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4 February 2016
Former DoD Contractor Sentenced in Contracting Kickbacks CaseRead the Press Release
ALEXANDRIA, Va. – Robert W. Gannon, 54, of Bangkok, the former director of operations of a Department of Defense contracting company in Washington, D.C., was sentenced today to 12 months and one day in prison for soliciting and receiving $193,665 in kickback proceeds in return for steering U.S. government subcontracts to a U.K. company. Gannon was also ordered to depart the U.S. immediately following completion of his prison sentence; not return to the U.S. without permission; pay a fine of $193,665; and is prohibited from employment with or work with the U.S. military.
Gannon pleaded guilty on Nov. 4, 2015. According to court documents, Gannon’s job responsibilities included identifying, evaluating and monitoring subcontracts. Gannon admitted that he used his position to arrange with executives of a U.K.-based company that they would make kickback payments to Gannon in return for a series of purchase orders Gannon’s company awarded in August 2009 with a total value of nearly $6 million. Those orders called for the provision of explosive ordinance disposal equipment to U.S. and NATO forces in Afghanistan. In return for his efforts, Gannon admitted that the U.K. company wired funds with a total value of almost $200,000 from bank accounts in the United Kingdom to Gannon’s account in Singapore.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John F. Sopko, Special Inspector General for Afghanistan Reconstruction; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI’s Washington Field Office, and the Defense Criminal Investigative Service Mid-Atlantic Field Office. Assistant U.S. Attorney Mark Lytle of the Eastern District of Virginia and Trial Attorney Wade Weems of the Criminal Division’s Fraud Section prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-277.
Former Connecticut Resident Sentenced to Three Years for Crack Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Torrence Benton, a/k/a “T-Black,” a/k/a “Scotty,” 28, formerly of New Haven, Connecticut was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to three years in prison and three years of supervised release for conspiracy to possess with the intent to distribute and to distribute cocaine base, commonly referred to as “crack.” This sentence is in addition to the 34 months that Benton has already served in the Maine State Prison on a related state charge.
According to court records, the defendant was a member of the Red Side Guerilla Brims (“RSGB”), a New Haven based street gang affiliated with the Bloods street gang. Between January 2010 and August 2013, Benton conspired with other RSGB gang members and Bangor area residents to distribute crack in Bangor area. In early 2013, he came to the Bangor area and began distributing crack. He obtained crack from other members of the conspiracy who brought it to Maine from New Haven and he was held responsible for distributing over 62 grams of it for $50 per half gram and $100 per gram. On April 7, 2013, the defendant was arrested by Old Town Police on state charges and found to be in possession of about 10 grams of crack.
The case was investigated by the Maine Drug Enforcement Agency; the Bureau of Alcohol, Tobacco, Firearms and Explosives (New Haven Office); the New Haven Police Department; and the Old Town Police Department.A related racketeering case against other members of RSGB is being prosecuted by Assistant U.S. Attorneys Robert Spector and Peter Markle in the District of Connecticut.
Former Chief Financial Officer of Restaurant Chain Pleads Guilty to Wire Fraud and Embezzlement from Bankruptcy EstateRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that WILLIAM “WIL” ROS, age 45, of Cortez, Florida, pled guilty to wire fraud and embezzlement from a bankruptcy estate. The guilty pleas arise from his management and operation of Fundamental Provisions, LLC, a local company which operated 30 Popeyes’ Fried Chicken restaurants in Louisiana, Alabama, and Florida.
According to the factual summary presented at his guilty plea hearing, Fundamental Provisions, LLC was a business based in Gonzales, Louisiana. Fundamental owned and operated 30 Popeyes’ Fried Chicken and Biscuits franchise restaurants in Alabama, Florida, and Louisiana. Fundamental had gross annual revenues in excess of $20,000,000.
ROS was the Chief Financial Officer of Fundamental. As CFO, ROS was responsible for the daily management and operations of multiple Popeyes restaurants located in Alabama and Florida, including supervision of, and frequent communication with various store managers. ROS was also responsible for assuring that funds generated by each restaurant were used for the benefit of Fundamental.
In December 2009, in the United States Bankruptcy Court for the Middle District of Louisiana, Fundamental sought, and received, bankruptcy protection which authorized the company to reorganize its management and restructure its debt so that it could continue operating its business and thereafter pay debts it owed to numerous creditors.
A Chief Restructuring Officer was employed in January 2010 and authorized by the Bankruptcy Court to control all business operations, including disbursements of company funds, employment of key personnel, and incurrence of debt. The CRO employed and paid ROS to act as Fundamental’s CFO.
According to the facts presented at his re-arraignment hearing, because the reorganized company was unable to make payments to its creditors as promised in December 2011, Fundamental was placed in involuntary bankruptcy in March 2012. A Trustee was appointed by a Bankruptcy Judge for the purpose of liquidating the company’s assets in order to pay substantial debts owed by Fundamental to its creditors. With approval of the Bankruptcy Judge, the Trustee appointed a Chief Operating Officer to assist with the liquidation process. The COO continued ROS’s employment as Fundamental CFO until in or about May 2012.
From August 2009 through May 2012, ROS engaged in a scheme to defraud Fundamental and obtain company money by means of materially false and fraudulent pretenses, promises, and representations. According to the factual recitation at the re-arraignment hearing, the purpose of the scheme was to enrich himself using funds he diverted from Fundamental, and to conceal his diversions of company funds from officials administering Fundamental’s Bankruptcy Court proceedings.
ROS executed his scheme by using his position as Fundamental’s CFO to cause restaurant managers to divert restaurant revenues to his personal benefit. He also allegedly caused store managers to mischaracterize and cause the recording of fictitious purchases to disguise the fact that he had caused managers to remove funds from the restaurants’ cash registers for his personal benefit.
Beginning in August 2009, ROS directed an Alabama store manager to remove monies from restaurant cash registers and either deliver it to him (ROS) or mail FedEx packages of cash to persons identified by ROS.
Beginning in March 2010, ROS directed a second Alabama store manager to remove monies from restaurant cash registers and deposit the monies into bank accounts controlled by ROS, including ROS’s girlfriend, his golf club supplier, and family friend.
ROS also used the store managers to divert restaurant funds and directed them to send packages of cash to various persons, including his girlfriend, his golf club supplier, and the seller of a Ford GT race car.
In total, ROS embezzled approximately $966,257 from the Alabama restaurants during the course of the pending bankruptcy proceedings. According to the indictment, ROS allegedly enjoyed the stolen funds by purchasing a $225,000 race car and upgrading, renovating, and furnishing his Florida home.
U.S. Attorney Green stated: “Corporate executives who fleece their employers in order to finance their self-indulgence and greed will be aggressively pursued by this office. Such fraud threatens to jeopardize the fiscal integrity of our businesses and the livelihoods of those who work for them. I commend the dedicated efforts of the FBI agents and prosecutors who worked to ensure that justice was done in this case.”
FBI Special Agent-in-Charge Jeffrey S. Sallet stated: “The FBI’s Baton Rouge Resident Agency aggressively pursues those individuals who seek to unjustly enrich themselves at the expense of others. The FBI, with the exemplary support of our partners in the United States Attorney’s Office, will continue our work ensuring the integrity of the bankruptcy system and delivering those individuals responsible for corporate fraud to justice.”
The matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana and the Baton Rouge office of the Federal Bureau of Investigation, along with assistance from the Region 5 Office of the United States Trustee. It is being prosecuted by Assistant United States Attorneys Rene Salomon and Ryan Crosswell.
Five Chicago Men Arrested in Connection with Violent KidnappingRead the Press Release
CHICAGO — Five men have been arrested on kidnapping charges for allegedly abducting a Berwyn man in broad daylight and holding him for ransom in a North Side auto body shop.
The kidnapping went awry after the abductors realized they had snatched the wrong man, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. The victim was the brother of the intended target. He was blindfolded and held at gunpoint for nearly two days in an auto body shop in Chicago’s Avondale neighborhood, before being released, the complaint states.
Federal authorities arrested the five defendants yesterday. Charged with conspiracy to commit kidnapping are ANTONIO SALGADO, 34; ARMANDO DELGADO, 36; OCTAVIO ALEJANDRE JR., 33; JAIME GUTIERREZ, 22; and MUNAF ABDULRAZAK MUSA, 22; all of Chicago. The charge carries a maximum sentence of life in prison.
All five defendants were ordered held without bond during initial court appearances yesterday before U.S. Magistrate Judge Susan E. Cox. Musa’s next court appearance is scheduled for Feb. 5, 2016, while the other defendants will next appear on Feb. 8, 2016.
According to the complaint, the abduction occurred on the afternoon of May 30, 2015, when the victim was kidnapped at gunpoint outside of his Berwyn home. The victim was forced into a sport-utility vehicle and taken to the auto repair shop. While being held, one of the kidnappers pushed a gun into the victim’s body and threatened him, while another kidnapper placed a knife on the victim’s fingers and threatened to cut them off, the complaint states.
Early the next morning, the victim’s uncle received telephone calls from an unidentified man who stated he was holding the victim, according to the complaint. The caller demanded approximately 25 kilograms of narcotics. At one point the victim was placed on the phone and instructed to tell his uncle to cooperate, the complaint states.
Unbeknownst to the defendants, several of their phones had previously been intercepted by federal authorities who were conducting an unrelated investigation, the complaint states. In a recorded call between Salgado and Delgado on the night of May 31, 2015, Delgado told Salgado, “There is a little situation. It’s the wrong guy because it’s his brother of the one that we’re trying to get.” According to the complaint, Salgado allegedly replied, “Let the guy go, but beat the [expletive] out of him.”
On the morning of June 1, 2015, the victim appeared at a bus station in Chicago, according to the complaint. The victim told police that he had walked to the bus station after being released from captivity during the night.
The arrest and charges were 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; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; Jim Ritz, Chief of the Berwyn Police Department; and John Escalante, Acting Superintendent of the Chicago Police Department.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Kartik K. Raman.
Complaint
Federal Jury Convicts Four Individuals for International Fraud and Money Laundering Scheme Involving Sale of GoldRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Naadir Cassim (40, Barcelona, Spain and Orlando, FL), Jon Craig Nelson (69, Houston, TX), Michael Skillern (49, Houston, TX), and Adriana Maria Camargo, a/k/a Adriana Palomino (37, Barcelona, Spain) guilty of conspiracy, money laundering conspiracy, and mail fraud. Each faces a maximum penalty of 5 years in federal prison on the conspiracy count, 20 years’ imprisonment on the money laundering conspiracy count, and 20 years in prison for each mail fraud count. Cassim, Nelson, and Skillern were also convicted of wire fraud charges, and face up to 20 years in federal prison for each charge. Additionally, the jury found Cassim guilty of an illegal monetary transaction charge that carries a maximum penalty of 10 years’ imprisonment. The sentencing hearing has been set for May 24, 2016.
The individuals were indicted on February 18, 2014.
