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5 February 2016
Bowdoinham Man Sentenced to 57 Months for Possession of Child PornographyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Daniel Lajoie, Jr., 46, of Bowdoinham, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 57 months in prison to be followed by five years of supervised release for possession of child pornography. Lajoie pleaded guilty to the charge on October 8, 2015.
According to court records and proceedings, between April 29 and June 3, 2012, the defendant used a computer and peer-to-peer software to make available for sharing videos of child pornography. A federal agent, acting in an undercover capacity, downloaded seven of those videos and traced them to a computer Lajoie used at a residence in Oakland, Maine. Lajoie’s computer was seized and examined and investigators found over 50 images and 110 videos of child pornography.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Task Force.
Beltsville Man Sentenced to Prison in Bank Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Bertrand Awah Essem, age 27, of Beltsville, Maryland today to 27 months in prison followed by two years of supervised release for conspiring to commit bank fraud.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to his plea, from October 2010 to July 2012, Essem recruited college students at the University of Maryland Eastern Shore, promising that they could make some easy money. Essem told the recruits to open a bank account, obtain a debit card and PIN number associated with that debit card, and provide that information to Essem. After the recruits opened the bank accounts, Essem collected the debit cards and PIN numbers and gave them to another co-conspirator.
Essem told the recruits that money would be transferred into these accounts from The Home Depot. A conspirator would order materials with Home Depot stores, supplying a victim’s stolen credit card number that was obtained through other means. Within a few days, a conspirator canceled the order and requested that the refund be placed on the co-conspirator’s debit card, including the debit cards of co-conspirators recruited by Essem.
The recruits, including Stanley Nmesirionye and Dosis Feludu, would be required to withdraw the majority of the money from the bank account and give that to Essem. The recruit could keep a portion, in some cases as much as $300.
During the course of the fraud scheme, Essem collected $264,757.29 from the co-conspirators he recruited. From December 13, 2010, to March 2011, a total of 69 refunds from The Home Depot were credited to bank accounts of individuals recruited by Essem.
Co-defendants Godfred Obeng, age 38, of Glen Allen, Virginia; Stanley Nmesirionye, age 24, of Owings Mills, Maryland; Dosis Feludu, age 25, of Salisbury, Maryland; and Gideon Turkson age 24, of Burtonsville, Maryland previously pleaded guilty to their participation in the fraud scheme and await sentencing.
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 U.S. Postal Inspection Service and U.S. Department of the Treasury – OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
Baltimore Co-Conspirator Sentenced to Nine Years in Prison for Five RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Randy Jones, age 39, of Baltimore, today to nine years in prison followed by three years of supervised release for robbing five stores.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement and court documents, on September 24, 2014, Jones, co-conspirator Daryl Norris and another individual entered the Game Stop on Liberty Road in Baltimore, pointing fake guns, which appeared to be real, at an employee. The robbers demanded that the employee open the register, from which they took money. The robbers forced the employee to show them a safe and game systems, and then bound him with zip ties. The robbers took the employee’s cell phone as well as cash and merchandise.
Jones admitted to committing four other robberies from August 26 to December 15, 2014 with Norris and/or others, using a similar modus operandi: Rainbow Clothing on Maiden Choice Lane in Baltimore; 7-Eleven on Pleasant Plains Road in Towson, Maryland; Metro PCS in Baltimore; and the same Game Stop store.
The total loss from the five robberies was $15,312.51.
Darryl Norris, age 37, of Baltimore, previously pleaded guilty to robbing the video game store, and admitted to six other robberies. Judge Russell sentenced Norris on October 16, 2015 to nine years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County and City Police Departments and Baltimore County and City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James T. Wallner and Bonnie S. Greenberg, who prosecuted the case.
Antwon Willis and Ericka Simmons Found Guilty by Jury TrialRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Antwon Willis, 45, of Richton Park, Illinois and Ericka Simmons, 28, of Lansing, Illinois, were found guilty, after a five-day jury trial, of conspiring to distribute heroin.
The jury also found that both were responsible for distributing at least 100 grams of heroin. The defendants will be sentenced in May and are in custody.
This case was prosecuted as a result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
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4 February 2016
Winnebago Man Sentenced to 46 Months for the Sexual Abuse of a MinorRead the Press Release
Steven Rice, 28, of Winnebago, Nebraska, was sentenced today in federal court in Omaha, Nebraska. Rice had previously entered a plea of guilty to sexual abuse of a minor. The Honorable Lyle E. Strom, Senior United States District Judge, sentenced Rice to the custody of the United States Bureau of Prisons for a term of 46 months. There is no parole in the federal prison system. After completing his sentence, Rice will begin a 20-year term of supervised release.
Rice engaged in sexual contact with a 14-year-old female on the Winnebago Indian Reservation. The abuse was reported to a school counselor the following day. Agents of the Federal Bureau of Investigation and Bureau of Indian Affairs interviewed Rice. He admitted the sexual abuse of the minor.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Weston Couple, Two Others Indicted for $2.25 Million Internet Steroids DistributionRead the Press Release
schweidler_indictment.pdf (100.03 KB)KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Weston, Mo., couple and two men from New Hampshire and Maryland have been indicted by a federal grand jury for their roles in a $2.25 million conspiracy to sell anabolic steroids over the Internet.
Aaron Vincent Schweidler, 31, and Nicole R. Lyne, 26, both of Smithfield, N.C., formerly of Weston; Michael G. Peters, 27, of Pelham, N.H.; and Samuel C. Miller IV, 29, of Annapolis, Md., were charged in a nine-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Feb. 2, 2016. That indictment was unsealed and made public today upon the arrests of Lyne and Schweidler in Smithfield and of Peters in Boston, Mass. Miller remains a fugitive from justice.
The federal indictment alleges that Lyne, Schweidler, Peters and Miller participated in a conspiracy to manufacture and distribute anabolic steroids, a conspiracy to commit money laundering and a conspiracy to commit debit card fraud. The four co-defendants are also charged with three counts of debit card fraud and three counts of aggravated identity theft.
The indictment alleges the conspiracy to manufacture and distribute anabolic steroids began on Dec. 30, 2011. Conspirators allegedly operated an Internet-based company, Power Trip, which sold various anabolic steroids to customers throughout the United States. Their customers, according to the indictment, included athletes and minors.
According to the indictment, Lyne and Schweidler frequently utilized the U.S. Postal Service station at 6304 N.W. Barry Road in Kansas City, Mo., to ship packages to their customers. Some of the packages listed a return address for “Hype Electronics & Game Super Store,” the indictment says, but actually contained vials marked with a Power Trip label that contained anabolic steroids.
Conspirators allegedly used stolen identities (including names, Social Security numbers and birth dates, which they either purchased or stole from victims themselves) to produce or obtain debit cards, such as Green Dot MoneyPak, MyVanilla, ReloadIT, NetSpend ReloadIT and BlackHawk. They required their customers to send payments to these cards in order to conceal and disguise the proceeds of the illegal transactions.
Conspirators also allegedly transferred over $188,000 outside the United States to China, via MoneyGram and Western Union, to purchase the raw materials and other supplies to manufacture anabolic steroids.
The indictment also contains a forfeiture allegation, which would require the co-defendants to forfeit to the government any property derived from the proceeds of the alleged illegal drug trafficking, including a money judgment of at least $2.25 million.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration.
West Frankfurt Man Convicted of Diverting Medical MarijuanaRead the Press Release
A West Frankfurt man, convicted of Conspiracy to Distribute Marijuana and Possession with Intent to Distribute Marijuana, was sentenced to 27 months in federal prison on February 4, 2016, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Jason Furlong, 39, of West Frankfurt, Illinois, received a 27 month sentence for offenses which occurred in the Southern District of Illinois. Furlong had previously pled guilty to those offenses. Following release from imprisonment, Furlong will serve a 3 year term of supervised release. Furlong was also ordered to pay a $300 fine and a $200 special assessment.
The investigation in this case showed that Furlong’s co-defendant, Walter Wayne Moser of Eugene, Oregon, operated a medical marijuana dispensary that was legal under Oregon state law. In addition to dispensing medical marijuana to patients in Oregon, Moser diverted pounds of marijuana to Furlong, in West Frankfort, Illinois, where the marijuana was resold for recreational use. Furlong would sell the marijuana and send payment back to Moser by FedEx in packages addressed to Moser’s graphic design company, which Moser used as a front to conceal the nature of the drug proceeds.
"Even as States like Illinois and Oregon have enacted laws allowing for medical use of marijuana, the United States Department of Justice still maintains a strong federal interest in preventing the diversion of marijuana from states where it is legal under state law in some form to other states and in preventing the diversion of marijuana intended for medical use to recreational use," said Acting United States Attorney James L. Porter.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigations, and the Illinois State Police. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.
Virginia Electrician Arraigned on Tax ChargesRead the Press Release
A former Cumberland, Virginia, resident was arraigned in federal court in Roanoke, Virginia, on Feb. 3, on a seven-count indictment charging him with tax evasion, corruptly endeavoring to impede and impair the due administration of the internal revenue laws and failure to file tax returns, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S Attorney John P. Fishwick, Jr. of the Western District of Virginia announced today.
According to the indictment, which was returned in June 2015 and unsealed in December 2015, Richard Alex, a self-employed low-voltage electrician, had not filed a timely or valid federal income tax return in more than a decade. For tax years 1998 and 2000 through 2003, Alex filed a tax return on which he falsely claimed that he had not earned any income. For tax years 2004 through 2013, Alex failed to file any tax returns despite earning gross income in excess of the filing requirement and receiving numerous warnings and notices from the Internal Revenue Service (IRS).
The indictment further alleges that, to prevent the IRS from collecting his unpaid taxes, Alex attempted to conceal his assets and income by establishing nominee businesses to conceal his gross income and using bank accounts held in the names of nominees to receive income. Alex also provided false information to a tax return preparer for the purpose of preparing federal tax returns for Alex’s nominee entity, Cole Data Services.
Alex’s detention hearing is tomorrow before U.S. Magistrate Judge Robert S. Ballou. Trial is set for April 11 before U.S. District Judge Norman K. Moon. If convicted, Alex faces a statutory maximum sentence of five years in prison for the tax evasion count, three years in prison for the charge of corruptly endeavoring to impede and impair the due administration of the internal revenue laws and one year in prison for each count of failure to file a tax return. He is also subject to a fine and restitution.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Fishwick Jr. commended special agents of IRS Criminal Investigation, who investigated the case and Trial Attorney Sean Beaty of the Tax Division and Assistant U.S. Attorney C. Patrick Hogeboom of the Western District of Virginia, who are prosecuting the case.
Virginia Electrician Arraigned on Tax ChargesRead the Press Release
ROANOKE, VIRGINIA – A former Cumberland, Virginia, resident was arraigned in federal court in Roanoke, Virginia, on Feb. 3, on a seven-count indictment charging him with tax evasion, corruptly endeavoring to impede and impair the due administration of the internal revenue laws and failure to file tax returns, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S Attorney John P. Fishwick, Jr. of the Western District of Virginia announced today.
According to the indictment, which was returned in June 2015 and unsealed in December 2015, Richard Alex, a self-employed low-voltage electrician, had not filed a timely or valid federal income tax return in more than a decade. For tax years 1998 and 2000 through 2003, Alex filed a tax return on which he falsely claimed that he had not earned any income. For tax years 2004 through 2013, Alex failed to file any tax returns despite earning gross income in excess of the filing requirement and receiving numerous warnings and notices from the Internal Revenue Service (IRS).
The indictment further alleges that, to prevent the IRS from collecting his unpaid taxes, Alex attempted to conceal his assets and income by establishing nominee businesses to conceal his gross income and using bank accounts held in the names of nominees to receive income. Alex also provided false information to a tax return preparer for the purpose of preparing federal tax returns for Alex’s nominee entity, Cole Data Services.
