies. DZ Privatbank’s primary business focus has always been to provide private banking services in Switzerland for customers of the German cooperative banks, and it has always defined and marketed itself as the “Germany specialist in Switzerland.”
Through its managers, employees and/or others, DZ Privatbank knew or had reason to know that some U.S. taxpayers who had opened and maintained accounts at DZ Privatbank were not complying with their U.S. income tax and reporting obligations. During much of the time after Aug. 1, 2008, DZ Privatbank conducted a U.S. cross-border banking business that aided and assisted certain of its U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income they held in these accounts from the U.S. government. DZ Privatbank offered a variety of traditional Swiss banking services that it knew could assist, and did in fact assist, U.S. clients in the concealment of assets and income from the IRS. These services included numbered accounts, the ability for customers to have their mail held at DZ Privatbank and the use of a post office box held in the name of a DZ Privatbank employee.
In 2008, DZ Privatbank decided to expand its international business operations. DZ Privatbank’s international expansion plan focused on customers domiciled in various countries, including Great Britain, Hungary, Poland, Russia, Turkey and the United States. DZ Privatbank opened 222 new U.S.-related accounts with maximum aggregate assets under management of approximately $106 million between Jan. 1 and Oct. 31, 2009. Prior to that period, DZ Privatbank had approximately 110 U.S.-related accounts with maximum aggregate assets under management of $133 million.
In May 2009, DZ Privatbank began accepting customers from Credit Suisse who had either terminated their relationship with Credit Suisse or whom Credit Suisse had terminated. In addition to Credit Suisse, since Aug. 1, 2008, DZ Privatbank accepted the transfer of more than two dozen U.S.-related accounts from other Swiss banks under investigation by the department. DZ Privatbank knew or should have known that some clients who transferred assets from these banks during this period were undeclared to the IRS. By opening these U.S.-related accounts, DZ Privatbank aided and abetted those U.S. clients in concealing income and assets from the IRS.
DZ Privatbank employees corresponded and met with Credit Suisse personnel in connection with the transfer of accounts to DZ Privatbank. In an email dated Dec. 17, 2009, one Credit Suisse relationship manager notified a client that the account had to be closed before the end of December 2009, but indicated “DZ PRIVATBANK . . . will probably be an option for you.” This email was forwarded to DZ Privatbank’s general email address by Credit Suisse. In another email dated May 6, 2010, the head relationship manager for U.S. accounts at Credit Suisse contacted an employee of DZ Privatbank regarding the transfer of an account to DZ Privatbank: “I’m away during his stay. I have now ordered the gold so he can take it physically and can carry it ‘over the road.’ After I give him some cash, we will then close the relationship. [A third Credit Suisse relationship manager] has reviewed the documents and will supervise the case.”
Credit Suisse personnel also provided advice to DZ Privatbank personnel related to clients’ potential participation in the IRS’s offshore voluntary disclosure programs (OVDP) to DZ Privatbank personnel. For example, in or about April 2011, a DZ Privatbank relationship manager who had learned that some legal advisors were recommending a “quiet OVDP” filing sought the views of a Credit Suisse relationship manager on that topic and was informed it was “really dangerous,” tantamount to “giv[ing] [the customer] the rope (to hang themselves),” and should never be recommended.
As a result of the inflow of customers from Credit Suisse, a preliminary, interim protocol for U.S. customers was developed by several DZ Privatbank employees that, in part, incorporated the recommendations of the head relationship manager for U.S. accounts at Credit Suisse, mentioned above. This was effective beginning in or about November 2009 and remained effective until February 2010, when portions of it were incorporated in a Cross-Border Handbook, which noted: “The bank has the following aims” listing first, “The bank wants – in the meaning of a side-business (Nebensegment) – [to] start business relations with U.S.-Customers.” The handbook continued that “U.S. clients need to be treated due to several regulatory requirements with extreme caution and reluctance.”
In or about July 2010, DZ Privatbank accepted a U.S.-related account from Credit Suisse where the customer may have been concealing the existence of the account from U.S. authorities and was likely actively attempting to conceal his account from the IRS. This customer and a former DZ Privatbank relationship manager engaged in discussions related to various ways in which the customer could withdraw money from his account at DZ Privatbank, with the stated intention of not “attracting attention.” It was ultimately agreed that checks would be sent monthly to the customer in an amount set by him. The customer failed to provide forms required by DZ Privatbank when it began its program to implement the Foreign Account Tax Compliance Act (FATCA), and as a result, the account was blocked and ultimately closed for non-compliance. Nevertheless, DZ Privatbank unblocked the account several times through November 2012, against DZ Privatbank’s internal guidelines, so that the customer could continue to receive monthly checks.
Since Aug. 1, 2008, DZ Privatbank had a total of 691 U.S.-related accounts with aggregated assets under management of approximately $498 million. DZ Privatbank will pay a penalty of $7.452 million.
In accordance with the terms of the Swiss Bank Program, each bank mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at these banks who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of these non-prosecution agreements, noncompliant U.S. accountholders at these banks must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Acting Assistant Attorney General Ciraolo also thanked Tracy L. Gostyla, Kimberly M. Shartar and Carl D. Wasserman, who served as counsel on these matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer, Senior Litigation Counsel Nanette L. Davis and Attorney Kimberle E. Dodd of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Co-Owners of A Farm in Sleepy Eye Plead Guilty to Tax EvasionRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty pleas of FRANCIS SELLNER, 66, and EUGENE SELLNER, 63, for income tax evasion. EUGENE SELLNER was charged on December 9, 2015, and FRANCIS SELLNER was charged on December 10, 2015, by felony information, each with one count of tax evasion. Both defendants pleaded guilty yesterday before U.S. District Judge Ann D. Montgomery in U.S. District Court in Minneapolis, Minn. A sentencing date has not yet been determined.
According to the defendants’ guilty pleas and documents filed in court, FRANCIS and EUGENE SELLNER are brothers and co-owners of a farm in Sleepy Eye, Minnesota. From approximately 2011 through 2013, the Sellner Farm regularly sold corn and soybeans to a feed and grain company located in Morgan, Minnesota. During this time, the feed and grain company paid for the goods with checks written out to both defendants. Rather than depositing the checks, the defendants cashed the majority of the checks to avoid paying taxes on the income.
According to the defendants’ guilty pleas and documents filed in court, FRANCIS and EUGENE SELLNER filed false income tax returns for the tax years 2011, 2012 and 2013, failing to report income received from the feed and grain company. In total, the defendants failed to report more than $500,000 in income.
FRANCIS SELLNER and EUGENE SELLNER each face up to five years in prison.
This case is the result of an investigation conducted by the Internal Revenue Service – Criminal Investigation Division.