According to evidence presented at trial, from August 2011 through February 2014, Cassim, Nelson, Skillern, and Camargo, along with others, engaged in a fraud scheme where they directed and caused the sale of purported but nonexistent gold ore or gold doré from mines owned or controlled by them, through a company called OWN GOLD, LLC. The conspirators’ victims were located both inside and outside of the United States, including the United Kingdom. To facilitate the scheme, the conspirators paid telemarketers to place unsolicited calls to potential and existing victims outside the United States. The conspirators used the victims' funds to perpetuate the scheme and for their own personal enrichment. During the course of the fraud scheme, approximately 440 victims wired more than $7.3 million to the conspirators.
“The defendants defrauded more than 400 victims and collected more than $7 million through an elaborate scheme to sell nonexistent gold ore and gold doré,” said Susan L. McCormick, special agent in charge of HSI Tampa. “Entrusted with a unique international authority and assisted by the efforts of our foreign law enforcement partners, HSI dismantled this transnational criminal organization.”
The case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Secret Service, with assistance from law enforcement partners in the United Kingdom, Spain and Cyprus, and the U.S. Department of Interior’s Bureau of Land Management. The Justice Department’s Office of International Affairs provided assistance in the extradition and mutual legal assistance requests in this case. It is being prosecuted by Assistant United States Attorneys Sara C. Sweeney and Rachelle DesVaux Bedke.
Federal Judge Finds Ironworkers’ Pension Plan Violates Rights of Returning VeteransRead the Press Release
BOSTON – A federal judge in Boston ruled on Monday, Feb. 1, 2016, that the Iron Workers violate the rights of servicemembers by failing to give them credit for time serving on active duty oversees.
In October 2013, U.S. Attorney Carmen M. Ortiz’s Office filed a civil rights complaint alleging that the Iron Workers violated USERRA (Uniformed Services Employment and Reemployment Rights Act of 1994) by failing to credit U.S. Navy Reserve Member Thomas Shea, a member of the International Association of Bridge, Structural, Ornamental and Reinforcing Iron Workers, Local 7, with service time while he was serving multiple tours of duty in the armed forces in Iraq, Afghanistan (twice), Bahrain, and Kuwait. On Monday, U.S. District Court Judge Nathaniel M. Gorton denied the Iron Worker’s motion for summary judgment, which essentially sought to have the case dismissed, and granted portions of the government’s summary judgment motion.
The Court issued a 28-page decision finding that the Iron Workers’ Pension Plan violates USERRA because it places requirements on servicemembers that are not placed on non-servicemembers. The Court also scheduled several issues related to Shea’s specific claims for trial, including whether Shea properly applied for reemployment following each of his five deployments to Iraq, Afghanistan (twice), Bahrain, and Kuwait. The trial is scheduled for April 25, 2016. Shea remains on active military duty and is currently deployed overseas.
USERRA requires that servicemembers who leave their civilian jobs to serve in the military be treated as not having incurred a break in service with regard to their pension plans and other employment benefits. USERRA further provides that each period served by a servicemember shall, upon reemployment, be deemed to constitute service with the employer maintaining the plan for the purpose of determining the non-forfeitability of the person's accrued benefits and the accrual of benefits under the plan.
The government has alleged that the Iron Workers violated USERRA by refusing to grant Shea pension credits that he earned while on military duty unless and until he (1) worked at least 300 hours in the one-year period following his discharge from the military; and (2) accrued 2.5 pension credits, which is equal to 3,000 hours, in the subsequent five-year period following his release from active duty. Both of these requirements exceed the requirements placed on other members of the pension fund who do not take military leave. The Court found that these requirements violate USERRA. The complaint seeks to have the Iron Workers credit Shea with pension credits he earned while on active military duty and back payment of annuity contributions that were not made while Shea was on active duty.
United States Attorney Carmen M. Ortiz and Delora Kennebrew, Chief of the Employment Litigation Section of the Justice Department’s Civil Rights Division, made the announcement today. The case was investigated by the U.S. Department of Labor’s Veterans Employment and Training Service with the assistance of the Department of Labor’s Office of Regional Solicitor. This case is being handled by Assistant U.S. Attorney Jennifer Serafyn of Ortiz’s Civil Rights Unit and Andrew Braniff, Assistant Director of the Servicemembers and Veterans Initiative of the Justice Department’s Civil Rights Division and Attorney Nadia Said of the Justice Department’s Civil Rights Division, Employment Section.
The protection of servicemembers’ rights is a priority for the U.S. Attorney’s Office. Additional information about USERRA can be found at www.usdoj.gov/crt/emp, www.servicemembers.gov and www.dol.gov/vets/programs/userra/main.htm.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— The results of the February 2016 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Bryan Sean Koch. Felon in Possession of a Firearm. Koch, 26, of Miami, Oklahoma, is charged with possession of a .40 caliber pistol after a prior felony conviction. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. In addition, Koch will forfeit the firearm involved in the firearm offense. The Bureau of Indian Affairs is the investigating agency.
Mauricio Arevalo-Magana. Alien Unlawfully in the United States in Possession of Firearms, Possession of Marijuana with Intent to Distribute, and Possession of Firearms in Furtherance of a Drug Trafficking Crime. Arevalo-Magana, 25, unlawfully in the United States, is charged with possession of firearms; possession of marijuana with intent to distribute; and possession of firearms in furtherance of a drug trafficking crime. If convicted, Arevalo-Magana faces a statutory maximum penalty of 10 years in prison and a $250,000 fine for being an alien unlawfully in the United States in possession of firearms; not more than five years and a $250,000 fine for possession of marijuana with intent to distribute; and not less than five years and up to life in prison and a $250,000 fine for possession of firearms in furtherance of a drug trafficking crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
John Stephen Mashunkashey. Possession of Methamphetamine with Intent to Distribute, Possession of Marijuana with Intent to Distribute, and Felon in Possession of Firearms. Mashunkashey, 30, of Pawhuska, is charged with possession of methamphetamine and marijuana with intent to distribute, and possession of firearms after prior felony convictions. If convicted, Mashunkashey faces the statutory maximum penalty of 20 years in prison and a $1,000,000 fine for possession of methamphetamine with intent to distribute; not more than five years in prison and a $250,000 fine for possession of marijuana with intent to distribute; and up to life in prison for the felon in possession of firearms charge. The Bureau of Indian Affairs and the Osage Nation Police Department are the investigating agencies.
Jermaine Mayes. Drug Conspiracy, Distribution of Cocaine Base, and Use of a Communication Facility in Committing, Causing and Facilitating the Commission of a Drug Trafficking Felony. Mayes, 32, of Tulsa, is charged with conspiring to possess with intent to distribute 280 grams or more of cocaine; 12-counts of distributing cocaine base; and seven-counts of using a telephone in committing drug trafficking felonies. If convicted, the statutory maximum penalty is 10 years and up to life in prison and a $10,000,000 fine for drug conspiracy; not more than 20 years in prison and a $1,000,000 fine for distribution of cocaine base; and not more than 4 years in prison and a $250,000 fine for use of a communication facility in committing, causing and facilitating the commission of a drug trafficking felony. The Federal Bureau of Investigation and the Tulsa Police Department are the investigating agencies.
Erika Suzanne McLaughlin and Eric Davis. Theft From Indian Lands in Excess of $1,000. McLaughlin, 35, and Eric Davis, 33, both of Broken Arrow, are charged with stealing from Indian Country in excess of $1,000 of personal property belonging to an Indian female. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine. The Cherokee Nation Marshals and the Federal Bureau of Investigation are the investigating agencies.
Roque Ponciano-Calles. Reentry of Removed Alien. Ponciano-Calles, 25, is charged with having returned to the United States unlawfully after being deported in April 2015 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Ellen M. Quinn. Theft of Government Funds. Quinn, 67, of Afton, is charged with stealing approximately $95,408 in United States Department of Veterans Affairs Dependency and Indemnity Compensation. If convicted, Quinn faces the statutory maximum penalty of 10 years in prison and a $250,000 fine. In addition, Quinn will face entry of a criminal forfeiture judgment in the amount of $95,658 representing proceeds obtained as a result of the theft of government funds offense. United States Department of Veterans Affairs-Office of the Inspector General’s Criminal Investigation Division is the investigating agency.
Cody Jacob Wheeler. Felon in Possession of Firearm and Ammunition, Possession of Methamphetamine with Intent to Distribute, and Carrying a Firearm During and in Relation to a Drug Trafficking Crime. Wheeler, 30, of Afton, is charged with possession of firearms and ammunition after a prior felony conviction. In addition, Wheeler is charged with possession of methamphetamine with intent to distribute and carrying a firearm during and in relation to a drug trafficking crime. If convicted, Wheeler faces the statutory maximum penalty of 10 years in prison and a $250,000 fine for felon in possession of firearm and ammunition; not more than 20 years in prison and a $1,000,000 for possession of methamphetamine with intent to distribute; and not less than five years and up to life in prison and a $250,000 for carrying a firearm during and in relation to a drug trafficking crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
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Federal Court Orders Delaware Donut Business and Its Owner to Pay Federal Payroll Taxes on TimeRead the Press Release
A federal court has ordered Chel-C Ventures Inc., which operated Donut Connection stores in Milford, Georgetown, and Harbeson, Delaware, to file its federal payroll tax returns on time and pay federal payroll taxes as they become due, the Justice Department announced. Although Chel-C Ventures has said that it closed the stores after the United States filed its civil complaint in this case, the court’s order directs Chel-C Ventures and its owner, Elva Davidson of Sussex County, Delaware, to file the returns and pay the taxes on time if the business starts operating again. The injunction is effective immediately.
According to the United States’ civil complaint in the case, Chel-C Ventures repeatedly failed over a period of years to fully pay its payroll taxes. The court’s order also determined that Chel-C Ventures was liable for more than $645,000 in federal payroll taxes, penalties and interest and that Davidson was personally liable to the United States for more than $250,000. Chel-C Ventures and Davidson agreed to entry of the court’s order, but did not admit to the allegations in the United States’ civil complaint in the case.
Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division thanked the revenue officer of Internal Revenue Service’s Field Collection for investigating and preparing the civil case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Federal Authorities Arrest Crystal City Officials and a Texas Businessman in Connection with a Bribery and Kickback SchemeRead the Press Release
This morning, authorities arrested five current and former Crystal City, TX, officials and a Texas businessman on federal bribery charges in a scheme involving city contracts announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
A federal grand jury indictment, returned yesterday and unsealed today, charges City Manager and City Attorney William James Jonas, III, age 54; Mayor Ricardo Lopez, age 40; Mayor Pro-Tem Rogelio Mata, age 43; City councilman Roel Mata, age 44, and former City Councilman Gilbert Urrabazo, age 45; and, Ngoc Tri Nguyen, age 38, with one count of conspiracy to commit bribery involving an entity receiving over $10,000 in federal funds. Jonas is also charged with three substantive federal programs bribery charges; the remaining defendants, with one substantive federal programs bribery charge each.
The indictment alleges that since February 2015, Jonas, Lopez, Rogelio Mata, Roel Mata and Urrabazo used their official positions to enrich themselves by soliciting and accepting bribes from persons seeking to do business in Crystal City. According to the indictment, Jonas managed the bribery scheme, in which a contractor provided bribes totaling more than $12,000 to Jonas, Rogelio Mata, Roel Mata, and Urrabazo, in exchange for their votes for a City contract. The indictment also alleges that Nguyen provided payment directly to Lopez, including $6,000, in exchange for various official acts from Lopez and Jonas. The indictment further alleges that Jonas proposed a kickback scheme to an attorney, in which that attorney would pay Jonas a portion of the legal fees paid by an entity seeking a contract with the City. In exchange for Jonas securing these bribes, Lopez, Rogelio Mata, Roel Mata, and Urrabazo allegedly voted to award Jonas a lucrative contract to serve as both City Manager and City Attorney.