Alex’s detention hearing is tomorrow before U.S. Magistrate Judge Robert S. Ballou. Trial is set for April 11 before U.S. District Judge Norman K. Moon. If convicted, Alex faces a statutory maximum sentence of five years in prison for the tax evasion count, three years in prison for the charge of corruptly endeavoring to impede and impair the due administration of the internal revenue laws and one year in prison for each count of failure to file a tax return. He is also subject to a fine and restitution.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Fishwick Jr. commended special agents of IRS Criminal Investigation, who investigated the case and Trial Attorney Sean Beaty of the Tax Division and Assistant U.S. Attorney C. Patrick Hogeboom of the Western District of Virginia, who are prosecuting the case.
Vice President of Chicago Real Estate Firm Admits Lying to Lender in the Redevelopment of a North Side Department StoreRead the Press Release
CHICAGO — The vice president of a Chicago real estate firm pleaded guilty today to lying to a bank about a public financing note that was issued for the redevelopment of a former Goldblatt’s Department Store in the city’s Uptown neighborhood.
CAROLINE WALTERS, the vice president and treasurer of Joseph Freed & Associates LLC, admitted in a plea agreement that she lied to Cole Taylor Bank about a public financing note issued by the city of Chicago that had been pledged to two different banks as collateral. Walters falsely told Cole Taylor that her company would resolve the other pledge, which had been made to a bank consortium after Cole Taylor’s interest in the note was already secured. At the time Walters made the statement, she knew that the bank consortium had declared JFA to be in default and was no longer negotiating with them, according to the plea agreement.
Walters, 55, of Palatine, pleaded guilty to one count of making a false statement to a financial institution. The conviction carries a maximum sentence of 30 years in prison and a maximum fine of $1,000,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.
U.S. District Judge Robert M. Dow scheduled a sentencing hearing for June 10, 2016, at 9:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Joseph M. Ferguson, Inspector General for the City of Chicago.
Walters was indicted in 2013 along with JFA’s president, LAURANCE H. FREED. Freed, of Chicago, has pleaded not guilty to seven counts of bank fraud, one count of mail fraud, one count of wire fraud, and six counts of making a false statement to a financial institution. His jury trial is scheduled to begin on Feb. 8, 2016, in Judge Dow’s courtroom.
According to Walters’ plea agreement, the city of Chicago in 2002 issued two publicly-financed Tax Increment Financing notes to Uptown Goldblatts Venture LLC, a company formed by JFA to redevelop the former Goldblatt’s Department Store in Uptown. The TIF notes had a combined principal of $6.7 million. Uptown Goldblatts then secured a $15 million loan from Cole Taylor, conditioned on Uptown Goldblatts’ assignment to Cole Taylor of its rights to one of the TIF notes.
Four years later, two other JFA-affiliated entities – DDL LLC and Freed Illinois Holdings LLC – entered into agreements with a bank consortium for a revolving line of credit worth up to $105 million. Uptown Goldblatts became a borrower under the revolving loan agreement through a subsequent deal with LaSalle Bank, which was one of the banks in the consortium and which had recently been acquired by Bank of America. In the LaSalle deal, Uptown Goldblatts pledged the two TIF notes as collateral and also represented that the notes were owned free and clear of any other secured interests. The deal did not mention that one of the notes had already been pledged to Cole Taylor.
In 2009, Uptown Goldblatts and Cole Taylor amended their loan agreement to reflect that Uptown Goldblatts would obtain a release and termination of the double pledge. Walters also personally told Cole Taylor that JFA would resolve the issue as part of its negotiation with the bank consortium to modify and extend its loan, according to the plea agreement. At the time Walters made the statement, however, she knew that the consortium had declared JFA in default and had terminated the negotiations, the plea agreement states.
The government is represented by Assistant U.S. Attorneys Renato Mariotti, Matthew F. Madden and Jessica Romero.
Plea Agreement
U.S. Attorney's Office Concludes Investigation into the Death of Bobby GrossRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or local charges against an officer from the Metro Transit Police who was involved in the fatal shooting of Bobby Gross last year in the middle of a Metro tunnel that runs between the Stadium Armory and Potomac Avenue stations.
The U.S. Attorney’s Office for the District of Columbia, the Metropolitan Police Department and the Metro Transit Police conducted a comprehensive review of the incident, which included interviews of over a dozen law enforcement and civilian witnesses; physical evidence collected on the scene; Metro Transit video footage and diagrams; DNA, ballistics and forensics evidence; the autopsy and toxicology reports; photographs, and other evidence. After this thorough review, the U.S. Attorney’s Office concluded that the evidence was insufficient to prove beyond a reasonable doubt that the officer who was involved in the shooting used excessive force or possessed the requisite criminal intent at the time of the events.
According to the evidence, the shooting took place at 9:06 p.m. on March 12, 2015. The Metro Transit Police officer was dispatched to the Potomac Avenue station to respond to a report of an unauthorized person inside one of the Metro tunnels. Metro personnel had seen the individual, later-identified as Mr. Gross, running through the tunnels between the two stations wearing a T-shirt, boxer shorts, no shoes, sweating profusely, and carrying a large branch.
Once inside the tunnel, the officer encountered Mr. Gross. The two were face-to-face on an elevated 21-inch catwalk that is adjacent to the tracks – including a 750-volt “third rail” – on which the Metro trains run. The officer greeted Mr. Gross but he did not reply. When they were within 10 feet of one another, Mr. Gross pulled out a large branch from behind his back, which was later determined to be three feet long, 2.5 inches wide, and approximately three pounds. He held the branch waist high, pointing it at the officer as he continued to advance. Mr. Gross did not comply with the officer’s order to drop the branch and instead advanced more rapidly. Train marker signs protruding from the walls prevented the officer from safely backing up without risking hitting a sign and falling onto the live wire. Drawing a firearm, the officer warned, “Drop the stick or I’ll shoot you!” Mr. Gross continued to advance and the officer fired one round. Mr. Gross then began to sprint toward the officer, who fired three more times. Mr. Gross then used his body weight to thrust the branch at the officer, striking the officer in the hands and arms. The officer fired one more round, and Mr. Gross fell to the tracks. Mr. Gross, 35, was shot a total of five times, with injuries to his chest, abdomen, trunk, chin, and palm.
Under the applicable federal criminal civil rights laws, prosecutors must establish beyond a reasonable doubt not only that an officer’s use of force was excessive, but also that the officer willfully deprived an individual of a constitutional right. Proving “willfulness” is a heavy burden, and means that it must be proven that the officer acted with the deliberate and specific intent to do something the law forbids. Accident, mistake, fear, negligence and bad judgment do not establish such a criminal violation. After a careful, thorough and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officer used excessive force under the circumstances known at the time or acted with the requisite criminal intent. Accordingly, the investigation into this incident has been closed without prosecution.
The Justice Department remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated.
Toledo man faces heroin, fentanyl and firearms chargesRead the Press Release
An 11-count indictment was filed charging Vinson Shawn Belcher, 40, of Toledo, with distribution of heroin and fentanyl, possession with intent to distribute heroin and being a felon in possession of firearms, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
The indictment details multiple sales of heroin and fentanly between February 2015 and January 2016. It also alleges Belcher had two firearms on January 19, 2016, despite previous felony convictions that forbid him from possessing firearms.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation in conjunction with the Toledo Metro Drug Task Force, Toledo, Ohio. The case is being handled by Assistant United States Attorneys Alissa M. Sterling and James L. Morford.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Thirteen Alleged Members of the “Felony Lane Gang” Indicted in $1 Million Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – A federal indictment charging 13 Florida residents with a bank fraud conspiracy involving over $1 million in losses was unsealed today. According to statements made at previous court proceedings, the defendants are alleged to be members of a nationwide group of fraudsters known as the “Felony Lane Gang.” The indictment alleges that the defendants traveled from Florida to Maryland and other states, broke into vehicles parked at recreation areas, sports fields, gyms, fitness centers, and other locations, and stole wallets, purses and other items left in the vehicles. The defendants then allegedly used the victims’ stolen checks, credit cards and identifications to conduct fraudulent financial transactions. The indictment was returned on October 27, 2015, and charges the following defendants:
Theodore L. Pittman, a/k/a Teddy, Tony, and Bear, age 32, of Lauderhill, Florida; Courtney B. Walker, a/k/a Wayne Leo Walker, age 28, of Ft. Lauderdale, Florida; James J. Blakey, a/k/a Jamal, age 29, of Ft. Lauderdale; Vincent Lee Sands, a/k/a Young SP, and Chad, age 26, of Lauderhill; Heather Brooke Roberts, age 45, of Perry, Ohio; Michael J. Walker, age 44, of Pompano Beach, Florida, and Perry, Ohio; Tara Kathleen Whyte, age 29, of Hollywood, Florida, and Gambrills, Maryland; Tracy Lee Whyte, a/k/a Nikki, age 34, also of Hollywood, and Gambrills; Shannon Elise Isley, age 29, of Sunrise, Florida; Lauren Anne Bole, age 28, of Miramar, Florida; Felicia Kaye Waybright, a/k/a Felicia Kaye Phillips, age 25, of Daytona Beach, Florida; Ronald Jason Rhoda, a/k/a Jason Rhoda, age 43, of Hollywood, Florida; and
Amie Nicole Carter, age 32, of Casselberry, Florida.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief Antonio DeVaul of the Maryland National Capital Park Police, Montgomery County Division; Acting Chief Stanley Johnson of the Maryland National Capital Park Police, Prince George’s County Division; Chief Gary Gardner of the Howard County Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Tim Altomare.
According to the 27-count indictment, from September 2012 through July 2015, the defendants and their co-conspirators used the checks, credit cards, identifications and other items they stole from breaking into unattended vehicles to pose as the victims or to access the financial accounts of the victims. The defendants recruited prostitutes, drug addicts and other vulnerable individuals to travel with them to conduct financial transactions using the stolen checks, driver’s licenses and other materials, and paid them with drugs, food, and small amounts of cash amounting to a fraction of the total value of the checks they cashed.
The indictment alleges that checks drawn on one victim’s account were made payable to a second victim and cashed by a member of the conspiracy at a financial institution where the second victim had an open account, allowing the conspirators to freely cash checks for large amounts of money. The transactions were generally conducted at a drive through teller lane, often the furthest lane from the window, and the conspirator posing as the victim sat in the passenger seat, all to obscure the bank teller’s view of the individual posing as the victim. The conspirators often wore wigs and glasses to more closely resemble the victims whose stolen driver’s licenses they used to conduct the transactions.
According to the indictment, the conspirators traveled throughout Maryland and other states conducting these thefts and financial transactions in one location for several days or weeks until the banks or law enforcement began thwarting their activities. Then they returned to Florida or moved on to another location, burying or hiding for future use the checks, credit cards, identification cards and other items they had stolen from vehicles, but had not yet used. A few weeks or months later, after scrutiny of their activities had faded, the defendants would return to Maryland, retrieve the hidden items and use them to continue their financial fraud scheme.
The indictment alleges that over the course of the scheme the defendants fraudulently obtained and attempted to obtain over $1 million from more than a dozen financial institutions using the identification of hundreds of individual victims.
Each of the defendants faces a maximum sentence of 30 years in prison for the bank fraud conspiracy, and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. All the defendants except Blakey and Sands also face a maximum of 30 years in prison for bank fraud. Lauren Boyle and Shannon Isley are still being sought by law enforcement, but the remaining defendants are expected to appear before a U.S. Magistrate Judge in U.S. District Court in Baltimore in the next several weeks.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Maryland National Capital Park Police - Montgomery and Prince George’s County Divisions, and the Howard County, Baltimore County and Anne Arundel County Police Departments for their work in the Maryland portion of this multi-state, multi-agency investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine and Ayn B. Ducao, who are prosecuting the case.