This case is being prosecuted by Assistant U.S. Attorney Joseph H. Thompson.
Defendant Information:
FRANCIS SELLNER, 66
Sleepy Eye, Minn.
Convicted:
- Tax Evasion, 1 count
EUGENE SELLNER, 63
Sleepy Eye, Minn.
Convicted:
-
Tax Evasion, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Wednesday 30 December 2015
Winterport Man Pleads Guilty to Escaping from Re-Entry CenterRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Brandon Caparotta, 24, of Winterport, Maine pled guilty today in U.S. District Court to escape from federal custody.
According to court records, on November 23, 2015, Caparotta was arrested by federal marshals at a town house complex on Griffin Road in Bangor after he escaped from the Northern Maine Regional Re-Entry Center, a contracted correctional facility of the Federal Bureau of Prisons, at which he was completing a sentence for two felony firearm offenses. After arriving at the facility in late September 2015, Caparotta was instructed that he could not leave the facility without permission, he had to keep the facility advised of his whereabouts while on a work pass, he could not leave a work site without permission, and he had to return to the facility after work hours. On September 22, 2015, Caparotta received a work pass, but failed to return. The investigation revealed that Caparotta left his work site early that day and did not have permission to be at the Griffin Road complex.
Caparotta faces up to five years in prison and a $250,000 fine. He will be sentenced after completion of a presentence report by the U.S. Probation Office.
The investigation was conducted by the United States Marshals Service.
Stockton Woman Charged with Half Million Dollar Unemployment FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Deborah Hollimon, 39, last known residences of Stockton, California and West Memphis, Arkansas, charging her with unemployment fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, between September 2012 and September 2015, Hollimon operated a “fictitious employer” scheme. Hollimon created employers with the California Employment Development Department (EDD) that were entirely fictitious and did not conduct any business. Hollimon then caused the submission of information to the EDD falsely indicating that various persons, including herself and various unwitting victims of identity theft, were employed by the fictitious entities. Hollimon subsequently filed unemployment claims in her own name and the names of the fake laid-off employees. The fraudulent unemployment insurance benefits were usually mailed to an address controlled by Hollimon. In this way, Hollimon collected over $550,000 in fraudulent unemployment insurance benefits.
This case is the product of an investigation by the Department of Labor, Office of Inspector General, the California Employment Development Department – Investigations Division, and the U.S. Postal Inspection Service. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
Hollimon’s current whereabouts are unknown. Anyone with information on her whereabouts should call (415) 625-2685.
If convicted, Hollimon faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. She also faces a mandatory minimum two years in prison for aggravated identity theft, which would run consecutive to any other sentence imposed. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Six Indicted in Marijuana Distribution ConspiracyRead 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 a grand jury has handed down an 8-count indictment charging Dashawn Abrams, 26, Damarcus Hennings, 24, Shaquata Hennings, 29, Arthur Clark, 27, Shahana Beaver, 23, and Janice Humphrey, 26, all of Buffalo, N.Y., with conspiracy to distribute marijuana and, with the exception of Clark and Humphrey, conspiracy to launder money. All except Abrams and Clark were charged with related drug offenses. Damarcus Hennings and Beaver were also charged with related use and possession of firearms. The drug and money laundering charges carry a maximum penalty of 20 years in prison. The firearms charges carry a mandatory penalty of at least 5 years prison, up to life in prison, consecutive to any prison term imposed for the drug charges.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that between April 2015 and September 2015 the defendants conspired to ship, receive, and distribute more than 100 packages containing marijuana between Denver, Colorado and Buffalo. The defendants also conspired to send the cash proceeds from resulting marijuana sales to the supplier in Denver.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Niagara Frontier Transportation Authority Transit Police, under the direction of Chief George Gast. Additional assistance was provided by the New York State Police Community Enforcement Narcotics Team Western Region, the Buffalo Police Department, the Lackawanna Police Department, the Cheektowaga Police Department, the Hamburg Police Department, the Chautauqua County Sheriff’s Office, the Cattaraugus County Sheriff’s Office, and the Erie County Sheriff’s Office.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Pleasant Hills Man Pleads Guilty in Wiretap Investigation into Cocaine TraffickingRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine, United States Attorney David J. Hickton announced today.
Andre Collington, 44, Pleasant Hills, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Andre Collington was intercepted over the wire conspiring with others to possess with intent to distribute and distribute cocaine, which was shipped from California to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Judge Hornak scheduled sentencing for May 3, 2016. The law provides for a minimum sentence of five years in prison, a maximum sentence of 40 years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued Collington’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Andre Collington.
Northland Man Pleads Guilty to Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to attempting to distribute child pornography over the Internet.
Steven H. Taylor, 25, of Kansas City-North, pleaded guilty before U.S. District Judge Roseann Ketchmark to the charge contained in a Jan. 29, 2013, federal indictment.
According to today’s plea agreement, an undercover federal agent identified Taylor’s computer as sharing images of child pornography over the Internet through a peer-to-peer file-sharing network. The agent downloaded a video file of child pornography from Taylor’s computer.
The agent executed a search warrant at Taylor’s residence and seized his electronic media. According to the plea agreement, investigators identified more than 600 images of child pornography on Taylor’s computers.
Under the terms of today’s plea agreement, Taylor will not seek a sentence of less than six years in federal prison without parole and the government will not seek a sentence of more than 10 years in federal prison without parole. Taylor must pay $5,000 in restitution to one of the victims portrayed in the child pornography collection, or $3,000 if he can pay the latter sum within 30 days of the sentencing date. Taylor must forfeit two desktop computers, which were used to commit the offense, to the government. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Nixa, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Missouri Man Pleads Guilty to Craigslist Counterfeit ConspiracyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today, that Lewis Johnson, 35, of Florissant, Missouri, pled guilty in federal court to Conspiracy to Possess and Pass Counterfeit United States Currency. Sentencing has been set for March 31, 2016, in United States District Court in East St. Louis, Illinois. At sentencing, Johnson will face up to 5 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During his plea hearing, Johnson admitted that he along with several others, had engaged in an agreement to manufacture counterfeit United States Currency and then use the currency to buy vehicles with counterfeit currency and then resell the vehicles for genuine United States currency. During August of 2013, the group contacted a person in Sandoval Illinois, who had listed his vehicle for sale on Craigslist. Johnson, along with the other conspirators then met with the seller in Sandoval, Illinois, and purchased the vehicle for $2,400 in counterfeit $100 Federal Reserve Notes. Johnson and others involved in the conspiracy were arrested a short time after the fraudulent purchase by law enforcement from Carlyle, Clinton County and Sandoval.