“This case represents our continuing commitment to investigate and punish those who corrupt the process of fair and open government, and to root out the corrosive effect of government officials who sell their office and the public trust they hold for their personal gain,” stated United States Attorney Richard L. Durbin, Jr.
“While most public officials faithfully promote the interests of the communities they serve, today’s arrests should serve as a powerful reminder that officials who abuse their authority will be held accountable,” said FBI Special Agent in Charge Christopher Combs. “Public corruption is one of the most insidious crimes confronting our communities today. It contributes to the cynicism we are seeing from members of the public who often feel as though all politicians are corrupt and the government does not serve the needs of those citizens who can’t pay for access to their elected officials.”
“Public corruption erodes the trust that citizens place in government officials. We are glad to work together with our federal partners to investigate and arrest those who violate that trust,” stated San Antonio Police Chief William McManus.
Upon conviction, each defendant faces up to ten years in federal prison and up to a $250,000 fine. All of the defendants, with the exception of Jonas, Urrabazo and Nguyen, were arrested this morning in Crystal City without incident and taken to the federal courthouse in Del Rio for their initial appearance. Jonas and Urrabazo were arrested this morning in San Antonio. Nguyen was arrested this morning in Keller, TX.
This ongoing joint investigation is being conducted by the FBI and the San Antonio Police Department with assistance from the Texas Department of Public Safety Criminal Investigative Division and the Texas Rangers. Individuals who have first-hand information about corruption, fraud, or bribery related to Crystal City are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorneys Jay Hulings and William R. Harris are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Father and Son Found Guilty in Manhattan Federal Court in Connection with Multimillion-Dollar Vending Machine “Business Opportunity” SchemeRead the Press Release
Scheme Victimized More Than 1,000 Individuals Throughout the United States
Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division and U.S. Attorney Preet Bharara of the Southern District of New York, announced that Kenneth Levin, the owner of a company that purported to sell lucrative vending machine “business opportunities,” and his son and manager at the company, Taylor Levin, were found guilty yesterday for their participation in a nearly $11 million scheme that victimized at least 1,300 consumers across the country. Kenneth Levin and Taylor Levin were convicted after a three-week jury trial before the Honorable Katherine B. Forrest. The defendants were arrested in March 2015 along with five other co-conspirators who have all pleaded guilty.
“Kenneth and Taylor Levin preyed upon the entrepreneurial resolve of thousands of victims across the country, deceiving them with promises of business assistance and giant windfalls, when instead they were duping the victims out of over $10 million,” said Manhattan U.S. Attorney Bharara. “This three-week trial and the unanimous verdict made clear that the business opportunities Kenneth and Taylor Levin were actually selling their victims was for themselves alone. I want to thank the U.S. Postal Inspection Service and the Consumer Protection Branch of the Justice Department for their assistance in this prosecution.”
“The defendants convicted in this case twisted the American entrepreneurial spirit to their advantage, luring consumers with the prospect of starting their own business and being their own boss,” said Principal Deputy Assistant Attorney General Mizer, head of the Justice Department’s Civil Division. “Justice Department prosecutors will continue to team together and work with law enforcement to ensure that the crime of business opportunity fraud, in all of its forms, is stopped and perpetrators are prosecuted.”
As established by the evidence at trial:
From January 2005 to December 2011, Kenneth Levin and Taylor Levin and their co-conspirators perpetrated a scheme to defraud consumers by making material misrepresentations in an effort to induce those consumers to invest thousands of dollars in purported vending machine “business opportunities.” Through a company located in Manhattan, New York (Company-1) and its successor companies (together, the Business Opportunity Companies), the defendants and other employees falsely promised customers that if they purchased packages of five or 10 vending machines, the customers would be provided access to established, high-profit locations for the machines and would be connected with experienced “locators,” who would facilitate placing the vending machines in those pre-determined locations.
The defendants and other employees further falsely promised to provide training and ongoing customer assistance on how to operate a successful vending machine business and misled customers about the features of the vending machines – including purposefully concealing the fact that the machines were manually operated and accepted only exact change, rather than automatic machines that accept bills and provide change. Despite the defendants’ claims, there were no pre-determined locations available, locators were inexperienced and ill-equipped to find profitable locations for the vending machines and the Business Opportunity Companies delivered little or no follow-up service or assistance to their customers.
The defendants also misled prospective customers about the profits customers could earn from the machines. Prospective customers were assured that they would earn significant profits from the vending machines in a relatively short period of time. Customers were also misled into believing that certain employees of the Business Opportunity Companies personally owned vending machines that were profitable. The defendants and their co-conspirators made these assertions knowing that there were scores of dissatisfied customers who, rather than making any profit, had lost their entire investment. Through their scheme, the Business Opportunity Companies obtained nearly $11 million from more than 1,300 customers throughout the United States.
The Business Opportunity Companies also encouraged prospective customers to contact the locators to verify that the purported locations were available. The locators were directed to echo the false statements made to customers and affirm that high-traffic and therefore profitable, locations had already been found and were waiting in the prospective customers’ respective geographic areas. In reality, the locators who worked with the Business Opportunity Companies did not have high-traffic locations or routes waiting in the prospective customer’s area. The locators had no special skills, tools, or expertise in finding locations and generally placed consumers’ machines wherever they could, often in businesses that had not consented to housing the machines or that soon demanded that the machines be removed. The vending machines generated little money and customers lost nearly all, if not all, of their investments.
Kenneth Levin, the founder and President of the Business Opportunity Companies, operated and controlled the Business Opportunity Companies’ day-to-day operations. To acquire customers, the Business Opportunity Companies placed advertisements in newspapers throughout the country, claiming that the Business Opportunity Companies had high-profit locations available for the placement of vending machines. Prospective customers responding to the advertisements were sent misleading promotional materials and also spoke by telephone with representatives of the Business Opportunity Companies, including Kenneth Levin’s son, Taylor Levin. Both defendants made various misrepresentations as described above to induce customers to buy the vending machine “business opportunity.” The defendants further concealed from prospective customers the fact that the Business Opportunity Companies received numerous complaints from customers about the lack of profitability of the vending machine “business opportunities” they were selling and the locators’ complete failure to place the vending machines in profitable locations. In an effort to conceal customer complaints from prospective customers, the Business Opportunity Companies changed their name regularly, both to avoid association with previous complaints, and to evade a federal law requiring them to provide prospective customers with a list of recent customers.
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Kenneth Levin, 69, and Taylor Levin, 34, both of Manhattan, were found guilty of all three counts in the Indictment: one count of conspiracy to commit mail fraud and wire fraud and one count each of mail fraud and wire fraud. Each count carries a maximum sentence of 20 years in prison. Kenneth Levin’s sentencing is scheduled for April 1, 2016, and Taylor Levin’s sentencing is scheduled for April 15, 2016, both before Judge Forrest. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of Kenneth Levin and Taylor Levin will be determined by a Judge.
The five other individuals arrested along with Kenneth Levin and Taylor Levin on March 5, 2015, pleaded guilty for their respective roles in this scheme.
Sears Hobbs pleaded guilty on Jan. 4, 2016, and is scheduled to be sentenced on March 11, 2016.
James Conley pleaded guilty on Oct. 22, 2015, and is scheduled to be sentenced on Feb. 11, 2016.
Marcel Harris pleaded guilty on Oct. 26, 2015, and is scheduled to be sentenced on Feb. 26, 2016.
Stephen Friedman pleaded guilty on Oct. 27, 2015, and is scheduled to be sentenced on Feb. 26, 2016.
Jonathan Campbell pleaded guilty on Sept. 17, 2015, and is scheduled to be sentenced on Feb. 12, 2016.
U.S. Attorney Bharara praised the United States Postal Inspection Service for their outstanding work in the investigation. U.S. Attorney Bharara also thanked the Consumer Protection Branch of the Justice Department’s Civil Division for its valuable contributions to this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Janis Echenberg and Jennifer Beidel are in charge of the case.
Father and Son Found Guilty in Manhattan Federal Court in Connection with Multimillion-Dollar Vending Machine “Business Opportunity” SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Benjamin C. Mizer, the Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division, announced that KENNETH LEVIN, the owner of a company that purported to sell lucrative vending machine “business opportunities,” and his son and manager at the company, TAYLOR LEVIN, were found guilty yesterday for their participation in a nearly $11 million scheme that victimized at least 1,300 consumers across the country. KENNETH LEVIN and TAYLOR LEVIN were convicted after a three-week jury trial before the Honorable Katherine B. Forrest. The defendants were arrested in March 2015 along with five other co-conspirators who have all pled guilty.
Manhattan U.S. Attorney Preet Bharara said: “Kenneth and Taylor Levin preyed upon the entrepreneurial resolve of thousands of victims across the country, deceiving them with promises of business assistance and giant windfalls, when instead they were duping the victims out of over ten million dollars. This three-week trial and the unanimous verdict made clear that the business opportunities Kenneth and Taylor Levin were selling to their victims were actually for themselves alone. I want to thank the U.S. Postal Inspection Service and the Consumer Protection Branch of the Justice Department for their assistance in this prosecution.”
Principal Deputy Assistant Attorney General Benjamin C. Mizer said: “The defendants convicted in this case twisted the American entrepreneurial spirit to their advantage, luring consumers with the prospect of starting their own business and being their own boss. Justice Department prosecutors will continue to team together and work with law enforcement to ensure that the crime of business opportunity fraud, in all of its forms, is stopped and perpetrators are prosecuted.”
As established by the evidence at trial:
From January 2005 to December 2011, KENNETH LEVIN and TAYLOR LEVIN and their co-conspirators perpetrated a scheme to defraud consumers by making material misrepresentations in an effort to induce those consumers to invest thousands of dollars in purported vending machine “business opportunities.” Through a company located in Manhattan, New York (“Company-1”), and its successor companies (together, the “Business Opportunity Companies”), the defendants and other employees falsely promised customers that if they purchased packages of five or 10 vending machines, the customers would be provided access to established, high-profit locations for the machines, and would be connected with experienced “locators,” who would facilitate placing the vending machines in those pre-determined locations. The defendants and other employees further falsely promised to provide training and ongoing customer assistance on how to operate a successful vending machine business, and misled customers about the features of the vending machines – including purposefully concealing the fact that the machines were manually operated and accepted only exact change, rather than automatic machines that accept bills and provide change. Despite the defendants’ claims, there were no pre-determined locations available, locators were inexperienced and ill-equipped to find profitable locations for the vending machines, and the Business Opportunity Companies delivered little or no follow-up service or assistance to their customers.
The defendants also misled prospective customers about the profits customers could earn from the machines. Prospective customers were assured that they would earn significant profits from the vending machines in a relatively short period of time. Customers were also misled into believing that certain employees of the Business Opportunity Companies personally owned vending machines that were profitable. The defendants and their co-conspirators made these assertions knowing that there were scores of dissatisfied customers who, rather than making any profit, had lost their entire investment. Through their scheme, the Business Opportunity Companies obtained nearly $11 million from more than 1,300 customers throughout the United States.