St. Thomas Man Sentenced to 78 Months in Prison for Possessing Child PornographyRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Donne W. Williams, 32, of St Thomas, to 78 months in prison and 15 years of supervised release for possessing child pornography, United States Attorney Ronald W. Sharpe and Ricardo Mayoral, acting special agent in charge of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) San Juan and U.S. Virgin Islands announced. Judge Gomez also ordered Williams to register as a sex offender, perform 400 hours of community service, pay a fine of $5,000, pay $27,000 in restitution, and pay a special assessment of $100.
On October 8, 2015, Williams pleaded guilty to one count of possessing child pornography. According to court records, Williams used his laptop computer to download more than 600 child pornography images from a peer-to-peer file sharing network. Those images included adults having sexual intercourse with prepubescent females.
“Adults who engage in this type of crime should know that HSI will not rest until they are brought to justice,” said acting special agent in charge Ricardo Mayoral. “We, working jointly with our local and federal partners, will continue using all resources available and robust investigative authorities to identify you, arrest you and prosecute you.”
Suspected child exploitation or missing children cases may be reported to the National Center for Missing and Exploited Children via its toll-free, 24-hour hotline at 202-514-5678, or U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) at (340) 693-2250.
This case was investigated by HSI and prosecuted by Assistant U.S Attorney Everard E. Potter.
St. Thomas Man Sentenced to 17 Months in Prison for Possession of Firearm by Convicted FelonRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Dwayne Fahie, 26, to 17 months in prison for possession of a firearm by a convicted felon, United States Attorney Ronald W. Sharpe announced. Judge Gomez also sentenced Fahie to serve three years of supervised release, perform 300 hours of community service and pay a $100 special assessment.
On August 21, 2015, Fahie pleaded guilty to possession of a firearm by a convicted felon. According to the plea agreement filed with the court, on April 24, 2015, Virgin Islands Police Department (VIPD) officers conducted a traffic stop for illegal tint on a vehicle in which Fahie was the passenger. During the traffic stop, Fahie fled from the car, fell and exposed the handle of a firearm. The officers recovered a Glock 9MM firearm. Fahie is a convicted felon and was not authorized to possess a firearm. He was convicted of reckless endangerment, a felony, in 2013 in the Superior Court of the Virgin Islands.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the VIPD. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.St. Thomas Man Sentenced to 15 Months in Prison for Possession of Firearm with an Obliterated Serial NumberRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced D’Mari Heyliger, 23, to 15 months in prison for his federal conviction of possession of a firearm with an obliterated serial number and 15 months in prison for possession of an unlicensed firearm under local law, United States Attorney Ronald W. Sharpe announced. Judge Gomez also sentenced Heyliger to serve three years of supervised release, perform 300 hours of community service, pay a fine of $5,000 and pay a $100 special assessment.
On August 31, 2015, Heyliger pleaded guilty to possession of a firearm with an obliterated serial number and possession of an unlicensed firearm. According to the plea agreement filed with the court, on December 20, 2013, a federal search warrant was executed on the defendant’s residence in St. Thomas. During the execution of the search warrant, two firearms with obliterated serial numbers were found in the defendant’s bedroom. Since the firearms had obliterated serial numbers, the firearms cannot be lawfully registered and therefore Heyliger did not have the authority to possess those firearms in the Virgin Islands.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Sentencings for January 28 & February 1, 2016Read the Press Release
Susan Spraker, aka Susan Stricker, 40, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 1, 2016, for distribution of 50 grams or less of a mixture or substance containing a detectable amount of methamphetamine. Spraker was arrested in Cheyenne, Wyoming. She received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Timothy Michael Wells, 47, of Laramie, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on January 28, 2016, for sexual exploitation of a child; coercion and enticement; incest; and abusive sexual contact. Wells was arrested in Laramie, Wyoming. He received 180 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $500.00 fine and a $400.00 special assessment. This case was investigated by the Federal Bureau of Investigation.
Sacramento Man Sentenced to 35 Years in Prison for Sex TraffickingRead the Press Release
SACRAMENTO, Calif. — Today U.S. District Judge Troy L. Nunley sentenced Percy Love III, 34, of Sacramento, to 35 years in prison for five counts of sex trafficking related to multiple victims, United States Attorney Benjamin B. Wagner announced.
On December 23, 2014, after an 11-day trial, a federal jury found Love guilty of three counts of sex trafficking by force and one count of sex trafficking of a minor.
U.S. Attorney Wagner stated: “This defendant forced his will upon weaker people for profit using threats and violence. Percy Love should spend the next several decades reflecting on how his abuse and humiliation of his victims has resulted in a life behind bars. He is a dangerous predator and the sentence imposed today will protect society from him.”
This case was the product of an investigation by the FBI’s Child Exploitation Task Force, a multijurisdictional task force composed of representatives from the FBI and the Sacramento Police Department, with assistance from the Sacramento County District Attorney’s Office. Assistant United States Attorneys Michele Beckwith and Jason Hitt prosecuted the case.
“Percy Love strategically preyed upon vulnerable young women and underage girls, luring them into a cycle of exploitation, brutal violence, and intimidation for his financial benefit. He exhibited complete disregard for the wellbeing of his victims and the laws. Today’s sentence will not erase the physical and emotional scars Love inflicted upon his victims but it will offer them time to heal,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Our Innocence Lost Task Force, which includes officers from the Sacramento Police Department, is committed to identifying men and women who exploit our community’s most vulnerable adults and children.”
Sacramento Police Chief Sam Somers Jr. stated: “Due to a coordinated effort of various dedicated law enforcement detectives, this predator will no longer have the opportunity to exploit or harm young women in our community. The conviction of Mr. Love sends a strong, clear message that this type of criminal conduct will not be tolerated in our communities.”
Two victims appeared at the sentencing hearing and described the lasting impact that the defendant’s crimes had on their lives. In sentencing the defendant, Judge Nunley described the defendant as a “gorilla pimp” who had attempted to beat the spirit out of his victims and, based on the trial evidence, earned every year that he would serve in prison.
According to evidence produced at trial, Love targeted vulnerable young women and underage girls to work as prostitutes for him since at least 2007. The testimony of witnesses at trial, including the victims, revealed a pattern of conduct where Love used charm to recruit and brute force to control the women and girls who worked for him.
According to court documents, on July 22, 2013, Sacramento police officers were called to a report of domestic violence and found Love asleep in the front seat of a car with a woman, whose sister had called in the report. The woman explained to officers that she was in a “working relationship” with Love. She reported that Love had beaten her many times, and she had bruises and cigarette burns on her hand, arm and stomach. Love was arrested that night for domestic violence and possession of Ecstasy.
On September 12, 2013, a federal grand jury indicted Love, charging him with two counts of sex trafficking by force, fraud, or coercion. After further investigation revealed more victims, a superseding indictment was brought on March 13, 2014. Love has been in custody since his arrest and represented himself during trial.
Sabol Pleads Guilty to Wire Fraud in Connection with Fraudulent Auto Leasing Scheme;Read the Press Release
SALT LAKE CITY – Nghia Thi Sabol, age 65, a Vietnamese citizen living in Salt Lake County, pleaded guilty to wire fraud in U.S. District Court Wednesday afternoon in connection with a fraudulent auto leasing program. Most of the investors in the scheme were promised returns of 4-5 percent per month on their investment, however they lost all or a majority of the funds they invested in the scheme. Restitution owed to victims in the case is $943,250.
Sabol, also known as Nia Sabol, Nghia Cano, Nghia Thi Nguyen, Nghia Wynn Sabol, and Nghia Wynn, is currently incarcerated in the Utah State Prison on unrelated securities charges. She was charged in a federal indictment returned in November with four counts of wire fraud and one count of money laundering following an investigation by the FBI and IRS Criminal Investigation.
According to documents filed in federal court, Sabol established a company called W.A.V.E., LLC (WAVE) with headquarters in Midvale. She claimed WAVE offered an automobile leasing program referred to as “WAVE’s American Evaluation Program” and solicited individuals to participate in the leasing program, promising returns of approximately 4 to 5 percent per month. She also sold investments in WAVE. Sabol represented that participants in WAVE’s automobile leasing program would receive a new automobile of their choice manufactured by one of the three major U.S. automobile manufacturers to “test drive” for one year with unlimited mileage. In return, they were required to pay a one-time, non-refundable fee of about $300, pay 10 percent of the manufacturer’s suggested retail price for the vehicle chosen, and were required to complete vehicle evaluation forms to be furnished to the manufacturer.
As a part of a plea agreement reached with federal prosecutors, Sabol admitted that she represented to investors that WAVE had contracts with three major U.S. automobile manufacturers and that WAVE would be paid a subsidy in exchange for vehicle evaluations provided by their participants, when in fact, she knew WAVE had no contracts with automobile manufacturers. She also admitted that she represented to investors that WAVE had purchased vehicles for WAVE’s auto leasing program with funds received from major automobile manufacturers, when in fact, the funds were obtained from WAVE investors. She also represented to investors that WAVE attorneys had received millions of dollars from automobile manufacturers and were awaiting distribution to WAVE, when in fact, no such funds had been provided to WAVE.
Sabol also concealed from investors that she had a previous felony conviction for fraud and was on parole, that the terms of her parole prohibited her from dealing in investments or being employed in a fiduciary position, and that most investors lost all or a majority of the funds they invested in WAVE.
Sabol’s plea to wire fraud involved the transfer of $160,000 from a victim of the fraud to WAVE’s account at a bank in Utah.
The plea agreement executed Wednesday includes a stipulated sentence of 24 months to be followed by 36 months of supervised release. The sentence is subject to the approval of and acceptance of the Court. The sentence would run concurrent with any indeterminate sentence imposed in a separate state case.
U.S. District Judge Clark Waddoups presided at the plea hearing Wednesday and is scheduled to impose the sentence in the case on April 14 at 3 p.m.
Rio Rancho Woman Sentenced to Federal Prison for Aggravated Identity Theft ConvictionRead the Press Release
ALBUQUERQUE – Amber Hilton, 33, of Rio Rancho, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 24 months in federal prison followed by one year of supervised release for her aggravated identity theft conviction. Hilton was also ordered to pay $5,260.86 in restitution to the U.S. Postal Service.
Hilton was indicted on Nov. 5, 2014, and charged with possession of a counterfeit U.S. Postal Service key to a lock box for the purpose of mail theft on Oct. 14, 2014, in Sandoval County, N.M., attempted use of a Home Depot credit card on Sept. 26, 2014, in Bernalillo County, N.M., and identity theft on Sept. 26, 2014, in Bernalillo County.
The indictment was superseded on Feb. 25, 2015, and charged Hilton with attempt to defraud Wells Fargo Bank by attempting to cash two checks which had been altered to reflect a stolen identity on Sept. 7, 2014, in Bernalillo County, identity theft on Sept. 7, 2014, in Bernalillo County, attempted use of a Best Buy credit card on Sept. 24, 2014, in Doña Ana County, N.M., attempted use of a Home Depot credit card on Sept. 25, 2014, in Sandoval County, N.M., attempted use of a Home Depot credit card on Sept. 26, 2014, in Bernalillo County, aggravated identity theft on Sept. 26, 2014, in Bernalillo County and possession of a counterfeit U.S. Postal Service key to a lock box for the purpose of mail theft on Oct. 14, 2014, in Sandoval County.
On Aug. 7, 2015, Hilton pled guilty to aggravated identity theft and admitted that on Oct. 10, 2014, in Bernalillo County, she attempted to use a Home Depot credit card and attempted to obtain more than $1,000.00 with the credit card. Hilton further admitted that she possessed identification of another person in relation to the attempted credit card fraud.
This case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Norman Cairns prosecuted the case.