The investigation in this case was conducted by the Carlyle and Sandoval Police Departments, the Clinton County Sheriff’s Office and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Las Vegas Man Sentenced for Shipping Illegal Drugs from Las Vegas to Tennessee and TexasRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who shipped illegal drugs from Nevada to other states, and used a false identity and structured bank deposits to hide over $850,000 that he made from his drug dealing, has been sentenced to 14½ years in prison, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.
Damien Williams, 27, was sentenced on Dec. 29, by Senior U.S. District Judge Howard D. McKibben to 151 months in prison, plus two additional consecutive years in prison, for his guilty pleas to one count of conspiracy to distribute a controlled substance, one count of conspiracy to launder money, and one count of aggravated identity theft. The court found that Williams was a career offender because he has two prior felony convictions, for voluntary manslaughter and robbery, both involving the use of a firearm.
“We work with our local and federal law enforcement partners to identify and prosecute persons who are unlawfully using the mails to ship controlled substances to other states,” said U.S. Attorney Bogden. “As this case shows, using a false identity and structuring your bank deposits is not going to go unnoticed by our investigators.”
According to the guilty plea agreement, between May 2012 and October 2013, Williams used the identification documents of “Goldie Cage” to obtain a Nevada identification card, rent an apartment, obtain an automobile loan, and open bank accounts Cage’s name. During the same period, Williams was sending packages of controlled substances, including codeine and marijuana, to persons in Tennessee and Texas. In exchange for the controlled substances, Williams received approximately $856,000 in proceeds, which were deposited by persons in other states into the bank accounts that Williams had opened under Cage’s name. Williams would then withdraw the funds and use them in furtherance of additional illegal drug activities. The deposits and withdrawals were structured in amounts of less than $10,000 in order to avoid federal bank reporting requirements.
The case was investigated by the Las Vegas Financial Crimes Task Force, IRS Criminal Investigation, the U.S. Postal Inspection Service, the Henderson Police Department, and the Las Vegas Metropolitan police Department.
Justice Department Reaches Landmark Settlement Agreement with State of Oregon Regarding Americans with Disabilities ActRead the Press Release
WASHINGTON – In a Dec. 29, 2015, order, the U.S. District Court for the District of Oregon approved a settlement agreement between the Justice Department, a class of private plaintiffs and the state of Oregon, which resolved the department’s and the class plaintiffs’ claims against the state under the Americans with Disabilities Act (ADA). The agreement will impact approximately 7,000 Oregonians with intellectual and developmental disabilities (I/DD) who can and want to work in typical employment settings in the community. The private plaintiffs were represented by the Center for Public Representation, Disability Rights Oregon and the law firms of Miller Nash Graham & Dunn LLP and Perkins Coie LLP. The agreement resolves a class action lawsuit by private plaintiffs in which the department intervened. The parties’ settlement agreement was approved by U.S. Magistrate Judge Janice Stewart of the District of Oregon, who presided over the lawsuit.
In the department’s lawsuit, it alleged that Oregon’s employment services system unnecessarily placed people with I/DD in, or at risk of entering, sheltered workshops instead of in integrated jobs in the community, in violation of the ADA. As interpreted by the Supreme Court’s landmark decision in Olmstead v. L.C., the ADA affords individuals with disabilities the right to receive services in the most integrated setting appropriate to their needs. Sheltered workshops are segregated facilities that exclusively or primarily employ people with disabilities. They are usually large, institutional facilities in which people with disabilities have little or no contact with non-disabled persons besides paid staff. People with I/DD in sheltered workshops typically earn wages that are well below minimum wage, sometimes pennies per hour. By contrast, supported employment services assist people with I/DD to prepare for, gain and succeed in integrated employment at competitive wages. Approximately 450,000 people with I/DD across the country spend their days in segregated sheltered workshops and facility-based day programs. Approximately 1,900 Oregonians with disabilities currently receive services in sheltered workshops. Since the initiation of the lawsuit, approximately 3,900 Oregonians with disabilities have received services in sheltered workshops, and historically hundreds of students have transitioned each year from Oregon public schools directly into sheltered workshops.
The agreement calls for 1,115 people in sheltered workshops to receive jobs in the community at competitive wages over the next seven years. In addition, 7,000 people will receive employment services that will afford them the opportunity to work in the community, including at least 4,900 youth ages 14 to 24 years old, who are exiting school. At least half of the youth served will receive an Individual Plan of Employment, which sets forth the services and supports necessary to achieve competitive employment, from Oregon’s vocational rehabilitation system.
The settlement resolves the first class action lawsuit in the nation to challenge a state funded and administered employment service system, including sheltered workshops, as a violation of the ADA’s integration mandate. The class action, Lane v. Kitzhaber (since renamed Lane v. Brown), was filed in January 2012 by eight named individuals and United Cerebral Palsy of Oregon and Southwest Washington, on behalf of themselves and other individuals with I/DD who are in Oregon sheltered workshops or have been referred to sheltered workshops. In March 2013, the Department of Justice moved to intervene in the lawsuit, seeking to vindicate the rights of thousands of individuals with I/DD across Oregon. The department’s claims included that Oregon violated the ADA by unnecessarily segregating adults with I/DD in sheltered workshops and by placing Oregon youth with I/DD at unnecessary risk of segregation in sheltered workshops.
“Work is fundamental to contributing to and being fully included in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “People with disabilities deserve opportunities to work alongside their friends, peers and neighbors without disabilities and to earn fair wages, access equal opportunities for advancement and to achieve social and economic independence. We are pleased that the state of Oregon has fully embraced integrated employment services for people with disabilities, and we look forward to seeing the ways in which thousands of Oregonians with intellectual and developmental disabilities will contribute, grow and advance in typical workplaces throughout the state.”
“Individuals with intellectual and developmental disabilities are valuable members of our community,” said U.S. Attorney Billy J. Williams of the District of Oregon. “They contribute to our workforce, our diversity, and they enrich our environment. We have an obligation to remove barriers to their full participation in society. The final approval of the settlement agreement by the court is a great step toward ensuring that sheltered workshops in Oregon will no longer be used to unnecessarily segregate the intellectually and developmentally disabled.”
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to his or her needs. Please visit www.ada.gov/olmstead to learn more about the division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the other laws enforced by the Civil Rights Division.
Justice Department Reaches Landmark Settlement Agreement with State of Oregon Regarding Americans with Disabilities ActRead the Press Release
In a Dec. 29, 2015, order, the U.S. District Court for the District of Oregon approved a settlement agreement between the Justice Department, a class of private plaintiffs and the state of Oregon, which resolved the department’s and the class plaintiffs’ claims against the state under the Americans with Disabilities Act (ADA). The agreement will impact approximately 7,000 Oregonians with intellectual and developmental disabilities (I/DD) who can and want to work in typical employment settings in the community. The private plaintiffs were represented by the Center for Public Representation, Disability Rights Oregon and the law firms of Miller Nash Graham & Dunn LLP and Perkins Coie LLP. The agreement resolves a class action lawsuit by private plaintiffs in which the department intervened. The parties’ settlement agreement was approved by U.S. Magistrate Judge Janice Stewart of the District of Oregon, who presided over the lawsuit.