The Business Opportunity Companies also encouraged prospective customers to contact the locators to verify that the purported locations were available. The locators were directed to echo the false statements made to customers and affirm that high-traffic, and therefore profitable, locations had already been found and were waiting in the prospective customers’ respective geographic areas. In reality, the locators who worked with the Business Opportunity Companies did not have high-traffic locations or routes waiting in the prospective customers’ areas. The locators had no special skills, tools, or expertise in finding locations and generally placed consumers’ machines wherever they could, often in businesses that had not consented to housing the machines or that soon demanded that the machines be removed. The vending machines generated little money and customers lost nearly all, if not all, of their investments.
KENNETH LEVIN, the founder and President of the Business Opportunity Companies, operated and controlled the Business Opportunity Companies’ day-to-day operations. To acquire customers, the Business Opportunity Companies placed advertisements in newspapers throughout the country, claiming that the Business Opportunity Companies had high-profit locations available for the placement of vending machines. Prospective customers responding to the advertisements were sent misleading promotional materials and also spoke by telephone with representatives of the Business Opportunity Companies, including KENNETH LEVIN’s son, TAYLOR LEVIN. Both defendants made various misrepresentations as described above to induce customers to buy the vending machine “business opportunity.” The defendants further concealed from prospective customers the fact that the Business Opportunity Companies received numerous complaints from customers about the lack of profitability of the vending machine “business opportunities” they were selling and the locators’ complete failure to place the vending machines in profitable locations. In an effort to conceal customer complaints from prospective customers, the Business Opportunity Companies changed their names regularly, both to avoid association with previous complaints, and to evade a federal law requiring them to provide prospective customers with a list of recent customers.
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KENNETH LEVIN, 69, and TAYLOR LEVIN, 34, both of Manhattan, New York, were found guilty of all three counts in the Indictment: one count of conspiracy to commit mail fraud and wire fraud, and one count each of mail fraud and wire fraud. Each count carries a maximum sentence of 20 years in prison. KENNETH LEVIN’s sentencing is scheduled for April 1, 2016, and TAYLOR LEVIN’s sentencing is scheduled for April 15, 2016, both before Judge Forrest. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of KENNETH LEVIN and TAYLOR LEVIN will be determined by the court.
The five other individuals arrested along KENNETH LEVIN and TAYLOR LEVIN on March 5, 2015, have pled guilty before Judge Forrest for their respective roles in this scheme.
Sears Hobbs pled guilty on January 4, 2016, and is scheduled to be sentenced on March 11, 2016.
James Conley pled guilty on October 22, 2015, and is scheduled to be sentenced on February 11, 2016.
Marcel Harris pled guilty on October 26, 2015, and is scheduled to be sentenced on February 26, 2016.
Stephen Friedman pled guilty on October 27, 2015, and is scheduled to be sentenced on February 26, 2016.
Jonathan Campbell pled guilty on September 17, 2015, and is scheduled to be sentenced on February 12, 2016.
Mr. Bharara praised the United States Postal Inspection Service (“USPIS”) for their outstanding work in the investigation. Mr. Bharara also thanked the Consumer Protection Branch of the Justice Department’s Civil Division for its valuable contributions to this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Janis Echenberg and Jennifer Beidel are in charge of the case.
East Hartford Man Pleads Guilty to Arson, Insurance Fraud, Gambling and Extortion OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JOHN A. BARILE, 52, of East Hartford, pleaded guilty today in Hartford federal court to arson, insurance fraud, gambling and extortion offenses.
According to court documents and statements made in court, BARILE was a co-owner of Enzo’s Restaurant and Lounge, which was located on Main Street in Middletown. By 2009, Enzo’s was facing financial difficulty. Beginning in approximately November 2009, BARILE and others engaged in conversations about planning to cause a fire at Enzo’s in order to collect the insurance proceeds. BARILE informed his co-owner of the plan and sought information from at least one individual on how to start the fire to make it look like an accident.
On the evening of January 9, 2010, BARILE participated in conversations with others at Enzo’s about causing the fire the next morning and mentioned that he had placed greasy rags around the fryolators and had applied grease to the walls. Later in the evening, after the restaurant had closed, BARILE was aware that a fire was burning in the kitchen. He intentionally did not extinguish the fire, transferred it to one or more of the greasy rags, allowed the fire to burn further, and then left the restaurant. BARILE did not alert the fire department or anyone else about the fire he had left burning in the restaurant.
The co-owner was inside Enzo’s at the time of the fire, and two individuals were inside a restaurant next door. The Middletown Fire Department arrived a short time later, forced entry, rescued the co-owner and put out the fire.
After the fire, BARILE sought payment from an insurance company for losses suffered as a result of the fire, and concealed his role in the fire from the insurance company and law enforcement. The insurance company ultimately paid $189,787.69 to BARILE to settle the insurance claims related to the fire.
From at least 2010 through approximately January 2014, BARILE also conducted an illegal sports-related bookmaking operation. In the course of the gambling business, BARILE paid out or received cash from sub-bookmakers and certain bettors. During this time period, BARILE did not have any employment or source of income other than the illegal sports-related bookmaking business. At times, the gambling business grossed more than $2,000 per day.
One bettor who repeatedly placed bets with BARILE’s gambling business eventually owed him approximately $50,000 from unpaid gambling losses. On November 8, 2011, BARILE, along with two associates, met the bettor at a parking lot in Hartford. At the meeting, BARILE tased the bettor with a Taser or similar device in order to punish him for not paying his debts and enforce collection of the payment.
BARILE pleaded guilty to one count of arson, one count of mail fraud, one count of conducting an illegal gambling business and one count of collecting an extension of credit by extortionate means. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on May 6, 2016, at which time he faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 65 years.
BARILE was arrested on January 5, 2015, and is released on a $350,000 bond under electronic monitoring. He is currently residing with a family member in Enfield.
On November 16, 2012, the government seized pursuant to a civil seizure warrant $165,287.69 in U.S. currency from BARILE’s bank account.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Middletown Police Department and the Connecticut State Police. This case is being prosecuted by Assistant U.S. Attorneys Anastasia E. King and Neeraj N. Patel.
Delaware County Man Charged with Possession of Child PornographyRead the Press Release
PHILADELPHIA - John Porter, 63, of Marple Township, Pennsylvania, was charged today by indictment with one count of receipt of child pornography and one count of possession of child pornography, announced United States Attorney Zane David Memeger. The indictment alleges that on July 24, 2014 and June 3, 2015, Porter received and possessed images of child pornography.
If convicted the defendant faces a mandatory minimum sentence of five years in prison with a maximum possible sentence of 30 years in prison, supervised release, a $200 special assessment, and a possible fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Criminal Charges Filed 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
Bank Admits to Helping U.S. Taxpayer-Clients Hide Billions of Dollars in Offshore Accounts
Bankers Daniela Casadei and Fabio Frazzetto, Fugitives Since 2011, Surrender and Plead Guilty to Felony Tax Charges
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Preet Bharara of the Southern District of New York, and Chief Richard Weber of the 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 IRS and to evade U.S. taxes on the income earned in those accounts.
Acting Assistant Attorney General Ciraolo and U.S. Attorney 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 Feb. 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, pleaded guilty in Manhattan federal court today. Casadei and Frazzetto were originally charged in 2011 and remained at large until Feb. 1, when they each made initial appearances before the Honorable Gabriel W. Gorenstein, U.S. Magistrate Judge for the Southern District of New York.
Casadei and Frazzetto each pleaded 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.
“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,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division. “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.”
“Bank Julius Baer not only turned a blind eye to tax avoiders, but actually conspired with them to break the law,” said U.S. Attorney Bharara. “Together with our partners at the IRS, we will continue to prosecute financial institutions and individuals who facilitate tax evasion.”
“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, said IRS-CI Chief Weber. “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 U.S. 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 United States, making Julius Baer less vulnerable to pressure from U.S. law enforcement authorities than other Swiss banks with a presence in the United States.
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:
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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 United States, 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 United States, including:
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“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).”
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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 a 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 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 United States 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 U.S. 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 specifically 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 pleaded 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 statutory 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 Aug. 12, 2016.
This case is being handled by the U.S. Attorney’s Office of the Southern District of New York Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jason H. Cowley and Sarah E. Paul are in charge of the prosecution. Acting Assistant Attorney General Ciraolo and U.S. Attorney Bharara praised the outstanding investigative work of IRS-CI and thanked the U.S. Department of Homeland Security for its assistance with the case.
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Craigslist Robbery Crew Member Convicted on Multiple CountsRead the Press Release
OAKLAND – Michael Anthony Martin was convicted by a federal jury today of conspiracy to commit robbery affecting interstate commerce and robbery affecting interstate commerce announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge David J. Johnson. The jury found that Martin robbed victims on four separate occasions and conspired to rob victims selling jewelry on Craigslist.org.
The guilty verdict followed a jury trial before the Honorable Jeffrey S. White, U.S. District Judge. Evidence at trial showed that Martin, 42, of Tracy, was part of a robbery crew that targeted individuals selling high-end jewelry, such as diamonds and Rolex watches, on Craigslist. The robbery crew targeted victims located nationwide and was responsible for numerous robberies and attempted robberies between November 2012 and December 2013.
Crew members frequently posed as music producers or pretended to be in the market for diamond engagement rings when they contacted their intended victims. In each case, a crew member contacted their victims by e-mail or cell phone and negotiated a price to purchase the jewelry item. The conspirators then lured their victims to the Bay Area, sometimes by paying for the victim’s airplane ticket or promising to reimburse the victim for travel. Often, a robbery crew member posed as an airport limousine driver and picked up the victim at the airport using a rented SUV. The victims, believing they were going to meet the buyer at a jewelry store or bank to complete the sale, were instead delivered to a different, predetermined location where two or more additional crew members robbed them. Crew members used guns and physical violence to rob their victims of jewelry items and other personal property. It is estimated the robbery crew stole more than $500,000 worth of jewelry from victims traveling from more than six states, including Arizona, California, Colorado, Oregon, Washington, and Wisconsin.
Martin was indicted by a grand jury on April 10, 2014. He was charged with conspiracy to commit robbery, in violation of 18 U.S.C. § 1951(a), and four counts of interference with interstate commerce by robbery, in violation of 18 U.S.C. § 18 U.S.C. 1952(a) and 2.
Martin is currently in federal custody. His sentencing hearing is scheduled for April 19, 2016, before Judge White in Oakland. The maximum statutory penalty for each of the five counts for which Martin was found guilty is 20 years’ imprisonment and a fine of $250,000. Additional fines, restitution and periods of supervised release also may be imposed. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Brigid S. Martin and Claudia A. Quiroz are prosecuting the case with the assistance of Melissa Dorton, Katie Turner, and Patty Lau. The prosecution is the result of an investigation by the Federal Bureau of Investigation (San Francisco Division, assisted by Sacramento, St. Louis, San Antonio, and Mobile, Alabama Divisions); U.S. Bureau of Prisons; Fremont Police Department; California Department of Corrections; El Cerrito Police Department; Richmond Police Department; San Francisco Police Department; Alameda County Sheriff’s Office; Oakland Police Department; Berkeley Police Department; Danville Police Department; Concord Police Department; Livermore Police Department; Manteca Police Department; Tracy Police Department; Contra Costa Sheriff’s Office; Hayward Police Department; Burlingame Police Department; San Leandro Police Department; Berkeley, Missouri Police Department; Olivette, Missouri Police Department; and the Northern California Regional Intelligence Center (NICRIC).