RTD Supervisor Found Guilty of Accepting Bribes in Connection with His Official DutiesRead the Press Release
DENVER – Following a 3-day jury trial before Chief U.S. District Court Judge Marcia S. Krieger, Kenneth P. Hardin, age 62, of Aurora, Colorado, was found guilty late yesterday of three of four counts related to accepting bribes in connection with his official duties as a senior manager at RTD, United States Attorney John Walsh, FBI Special Agent in Charge Thomas P. Ravenelle, and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Hardin, who appeared at the trial free on bond, is scheduled to be sentenced by Chief Judge Krieger on May 16, 2016. The jury deliberated for about two hours before reaching their verdicts.
Hardin was indicted by a federal grand jury on November 5, 2014. He was arrested and made his first appearance in federal court in Denver on November 12, 2014. After a series of detailed hearings, Hardin’s jury trial began on February 1, 2016. He was found guilty of three counts of Bribery concerning programs receiving federal funds, on February 3, 2016. He was found not guilty of a similar count.
According to the indictment as well as facts presented to the jury during trial, Hardin was an employee of the Regional Transportation District in Colorado (“RTD”), holding the position of Senior Manager of RTD’s Civil Rights Division. In that position, Hardin’s duties at RTD included directing and managing the operations of RTD’s Civil Rights Division, which was responsible for furthering civil rights goals through regulatory compliance, complaint investigation, community outreach, and programmatic strategy development. The Disadvantaged Business Enterprise program is one of the programs that fell under the umbrella of RTD’s Civil Rights Division. As the Senior Manager of the Civil Rights Division, Hardin also served as RTD’s Diversity Officer. RTD receives money from federal grants.
Hardin was found guilty of corruptly soliciting and accepting money, on or about the dates listed below, from a person intending to be influenced in connection with RTD business involving more than $5,000.
Date Amount of Bribe
May 15, 2014 $1,000
June 26, 2014 $1,000
September 15, 2014 $2,000
Bribery concerning programs receiving federal funds carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine per count for each of the three counts of conviction.“Public officials get paid to make other people’s lives better. When they take money to line their own pockets, we will hunt them down and punish them,” said U.S. Attorney John Walsh. “The fact that the jury took just under two hours to return guilty verdicts in this case is a testament to the exceptional skill of the federal criminal investigators and the Assistant U.S. Attorneys who handled this case.”
"The guilty verdict against Mr. Hardin shows public servants are not above the law and must be held accountable for failing to uphold their oath to maintain the public's trust," said FBI Denver Division Special Agent in Charge Thomas Ravenelle.
“Offenders who abuse the public’s trust are inherently more culpable. Mr. Hardin made a conscious decision to deceive and benefit personally at the expense of the citizens of Colorado,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “This verdict demonstrates our collective efforts to enforce the laws and ensure public trust.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation with substantial assistance from the U.S. Department of Transportation Office of the Inspector General. Hardin was prosecuted by Assistant U.S. Attorneys Pegeen D. Rhyne and J. Chris Larson.
Pittsburgh Man Pleads Guilty in Drug Trafficking SchemeRead the Press Release
PITTSBURGH - A Pittsburgh 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.
Devonte White, 23, 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, Devonte White 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 June 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 the defendant’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 Streets 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 Police conducted the investigation that led to the prosecution of Devonte White.
Perry County Resident Sentenced for Methamphetamine OffenseRead the Press Release
On February 2, 2016, Clint D. Williams, 32, of DuQuoin, was sentenced for his involvement in a methamphetamine conspiracy, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Williams, who had previously pled guilty to an indictment charging conspiracy to manufacture methamphetamine, was sentenced to 100 months in federal prison, to be followed by 3 years’ supervised release, and fined $350.00. The offense occurred between 2012 and September 2014, in Perry, Jackson, Randolph, Williamson, and Franklin Counties. Evidence at the plea and sentencing hearings established that Williams was involved with others in the manufacture of methamphetamine. On February 20, 2014, Williams was caught manufacturing methamphetamine at a DuQuoin residence with an 11-month old child present. At sentencing, the district court found Williams responsible for the possession of approximately 88 grams of pseudoephedrine, which was possessed for the purpose of manufacturing methamphetamine. Six co-defendants have previously been sentenced for their roles in the methamphetamine conspiracy.
The investigation was conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Pennsylvania man pleads guilty to participating in multi-state heroin, painkiller trafficking schemeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kalif Briggs, 33, of Upper Darby, Pennsylvania, was convicted in federal court today for his role in a multi-state heroin and oxycodone trafficking operation, United States Attorney William J. Ihlenfeld, II, announced.
Briggs participated in a drug trafficking network that cause quantities of heroin and oxycodone to be transported across state lines from Philadelphia, Pennsylvania to Morgantown, West Virginia for redistribution and sale throughout the region. The operation was disrupted in November 2014 when Briggs, along with 20 other individuals, was charged in a 65-count federal indictment.
Specifically, Briggs sold oxycodone in 2014 in Monongalia County, West Virginia. Briggs pled guilty today to one count of “Aiding and Abetting Distribution of Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The West Virginia State Police Bureau of Criminal Investigation, the Federal Bureau of Investigation, and the Mon Metro Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pakistani National Sentenced in International Counterfeit Drug ConspiracyRead the Press Release
SHERMAN, Texas – A 52-year-old man from Karachi, Pakistan man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Muhammad Aijaz Sarfraz was convicted by a jury on May 14, 2015 of conspiracy to manufacture and distribute controlled substances and international money laundering conspiracy. Sarfraz was sentenced to 240 months in federal prison on Feb. 3, 2016 by U.S. District Judge Amos L. Mazzant.
According to information presented in court, from March 2009 until Sarfraz’s arrest in April 2012, Sarfraz operated numerous illegal websites through which he distributed millions of illicit Schedule II, III, and IV controlled substances to Internet customers throughout the United States. Those pills included popular prescription medications such as OxyContin, Percocet, Adderall, Ritalin, Hydrocodone, Xanax, Valium, Ambien, and others. The counterfeit drugs were generally manufactured in China, Singapore, Malaysia, India, Pakistan, and Hong Kong. The pills, which were made to look like authentic prescription medications approved for use in the United States, often contained incorrect active pharmaceutical ingredients or the wrong quantity and dosage strength of those substances. No physicians or medical professionals of any kind were involved at any stage of the drug distribution process. It is estimated that the criminal enterprise may have generated as much as $100 million or more in proceeds between 2009 and 2012. Sarfraz was indicted by a federal grand jury on Apr. 12, 2012.
This case was investigated by the U.S. Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation, and was prosecuted by Assistant U.S. Attorneys Stevan Buys and Will Tatum.
Ongoing Methamphetamine Indictments AnnouncedRead the Press Release
A southern Illinois resident and St. Louis resident were indicted on February 2, 2016, for a methamphetamine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Brandon L. Watson, a/k/a "Dubb," 28, of Metropolis, and Gary M. Skinner, 61, of St. Louis, are charged in a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleges that the offense occurred between May 2015 and October 26, 2015, in Williamson and Massac Counties. Both Watson and Skinner are being held without bond pending a March 28, 2016, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offense carries a penalty of up to 5-40 years’ imprisonment, to be followed by 4 years’ supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Illinois State Police, and Drug Enforcement Administration. The Massac County State’s Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Ohio Man Sentenced on Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Paul Lacey, 56, of Youngstown, Ohio, who was convicted of participating in a conspiracy to engage in monetary transactions with proceeds gained from a wire fraud scheme, was sentenced to 46 months in prison and ordered to pay restitution in the amount of $337,002.65
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that Lacey traveled from Ohio to Georgia to open a bank account with Bank of America. Subsequently, approximately $337,002.65 was illegally transferred from individual bank accounts in New York, Colorado and Oklahoma into the account in Georgia. Lacey then withdrew or transferred large sums of cash from the Georgia account for his own personal use and use by others.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.Northwest Indiana Man Arrested for Sex TraffickingRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that a criminal complaint was filed against Aleksandar Jokic, 41, of Schererville, Indiana for sex trafficking of a minor.
According to documents filed in the case, it is alleged that Jokic paid a cooperating defendant on numerous occasions to provide women to perform sex acts at his residence, and that three of the females were under the age of 18 at the time. Jokic met the cooperating defendant when he responded to an online ad for escort services. The United States alleges that, between June and October 2015, Jokic requested and received females under the age of 18 for commercial sex services.
This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations and the Lake County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Abizer Zanzi.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Northeastern Pennsylvania Man Sentenced to 97 Months in Prison for $1.8 Million Investment FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Bartonsville man was sentenced today to 97 months in prison by United States District Court Judge Sylvia H. Rambo in Harrisburg to a charge stemming from an investment fraud.
According to United States Attorney Peter Smith, Joseph Gallardo, age 48, Bartonsville, previously plead guilty to mail fraud in September 2014. Gallardo was a registered investment advisor with investment firms in New Jersey and Pennsylvania. He persuaded clients with those investment firms to invest in Blue Meadow Group LLL, his personal real estate venture. Victims were guaranteed attractive rates of return and were falsely told that their money was invested in and protected by real estate. Contrary to what was represented to the victims, Blue Meadow Group was not a real estate investment trust and its securities were not registered with the Pennsylvania and New Jersey Securities Commissions.
In fact, victims’ monies were used to purchase a gas station and convenience store and to fund Gallardo’s on-line day trading account that lost a substantial amount of money. Investigators determined that victims of Gallardo’s criminal activity lost approximately $1.8 million.
During July 2009, the Pennsylvania Securities Commission issued a cease and desist order ordering Gallardo to stop offering or selling investment properties in Pennsylvania. After the cease and desist order, Gallardo solicited additional victims who invested money with him.
Gallardo was indicted by a federal grand jury in September 2014 as a result of an investigation by the United States Postal Inspection Service. Assistant U.S. Attorney Christy H. Fawcett prosecuted the case.
Judge Rambo ordered the defendant to pay restitution in the amount of $1,792,170 to victims and to serve a three-year term of supervised release following his incarceration.
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Minnesota Chiropractor Indicted for Tax EvasionRead the Press Release
A federal grand jury sitting in Minneapolis returned an indictment on Feb. 1, which was unsealed today, charging a chiropractor with one count of tax evasion and one count of passing a fictitious obligation, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Andrew Luger of the District of Minnesota announced today.
According to the allegations in the indictment, Donald Gibson failed to file federal income tax returns with the Internal Revenue Service (IRS) for the years 2004 through 2010 to report his income from his work as a chiropractor. In May 2012, the IRS informed Gibson that he owed approximately $330,000 in federal income taxes for those years. Gibson allegedly evaded paying his federal income taxes for 2004 through 2010 by, among other things, cashing his business checks at a check-cashing facility, purchasing money orders and directing his income onto stored-value debit cards. Gibson is further alleged to have used Sovereign Christian Mission, a nonprofit corporation he registered with the Oregon Secretary of State, to hide his income and pay his personal expenses. The indictment also charges Gibson with submitting a fake bond that he claimed to be valued at $300 million to the Department of the Treasury to pay off his tax liabilities.
If convicted, Gibson faces a statutory maximum sentence of five years in prison for the tax evasion charge and a statutory maximum sentence of 25 years in prison for the passing a fictitious obligation charge.
An indictment is not a finding of guilt. The individual charged in the indictment is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Luger thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Ryan R. Raybould of the Tax Division and Assistant U.S. Attorney Joseph Thompson of the District of Minnesota, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website
Minnesota Chiropractor Indicted for Tax EvasionRead the Press Release
WASHINGTON – A federal grand jury sitting in Minneapolis returned an indictment on Feb. 1, which was unsealed today, charging a chiropractor with one count of tax evasion and one count of passing a fictitious obligation, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Andrew Luger of the District of Minnesota announced today.