In the department’s lawsuit, it alleged that Oregon’s employment services system unnecessarily placed people with I/DD in, or at risk of entering, sheltered workshops instead of in integrated jobs in the community, in violation of the ADA. As interpreted by the Supreme Court’s landmark decision in Olmstead v. L.C., the ADA affords individuals with disabilities the right to receive services in the most integrated setting appropriate to their needs. Sheltered workshops are segregated facilities that exclusively or primarily employ people with disabilities. They are usually large, institutional facilities in which people with disabilities have little or no contact with non-disabled persons besides paid staff. People with I/DD in sheltered workshops typically earn wages that are well below minimum wage, sometimes pennies per hour. By contrast, supported employment services assist people with I/DD to prepare for, gain and succeed in integrated employment at competitive wages. Approximately 450,000 people with I/DD across the country spend their days in segregated sheltered workshops and facility-based day programs. Approximately 1,900 Oregonians with disabilities currently receive services in sheltered workshops. Since the initiation of the lawsuit, approximately 3,900 Oregonians with disabilities have received services in sheltered workshops, and historically hundreds of students have transitioned each year from Oregon public schools directly into sheltered workshops.
The agreement calls for 1,115 people in sheltered workshops to receive jobs in the community at competitive wages over the next seven years. In addition, 7,000 people will receive employment services that will afford them the opportunity to work in the community, including at least 4,900 youth ages 14 to 24 years old, who are exiting school. At least half of the youth served will receive an Individual Plan of Employment, which sets forth the services and supports necessary to achieve competitive employment, from Oregon’s vocational rehabilitation system.
The settlement resolves the first class action lawsuit in the nation to challenge a state funded and administered employment service system, including sheltered workshops, as a violation of the ADA’s integration mandate. The class action, Lane v. Kitzhaber (since renamed Lane v. Brown), was filed in January 2012 by eight named individuals and United Cerebral Palsy of Oregon and Southwest Washington, on behalf of themselves and other individuals with I/DD who are in Oregon sheltered workshops or have been referred to sheltered workshops. In March 2013, the Department of Justice moved to intervene in the lawsuit, seeking to vindicate the rights of thousands of individuals with I/DD across Oregon. The department’s claims included that Oregon violated the ADA by unnecessarily segregating adults with I/DD in sheltered workshops and by placing Oregon youth with I/DD at unnecessary risk of segregation in sheltered workshops.
“Work is fundamental to contributing to and being fully included in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “People with disabilities deserve opportunities to work alongside their friends, peers and neighbors without disabilities and to earn fair wages, access equal opportunities for advancement and to achieve social and economic independence. We are pleased that the state of Oregon has fully embraced integrated employment services for people with disabilities, and we look forward to seeing the ways in which thousands of Oregonians with intellectual and developmental disabilities will contribute, grow and advance in typical workplaces throughout the state.”
“Individuals with intellectual and developmental disabilities are valuable members of our community,” said U.S. Attorney Billy J. Williams of the District of Oregon. “They contribute to our workforce, our diversity, and they enrich our environment. We have an obligation to remove barriers to their full participation in society. The final approval of the settlement agreement by the court is a great step toward ensuring that sheltered workshops in Oregon will no longer be used to unnecessarily segregate the intellectually and developmentally disabled.”
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to his or her needs. Please visit www.ada.gov/olmstead to learn more about the division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the other laws enforced by the Civil Rights Division.
Oregon Settlement Agreement
Justice Department Announces Franklin County, Ohio, Sheriss’s Office has Fully Implemented Agreement Regrading Use of TasersRead the Press Release
WASHINGTON – The Justice Department announced today that it has jointly sought and received court approval to terminate a settlement agreement with the Franklin County Sheriff’s Office (FCSO) in Columbus, Ohio, regarding the deployment of tasers in the Franklin County jails. The move recognizes the successful implementation of reforms by the FCSO that resulted in a dramatic reduction in the use of tasers overall, as well as substantial improvements in policies, procedures, training and accountability and review mechanisms in those limited circumstances that tasers are used.
The settlement agreement resolved allegations that the FCSO inappropriately used tasers against detainees, including persons with disabilities, in violation of their constitutional rights. The allegations were initially brought in a class action lawsuit filed by Ohio Legal Rights Service (now Disability Rights Ohio), a federally designated protection and advocacy organization for persons with disabilities. The department filed a statement of interest and later intervened in the lawsuit under its enforcement authority under the Violent Crime Control and Law Enforcement Act.
The U.S. District Court of the Southern District of Ohio approved and entered the settlement agreement on Feb. 4, 2011. The agreement prohibited sheriff’s deputies from using tasers against any detainee who is not reasonably perceived to pose a threat to the safety of the deputy or others and is not resisting by use of physical force. The agreement further restricted the practice of using tasers against persons who question a deputy’s commands in a non-violent manner, or who remain in a limp or prone position. Critically, the settlement agreement prohibited the use of tasers against persons who are known or reasonably believed to be pregnant, are intoxicated due to drugs or alcohol, or are mentally ill or physically impaired. To achieve these reforms, the agreement detailed changes to FCSO’s policies, procedures, training, accountability and supervisory review mechanisms, including the use of de-escalation techniques, heightened reporting requirements by each deputy involved in a use of force and triggers for automatic higher-level review by the Internal Affairs Bureau.
On Dec. 24, 2015, the department joined the FCSO and Disability Rights Ohio in a motion to terminate the settlement agreement, citing the sheriff's sustained substantial compliance with the terms of the agreement for more than two years, as required by the agreement’s terms. On Dec. 28, 2015, the federal court granted the parties’ joint motion to terminate the settlement agreement in light of these improvements.
“We are pleased to see the Franklin County Sheriff's Office reform its use of force practices in its jails, especially with respect to persons with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The accountability mechanisms implemented through this agreement will ensure that the positive outcomes will be sustained long after the agreement is terminated.”
“The termination of this agreement illustrates the positive changes implemented by the Franklin County Sheriff's Office in its policies, training and accountability in regard to taser use, particularly when involving those with disabilities,” said U.S. Attorney Carter M. Stewart of the Southern District of Ohio.
Section 14141 authorizes the department to bring a lawsuit seeking remedies to eliminate a pattern or practice of misconduct by law enforcement agencies. The Civil Rights Division’s Special Litigation Section partnered with the U.S. Attorney’s Office of the Southern District of Ohio and attorneys with Disability Rights Ohio to investigate, negotiate and monitor the successful implementation of reforms to the use of tasers in the Franklin County jails.