Colorado Woman Pleads Guilty to Federal Cocaine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Yolanda Gonzalez, 35, of Denver, Colo., pleaded guilty today in federal court in Las Cruces, N.M., to a cocaine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Gonzalez was arrested in July 2015, after U.S. Border Patrol agents at the Border Patrol Checkpoint on I-25 north of Las Cruces, found approximately 2.72 kilograms of cocaine concealed in the car battery of Gonzalez’s vehicle during a routine inspection. Gonzalez was subsequently indicted on Oct. 15, 2015, and charged with possession of cocaine with intent to distribute on July 26, 2015, in Doña Ana County, N.M.
During today’s proceedings, Gonzalez pled guilty to the indictment and admitted that on July 26, 2015, she drove her car to the Border Patrol checkpoint on I-25 where agents found 2.72 kilograms of cocaine hiding in her car. Gonzalez further admitted that she intended to deliver the cocaine to someone else for distribution in the United States.
At sentencing, Gonzalez faces a minimum of five years and a maximum of 40 years in federal prison followed by not less than four years of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Border Patrol and the DEA and is being prosecuted by Assistant U.S. Attorneys Anna R. Wright and Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Chris Myers to Continue as United States AttorneyRead the Press Release
FARGO - Effective Feb. 6, 2016, the Honorable U. S. District Court Chief Judge Ralph R. Erickson has continued the appointment of Christopher C. Myers as the United States Attorney for the District of North Dakota.
Myers stated that, "I have been honored and privileged to serve as U.S. Attorney for the District of North Dakota for the past ten months. I am excited to continue leading this dedicated and talented group of attorneys and support staff at the U.S. Attorney’s Office. We strive every day to do our very best to serve the citizens of North Dakota and continue to work shoulder-to-shoulder with our federal, state, local, and tribal partners to ensure public safety. Violent crime, especially those crimes perpetrated against children, remain a priority as will the fight against organized crime.
"While violent and sophisticated criminal organizations attempt to prey on North Dakotans throughout the State, our collective law enforcement response will be swift and sure. Rest assured, we will retain the quality of life we enjoy in North Dakota. Criminal organizations will find North Dakota a particularly unfavorable place to do business."
Myers has been with the U.S. Attorney's office for nearly 14 years. Since 2013 he has served as the First Assistant U.S. Attorney until becoming Acting U.S. Attorney on March 13, 2015. Prior to becoming an Assistant U.S. Attorney in 2002, Myers served as the Chief Assistant Clay County Attorney from 1998-2002, and also served as an Assistant Cass County States Attorney and a Special Agent with the North Dakota Bureau of Criminal Investigation.
Myers will serve as United States Attorney until the President of the United States nominates a new U.S. Attorney for North Dakota and the United States Senate confirms the nominee pursuant to Title 28, United States Code, Section 541.
Chalmette Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAMIEN WILSON, age 35, a resident of Chalmette, pled guilty today to violations of the Federal Controlled Substances Act.
According to court records, WILSON conspired with others known and unknown to possess with the intent to distribute and to distribute one kilogram or more of a mixture or substance containing a detectable amount of heroin, a Schedule I drug controlled substance. WILSON was caught on video during two heroin transactions with a confidential source. The government also developed evidence that WILSON was laundering his drug proceeds by purchasing dilapidated houses, renovating them, and selling them for a profit. The government is seizing the houses and/or proceeds from their sale, as well as two vehicles that contained secret compartments used to transport narcotics.
WILSON faces a sentence of at least twenty years to life because of his prior drug offenses, a fine of up to $20,000,000 and at least ten years of supervised release following any term of imprisonment. U.S. District Judge Carl J. Barbier set sentencing for May 12, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
California Man Sentenced to Prison for Federal Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Oscar Toro, 43, of Fremont, Calif., was sentenced today in federal court in Albuquerque, N.M., to 57 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Toro was charged in March 2014, on a criminal complaint alleging that he possessed methamphetamine with intent to distribute on March 4, 2014, in Bernalillo County, N.M. According to the complaint, Toro was arrested after law enforcement seized approximately 3.4 kilograms of methamphetamine from a hidden compartment underneath Toro’s vehicle. Toro was subsequently indicted on March 26, 2014, and charged with possession of methamphetamine with intent to distribute.
On Oct. 20, 2015, Toro pled guilty to the indictment and admitted that on March 4, 2014, law enforcement officers found 3,415 grams of methamphetamine in a hidden compartment in his vehicle. Toro further admitted that he was given $1,000.00 to drive the methamphetamine from Calif. to Ky., and would later receive another $5,000.00.
This case was investigated by the Albuquerque office of the DEA and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Rumaldo Armijo prosecuted the case.
California Man Pleads Guilty to Cocaine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Oscar Casillas-Nunez, 39, of Orosi, Calif., pleaded guilty today in federal court in Albuquerque, N.M., to a cocaine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Casillas-Nunez and his co-defendant Gilbert Rosales, 43, of Dinuba, Calif., were arrested in Oct. 2013, on a criminal complaint charging them with conspiracy to distribute cocaine after DEA agents found approximately 4.6 kilograms of cocaine in their baggage during an interdiction investigation at the Amtrak Train Station in Albuquerque on Oct. 16, 2013. Both men were indicted on Oct. 30, 2013, and charged with conspiracy to distribute cocaine and possession of cocaine with intent to distribute in Bernalillo County, N.M.
During today’s proceedings, Casillas-Nunez pled guilty to a felony information charging him with possession of cocaine with intent to distribute. In entering his guilty plea, Casillas-Nunez admitted that on Oct. 16, 2013, he traveled through Albuquerque with cocaine that he intended to distribute to other people but was arrested by law enforcement agents before he could reach his final destination.
At sentencing, Casillas-Nunez faces a maximum penalty of 20 years in federal prison followed by not less than three years of supervised release. He will remain in custody pending a sentencing hearing which has yet to be scheduled.
Rosales previously pled guilty to the indictment on March 27, 2015, and admitted that on Oct. 16, 2013, he and Casillas-Nunez transported cocaine while traveling through Albuquerque on the Amtrak Train. Rosales further admitted that when the pair arrived in Albuquerque, he left the train to avoid police. Rosales further admitted that when police questioned Casillas-Nunez, he abandoned the bag containing the cocaine was in and did not return to the train. Rosales was sentenced on Oct. 29, 2015, to 60 months in federal prison followed by four years of supervised release.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Buffalo Man Charged with Trying to Renew the Passport of A Dead ManRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Porfirio Rosa, a/k/a Luis Rosa, 74, of Buffalo, NY, was arrested and charged by criminal complaint with making false statements in application for a passport. The charge carries a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, on October 9, 2015, the Western Passport Center in Tucson, Arizona received a United States Passport Renewal Application from an individual identifying himself as Luis Rosa. The application was mailed from the defendant’s residence in Buffalo. As proof of identity and citizenship, the defendant submitted an expired U.S. passport issued in 2003 in the name of Luis Rosa.
Further investigation revealed that the name, social security number, and date of birth provided on the passport renewal application and original passport belonged to a man who died in 1995. The Social Security Administration confirmed that the decedent’s social security number has not been reissued, and that the decedent’s widow has been receiving benefits since the decedent’s death.
The complaint further states that at the time of his arrest, the defendant was in possession of several New York State identification cards as well as federal Social Security cards containing several different names, dates of birth, and social security numbers.
Rosa made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained.
The complaint is the result of an investigation by the Diplomatic Security Service, U.S. Department of State, under the direction of William Ferrari.
Antelope Couple Sentenced to 15 Years in Prison for the Arson of Their HomeRead the Press Release
SACRAMENTO, Calif. — An Antelope couple was sentenced today by Chief United States District Judge Morrison C. England Jr. to 15 years in prison each for four felony counts related to the arson of their former home and home-based business, United States Attorney Benjamin B. Wagner announced.
After a 10-day trial, a jury found Alexander Sakhanskiy, 43, and Larisa Sakhanskiy, 45, guilty of arson to commit another felony, two counts of mail fraud, and arson affecting interstate commerce. Judge England also ordered the defendants to pay nearly $540,000 in restitution to the insurance company that had paid their fraudulent claim.
According to evidence introduced at trial, on May 22, 2010, a gasoline-fueled fire destroyed the Sakhanskiys’ home in Antelope, a single-family residence at 5745 Hawkeye Lane, that was also the business location of “Alex’s Plumbing.” Prior to the fire, the Sakhanskiys removed most of their personal belongings from the house. Firefighters testified that the residential fire sprinkler system and smoke detectors had been deactivated. Although the fire resulted in the total destruction of the house, firefighters were able to prevent the fire from spreading to neighboring homes.
Evidence at trial showed that the Sakhanskiys had set the fire or caused the fire to be set to collect insurance money from Farmers Insurance Group, Mid-Century Insurance Company for hundreds of thousands of dollars of property they claimed was destroyed in the fire. In filing the claim, the defendants falsely claimed that hundreds of thousands of dollars of property was destroyed in the fire, when most of the contents of the house had been removed and hidden before the fire.
“For-profit arsonists like the Sakhanskiys allow their own personal greed to lead them to intentional acts that endanger the lives of themselves, their neighbors, and the first responders who are diverted from the accidental hazards of everyday life,” said U.S. Attorney Wagner. “We are pleased with today’s sentences, which reflect the gravity this offense, and are grateful for the hard work and cooperation of the ATF, the Sacramento Metropolitan Fire District, and the Sacramento County District Attorney’s Office in securing this result.”
“The Sakhanskiys committed arson in an attempt to defraud their insurance company, in turn placing their neighbors, firefighters and first responders in serious danger,” said ATF Special Agent in Charge Jill A. Snyder. “This investigation was a joint effort with our state and local partners.”
John Barsdale, Metro Fire Supervising Fire Investigator stated: “Keeping our communities safe is Metro Fire’s top priority, whether that means rapidly mitigating an emergency or working with our partner agencies to thoroughly investigate a fire scene and put an arsonist behind bars. Metro Fire's investigation team spent several hundred hours investigating this fire and conducting follow up investigations in order to successfully make an arrest and close the case.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sacramento Metropolitan Fire District. The Sacramento County District Attorney’s Office assisted investigators with the initial fire investigation. Assistant U.S. Attorneys Michael D. Anderson and Nirav Desai prosecuted the case.
11 Defendants Indicted for $1.2 Million Oxycodone ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 11 defendants have been indicted by a federal grand jury for their roles in a $1.2 million conspiracy to distribute Oxycodone that they obtained by using forged and fraudulent prescriptions.