According to the allegations in the indictment, Donald Gibson failed to file federal income tax returns with the Internal Revenue Service (IRS) for the years 2004 through 2010 to report his income from his work as a chiropractor. In May 2012, the IRS informed Gibson that he owed approximately $330,000 in federal income taxes for those years. Gibson allegedly evaded paying his federal income taxes for 2004 through 2010 by, among other things, cashing his business checks at a check-cashing facility, purchasing money orders and directing his income onto stored-value debit cards. Gibson is further alleged to have used Sovereign Christian Mission, a nonprofit corporation he registered with the Oregon Secretary of State, to hide his income and pay his personal expenses. The indictment also charges Gibson with submitting a fake bond that he claimed to be valued at $300 million to the Department of the Treasury to pay off his tax liabilities.
If convicted, Gibson faces a statutory maximum sentence of five years in prison for the tax evasion charge and a statutory maximum sentence of 25 years in prison for the passing a fictitious obligation charge.
An indictment is not a finding of guilt. The individual charged in the indictment is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Luger thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Ryan R. Raybould of the Tax Division and Assistant U.S. Attorney Joseph Thompson of the District of Minnesota, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website
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Media Advisory: Town Hall Meeting Prescription Pain Killers and the Heroin EpidemicRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office has scheduled a Town Hall Meeting on February 10th to discuss prescription pain killers and the heroin epidemic. Every day, 44 people in the U.S. die from overdose of prescription painkillers. Yearly, overdose deaths exceed motor vehicle deaths and firearms deaths. The most recent data available indicates that in 2013, over 46,000 people in the U.S. died from drug overdoses with more than half of that number being caused by prescription painkillers and heroin. The wife of a correctional officer that died as a result of his addiction to painkillers will discuss the family tragedy.
Viewed as a national challenge requiring a community solution, the meeting will bring together community leaders and members, clergy, law enforcement, educators, health care professionals, business leaders, employers and employees to exchange information and strategies to address the epidemic plaguing eastern Iowa.
Topics include an examination of the national threat, opioid-based deaths in Iowa, heroin in Iowa in urban and rural communities, heroin then and now, responding to the addictions, and prevention education in schools, businesses and our communities. Visit www.faceboook.com/EasternIowaHeroinInitiative to learn more.
U.S. Attorney Kevin W. Techau will be present. The event is open to the public.
Event Details
When: February 10, 2016 (flyer is attached)
Where: Cedar Rapids Downtown Public Library (Whipple Aud.), 450 5th Ave SE
Time: Begins at 7:00 p.m., and ends at 9:00 p.m.
Press wishing to attend should contact AUSA Steve Young at 319-731-4037, or by emailing him at [email protected].
Manhattan U.S. Attorney Announces Criminal Charges Against Bank Julius Baer of Switzerland with Deferred Prosecution Agreement Requiring Payment of $547 Million, as Well as Guilty Pleas of Two Julius Baer BankersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Caroline D. Ciraolo, Acting Assistant Attorney General of the Justice Department’s Tax Division, and Richard Weber, Chief, Internal Revenue Service – Criminal Investigation, (“IRS-CI”), announced the filing of criminal charges against Bank Julius Baer & Co., Ltd. (“JULIUS BAER” or the “Company”), a financial institution headquartered in Zurich, Switzerland. JULIUS BAER is charged with conspiring with many of its U.S. taxpayer-clients and others to help U.S. taxpayers hide billions of dollars in offshore accounts from the United States Internal Revenue Service (the “IRS”) and to evade U.S. taxes on the income earned in those accounts.
Mr. Bharara also announced a deferred prosecution agreement with JULIUS BAER (the “Agreement”) under which the Company admits that it knowingly assisted many of its U.S. taxpayer-clients in evading their tax obligations under U.S. law. The admissions are contained in a detailed Statement of Facts attached to the Agreement. The Agreement requires JULIUS BAER to pay a total of $547 million by no later than February 9, 2016, including through a parallel civil forfeiture action also filed today in the Southern District of New York.
The criminal charge is contained in an Information (the “Information”) alleging one count of conspiracy to (1) defraud the IRS, (2) to file false federal income tax returns and (3) to evade federal income taxes. If JULIUS BAER abides by all of the terms of the Agreement, the Government will defer prosecution on the Information for three years and then seek to dismiss the charges.
In addition, two Julius Baer client advisers, DANIELA CASADEI and FABIO FRAZZETTO, pled guilty in Manhattan federal court today. CASADEI and FRAZZETTO were originally charged in 2011 and remained at large until February 2, 2016, when they each made initial appearances before the Honorable Gabriel W. Gorenstein, United States Magistrate Judge for the Southern District of New York.
CASADEI and FRAZZETTO each pled guilty to an Information (collectively, with the JULIUS BAER Information, the “Informations”) before U.S. District Judge Laura Taylor Swain charging them with conspiring with U.S. taxpayer-clients and others to help U.S. taxpayers hide their assets in offshore accounts and to evade U.S. taxes on the income earned in those accounts.
Manhattan U.S. Attorney Preet Bharara said: “Bank Julius Baer not only turned a blind eye to tax avoiders, but actually conspired with them to break the law. Together with our partners at the IRS, we will continue to prosecute financial institutions and individuals who facilitate tax evasion.”
Acting Assistant Attorney General Caroline D. Ciraolo said: “Today’s resolution with Bank Julius Baer and the guilty pleas entered by two bank employees reflect the department’s continued commitment to hold accountable those financial institutions who conspired with U.S. taxpayers to conceal assets abroad and evade U.S. tax obligations, as well as those individuals responsible for such crimes. The deferred prosecution agreement filed today makes it clear that there is a heavy price to pay for this conduct, and that there is a significant benefit in fully cooperating with the department.”
IRS Chief Richard Weber said: “In taking responsibility for their actions, Bank Julius Baer has agreed to cooperate and pay a substantial penalty for their role in circumventing offshore disclosure laws. The agreement – as well as the guilty pleas of client advisors Daniela Casadei and Fabio Frazzetto – sends a strong message to the international banking community as well as U.S. taxpayers who think they can outsmart the system by hiding their money in these international banks. The consequences of not reporting your foreign accounts and paying the taxes you owe will be significant for those who do not heed the warnings that agreements like this yield.”
According to the Informations, statements made during the proceedings today, and other documents filed in Manhattan federal court, including the Statement of Facts to the Agreement:
The Offense Conduct
From at least the 1990s through 2009, JULIUS BAER helped many of its U.S. taxpayer-clients evade their U.S. tax obligations, file false federal tax returns with the IRS, and otherwise hide accounts held at JULIUS BAER from the IRS (hereinafter, “undeclared accounts”). JULIUS BAER did so by opening and maintaining undeclared accounts for U.S. taxpayers and by allowing third-party asset managers to open undeclared accounts for U.S. taxpayers at JULIUS BAER. CASADEI and FRAZZETTO, bankers who worked as client advisers at JULIUS BAER, directly assisted various U.S. taxpayer-clients in maintaining undeclared accounts at JULIUS BAER in order to evade their obligations under United States law. At various times, CASADEI, FRAZZETTO, and others advised those U.S. taxpayer-clients that their accounts at JULIUS BAER would not be disclosed to the IRS because JULIUS BAER had a long tradition of bank secrecy and no longer had offices in the U.S., making JULIUS BAER less vulnerable to pressure from U.S. law enforcement authorities than other Swiss banks with a presence in the U.S.
In furtherance of the scheme to help U.S. taxpayers hide assets from the IRS and evade taxes, JULIUS BAER undertook, among other actions, the following:
- Entering into “code word agreements” with U.S. taxpayer-clients under which JULIUS BAER agreed not to identify the U.S. taxpayers by name within the bank or on bank documents, but rather to identify the U.S. taxpayers by code name or number, in order to reduce the risk that U.S. tax authorities would learn the identities of the U.S. taxpayers.
- Opening and maintaining accounts for many U.S. taxpayer-clients held in the name of non-U.S. corporations, foundations, trusts, or other legal entities (collectively, “structures”) or non-U.S. relatives, thereby helping such U.S. taxpayers conceal their beneficial ownership of the accounts.
JULIUS BAER was aware that many U.S. taxpayer-clients were maintaining undeclared accounts at JULIUS BAER in order to evade their U.S. tax obligations, in violation of U.S. law. In internal JULIUS BAER correspondence, undeclared accounts held by U.S. taxpayers were at times referred to as “black money,” “non W-9,” “tax neutral,” “unofficial,” or “sensitive” accounts.
JULIUS BAER also advised its bankers to take certain steps to avoid scrutiny from U.S. authorities when travelling to the U.S., as well as steps to avoid U.S. law enforcement identifying JULIUS BAER clients. In a memo entitled “U.S. Clients Do’s & Don’ts,” circulated internally in 2006, a JULIUS BAER employee provided client advisers with advice regarding travel to the U.S., including:
- “At Immigration . . . When asked by Officer what will you do while in the USA, say Business and of course some leisure, trying to take some time to enjoy your beautiful country. Proud government employees usually love this type of statement.One can throw in skydiving or another fun sport/activity.This tends to shift the questioning away from the business purpose to the ‘fun time’ part of the trip (carrying a tennis racket also puts the emphasis on “fun and games,” and not on business).”
- "In regard to communicating while in the U.S.:“Only use mobile phone[s] registered in and operating from Switzerland.Avoid phone calls from hotel to clients.It is recommended to purchase a telephone calling card from the post office, grocery stores, or electronic shops.This allows you to use practically any phone with no specific link left behind.The best is to pay for the calling card in cash.For ex: a 400 minutes local calling card costs less than $50, but the rates can vary.Most cards can also be used to call anywhere abroad.”
At its high-water mark in 2007, JULIUS BAER had approximately $4.7 billion in assets under management relating to approximately 2,589 undeclared accounts held by U.S. taxpayer-clients. From 2001 through 2011, JULIUS BAER earned approximately $87 million in profit on approximately $219 million gross revenues from its undeclared U.S. taxpayer accounts, including accounts held through structures.
Julius Baer’s Blocked Effort to Self-Report, Acceptance of Responsibility, and
Cooperation in the Government Investigation
Notwithstanding its lucrative criminal conduct, by at least 2008, JULIUS BAER began to implement institutional policy changes to cease providing assistance to U.S. taxpayers in violating their U.S. legal obligations. For example, by November 2008, the Company began an “exit” plan for U.S. client accounts that lacked evidence of U.S. tax compliance. In that same month, JULIUS BAER imposed a prohibition on opening accounts for any U.S. clients without an IRS Form W-9.
Additionally, in November 2009, before JULIUS BAER became aware of any U.S. investigation into its conduct, JULIUS BAER decided proactively to approach U.S. law enforcement authorities regarding its conduct relating to U.S. taxpayers. Prior to self-reporting to the United States Department of Justice, JULIUS BAER notified its regulator in Switzerland of its intention to contact U.S. law enforcement authorities. This Swiss regulator requested that JULIUS BAER not contact U.S. authorities in order not to prejudice the Swiss government in any bilateral negotiations with the U.S. on tax-related matters. Accordingly, JULIUS BAER did not, at that time, self-report to U.S. law enforcement authorities.
After ultimately engaging with U.S. authorities, JULIUS BAER has taken exemplary actions to demonstrate acceptance and acknowledgement of responsibility for its conduct. JULIUS BAER conducted a swift and robust internal investigation, and furnished the U.S. Government with a continuous flow of unvarnished facts gathered during the course of that internal investigation. As part of its cooperation, JULIUS BAER also, among other things, (1) successfully advocated in favor of a decision provided by the Swiss Federal Council in April 2012 to allow banks under investigation by the United States Department of Justice to legally produce employee and third-party information to the Department, and subsequently produced such information immediately upon issuance of that decision; and (2) encouraged certain employees, including FRAZZETTO and CASADEI, to accept responsibility for their participation in the conduct at issue and cooperate with the ongoing investigation.
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CASADEI, 52, a Swiss citizen, and FRAZZETTO, 42, an Italian and Swiss citizen, each pled guilty to one count of conspiracy to defraud the IRS, to evade federal income taxes, and to file false federal income tax returns. CASADEI and FRAZZETTO each face a maximum sentence of five years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentences imposed on the defendants will be determined by the judge.