Justice Department Announces Franklin County, Ohio, Sheriff's Office Has Fully Implemented Agreement Regarding Use of TasersRead the Press Release
The Justice Department announced today that it has jointly sought and received court approval to terminate a settlement agreement with the Franklin County Sheriff’s Office (FCSO) in Columbus, Ohio, regarding the deployment of tasers in the Franklin County jails. The move recognizes the successful implementation of reforms by the FCSO that resulted in a dramatic reduction in the use of tasers overall, as well as substantial improvements in policies, procedures, training and accountability and review mechanisms in those limited circumstances that tasers are used.
The settlement agreement resolved allegations that the FCSO inappropriately used tasers against detainees, including persons with disabilities, in violation of their constitutional rights. The allegations were initially brought in a class action lawsuit filed by Ohio Legal Rights Service (now Disability Rights Ohio), a federally designated protection and advocacy organization for persons with disabilities. The department filed a statement of interest and later intervened in the lawsuit under its enforcement authority under the Violent Crime Control and Law Enforcement Act.
The U.S. District Court of the Southern District of Ohio approved and entered the settlement agreement on Feb. 4, 2011. The agreement prohibited sheriff’s deputies from using tasers against any detainee who is not reasonably perceived to pose a threat to the safety of the deputy or others and is not resisting by use of physical force. The agreement further restricted the practice of using tasers against persons who question a deputy’s commands in a non-violent manner, or who remain in a limp or prone position. Critically, the settlement agreement prohibited the use of tasers against persons who are known or reasonably believed to be pregnant, are intoxicated due to drugs or alcohol, or are mentally ill or physically impaired. To achieve these reforms, the agreement detailed changes to FCSO’s policies, procedures, training, accountability and supervisory review mechanisms, including the use of de-escalation techniques, heightened reporting requirements by each deputy involved in a use of force and triggers for automatic higher-level review by the Internal Affairs Bureau.
On Dec. 24, 2015, the department joined the FCSO and Disability Rights Ohio in a motion to terminate the settlement agreement, citing the sheriff's sustained substantial compliance with the terms of the agreement for more than two years, as required by the agreement’s terms. On Dec. 28, 2015, the federal court granted the parties’ joint motion to terminate the settlement agreement in light of these improvements.
“We are pleased to see the Franklin County Sheriff's Office reform its use of force practices in its jails, especially with respect to persons with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The accountability mechanisms implemented through this agreement will ensure that the positive outcomes will be sustained long after the agreement is terminated.”
“The termination of this agreement illustrates the positive changes implemented by the Franklin County Sheriff's Office in its policies, training and accountability in regard to taser use, particularly when involving those with disabilities,” said U.S. Attorney Carter M. Stewart of the Southern District of Ohio.
Section 14141 authorizes the department to bring a lawsuit seeking remedies to eliminate a pattern or practice of misconduct by law enforcement agencies. The Civil Rights Division’s Special Litigation Section partnered with the U.S. Attorney’s Office of the Southern District of Ohio and attorneys with Disability Rights Ohio to investigate, negotiate and monitor the successful implementation of reforms to the use of tasers in the Franklin County jails.
Grove City Man Charged with Distributing HerionRead the Press Release
COLUMBUS, Ohio – Roman Hernandez, 38, of Grove City, appeared in U.S. District Court today on charges related to the distribution of more than 1,000 grams of heroin. A federal grand jury previously charged Hernandez in a three-count indictment.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott and other members of Central Ohio HIDTA (High Intensity Drug Trafficking Area) Drug Task Force announced the indictment. The HIDTA Task Force is operated as part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission.
The indictment alleges that in April 2013 Hernandez possessed the heroin with the intent of distributing it. The defendant also allegedly possessed a firearm as a convicted felon and purchased criminally derived property worth more than $10,000, namely, a property on Manitoba Road in Columbus, Ohio.
Possession with intent to distribute more than 1,000 grams of heroin is a crime punishable by up to life in prison. Possessing a firearm as a previously convicted felon and engaging in monetary transactions in property derived from specified unlawful activity each carry a maximum sentence of up to 10 years imprisonment.
Hernandez was arrested in April and has been in custody since.
U.S. Attorney Stewart commended the investigation of this case by the Central Ohio HIDTA Task Force, and Assistant U.S. Attorney Timothy Prichard, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Former Bank Vice President Is Sentenced to More Than 3 Years for 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 Michael Whipple, 43, of Williamsville, NY, was sentenced by U.S. District Judge Elizabeth A. Wolford to 39 months incarceration, and ordered to pay restitution in the amount of $5,332,397. In addition, the defendant will be placed on supervised release for a period of 3 years once released from incarceration.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that between 2008 and November 2013, Whipple, an M&T Bank Vice President, devised a scheme to defraud the bank involving creation and origination of fraudulent “funding loans.” These loans were created in the names of entities which were credit worthy, or made by the defendant to appear credit worthy. The proceeds were then given to entities of Whipple’s choosing.
As part of the scheme, Whipple forged signatures on loan documentation related to the origination of many of the “funding loans” and had mail diverted to locations other than the credit worthy clients’ addresses to avoid detection. When customers questioned the defendant regarding irregularities in their loan accounts, Whipple told them it was a mistake or a bank error and promised to correct the problem. These problems were never corrected as the defendant stated they would be and he subsequently covered the irregularities up through the creation of new funding loans.
In addition, the defendant caused official checks drawn on M&T Bank to be created to fund the fraudulently originated loans. Similar to a Ponzi scheme, the defendant used some of the proceeds from the fraudulent loans to make payments on the previously obtained fraudulent loans in order to avoid detection by the bank and the customers whose credit was fraudulently used.
At the time the scheme was discovered, there were at least 12 funding loans fraudulently created by Whipple. As a result of the defendant’s actions, M&T Bank suffered a loss of $5,332,397.
The sentencing is a culmination of an investigation by Special Agents of the Federal Bureau of Investigation and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office.
Five Southwest MO Residents Indicted for Meth, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that five southwest Missouri residents have been indicted by a federal grand jury, in three separate but related cases, for distributing methamphetamine in Vernon and Bates County, Mo., and for illegally possessing firearms.
USA v. Bogart, et al
Marklee Eugene Bogart, 35, of Nevada, Mo., and Danny Albert Crawford, 35, of El Dorado Springs, Mo., were charged in a six-count indictment returned by a federal grand jury in Springfield, Mo., on Dec. 9, 2015.
The federal indictment alleges that Bogart and Crawford participated in a conspiracy to distribute 50 grams or more of methamphetamine in Vernon County, Mo., from April 29, 2014, to Jan. 22, 2015.