Robert G. Joy, also known as “Bear,” 33, Gary D. Dickinson, also known as “James DeJong,” 49, Nicholas Destefano, 37, Katherine E. Beaven, 22, Douglas R. Parker, 56, Michelle C. Newton, 45, Felicita A. San Miguel, also known as “Cassandra Jasso,” “Susan Hernandez,” and “Sarah Buckner,” 37, Jermaine C. Brooks, 28, and Timothy D. Kroenke, 26, all of Kansas City, Mo.; Christopher J. Neale, 25, of Harrisonville, Mo.; and Thomas Poindexter, 41, of Olathe, Kan., were charged in a 27-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 and initial court appearances of Joy, Destefano, Beaven, Parker, Neale and Kroenke.
The federal indictment alleges that all 11 co-defendants participated in a conspiracy to distribute Oxycodone that began on June 22, 2013.
All of the co-defendants are also charged with participating in a conspiracy to unlawfully use another person’s identification to facilitate a drug-trafficking crime. According to the indictment, conspirators obtained the means of identification of health care providers (including their names and DEA registration numbers, which are assigned by the DEA to allow them to write prescriptions for controlled substances). Conspirators allegedly used that identification and the prescription paper to prepare false prescriptions for controlled substances, including Oxycodone. They took the false prescriptions to pharmacies in Kansas City, Drexel, Riverside, Independence, Lee’s Summit, Blue Springs, Kearney, Butler, Odessa, Higginsville and Nevada, Mo. After they obtained the Oxycodone or other controlled substances, the indictment says, they distributed them to others.
In addition to the two conspiracies, Dickinson is charged with five counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge, one count of possessing methamphetamine with the intent to distribute and one count of possessing cocaine, oxycodone and methamphetamine with the intent to distribute.
Dickinson and San Miguel are charged together in two counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. Dickinson, Beaven and San Miguel are charged together in one count of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. Brooks and San Miguel are charged together in one count of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge. San Miguel is also charged in a fifth count of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge.
Kroenke is also charged with five counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge.
Neale is also charged with two counts of obtaining Oxycodone by misrepresentation, fraud, forgery, deception and subterfuge.
Destefano is also charged with one count of possessing a firearm (a Smith and Wesson 9mm pistol) while being an unlawful user of a controlled substance and one count of possessing Oxycodone and methamphetamine with the intent to distribute.
Poindexter is also charged with one count of possessing Oxycodone, cocaine and methamphetamine with the intent to distribute.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property obtained from the proceeds of the alleged offenses, including a money judgment of $1.2 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. Michaelson. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the Missouri State Highway Patrol, and the police departments of Riverside, Blue Springs, Independence, Kearney, Odessa, Nevada, Higginsville, Drexel Lee’s Summit and Butler.
3 February 2016
Winnebago Man Sentenced to 80 Months for AssaultRead the Press Release
Mark James Decora, 32, of Winnebago, Nebraska, was sentenced in federal court in Omaha, Nebraska, for assault resulting in serious bodily injury. The Honorable Lyle E. Strom, Senior United States District Court Judge, sentenced Decora to the custody of the United States Bureau of Prisons for 80 months. After his release from prison, Decora will begin a three-year term of supervised release.
This is Decora’s third federal conviction. He was convicted in 2003 of assault. In 2005 he was convicted of resisting a federal officer. In 2008 Decora was convicted of his second felony assault.
On March 21, 2015, Winnebago Police were called to the Senior Complex in Winnebago, Nebraska. They observed a victim with significant facial injuries. Decora and the victim were the only two in the apartment. The victim was taken to Mercy Hospital in Sioux City, Iowa, where she reported that Decora assaulted her. She suffered significant facial fractures requiring surgery. She also suffered bruising and lacerations to her face.
This case was investigated by the Federal Bureau of Investigation.
Wetzel County, WV man convicted of unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Eric Brandon Lemasters, 33, of Jacksonburg, West Virginia, pled guilty to unlawful possession of four firearms today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Lemasters, who has a previous felony conviction in state court in Ohio, was discovered in July 2015 in unlawful possession of two rifles, a shotgun, and a pistol in Wetzel County, West Virginia. He was previously convicted of the felony offense of “Grand Theft” in the Court of Common Pleas of Lake County, Ohio.
Lemasters pled guilty today to one count of “Felon in Possession of a Firearm.” He faces up to 10 years in prison and a fine of up to $250,000. 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 David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge James E. Seibert presided.
Violent Felon Charged in A String of Armed CarjackingsRead the Press Release
One Carjacking Victim Shot in the Chest
Earlier today, John Howard was arraigned before United States Chief Magistrate Judge Steven M. Gold in Brooklyn federal court. Howard faces charges for a series of gunpoint carjackings in Queens and Long Island. A criminal complaint charges the defendant with three counts of carjacking and using, carrying, brandishing, and discharging a firearm during and in relation to crimes of violence.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Delano A. Reid, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Office; and William J. Bratton, Commissioner of the New York City Police Department (NYPD).
As detailed in the complaint and a detention memorandum filed by the government, Howard, who has a history of violence, participated in a series of armed carjackings that took place beginning in December 2015.
On December 18, 2015, Howard attempted to burglarize a home in Valley Stream, New York. While fleeing the scene of the burglary, he pointed a gun at the driver of a white Volkswagen Jetta and threatened to shoot if the driver did not comply with his demands. After forcing the driver from the car, Howard stole the car.
Ten days later, on December 28, 2015, Howard struck again. This time the victim was sitting in his parked Mercedes Benz and was approached by two males. One male entered the car through the passenger side door. The second male, subsequently identified as Howard, opened the driver’s side door and told the victim, in sum and substance, “Give me your wallet or I’m going to shoot you.” Howard then hit the driver in the head, forced him out, and stole the driver’s wallet.
On January 21, 2016, Howard was involved in a third violent carjacking in which a fifty-three-year-old woman was shot in the chest. The woman’s daughter was in the passenger seat of a Hyundai parked in front of the Hampton Inn at JFK International Airport waiting for her mother to check into the hotel when a masked and armed man entered the car. The man demanded money and jewelry from the daughter and struck her in the head with his firearm. As the man began driving the car, he told the daughter, in sum and substance, “If your mother has no money, then I’m going to shoot you.” When the mother exited the hotel a few minutes later, the man demanded the mother’s purse. When the mother refused, the man shot her in the chest and drove off in a white Volkswagen Jetta – which was the same make and model, and had the same features, as the Volkswagen Jetta carjacked by Howard on December 18, 2015.
Four days after the January 21 carjacking, Howard was arrested in possession of the stolen white Volkswagen Jetta.
United States Attorney Capers stated, “As alleged in the complaint and other court filings, Howard’s targets were victims of harrowing crimes, the likes of which we have not seen in some time. This violence simply will not be tolerated, as Howard will now face the consequences of his acts in federal court.” Mr. Capers expressed his grateful appreciation to the ATF and NYPD’s Joint-Robbery Taskforce, who are responsible for leading the investigation, and thanked the Nassau County Police Department, the Nassau County District Attorney’s Office, the Queens District Attorney’s Office, the Kings County District Attorney’s Office, the NYPD’s Queens South Strategic and Tactical Command, and the 113 Precinct Detective Squad for their assistance.
ATF Special Agent in Charge Reid stated, “It is quite disturbing to think that an individual like the defendant was free to walk the streets as recently as two weeks ago. As alleged, Howard was involved in multiple carjackings where he exhibited his total disregard for human life. I am extremely grateful to the investigators and prosecutors on this case, who swiftly acted and removed such a dangerous individual from free society. It is now time for the defendant to feel the full weight of the U.S. judicial system and to know that the severity of his punishment will likely be commensurate to the depravity of his criminal behavior.”
“These series of crimes demonstrate a disturbing level of depravity and complete disregard for the safety and well-being of the victims involved in these acts of violence,” said New York City Police Commissioner Bratton. “As alleged, John Howard participated in a string of violent acts, including a carjacking where a 53 year-old mother was shot in cold blood when she refused to hand over her purse. I commend the efforts of the Queens South Strategic and Tactical Command Investigative Operations and the 113th Precinct Detective Squad who made it a priority to take this dangerous individual off the streets and into police custody.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Moira Kim Penza and Tanya Hajjar.
The Defendant:
Name: John Howard
Age: 49
Brooklyn, New YorkVermont Man Surrenders U.S. Citizenship and Consents to Removal from United StatesRead the Press Release
A Bosnian-born Burlington, Vermont, man surrendered his U.S. citizenship because he lied about his military service during the Bosnian war and the court cancelled his certificate of naturalization.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eric S. Miller of the District of Vermont, Special Agent in Charge Matthew J. Etre of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Boston Office and Special Agent in Charge Andrew W. Vale of the FBI’s Albany, New York, Field Office made the announcement.
Edin Sakoč, 55, stipulated to the court’s order of denaturalization and loss of citizenship based on a civil complaint alleging that Sakoč illegally and fraudulently obtained U.S. citizenship by giving false or misleading information to a U.S. official. According to court documents, when Sakoč sought refugee status in the United States in 2001, he misrepresented his wartime service in the Croatian Defense Council by denying that he served in a reconnaissance unit.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] or toll-free at 1-800-813-5863, or through the HSI tip line at 1-866-DHS-2-ICE or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
HSI Burlington and the FBI’s Albany Division investigated the case, with assistance from ICE’s Human Rights Violators and War Crimes Center. The Criminal Division’s Office of International Affairs and its counterpart at the Prosecutor’s Office of Bosnia and Herzegovina provided valuable assistance. Senior Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Eugenia A.P. Cowles of the District of Vermont are prosecuting the case.
Van Buren Man Sentenced to over 8 Years for Child PornographyRead the Press Release
Acting United States Attorney Kenneth Elser
Western District of Arkansas
_______________________________________________________FOR IMMEDIATE RELEASE CONTACT: Joyce Snow
February 3, 2016 PHONE: (479) 494-4066TWITTER: @WDARnews
VAN BUREN MAN SENTENCED TO OVER 8 YEARS FOR CHILD PORNOGRAPHY
Fort Smith - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Brad Middleton, age 29, of Van Buren, was sentenced yesterday to 100 months in prison and 5 years of supervised release on one count of Distribution of Child Pornography. The Honorable P. K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, between March 22, 2015, and April 30, 2015, the defendant sent an undercover detective links to thirty one videos depicting minors engaging in sexually explicit conduct. Records reflect that the IP address from which the videos were sent was associated with the defendant and show that the videos were sent by the defendant while he was in the Fort Smith Division of the Western District of Arkansas. Middleton was indicted by a federal grand jury in July 22, 2015 and pleaded guilty to the charge in September 30, 2015.
This case was investigated by Homeland Security Investigations, Internet Crimes Against Children, and the Russellville Police Department. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Valentino Anderson Sentenced to 77 Months for Conspiracy to Distribute Heroin and Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Valentino Anderson, 50, of Rutland, was sentenced yesterday for his role in a conspiracy to distribute heroin and cocaine base in Vermont. Chief United States District Judge Christina Reiss sentenced Anderson to 77 months in prison, to be followed by three years of supervised release.