CASADEI and FRAZZETTO are each scheduled to be sentenced before Judge Swain on August 12, 2016.
Mr. Bharara praised the outstanding investigative work of IRS-CI, and thanked the Justice Department’s Tax Division for their significant assistance in the investigation. Mr. Bharara also thanked the Department of Homeland Security for their assistance with the case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jason H. Cowley and Sarah E. Paul are in charge of the prosecution.
Man Sentenced to 60 Months for Alien SmugglingRead the Press Release
SYRACUSE, NEW YORK –Ronaldo Reyes, age 39, of Quebec, Canada, was sentenced yesterday to 60 months in prison following a September 2015 trial in which he was found guilty of alien smuggling offenses.
The announcement was made by United States Attorney Richard S. Hartunian, John C. Pfeifer, Chief Patrol Agent, United States Border Patrol, and James Spero, Special Agent in Charge, Homeland Security Investigations.
The evidence at trial demonstrated that Reyes acted as a smuggler for 12 aliens who entered the United States without inspection at Champlain, NY and Beecher Falls, VT.
Witnesses testified they each paid Reyes thousands of dollars in U.S. and Canadian cash in order to be brought to the United States illegally. Reyes would then walk the aliens across the international border at night to a prearranged pickup vehicle, before fleeing north to Canada on foot. Reyes was indicted and extradited from Canada in 2015. He was convicted by a jury on September 23, 2015, following a three-day trial in Albany presided over by Senior United States District Judge Frederick J. Scullin.
This case was investigated by the United States Border Patrol and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorneys Douglas Collyer and Katherine Kopita.
Man Pleads Guilty to Armed RobberyRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced that Wallace B. Carson, 48, of East St. Louis, Illinois, pled guilty today in United States District Court in East St. Louis to a three-count indictment charging him with Interference with Commerce by Robbery, Brandishing a Firearm in Furtherance of a Crime of Violence, and Unlawful Possession of a Firearm by a Previously Convicted Felon.
Facts revealed in Court were that on September 2, 2015, Carson entered the Walgreens located on 2510 State Street, East St. Louis, Illinois, pulled out a gun and committed an armed robbery. In addition, Carson had a prior felony conviction punishable by imprisonment by a term exceeding more than one year, thus he was prohibited from possessing a firearm.
The investigation was led by the East St. Louis Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Macon County Federal Firearms Licensee Sentenced to 2.5 Years in Prison for Selling Firearms to A Prohibited PersonRead the Press Release
ASHEVILLE, N.C. – A Macon County federal firearms licensee was sentenced today to a 30-month prison term for selling firearms to a prohibited person, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Philip Nelson Elliott, 55, of Franklin, N.C., was also ordered by U.S. District Judge Max O. Cogburn, Jr. to serve three years under court supervision following his prison term.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division.
“Federally-licensed firearms dealers are expected to be one of our first lines of defense to deprive convicted felons from purchasing firearms. Recent events underscore the importance of keeping guns out of the wrong hands. My office will vigorously prosecute gun dealers who put personal gain ahead of public safety,” said U.S. Attorney Rose.
“This case is an example of the types of investigations ATF conducts on a daily basis to keep our communities safe. ATF will continue to work with our investigative partners to keep firearms out of the hands of criminals and aggressively seek to bring individuals who provide firearms to criminals to justice,” said ATF Special Agent in Charge Hyman.
According to the filed court documents and today’s sentencing hearing, Philip Elliott was a federal firearms licensee who operated “Mountain Top Coins, Guns and Ammo” (Mountain Top), a firearms business located in Franklin. Court records show that Philip Elliott’s brother, Donald Eugene Elliott, also worked at Mountain Top. According to court records, from March to July 2014, Philip Elliott sold multiple firearms to a convicted felon and was therefore prohibited from possessing a firearm. Court records show that in addition to selling the firearms, Philip Elliott discussed selling the felon rocket-propelled grenade launchers and told the felon he was willing to buy stolen goods, including stolen firearms.
While executing a search warrant at Mountain Top, ATF agents seized approximately 20 firearms in the store which were “off the books,” meaning they were not included in the ATF Acquisition and Disposition Records as required of federal firearms licensees. Philip Elliott pleaded guilty in July 2015 to one count of selling a firearm to a prohibited person.
Law enforcement also seized seven firearms and ammunition from Donald Elliott’s residence. Donald Elliott’s previous felony conviction prohibits him from owning a firearm. He pleaded guilty to one count of felon in possession of a firearm and was sentenced in December 2015 to six months in prison and two years of supervised release.
The investigation was handled by ATF. Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville prosecuted the case.
Las Vegas, N.M., Man Sentenced for Falsely Impersonating a Federal OfficerRead the Press Release
ALBUQUERQUE – Leon Herrera, 37, of Las Vegas, N.M., was sentenced today in federal court in Albuquerque, N.M., to a year of probation for falsely impersonating a federal officer. Herrera was also ordered to perform 250 hours of community service.
On Oct. 16, 2015, Herrera entered his guilty plea to a felony information charging him with impersonating a Special Agent of the DEA on Dec. 15, 2014, in Colfax County, N.M. In his plea agreement, Herrera admitted that he committed the crime at the behest of a friend who was then employed as a deputy sheriff in Colfax County (friend).
According to Herrera’s plea agreement, on Dec. 15, 2014, Herrera received a call from his friend while the friend was conducting a traffic stop on motorists he believed to be drug traffickers. The friend reported to Herrera that he found approximately $8,000.00 cash in the motorists’ vehicle. The friend then asked Herrera to speak with one of the motorists and tell him that he was a DEA Special Agent and intended to seize the currency as proceeds of criminal activity. Herrera acquiesced to his friend’s request and had a conversation with one of the motorists during which he falsely identified himself as a representative of the DEA and would be seizing the money for law enforcement purposes. The plea agreement states that the friend told him that he intended to keep the currency for his personal use, and offered to give $1,000.00 to Herrera for assisting him.
In his plea agreement, Herrera acknowledges that he later learned that the motorists were undercover law enforcement officers and that the currency seized from their vehicle, $7,500.00, belonged to the FBI.
This case was investigated by the Santa Fe and Albuquerque offices of the FBI and the New Mexico State Police. Assistant U.S. Attorney Sean J. Sullivan prosecuted the case.
Las Vegas Woman Sent to Prison for Telemarketing Scam That Defrauded Southern Illinois ResidentsRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced that this morning, United States District Judge Nancy J. Rosenstengel sentenced Elpenike Eddy-Aldava, 74, of Las Vegas, NV, to one year and one day in federal prison on her conviction for telemarketing fraud. On October 9, 2015, after a four day trial, a federal jury in East St. Louis found Eddy-Aldava guilty of conspiracy to commit mail fraud and wire fraud. The fraud scheme that Eddy-Aldava participated in victimized individuals throughout the United States, including Southern Illinois.
Evidence at trial showed that for more than 5 years, Eddy-Aldava worked as a telemarketer for a telemarketing business in Las Vegas. Although the business frequently changed names, the two primary names of the business were Showcase Resorts and Vacation Max. Telemarketers from Showcase Resorts and Vacation Max called timeshare owners throughout the United States and offered to help them sell their timeshares. The telemarketers then falsely represented that they had found corporate buyers interested in acquiring blocks of timeshare units and that the victims’ timeshare units could be included in these blocks. In order to participate in this "corporate block," however, the telemarketers told the victims that they had to pay upfront fees, which usually ranged from $2,000 to $3,000. The telemarketers falsely told the victims that these fees were needed to pay closing costs. Instead, the fees were used as revenues for Showcase Resorts and Vacation Max. In addition, the telemarketers were paid a large commission for each fraudulent sale. These commissions typically ranged from 40% to 50%.
Because Showcase Resorts and Vacation Max had no corporate buyers, no timeshares were ever sold to any corporations. Showcase Resorts and Vacation Max employed individuals known as "Updaters" to handle all of the calls from customers who called in to ask why their timeshares had not been sold as had been promised. The job of these Updaters was to provide false excuses to the victims in order to string them along and prevent them from contacting their credit card companies and demanding their money back.
The scheme operated from at least December 5, 2006 until January 24, 2012. The losses caused by the scheme exceeded $11,000,000.
"Unfortunately, these telemarketing scams take place far too often," Acting U.S. Attorney Porter stated. "Hopefully, today’s sentence will send a message to other telemarketers that when they defraud citizens of Southern Illinois, they are going to be prosecuted and they will most likely go to prison. I’d also like to remind our citizens that when someone contacts them on the telephone with an offer that sounds too good to be true, it usually is."
In May 2013, the owner of Vacation Max, Michael Patrick Sullivan, was indicted. Sullivan pled guilty and on January 9, 2015, was sentenced to 5 years in prison. Three other telemarketers from the scheme (John Nicosia, Robert Kelly Mathews, and Rebecca Marrs), as well as one of the Updaters (Patrick Nosack) were also charged. Nicosia, Mathews, and Nosack all pled guilty and were sentenced to prison. Rebecca Marrs’ trial is scheduled to begin on April 5, 2016.
As part of today’s sentence, the court also ordered Eddy-Aldava to pay $647,015 in restitution to the victims she defrauded. When she completes her prison sentence, Eddy-Aldava will serve a period of 2 years of supervised release.
The case against Eddy-Aldava is one of approximately 80 cases prosecuted by the U.S. Attorney's Office for the Southern District of Illinois relating to timeshare resale fraud and part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service.
The prosecution of this case was handled by Assistant United States Attorney Scott Verseman and Special Assistant United States Attorney Vanessa Lu.
Kentucky Man Pleads Guilty to Kidnapping ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Danville, Ken., man who carjacked a vehicle in Kansas City, Mo., and forced its owner to accompany him as he drove across the state, pleaded guilty in federal court today.
Robert C. Caldwell, 26, of Danville, pleaded guilty before U.S. District Judge Beth Phillips to participating in a kidnapping conspiracy, one count of kidnapping, one count of carjacking, one count of using a firearm during a crime of violence and one count of being a felon in possession of a firearm.
Caldwell and an unindicted co-conspirator (who is considered a juvenile in the federal system but has been charged as an adult in state court) lay in wait outside the home of a 67-year-old Kansas City, Mo., man at about 5:30 a.m. on Jan. 22, 2015. They abducted the victim at gunpoint as he was leaving his home. He was forced to hand over his keys to his van, his wallet and cash. The victim was forced into his van, a 1998 Chevrolet CK 1500. He was beaten by Caldwell and his accomplice and struck in the head with the handgun, a Cobra .380-caliber semi-automatic pistol.
The victim told law enforcement officers that he was driven around to multiple ATMs, but he was covered with a blanket most of the time and was unable to see the locations where the carjackers attempted to use his debit card. He couldn’t remember his PIN number so they were unable to get cash, which made them angry. They repeatedly threatened his life and that of his wife. The kidnappers pretended to be on the phone with an accomplice who was holding his wife hostage; at one point after another failed ATM attempt, they informed him they had killed his wife, which was false.
According to court documents, they continued to drive and stopped at a drive-through restaurant, where one of the men sat next to the victim and shoved the barrel of the gun into his mouth, breaking his teeth, and told him that he would kill him if he moved. After getting food, they tied his hands together with a boot strap and had him lying in the floor with a blanket over his face so he couldn’t see. They continued driving and made several stops for purchases with the victim’s credit and debit cards.
Law enforcement authorities, who had been contacted by the victim’s wife, were tracking the use of the victim’s credit and debit cards as they were used or attempted to be used along I-70 eastbound. Investigators obtained surveillance photos and video from some of the locations.