In addition to the conspiracy, the indictment charges Bogart with one count of possessing methamphetamine with the intent to distribute and one count of illegally possessing firearms in furtherance of those drug-trafficking crimes. Bogart allegedly possessed nine rifles, six shotguns and seven handguns.
The indictment also charges Crawford with one count of possessing methamphetamine with the intent to distribute, one count of possessing a firearm in furtherance of those drug-trafficking crimes and one count of being a felon in possession of ammunition. Crawford, who has been convicted of a felony, allegedly possessed a Mountain Arms .22-caliber rifle and 199 rounds of .22-caliber ammunition.
The indictment also contains a forfeiture allegation, which would require Bogart to forfeit to the government any property derived from the proceeds of the alleged offenses, including a total of $50,897 that was seized by law enforcement officers on two separate occasions.
USA v. Grissom, et al
Donald G. Grissom, 60, of Milo, Mo., and Margaret Wyvonne West, 60, of Rockville, Mo., were charged in a five-count indictment returned by a federal grand jury in Springfield, Mo., on Dec. 9, 2015.
The federal indictment alleges that Grissom and West participated in a conspiracy to distribute at least 50 grams of methamphetamine in Bates County, Mo., from Aug. 13 to Dec. 20, 2014.
In addition to the conspiracy, the indictment charges Grissom and West with one count each of possessing methamphetamine with the intent to distribute.
The federal indictment also charges West with one count of distributing methamphetamine and one count of being a felon in possession of firearms. West, who has been convicted of a felony, allegedly possessed a Cobra .380-caliber handgun, a Mossberg .410 shotgun and a Revelation .22-caliber rifle.
The indictment also contains a forfeiture count, which would require West to forfeit to the government any property derived from the proceeds of the alleged offenses, including $10,905 that was seized by law enforcement officers.
USA v. Pryor
James Pryor, 34, of Nevada, Mo., was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo., on Dec. 9, 2015.
The federal indictment alleges that Pryor possessed five grams or more of methamphetamine with the intent to distribute in Vernon County, Mo., on Dec. 1, 2014.
The indictment also alleges that Pryor possessed a firearm in furtherance of that drug-trafficking crime. Pryor allegedly possessed a Super Comanche 45LC/410 handgun.
Dickinson cautioned that the charges contained in these indictments 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.
These cases are being prosecuted by Special Assistant U.S. Attorney Jody M. Larison. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Drug Enforcement Administration, the FBI, the Vernon County, Mo., Sheriff’s Department and the Bates County, Mo., Sheriff’s Department.
Federal Grand Jury Indicts Riverside Man on Charges of Conspiring with Shooter in San Bernardino Terrorist Attack to Provide Material Support to TerroristsRead the Press Release
Defendant also Charged with Being ‘Straw Purchaser’ of Two Assault Rifles Later Used in San Bernardino Attack that Killed 14 People
Enrique Marquez Jr., 24, of Riverside, California, a longtime friend of Sayed Rizwan Farook, the male shooter in the San Bernardino, California, terrorist attack, was named today in a federal grand jury indictment that charges him with conspiring with Farook in 2011 and 2012 to provide material support to terrorists.
Marquez was also charged today with two counts of making a false statement in relation to the purchase of two assault rifles that were used in the deadly shooting at the Inland Regional Center (IRC) on Dec. 2, 2015.
The five-count indictment additionally charges Marquez with marriage fraud and making a false statement on immigration paperwork in relation to an alleged sham marriage with a member of Farook’s family.
Marquez is currently being held in federal custody without bond and is scheduled to be arraigned in U.S. District Court in Riverside on Jan. 6, 2016.
“Enrique Marquez Jr. has been indicted for his role in plotting terrorist attacks on American soil with Sayed Rizwan Farook in 2011 and 2012, attacks which were, fortunately, not carried out. He is also charged with firearms violations for making straw purchases of weapons for Farook – weapons that were eventually used to carry out the recent terrorist attack in San Bernardino,” said Assistant Attorney General for National Security John P. Carlin. “This indictment is the next step in holding Mr. Marquez accountable. I would like to extend my gratitude to all the members of law enforcement involved in this ongoing investigation.”
“This indictment demonstrates that we will hold accountable all individuals who collaborate with terrorists in executing their plans," said United States Attorney Eileen M. Decker. "Defendant Marquez's extensive plotting with Sayed Rizwan Farook in 2011 and 2012 and his purchase of explosive powder and two firearms provided the foundation for the murders that occurred this month. This indictment is the result of sustained and coordinated efforts by many federal and state prosecutors, agents and officers, and I thank them for their efforts."
"Mr. Marquez is charged for his role in a conspiracy several years ago to target innocent civilians in our own backyard with cold-blooded terror attacks, and with providing weapons to an individual whose endgame was murder," said David Bowdich, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The covert nature of the defendant's alleged actions is a stark reminder of the challenges we face in preventing attacks planned in the name of violent jihad, and underscores the critical need for those with knowledge about terror plots to come forward."
Today’s indictment charges Marquez with conspiring with Farook to provide material support and resources, including weapons, explosives and personnel, to terrorists, knowing and intending that such support was to be used in preparation for and in carrying out the use of fire or explosive to maliciously damage or destroy any institution or organization receiving federal financial assistance and property used in interstate or foreign commerce or in any activity affecting interstate or foreign commerce.
In addition to the conspiracy count, Marquez is charged with two counts of making a false statement when purchasing two assault rifles for Farook – a Smith and Wesson, model M&P-15 Sport, 5.56-caliber rifle that was bought on Nov. 14, 2001, and a DPMS, model A-15, 5.56-caliber rifle that was bought on Feb. 22, 2012 – which, according to an affidavit previously filed in this case, were used in the Dec. 2 attack on the IRC that killed 14 people and wounded 22 others. Specifically, he is charged with stating on a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form that he was the actual buyer, a statement that was, and which defendant knew to be, false.
The final two counts in the indictment allege that Marquez entered into a sham marriage with a member of Farook’s family in November 2014 and that on July 17, 2015, he signed an immigration form, under penalty of perjury, that he was living with the purported spouse in Corona, California, when he was not actually living there.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of providing material support to terrorists carries a maximum sentence of 15 years in federal prison. The charges of making a false statement in connection with acquisition of firearms each carry a statutory maximum penalty of 10 years in federal prison. The marriage fraud count carries a statutory maximum sentence of 5 years in prison, and the charge of making a false statement on immigration paperwork carries a statutory maximum sentence of 10 years in prison.