According to court records, Valentino Anderson and his wife Crystal Anderson participated in a conspiracy to distribute heroin and cocaine base during the fall 2012 time period. The evidence in the case included a March 2011 law enforcement-controlled purchase of heroin from Mr. Anderson and the seizure of approximately 23 grams of cocaine base during a car stop of the Andersons in October 2012. In connection with the car stop, Valentino Anderson admitted that he and his wife were returning from a trip to Connecticut to pick up the drugs. Mr. Anderson further admitted that he had been selling drugs for a period of months before the car stop. Mr. Anderson was also federally convicted in Vermont in 2004 of conspiracy to distribute cocaine in 2004 and was sentenced to 27 months’ imprisonment. Crystal Anderson was sentenced on August 22, 2013 to time-served and three years of supervised release.
This matter was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Vermont State Police. The prosecution was handled by Assistant U.S. Attorney Kevin J. Doyle. Valentino Anderson was represented by Richard C. Bothfeld, Esq. of Burlington.
Upstate New York Construction Company and Individuals to Pay More Than $1 Million to Settle Fraud ClaimsRead the Press Release
ALBANY, NEW YORK – An upstate New York construction company and three individuals have paid $1,012,000 to resolve claims that they defrauded a government program designed to benefit women- and minority-owned contractors, announced United States Attorney Richard S. Hartunian. The settling parties are Watervliet-based ING Civil, Inc. and its owner, Corey Ingerson; James Beaudoin, who is the former president of Watervliet-based Rexford Albany Municipal Supply Company, Inc. (RAMSCO); and former RAMSCO salesman John Leary.
The United States Department of Transportation (DOT) has promulgated regulations intended to provide opportunities for businesses owned by socially and economically disadvantaged individuals to perform work on projects financed, at least in part, by the federal government. DOT also administers a Disadvantaged Business Enterprise (DBE) program that requires state and local governments receiving federal funding to establish goals for the participation of DBEs on federally-funded projects. A contractor may claim credit for a DBE’s participation on a project only if the DBE serves a "commercially useful function." A DBE performs a commercially useful function when it is responsible for execution of a distinct element of work on a contract. A DBE does not serve a commercially useful function if its role is limited to that of an extra participant to a transaction through which funds are passed to create the impression that members of a historically disadvantaged group worked on a contract.
The settlements resolve the following allegations:
In 2009, when preparing to submit a bid to the City of Cohoes to reconstruct the Bridge Avenue Bridge over the Mohawk River, Corey Ingerson spoke with John Leary to see if RAMSCO would provide a quote for materials that ING Civil would need if awarded the project. Leary explained to Ingerson that RAMSCO could both provide the materials for the project and bill them through a DBE, American Indian Builders & Suppliers, Inc. (AIB), to help ING Civil satisfy the project’s DBE goals. Shortly thereafter, Ingerson learned that ING Civil had been awarded the project, and he signed a DBE Utilization Worksheet representing that AIB would supply $306,285 worth of materials for the project. When Ingerson signed the DBE Utilization Worksheet agreeing to work with AIB, he knew virtually nothing about the company and had not had any substantive discussions with anyone from AIB about the materials needed for the project. All of Ingerson’s discussions on that topic were with RAMSCO officials. ING Civil ended up purchasing all materials on its DBE Utilization Worksheet from RAMSCO, rather than AIB.
In November 2010, after work on the Bridge Avenue Bridge was substantially complete, local government officials asked Ingerson to document ING Civil’s DBE expenditures on the project. Ingerson then contacted Leary to explain that ING Civil did not have the documentation necessary to support a claim that it had purchased materials from AIB, as it had represented it would do on its DBE Utilization Worksheet. At that time, Leary and Ingerson decided to prepare documents to create the appearance that the materials ING Civil purchased from RAMSCO had been purchased from AIB. Over the next few months, officials from ING Civil, RAMSCO, and AIB exchanged invoices, purchase orders and other documents to make it appear as though ING Civil had purchased materials from AIB that it had actually purchased from RAMSCO. In February 2011, ING Civil submitted electronic documentation to the City of Cohoes falsely representing that it had satisfied its DBE goals on the project by working with AIB.
In the settlement agreement, Ingerson admitted that he made a false filing indicating that materials for the Bridge Avenue Bridge project had been supplied by AIB when, at the time he made that filing, he knew the materials had been provided by RAMSCO, which was not a DBE. Beaudoin (for RAMSCO) and Leary admitted that they took steps to aid ING Civil in making that false filing. The parties also acknowledged that their conduct violated the False Claims Act.
United States Attorney Hartunian said: "The Disadvantaged Business Enterprise program was established to help small businesses owned by minorities and women obtain work on federally funded projects. As these and our other recent DBE fraud settlements demonstrate, this office will aggressively pursue individuals and entities that undermine this important objective."
"As evidenced by the settlement agreements entered into by ING Civil, Inc., Corey Ingerson, James Beaudoin, and John Leary, we remain steadfast in our commitment to maintaining the integrity of the United States Department of Transportation’s Disadvantaged Business Enterprise program," said Douglas Shoemaker, regional Special Agent-in-Charge of DOT’s Office of Inspector General. "Working with the Secretary of Transportation and other DOT leaders, and our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law."
In August 2015, HD Supply Waterworks, a company that acquired RAMSCO, paid $4,945,000 to resolve allegations that it also enabled several prime contractors to represent falsely that AIB had performed commercially useful functions on federally-funded contracts. Each of these investigations and settlements were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, the United States Department of Transportation’s Office of Inspector General and the United States Environmental Protection Agency’s Office of Inspector General, with the assistance of the Federal Bureau of Investigation and the New York State Department of Transportation’s Investigations Bureau. The United States was represented in each matter by Assistant United States Attorney Adam J. Katz.
U.S. Attorney's Office and IRS award criminal forfeiture assets to local law enforcementRead the Press Release
CHARLESTON, W.Va. – Acting United States Attorney Carol Casto and Internal Revenue Service (IRS) Special Agent in Charge Thomas Jankowski presented three local law enforcement agencies today with over $1 million in forfeited cash as a result of their participation in a joint investigation of a Barboursville pharmacy owner. Officials from the Charleston Police Department, the Huntington Police Department, and the Boone County Sheriff’s Department were on hand to receive the forfeiture awards at a press conference in the U.S. Attorney’s Office in Charleston.
Several law enforcement agencies worked together on a far-reaching investigation that resulted in the convictions of 19 defendants on federal drug charges, including 15 local drug dealers, two out-of-state drug suppliers, and one local pharmacy owner. The IRS’s Criminal Investigation Division, the Huntington Police Department, the West Virginia State Police, the West Virginia National Guard, Drug Enforcement Administration Task Force Officers from the Charleston Police Department, and the Boone County Sheriff’s Department jointly investigated the extensive drug conspiracy that stretched from Lincoln County to Florida.
As part of the conspiracy, the drug suppliers illegally filled prescriptions for oxycodone and sent the drugs to Lincoln County for distribution. During a search by law enforcement of the drug suppliers’ home in Florida, agents discovered prescription pill bottles for oxycodone that had been filled at A+ Care Pharmacy in Barboursville. Law enforcement then executed search warrants at A+ Care Pharmacy and at the home of its owner, Kofe Agyekum, and seized over 50,000 oxycodone pills, over $2 million in cash, and a Lexus. Agyekum pleaded guilty and was sentenced to over five years in federal prison.
“Let me be clear – we will work with every local, state, and federal law enforcement agency and use every available tool to prosecute those who flood West Virginia with drugs. As we proved in this case, we will travel beyond our state’s borders to bring them to justice,” said Acting United States Attorney Casto. “I want to thank the law enforcement agencies that worked as a team to investigate this case. These forfeiture assets will be used by law enforcement to continue this fight and make our communities safer.”
These prosecutions were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two defendants sentenced in Beckley for Federal crimesRead the Press Release
BECKLEY, W.Va. – A White Sulphur Springs woman and a Beckley felon were sentenced today in federal court, announced Acting United States Attorney Carol Casto. The sentences were imposed by United States District Judge Irene C. Berger.
Paula Kay Butts, 51, of White Sulphur Springs, was sentenced to a year and a half in federal prison for using a phone to facilitate methamphetamine distribution. Butts previously pleaded guilty in November 2015 to the federal drug crime. Butts admitted that on June 27, 2015, while in White Sulphur Springs, she texted a confidential informant working with law enforcement to arrange a drug deal. Later that day, Butts met the informant and distributed methamphetamine.
Leon Eugene Smith, Jr., 35, of Beckley, was sentenced to five years in federal prison for being a felon in possession of a firearm, a Smith & Wesson 9mm handgun. Smith previously pleaded guilty in October 2015 to the federal gun crime. Smith was prohibited under federal law from possessing any firearm because of a 2005 felony conviction in federal court for possession with intent to distribute a controlled substance.
The case against Butts was investigated by the Greenbrier Valley Drug and Violent Crime Task Force as part of the Greenbrier Valley Heroin and Pill Initiative, a multi-agency effort led by the United States Attorney’s Office to combat drug trafficking in communities across the Southern District of West Virginia.
The case against Smith was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beckley Police Department as part of Project Safe Neighborhoods, a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Two Women Plead Guilty to Defrauding USDA’s Summer Food Service ProgramRead the Press Release
NORFOLK, Va. – Cindy Hall, 41, of Monroe, North Carolina, pleaded guilty today to charges of mail fraud and unlawful monetary transactions. Hall’s mother, Stephanie Almond, 61, of Franklin, pleaded guilty on Jan. 27, 2016, to charges of mail fraud.
According to statements of facts filed with the plea agreements, Cindy Hall ran a non-profit organization known as Send Thee Community Outreach, allegedly to administer the Summer Food Service Program (SFSP), which is a USDA federally-funded program to feed children during the summer when free-lunch programs end at the conclusion of the school year. The Virginia Department of Health (VDH) administers the SFSP in Virginia. In 2012 and 2013, Hall submitted fraudulent claims to VDH for reimbursement, resulting in at least $150,000 in overpayment to Hall. Almond previously ran her own non-profit organization, Neighborhood Pride, which was a SFSP sponsor approximately 2008 to 2011, when she was disqualified by VDH. Almond continued to be involved with the program with Hall, until Hall was told she was disqualified by VDH from receiving funds in 2014.
Hall and Almond were indicted by a federal grand jury on Oct. 8, 2015. Hall and Almond face a maximum penalty of 20 years in prison when sentenced on May 4, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel W. Steven Flaherty, Superintendent of Virginia State Police; June W. Jennings, Inspector General of Virginia; and Phyllis K. Fong, Inspector General for U.S. Department of Agriculture, made the announcement after the plea was accepted by U.S. Magistrate Judge Robert Krask. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr132.
Two Northeast Pennsylvania Check Cashers Charged in Separate Stolen Identity Refund Fraud SchemesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that two northeast Pennsylvania check cashers have been charged as a result of their participation in separate stolen identity refund fraud schemes.
Jose Cabreja, age 30, of Scranton, and Franklyn Nunez, age 40, of Hazleton, were charged in one-count criminal informations filed today in federal court in Scranton with conspiracy to make false claims against the government.
According to United States Attorney Peter Smith, the Cabreja Information charges that Cabreja operated Frank Check Casher, Inc. in Olyphant, and that his co-conspirators used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns. The Information alleges that Cabreja deposited and cashed fraudulently obtained tax refund checks totaling $876,731 between June and August 2013.