When they arrived at a rest stop, according to court documents, one of the carjackers told the other to watch the victim while the carjacker slept. The victim managed to untie his hands and retrieve a homemade 45-pound weight from under the seat of the van. He struck both of the carjackers in the head (causing a gash above the eye of one of them) and made an attempt to escape, but was unsuccessful. He was then beaten heavily by both men.
They began driving again, and the victim pretended to be knocked out. The driver of the van was having trouble maneuvering the large van while holding the gun, so he sat the gun on the floorboard so he could use both hands to steer the vehicle. The victim lunged for the handgun and pointed it at the two carjackers as he demanded they pull over. When the vehicle pulled over, the driver made a move towards the victim, who pulled the trigger of the loaded gun, but it failed to fire. The victim quickly racked the slide to chamber a round, but both men had fled from the vehicle with the keys.
The victim also ran from the vehicle. As he ran down the street in Jennings, Mo., he turned and saw the two carjackers had returned to the vehicle and were slowly driving in his direction. The victim hid between several houses as he watched them drive away in his van. He then contacted the police.
The stolen van was recovered on Jan. 23, 2015, in Nelson County, Ken., after it was involved in an accident and the kidnappers fled. Caldwell was arrested in Kentucky on Jan. 27, 2015, following a pursuit by officers with the Kentucky State Police and the Lincoln County, Ken., Sheriff’s Department.
Under federal statutes, Caldwell is subject to a sentence of up to life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing is scheduled for June 30, 2016.
This case is being prosecuted by U.S. Attorney Tammy Dickinson and First Assistant U.S. Attorney David M. Ketchmark. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Jury Convicts Fresno County Man of Enticement of a MinorRead the Press Release
FRESNO, Calif. — After a two–day trial, a federal jury found John Torres, 28, of Firebaugh, guilty today of one count of enticement of a minor, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Anthony W. Ishii.
According to evidence presented at trial, Torres was the director of the Firebaugh Boys and Girls Club. Torres was supervising a 14 year-old boy who often came to that Boys and Girls Club after school, and who was volunteering at the Boys and Girls Club to complete 120 hours of community service. Torres sent the boy messages over Facebook that offered to shortcut his community-service-hours requirement if the boy would agree to sexual acts with Torres. The boy reported the messages to law enforcement.
This case was the product of an investigation by the Firebaugh Police Department, Fresno County Sheriff’s Office, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Michael Tierney and Vincenza Rabenn prosecuted the case.
Torres is presently in state custody on other charges. Torres is scheduled to be sentenced by Judge Ishii on May 9, 2016. He faces a statutory penalty of no less than 10 years and up to life in prison years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Husband and Wife Sentenced to Prison for Running a Tax Fraud SchemeRead the Press Release
Raul Sosa and Maura Sosa were sentenced to terms of imprisonment of 78 months and 48 months, respectively, by United States District Court Chief Judge K. Michael Moore, following their convictions by a Miami jury for criminal tax offenses arising out of a five-year scheme to defraud the Internal Revenue Service. Judge Moore also ordered the defendants to pay $1,488,213.85 in restitution and serve three years of supervised release following their release from prison.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
The defendants were convicted on November 10, 2015, following a six-day trial before Judge Moore. According to evidence presented at trial, starting in 2003, the defendants, who are married to one another, operated Accion 1 Auto Sales, Inc., an automobile salvage and recycling business in Hialeah. After purchasing junked and non-functioning cars, the defendants would strip the cars, sell the usable parts and components to businesses in the secondary auto parts market, and then sell the remaining metal as scrap to a local metal recycler. On some occasions, the defendants would resell whole cars, without stripping them.
The defendants’ fraud scheme revolved around their underreporting of Accion 1’s annual sales revenue on the businesses’ federal income tax returns. Through this scheme, Raul and Maura Sosa depressed the net profits reported on the businesses’ returns, the income reported on their individual returns, and their federal income tax owed.
From 2004 through 2008, the defendants’ business had sales of over $28.6 million. However, the defendants reported only approximately 14% of their sales, or $3.9 million, on the businesses’ federal income tax returns during that period. Evidence introduced at trial included records and witness testimony indicating that the defendants’ spending in 2008, on automobiles, real estate, jewelry, and credit card payments exceeded the total income reported on their joint individual income tax return by at least $900,000.
The court found that after the defendants learned they were under investigation, they caused the filing false amended tax returns in an attempt to minimize the seriousness of their tax offenses. Based upon this conduct, Judge Moore enhanced the sentences of both defendants for obstruction of justice.
U.S. Attorney Ferrer stated, “Our tax system depends upon taxpayers honestly meeting their obligations. When people, like the defendants sentenced in this case, file false tax returns and fail to pay the taxes they owe, they cheat the entire community out of monies to which they are rightfully owed. Our office will continue to hold tax offenders accountable for their crimes in a court of law.”
IRS-CI Special Agent in Charge Kelly R. Jackson stated, “In this scheme, the defendants underreported their income to avoid paying taxes to the IRS. As we are in the beginning of tax filing season, let me warn others contemplating similar conduct not to be tempted by greed. We are all responsible to report all of our income and file correct and accurate tax returns. Today’s sentencing is an important victory for America’s taxpayers who play by the rules and have no tolerance for those who shun their tax responsibilities.”
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant United States Attorneys Michael Davis and John Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Hot Springs Woman Sentenced to over Seven Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Susan Marie Sheets, age 42, of Hot Springs, was sentenced this week to 87 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, on or about October 16, 2013, law enforcement conducted a controlled purchase of $2,400 worth of methamphetamine from Sheets that occurred at her residence in Hot Springs, Arkansas.
This case was investigated by the Drug Enforcement Administration, and the 18th Judicial District East Drug Task Force. Assistant United States Attorneys Aaron Jennen and David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Horseheads Man Sentenced for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Daniel Sayre, 31, of Horseheads, NY, who was convicted of production of child pornography, was sentenced to 228 months (19 years) in prison and 30 years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that between January 2014 and February 2015, the defendant produced a sexually explicit video and still images of a minor related to him who was under the age of 12. The defendant used a computer and a Samsung camera to produce these images.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force which includes the Monroe County Sheriff’s Office, the Rochester Police Department, and U.S. Immigration and Customs Enforcement-Homeland Security Investigations, the New York State Police, under the direction of Major Craig Hanesworth, and the Chemung County District Attorney’s Office, under the direction of Weedon Wetmore.Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MARVIN LOPEZ-PINEDA, age 29, a citizen of Honduras, was sentenced today after previously pleading guilty to illegal reentry of removed alien.
U.S. District Judge Carl J. Barbier sentenced LOPEZ-PINEDA to time served, followed by one year of supervised release, and a $100 special assessment. LOPEZ-PINEDA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about September 24, 2015, LOPEZ-PINEDA was found in the United States after having been officially deported and removed on or about May 30, 2014.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Hartford Man Sentenced to 6 Years in Federal Prison for Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that COURTNEY BYRD, also known as “Buck,” 32, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 72 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in February and March 2015, BYRD distributed approximately 98 grams of crack cocaine to an individual working with law enforcement.
On March 5, 2015, BYRD twice fled at a high rate of speed from law enforcement officers who were attempting to stop his vehicle, first in East Hartford and then in Hartford. During his second flight, BYRD hit a pedestrian in the area of Ann Uccello Street and Church Street in Hartford. The victim suffered a broken leg. A six-year-old child was in BYRD’s car at the time.
On March 19, 2015, an individual working with law enforcement ordered an ounce of crack cocaine from BYRD. BYRD was arrested as he came out of his residence to consummate the transaction.
BYRD has been detained since his arrest. On August 26, 2015, he pleaded guilty to one count of distribution of cocaine base (“crack cocaine”).
BYRD’s criminal history includes multiple felony convictions
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
BYRD is alleged to be a member of a Garden Street group known as the Chicken Coop. On April 1, 2014, BYRD and other members of the Chicken Coop attended a call-in in Hartford. The following day, a Chicken Coop member who attended the call-in is alleged to have shot an individual in Hartford. BYRD’s associate is being prosecuted in state court for that offense, and also in federal court in Massachusetts for a heroin trafficking offense.
Five additional members of the Chicken Coop are being prosecuted in federal court in Connecticut for drug trafficking and firearms offenses, and five are being prosecuted in state court for assault and drug offenses.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, the U.S. Marshals Service and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Glendora Doctor Pleads Guilty to Distributing Addictive Painkillers and Transferring Proceeds to an Off-Shore Bank AccountRead the Press Release
LOS ANGELES – A medical doctor who served as the face of a sham Los Angeles clinic pleaded guilty today to federal drug trafficking and money laundering charges connected to her illegal distribution of the powerful painkiller best known by the brand name OxyContin.
Dr. Madhu Garg, 64, of Glendora, pleaded guilty to one count of illegally distributing oxycodone and one count of money laundering for transferring the proceeds of criminal activity to a Malaysian bank account.
Garg pleaded guilty before Untied States District Judge John A. Kronstadt, who scheduled a sentencing hearing for May 26. As a result of today’s guilty pleas, Garg faces a statutory maximum sentence of 30 years in federal prison.
Garg was arrested in January 2015, along with the other operators of the now-defunct Southfork Medical Clinic in Los Angeles. A federal grand jury indictment charged seven defendants with conspiring to sell medically unnecessary prescriptions for drugs that included oxycodone, hydrocodone (commonly sold under the brand names Vicodin, Norco and Lortab), alprazolam (best known by the brand name Xanax), carisoprodol (a muscle relaxant sold under the brand name Soma) and promethazine with codeine (a cough syrup sold on the street as “purple drank” and “sizzurp”).
As part of her guilty plea, Garg admitted that she issued prescriptions for those drugs to Southfork “patients” at the instructions of the owner of the clinic, Jagehauel Gillespie, and that she knew the “patients” did not actually need the drugs. In a plea agreement filed in United States District Court, Garg “acknowledges that she intentionally prescribed the drugs outside the usual course of professional practice and without a legitimate medical purpose.”
“Doctors are duty-bound to do everything they can to protect the health of their patients,” said United States Attorney Eileen M. Decker. “Issuing prescriptions for powerful and addictive drugs for no medical purpose undermines this basic principle. Medical professionals who violate federal law by trafficking narcotics put lives at risk and compromise our health care system.”
Records maintained by the State of California show that Garg issued more than 10,000 prescriptions for controlled drugs – the vast majority of which were for hydrocodone or alprazolam – over the year-long period that she worked at Southfork. Financial records show that, over the same time period, Garg received more than $300,000 in cash and transferred more than $90,000 to bank accounts held in Thailand and Malaysia.
“When doctors abuse their professional license for financial gain they put the public at risk, in this case by dispensing highly addictive controlled substances,” stated IRS Criminal Investigation’s Special Agent in Charge Erick Martinez. “IRS Criminal Investigation is proud to contribute our financial expertise in an effort to halt the illegal sale and distribution of prescription drugs.”
During the investigation, Garg issued prescriptions for oxycodone and promethazine with codeine to undercover agents on eight occasions. During one of the meetings, Garg gave a prescription to an undercover witness, and then Garg agreed to issue a new prescription to the witness the following week under a false name.
“The abuse of prescriptions drugs continue to take a horrific toll on public health and safety in our communities,” said Stephen G. Azzam, Acting Special Agent in Charge of DEA’s Los Angeles Field Division. “The DEA will continue to work with our partner agencies to identify and investigate doctors who are using their medical licenses to illegally deal drugs.”
The conspirators also used Los Angeles as a base of operations to acquire and deliver bulk shipments of prescription drugs to Texas, according to court documents. Furthermore, according to court records, Garg continued to assist Gillespie in acquiring oxycodone from international wholesalers even after the Medical Board of California revoked Garg’s license in December 2013.
Previously in this case, five of the other defendants have pleaded guilty, including Gillespie, who was sentenced by Judge Kronstadt in November to six years in federal prison. One other defendant is pending trial, which is scheduled for later this year.