Today’s indictment in the result of an ongoing investigation that is being conducted by several members of the Inland Empire Joint Terrorism Task Force, including agents and detectives from the FBI; the San Bernardino Police Department; the San Bernardino County Sheriff’s Department; ATF; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Riverside County Sheriff’s Department; the Ontario Police Department and the Riverside Police Department. Several agencies are providing considerable assistance to the investigation, including the San Bernardino County District Attorney’s Office and detectives with the Chino, California, Police Department; the Redlands, California, Police Department and the Corona Police Department. Additionally, investigators have collaborated with sister task forces in the region and throughout the country, as well as with the intelligence community, foreign law enforcement partners and various FBI Legal Attachés located overseas.
The case against Marquez is being prosecuted by the U.S. Attorney’s Office of the Central District of California and the Counterterrorism Section of the Department's National Security Division.
Federal Grand Jury Indicts Riverside Man on Charges of Conspiring with Shooter in San Bernardino Terrorist Attack to Provide Material Support to TerroristsRead the Press Release
RIVERSIDE, California – Enrique Marquez Jr., a longtime friend of Sayed Rizwan Farook, the male shooter in the San Bernardino terrorist attack, was named today in a federal grand jury indictment that charges him with conspiring with Farook in 2011 and 2012 to provide material support to terrorists.
Marquez, a 24-year-old Riverside resident, was also charged today with two counts of making a false statement in relation to the purchase of two assault rifles that were used in the deadly shooting at the Inland Regional Center (IRC) on December 2.
The five-count indictment additionally charges Marquez with marriage fraud and making a false statement on immigration paperwork in relation to an alleged sham marriage with a member of Farook’s family.
Marquez is currently being held in federal custody without bond and is scheduled to be arraigned in United States District Court in Riverside on January 6.
“This indictment demonstrates that we will hold accountable all individuals who collaborate with terrorists in executing their plans,” said United States Attorney Eileen M. Decker. “Defendant Marquez’s extensive plotting with Syed Rizwan Farook in 2011 and 2012, and his purchase of explosive powder and two firearms, provided the foundation for the murders that occurred this month. This indictment is the result of sustained and coordinated efforts by many federal and state prosecutors, agents and officers, and I thank them for their efforts.”
David Bowdich, the Assistant Director in Charge of the FBI’s Los Angeles Field Office, said: “Mr. Marquez is charged for his role in a conspiracy several years ago to target innocent civilians in our own backyard with cold-blooded terror attacks, and with providing weapons to an individual whose endgame was murder. The covert nature of the defendant’s alleged actions is a stark reminder of the challenges we face in preventing attacks planned in the name of violent jihad, and underscores the critical need for those with knowledge about terror plots to come forward.”
Today’s indictment charges Marquez with conspiring with Farook to provide material support and resources – including weapons, explosives and personnel – to terrorists, knowing and intending that such support was to be used in preparation for and in carrying out the use of fire or explosive to maliciously damage or destroy any institution or organization receiving federal financial assistance and property used in interstate or foreign commerce or in any activity affecting interstate or foreign commerce.
In addition to the conspiracy count, Marquez is charged with two counts of making a false statement when purchasing two assault rifles for Farook – a Smith and Wesson, model M&P-15 Sport, 5.56-caliber rifle that was bought on November 14, 2001, and a DPMS, model A-15, 5.56-caliber rifle that was bought on February 22, 2012 – which, according to an affidavit previously filed in this case, were used in the December 2 attack on the IRC that killed 14 people and wounded 22 others. Specifically, Marquez is charged with stating on a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form that he was the actual buyer, a statement that was, and which defendant knew to be, false.
The final two counts in the indictment allege that Marquez entered into a sham marriage with a member of Farook’s family in November 2014 and that on July 17, 2015, he signed an immigration form, under penalty of perjury, that he was living with the purported spouse in Corona, California, when he was not actually living there.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of providing material support to terrorists carries a maximum sentence of 15 years in federal prison. The charges of making a false statement in connection with acquisition of firearms each carry a statutory maximum penalty of 10 years in federal prison. The marriage fraud count carries a statutory maximum sentence of five years in prison, and the charge of making a false statement on immigration paperwork carries a statutory maximum sentence of 10 years in prison.
Today’s indictment in the result of an ongoing investigation that is being conducted by several members of the Inland Empire Joint Terrorism Task Force, including agents and detectives from the FBI, the San Bernardino Police Department, the San Bernardino County Sheriff’s Department, ATF, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Riverside County Sheriff’s Department, the Ontario Police Department and the Riverside Police Department.
Several agencies are providing considerable assistance to the investigation, including the San Bernardino County District Attorney’s Office and detectives with the Chino Police Department, the Redlands Police Department and the Corona Police Department. Additionally, investigators have collaborated with sister task forces in the region and throughout the country, as well as with the intelligence community, foreign law enforcement partners and various FBI Legal Attachés located overseas.
The case against Marquez is being prosecuted by the United States Attorney’s Office for the Central District of California and the Counterterrorism Section of the Department’s National Security Division.
Marquez Indictment (235.44 KB)
Eighth Circuit Affirms District Court’s Denial of Federal Inmate’s Habeas Petition and Dismissal of Inmate’s Civil Rights ActionRead the Press Release
United States Attorney Randolph J. Seiler announced that the Eighth Circuit Court of Appeals filed a per curiam opinion and Judgment on December 29, 2015, in the case of Travis Emory Correll v. United States of America, et al., affirming the judgment of the district court.
Federal inmate Correll appealed after the district court dismissed his two pro se civil actions, in which he claimed 18 U.S.C. § 3621 and the regulations promulgated thereunder, violate equal protection because they authorize early release only for nonviolent offenders who have both a history of substance abuse and complete a residential drug-abuse treatment program.
In the opinion, the court wrote, “The government’s refusal to offer early release to Correll does not implicate a fundamental right, so § 3621 is permissible if it is supported by a rational basis. Congress rationally could have concluded that substance-abuse treatment for prisoners could help reduce the extraordinarily high rate of recidivism among offenders who have a history of substance abuse, and that an early-release incentive was necessary to draw into treatment inmates who might otherwise be unwilling to undergo drug treatment.”
Assistant U.S. Attorney Alison Ramsdell handled this appeal for the Government
[1] Per curiam is Latin for “by the court.” A phrase used to distinguish an opinion of the whole court from an opinion written by any one judge. Sometimes it denotes an opinion written by the chief justice or presiding judge, or to a brief announcement of the disposition of a case by court not accompanied by a written opinion.Convicted Felon from Hickory Hills Pleads Guilty to Illegally Possessing Rifles and a ShotgunRead the Press Release
CHICAGO — A convicted felon from southwest suburban Hickory Hills pleaded guilty in federal court today to charges he illegally possessed firearms whose serial numbers had been obliterated.
STEVEN RILEY, 24, sold a 20-gauge shotgun, two rifles and 40 rounds of assorted ammunition to an individual for $2,500 in November 2014. Unbeknownst to Riley, the buyer was a confidential informant who was working at the direction of agents from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Riley had previously been convicted of two felonies prior to the gun sales.