The investigation into Garg was conducted by the Drug Enforcement Administration’s Los Angeles and Houston field divisions, IRS - Criminal Investigation, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the California Department of Justice, and the Texas Department of Public Safety.
Freedom Industries and former Freedom Industries plant manager sentenced for roles in chemical spillRead the Press Release
CHARLESTON, W.Va. – Freedom Industries, Inc., and a former plant manager at Freedom Industries were sentenced today for environmental crimes connected to the 2014 Elk River chemical spill, announced Acting United States Attorney Carol Casto. Freedom Industries (Freedom) was sentenced to a fine of $900,000, to be paid after all other claims against Freedom are satisfied, for negligently discharging a pollutant, unlawfully discharging refuse matter, and knowingly violating an environmental permit. Freedom has been in bankruptcy since shortly after the chemical spill. Michael E. Burdette, of Dunbar, was sentenced to three years of probation and a $2,500 fine for negligently discharging a pollutant. Both Freedom and Burdette previously pleaded guilty in March 2015. Burdette is one of six former officials of Freedom Industries, in addition to Freedom Industries itself as a corporation, to be prosecuted for federal crimes associated with the chemical spill.
On January 9, 2014, a major chemical leak was discovered in Charleston at the above-ground storage tank area owned and operated by Freedom Industries (Freedom) on the Elk River. Freedom used these storage tanks to keep and process chemicals, and the leak consisted primarily of 4-methylcyclohexane methanol (MCHM), a chemical used in the coal mining industry as a cleansing agent. A significant amount of MCHM leaked into the Elk River, flowed into a water treatment plant, and contaminated the water supply of Charleston and the surrounding areas for several days. Freedom did not have a permit required by law that would have allowed the company to discharge MCHM into the Elk River.
Freedom had a permit issued by West Virginia’s Department of Environmental Protection (DEP) that allowed for the discharge of storm water and groundwater subject to monitoring and reporting requirements. However, this permit did not allow for the discharge of MCHM, and required the development and maintenance of a storm water plan and a groundwater plan. Generally, storm water and groundwater plans identify potential sources of pollution and outline steps to prevent, contain, and reduce pollutants.
Freedom admitted that it should have taken reasonable steps to ensure that MCHM did not leak into the Elk River. Freedom did not maintain the containment area that was supposed to prevent a chemical spill from reaching the Elk River. Freedom also failed to inspect and maintain the storage tank holding MCHM. In spite of the permit requirements, Freedom also failed to implement and maintain a storm water and groundwater plan. Furthermore, Freedom did not conduct the necessary training to ensure all personnel were working in compliance with environmental laws. When the chemical spill occurred, Freedom did not have adequate spill prevention material on hand and instead, had on hand a mere two bags of absorbent material and no booms or other materials to stem the flow of MCHM. Freedom admitted that its failure in all of these essential areas was a proximate cause of the chemical spill.
Burdette worked as a plant manager for Freedom’s facility on the Elk River. In that role, Burdette was responsible for operating and maintaining Freedom’s facility in a safe manner and in compliance with environmental laws. He was also responsible for making sure the employees he supervised were properly trained in environmental compliance. Burdette admitted he should have known Freedom was required to implement and maintain a storm water and groundwater plan as required by the permit. He also admitted he knew the measures Freedom had in place to handle a chemical spill were inadequate, and that Freedom should have had proper containment structures to contain a spill from the largest storage tank for 72 hours. Burdette further admitted that his failure to implement these required safety measures was a proximate cause of the chemical spill.
Including Freedom and Burdette, four defendants have been sentenced as part of the investigation into the chemical spill. Robert J. Reynolds, of Apex, North Carolina, who worked as an environmental consultant with Freedom, was sentenced on Monday for negligently discharging a pollutant. Charles E. Herzing, of McMurray, Pennsylvania, a former owner and vice president of Freedom, was sentenced on Tuesday for unlawfully discharging refuse matter.
William E. Tis, of Verona, Pennsylvania, a former owner of Freedom, pleaded guilty in March 2015 to the unlawful discharge of refuse matter. Tis is scheduled to be sentenced on February 8, 2016.
Dennis P. Farrell, of Charleston, a former Freedom president and owner, pleaded guilty in August 2015 to violating the federal Refuse Act and violating a permit by failing to have a pollution prevention plan. Farrell is scheduled to be sentenced on February 11, 2016.
Gary Southern, of Marco Island, Florida, the president of Freedom at the time of the spill, pleaded guilty in August 2015 to violating the Clean Water Act, unlawfully discharging refuse matter in violation of the Refuse Act, and violating a permit by failing to have a pollution prevention plan. Southern is scheduled to be sentenced on February 17, 2016.
The investigation of the chemical spill was conducted by the Federal Bureau of Investigation and the Environmental Protection Agency’s Criminal Investigation Division. Assistant United States Attorneys Philip H. Wright, Larry R. Ellis, and Eric P. Bacaj, as well as the Environmental Protection Agency’s Regional Criminal Enforcement Counsel Perry D. McDaniel, are handling the prosecutions. United States District Judge Thomas E. Johnston imposed the sentence, and will preside over the remaining sentencing hearings associated with the chemical spill.
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Four people and Toledo company indicted for fraudulently using job-training money for personal expensesRead the Press Release
A 29-count federal indictment was filed charging four people and a Toledo company with defrauding federal, state and county government by artificially inflating costs and invoices associated with operating job training programs, and instead using the money to pay for real estate, cars, vacations, cosmetic surgery and other personal purchases, said U.S. Attorney Steven M. Dettelbach and Guy A. Ficco, Acting Special Agent in Charge, IRS-Criminal Investigation.
Indicted are: Daniel E. Morris, 66, of Maumee; James D. Moody, 55, Victoria Hawkins, 28, and Angela Bowser, 44, all of of Toledo, and Business Rehabilitation Informed Decisions Guiding Employment Strategies, Inc. d/b/a B.R.I.D.G.E.S., Inc., a Toledo-based corporation.
The charges relate to program fraud, mail fraud, aggravated identity theft, money laundering, failure to pay over payroll taxes, and obstruction of justice from 2004 through 2015.
“These defendants took advantage of economic hardship in Northwest Ohio to enrich themselves,” Dettelbach said. “They stole taxpayer dollars and blew the money on vacations, tattoos and other frivolous expenses. We have zero tolerance for misuse of taxpayer money.”
“These government-funded programs were designed to help the men, women and children of Lucas County, and these individuals defrauded them for their own personal gain,” Ficco said. “The conduct detailed in this indictment is egregious and exposed these individuals for what they really are, thieves.”
According to the indictment:
BRIDGES operated at 242 Reynolds Road and 310 Reynolds Road. The company was in the business of providing work placement and work training services to public assistance recipients, and nearly all of its revenue came from public funds.
Morris was the founder and general manager of BRIDGES. Moody was the registered agents and shareholder along with Morris. Hawkins was an employee from 2008 through 2013, while Bowser was an employee from 2008 through 2014.
The Temporary Assistance for Needy Families program was a welfare program that provided cash assistance to qualifying households with minor children or pregnant women. TANF provided federal block grants to states each year to cover benefits, administrative expenses and services targeted to needy families.
One of TANF’s goals was reducing the dependency of needy parents by promoting job preparation, work and marriage. TANF recipients must work as soon as they are job ready and no later than two years after commencing assistance.
BRIDGES received more than $15.7 million in funding from several entities between 2004 and 2015, including the Ohio Department of Job and Family Services, the Lucas County Department of Job and Family Services, Ohio Works First and others. This funding was based in part on BRIDGES’ grant proposals. The majority of BRIDGES’ stated administrative costs were payroll and transportation.
BRIDGES provided job training and work placement services but at substantially lower costs than those stated in its budgets and invoices. The defendants fraudulently inflated BRIDGES payroll costs, transportation and mileage.
Morris, BRIDGES and others maintained false personnel files, timesheets, mileage records and reimbursement forms for nonexistent employees. They included fake, former or nonexistent employees on the payroll. For example, BRIDGES paid Moody a salary even though he did not work there, and later continued to pay him by issuing payroll checks to Moody’s wife.
BRIDGES, Morris, Moody, Hawkins and Bowser used TANF funds to pay for personal living expenses including groceries, dental care, medical care, resort vacations, pharmaceuticals, clothing, toys, designer bags, furniture, video streaming services, credit card bills, legal fees unrelated to BRIDGES’ business, tattoos, cosmetic surgery, real estate, vehicles, investments and jewelry, according to the indictment.
For example, between February 2013 and October 2014, Hawkins used a debit card linked to a BRIDGES account to make approximately $18,200 in cash withdrawals.
Each defendant is charged in a conspiracy to commit program fraud and mail fraud. Each defendant is also charged in a conspiracy to commit money laundering offenses.
Morris is charged with four counts of program fraud, five counts of mail fraud, two counts of aggravated identity theft, nine counts of money laundering, six counts of failure to pay over withheld income tax and one count of obstruction of justice.
Moody is charged with four counts of program fraud, five counts of mail fraud, two counts of aggravated identity theft, nine counts of money laundering, six counts of failure to pay over withheld income tax and one count of obstruction of justice
Moody is charged with one count of program fraud and three counts of money laundering.
Hawkins is charged with two counts of program fraud and four counts of money laundering.
Bowser is charged with one count of program fraud and two counts of money laundering.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Noah P. Hood and Gene Crawford following an investigation by the Internal Revenue Service-Criminal Investigations, Toledo, Ohio, and the Office of Auditor of State (Ohio), Toledo, Ohio. .
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Four defendants appear on Federal drug charges in BluefieldRead the Press Release
BLUEFIELD, W.Va. – Four defendants appeared in federal court today on drug charges, announced Acting United States Attorney Carol Casto.
Steven Andrew Short, 30, of Bluefield, was sentenced to four years in federal prison for using a phone to facilitate the distribution of hydromorphone. Short previously pleaded guilty in November 2015 to the federal drug crime. Short admitted that on April 8, 2015, he used a phone to help set up a drug deal with a confidential informant working with law enforcement. Later that same day, Short distributed hydromorphone pills to the informant near Rock in Mercer County. Short also admitted that he distributed more than 1800 hydromorphone pills.
Adam Christopher Skeens, 45, of Princeton, pleaded guilty to distribution of hydromorphone, admitting that on February 23, 2015, he distributed hydromorphone pills to a confidential informant in Princeton. Stephen Wayne Steele, 42, of Bluefield, pleaded guilty to distribution of hydromorphone, admitting that on April 7, 2015, he distributed hydromorphone pills to a confidential informant in Green Valley in Mercer County. Terrance Dewayne Hayes, 30, of Welch, pleaded guilty to distribution of heroin, and admitted that on June 16, 2015, he distributed heroin to a confidential informant near Havaco in McDowell County.
Each of the defendants faces up to 20 years in federal prison and a $1 million fine when they are sentenced on May 17, 2016.
The cases were investigated by the Southern Regional Drug and Violent Crime Task Force and the West Virginia State Police Bureau of Criminal Investigations. Assistant United States Attorney John File handled the prosecutions. The hearings were conducted by Senior United States District Judge David A. Faber.
These case were prosecuted as part of the Bluefield Pill Initiative, an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Former Fulton Bank Employee Charged with Stealing $13,325Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Fulton Bank employee has been charged with stealing $13,325 from Fulton Bank in York, Pennsylvania
According to United States Attorney Peter Smith, Donna S. Miller, age 45 of Felton, is charged with bank larceny in a one count Information filed in U.S. District Court in Harrisburg.
Miller allegedly stole $13, 325 from the Fulton Bank, S. Queen Street branch in York between September 2013 and November 2014. Miller was terminated in November 2014 and has made full restitution to Fulton Bank.
The government also filed a plea agreement with the defendant which is subject to approval by the court. No date has yet been scheduled for Miller’s guilty plea.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Kim Douglas Daniel.
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 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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