Riley pleaded guilty today to one count of illegal possession of a firearm by a convicted felon. The conviction carries a maximum sentence of ten years in prison and a $250,000 fine. U.S. District Judge Virginia M. Kendall scheduled a sentencing hearing for April 14, 2016, at 10:00 a.m.
In addition to the shotgun and rifles, Riley admitted in a plea agreement that he sold other firearms and assorted ammunition to the informant from October 2014 to February 2015. These additional sales netted Riley $3,600. In March 2015, agents executing a search warrant at Riley’s home in Hickory Hills discovered two loaded semi-automatic pistols and various ammunition, according to the plea agreement.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery Magee, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Hickory Hills Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorneys Elizabeth Pozolo, John D. Mitchell, and Jordan Palmore.
Plea Agreement
Baltimore Woman Pleads Guilty to Stealing Almost $200,000 in Social Security BenefitsRead the Press Release
Baltimore, Maryland –Patricia Green Jackson, age 63, of Baltimore, pleaded guilty today to theft of government property arising from a scheme to steal over $196,000 in social security benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General, Philadelphia Field Division.
According to her guilty plea, Jackson was a friend of J.W. and a co-signer on J.W.’s bank account. J.W. began receiving retirement benefits from the Social Security Administration (SSA) in 1986, which were paid by direct deposit to her bank account. J.W. died on December 31, 1997. SSA was not aware of J.W.’s death, and continued to make monthly payments of J.W.’s retirement benefits until March 2015.
Jackson admitted that, after J.W.’s death she withdrew and spent J.W.’s monthly SSA retirement benefits via debit card withdrawals and transactions. At the time J.W.’s benefits were suspended in 2015, SSA was paying $1,087 per month in benefits and paid a total of $196,323 in unauthorized benefits after J.W.’s death in 1997. When she was interviewed by law enforcement on April 2, 2015, Jackson admitted that she knew she was not entitled to J.W.’s retirement benefits.
Jackson faces a maximum sentence of 10 years in prison for theft of government property. U.S. District Judge Marvin J. Garbis has scheduled sentencing for March 9, 2016 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the Social Security Administration - Office of Inspector General for its work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Lauren E. Perry, who is prosecuting the case.
Anchorage Woman Sentenced to A Year in Prison and Six Months in A Halfway House for Defrauding an Elderly Widow of over $70,000Read the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was sentenced in federal court in Anchorage for three counts of defrauding an elderly woman of over $70,000.
Susanna Difranco, 53, of Anchorage, Alaska, was sentenced today by U.S. District Judge Timothy M. Burgess to a year in prison and six months in a halfway house.
According to Assistant U.S. Attorney Aunnie Steward, Difranco obtained financial information of an elderly woman who is a widow and has dementia, and used that information to get online access to the victim’s bank account and obtain a debit card on the victim’s bank account. Difranco also changed the address of the victim’s mail to her own so she would receive all of the victim’s mail. In so doing, Difranco was able to steal over $70,000 of the victim’s money in little over a month. When the bank questioned Difranco about the money she was withdrawing from the victim’s account, Difranco provided a notarized statement to the bank in which she lied and said she was keeping the money in a safe deposit box on behalf of the victim when, in fact, Difranco had spent all of the money on online shopping, paying her own credit card bill, and booking herself a trip to Las Vegas, among other things.
Judge Burgess said that as a teacher Ms. Difranco had done a lot of good, but that she also had a dark side that allowed her to take advantage of the victim in this case. Judge Burgess noted that, in addition to this case, Ms. Difranco did not have a good track record because the state had issued two protective orders against her from defrauding her elderly parents.
“The sentence reflects our commitment along with that of our state and local partners to protect vulnerable victims and pursue those that would prey on them,” said U.S. Attorney Loeffler.
“Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement in Anchorage and the surrounding area on this investigation,” said Seattle Division Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service. “We take crimes against the elderly and crimes committed by people in a position of trust very seriously and will continue to vigorously protect the U.S. Mail and customers against all forms of criminal attack and misuse.”
U.S. Attorney Karen L. Loeffler commends the United States Postal Inspection Service, and the Anchorage Police Department, with assistance from the Alaska Office of Elder Fraud and Assistance, for the investigation of this case.
Tuesday 29 December 2015
Wyoming Woman Sentenced to Prison for Theft from Healthcare Clinic and Non-ProfitRead the Press Release
Cheyenne – U.S. Attorney Christopher A. Crofts announced today that thirty-seven year old Sheridan, Wyoming, resident Alecia Rae Bolton was sentenced by Chief United States District Court Judge Nancy Freudenthal to serve fifty-one (51) months in prison for bank fraud and aggravated identity theft. In addition, Judge Freudenthal ordered Bolton to pay approximately $86,000 in restitution to the victims of her fraud.
These charges arose from Bolton’s theft of approximately $23,000 from the Sheridan chapter of Trout Unlimited and approximately $63,000 from her former employer Cedars Health Clinics between February 2014 and April 2015. Specifically, as the volunteer treasurer of the Little Big Horn Chapter of Trout Unlimited, Bolton wrote unauthorized checks from the group’s checking account to pay her personal expenses. To accomplish and conceal this fraud, Bolton forged the signatures of other Trout Unlimited officers on various checks. As an office employee and accounts receivable manager for Cedars Health Clinics, Bolton stole patient payments made to the clinic by depositing checks and transferring electronic payments into accounts she controlled. In addition to stealing patient payments, Defendant Bolton stole Cedars’ money by writing unauthorized checks from the clinic’s bank account. In doing so, Bolton forged the signature of another Cedars’ employee on the unauthorized checks.
This case was investigated by the Sheridan Police Department and the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorney Eric Heimann.
Waterloo Man Sentenced for Firearms PossessionRead the Press Release
A man who was found in possession of a handgun in relation to a shooting was sentenced today to more than four years in federal prison.
Dameon Harris, age 23, from Waterloo, Iowa, was convicted of being a felon and unlawful drug user in possession of a firearm. In a plea agreement, Harris admitted that on April 7, 2015, he was outside his girlfriend’s apartment complex when someone in a white vehicle drove by and shot at him. Defendant was, at the time, armed with a .22 caliber Mossberg firearm. Before the police arrived to investigate the shooting, Harris tried to hide his firearm in his girlfriend’s apartment. At the time Harris possessed the firearm, he was an unlawful user of marijuana. Harris had previously been convicted in 2013 of the felony offense of Aggravated Unlawful Use of a Weapon in Chicago, Illinois.
Harris was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Harris was sentenced to 57 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.
Harris 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 C.J. Williams and investigated by Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-cr-2016-LRR.
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