The Nunez Information charges that he operated The Closet Multi-Service, LLC in Hazleton, and alleges that co-conspirators of Nunez used the identities of unknowing third parties to prepare and file fraudulent federal income tax returns. The Information also alleges that Nunez deposited and cashed fraudulently obtained tax refund checks totaling $358,525 between June and September 2011.
The government also filed a plea agreement in each case which is subject to approval by the court.
According to United States Attorney Smith, the prosecution of fraudulent tax refund schemes that rob tax payers as well as the government is a high priority in this district.
The Department of Justice views the prosecution of Stolen Identity Refund Fraud, or “SIRF,” as vital. These schemes disrupt the orderly administration of the income tax system for hundreds of thousands of law abiding taxpayers nationwide and have cost the United States Treasury billions of dollars. SIRF crimes are often perpetrated by criminal enterprises with key individuals at all stages of the scheme: those who steal Social Security Numbers and other personal identifying information, those who file false returns with the Internal Revenue Service, those, including check cashers, who facilitate obtaining the refunds, and those who promote the schemes. These criminal enterprises exploit the highly automated systems for storing personal information, preparing and filing tax returns electronically, and generating income tax refunds quickly—often in the form of electronic payments. Everyone with a Social Security Number is potentially vulnerable to having his or her identity stolen. The IRS estimates that during the 2013 filing season alone, over 5 million tax returns were filed using stolen identities, claiming approximately $30 billion in refunds.
The charges in the present cases are the result of ongoing investigations by the Scranton Office of the Internal Revenue Service, Criminal Investigation, with assistance from the Pennsylvania State Police, the Hazelton, Taylor, Dickson City, Dunmore and Olyphant Police Departments, and the Lackawanna and Luzerne County District Attorneys’ Offices. The cases are assigned to Assistant United States Attorney William Houser for prosecution.
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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Two Men Sentenced to a Total of 119 Months Imprisonment for Bank Robbery in Hot SpringsRead the Press Release
Acting United States Attorney Kenneth Elser
Western District of Arkansas
_______________________________________________________FOR IMMEDIATE RELEASE CONTACT: Joyce Snow
February 3, 2016 PHONE: (479) 494-4066TWITTER: @WDARnews
TWO MEN SENTENCED TO A TOTAL OF 119 MONTHS IMPRISONMENT FOR BANK ROBBERY IN HOT SPRINGS
Hot Springs, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that two men were sentenced on one count each of Bank Robbery, Aiding, and Abetting in connection with a 2014 bank robbery in Hot Springs. Nicholas Tolerson, age 36 of Little Rock, was sentenced yesterday to 77 months in prison and three years supervised release. James Pritchett, age 30 of Maumelle, was sentenced on January 27, 2016 to 42 months imprisonment and three years supervised release. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in Hot Springs.
According to court records, on April 4, 2014, officers with the Hot Springs Police Department responded to a bank robbery at Bancorp South. Upon their arrival, officers spoke with witnesses who observed a man running out of the bank carrying a red bag and getting into a silver Cadillac. Witnesses were also able to relay the tag number of the vehicle to officers. Later that day, officers located the suspect’s vehicle in front of the Oaklawn Race Track and a pursuit ensued. The vehicle crashed, and after a foot pursuit, both suspects were taken into custody. The driver was identified as James Pritchett, and the passenger was identified as Nicholas Tolerson. Officers were also able to locate the red bag that Tolerson used during the robbery and had thrown out of the vehicle during the pursuit. A Federal Grand Jury issued an indictment for Tolerson and Pritchett on May 7, 2014. Tolerson pleaded guilty on March 18, 2015. Prichett pleaded guilty on May 21, 2015.
This case was investigated by the Hot Springs Police Department and the FBI. Assistant U.S. Attorney 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
Two Georgia Real Estate Investors Indicted for Bid Rigging and Bank Fraud at Public Home Foreclosure AuctionsRead the Press Release
A federal grand jury in Atlanta charged in separate indictments two real estate investors with bid rigging and bank fraud related to public real estate foreclosure auctions in Georgia, the Justice Department announced today.
Real estate investor Douglas L. Purdy has been charged with one count of bid rigging and five counts of bank fraud for participating in the alleged conspiracy and scheme at Forsyth County, Georgia, foreclosure auctions from 2008 to 2012. Clifford Wayne Hill was charged with one count of bid rigging and seven counts of bank fraud related to public foreclosure auctions in Gwinnett County, Georgia, from 2007 to 2012. The defendants and their co-conspirators allegedly rigged bids at public foreclosure auctions and defrauded banks that owned the mortgage notes. Among other methods, the conspirators allegedly held secret “second auctions” of properties they had obtained through rigged bids, dividing the auction proceeds that should have gone to pay off debts against the properties and, in some cases, to homeowners who had defaulted.
“These defendants corrupted public foreclosure auctions in Georgia to keep for themselves money that rightfully belonged to banks and homeowners,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “Those who illegally enrich themselves at the expense of financially distressed homeowners and their lenders should be held accountable for their crimes.”
“The FBI continues its work with the U.S. Department of Justice’s Antitrust Division in ridding corrupt activities within the public real estate foreclosure auction process in Georgia,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office. “The additional federal indictments of these two real estate investors illustrate not only the scope of the problem but also the federal efforts to address it. Anyone with information regarding such criminal activity as alleged here should contact their nearest FBI field office.”
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Including the indictments filed today in the Northern District of Georgia, 14 defendants have been charged in connection with the department’s ongoing investigation into bid rigging and fraudulent schemes involving real estate foreclosure auctions in the Atlanta area; 12 have pleaded guilty.
These charges have been filed as a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division and the U.S. Attorney’s Office of the Northern District of Georgia, in connection with the president’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Purdy Indictment (211.42 KB)
Hill Indictment (274.93 KB)
Troy Man Pleads Guilty to Health Care FraudRead the Press Release
ALBANY, NEW YORK – John VonFricken, age 50, of Troy, New York, pled guilty today to obtaining false receipts for orthodontic services and submitting them to his union’s health care plan, announced United States Attorney Richard S. Hartunian.
VonFricken was charged with health care fraud for obtaining $54,600 in cash reimbursements from the Health and Welfare Plan of the Plumbers and Steamfitters, Local Union Number 7. Between July 2008 and February 2015, VonFricken submitted 18 fake receipts for orthodontic work he did not receive.
VonFricken’s sentencing is scheduled for June 3, 2016 before United States District Court Judge Mae A. D’Agostino. The charges carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Three Texas Tax Return Preparers Convicted of Filing False Tax Returns for ClientsRead the Press Release
Three El Paso, Texas, tax return preparers were convicted by a jury yesterday in the U.S. District Court for the Western District of Texas (El Paso Division) of conspiracy to defraud the United States for their involvement in a fraudulent tax return preparation scheme and numerous counts of aiding and assisting in the preparation and filing of materially false federal income tax returns, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U. S. Attorney Richard L. Durbin Jr. for the Western District of Texas announced.
According to evidence and witness testimony introduced at the trial, Belia Mendoza, 60, was the owner of Mendez Tax Services (MTS), a tax preparation business she operated out of her home in El Paso. Margarita Hernandez, 36, and Denise Duchene, 46, relatives of Mendoza’s, were employees of MTS hired and trained by Mendoza to prepare tax returns for clients for tax years 2008, 2009 and 2010. From February 2009 until June 2011, Mendoza, Hernandez and Duchene conspired to prepare and submit to the Internal Revenue Service (IRS) numerous false Forms 1040 (U.S. Individual Income Tax Returns).
To maximize their clients’ income tax refunds, Mendoza, Hernandez and Duchene placed materially false items on the clients’ tax returns, at times without the knowledge or consent of the clients, including false or inflated figures for unreimbursed employee business expenses, child and dependent care expenses and education credits. Income tax returns prepared by the defendants also included false filing statuses and improperly claimed Earned Income Tax Credits.
“These verdicts represent our continued commitment to identifying and prosecuting those individuals who willfully prepare and file false and fraudulent tax returns,” said Acting Assistant Attorney General Ciraolo. “The millions of U.S. taxpayers who will file returns during the 2016 filing season are entitled to the assistance of honest and competent professionals, and the Tax Division will hold those preparers who in engage in criminal conduct accountable.”
“It’s tax season and the guilty verdicts for Belia Mendoza and her relatives, Margarita Hernandez and Denise Duchene, are proof that taxpayers are fed up with tax fraud and abuse,” said Special Agent in Charge William Cotter of IRS-Criminal Investigation, San Antonio. “Dishonest return preparers use a variety of methods to cheat the government. Remember, it is your responsibility to know what is on your income tax return. You are ultimately responsible for what gets filed with the IRS. Taxpayers are encouraged to visit the IRS.gov website for tips on looking for a reputable return preparer.”
Mendoza, Hernandez and Duchene each face up to five years in federal prison on the conspiracy charge and up to three years in federal prison for each false tax return preparation charge.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Durbin commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Joseph M. Giannullo of the Tax Division and Assistant U.S. Attorneys Adrian Gallegos and Rifian Newaz, who prosecuted the case.
Texas Woman Sentenced to Prison in Prescription Drug Smuggling RingRead the Press Release
The Department of Justice announced today that an Athens, Texas, woman has been sentenced to more than one year in prison for her role in the smuggling of imitation, unapproved and misbranded prescription drugs from China.
Catherine Nix, 42, pleaded guilty in April 2015 to one count of conspiracy to smuggle the drugs into the United States. Nix was sentenced to 15 months in prison, followed by two years of supervised release. Two co-defendants, Tom Giddens, 59, and Wanda Hollis, 64, also of Athens, were each sentenced to 15 months in prison in October 2015.
“Consumers of prescription drugs need to know that what they are buying is legitimate, safe, and approved,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This illegal operation introduced more than 100,000 bogus pills into the stream of commerce, potentially posing a huge public health and safety risk. Consumers should know that the drugs they are buying are exactly what they appear to be, and not false versions of name-brand products that could ultimately do them more harm than good.”
In 2009, the defendants smuggled at least 43 known shipments, totaling approximately 106,000 pills, from China to Texas. The shipments contained unapproved, bogus versions of several FDA-approved drugs that, because of the health and safety risks associated with their use, require valid prescriptions to dispense. The prescription drugs seized included: Xanax®; Valium®; sibutramine; Cialis®; Viagra® and Stilnox®, marketed in the United States as Ambien®. None of the pills that were seized and tested were legitimate. Some were sub-potent, but most contained entirely different active ingredients from their legitimate, approved versions. The defendants attempted to hide their smuggling by using shipping labels that concealed the contents of their shipments and customs declarations falsely describing the contents as “gifts” or “toys.” They used multiple addresses in an effort to reduce the likelihood of seizures by U.S. Customs and Border Protection authorities.
“This office remains committed to stemming the increasing flood of illegitimate prescription drugs that come into East Texas,” said U.S. Attorney John M. Bales for the Eastern District of Texas. “This case puts the very real, inherent dangers of counterfeit prescription drugs on full display. These pills looked almost exactly like their legitimate counterparts, but lacked any of the safety or efficacy of the legitimate versions.”
“FDA’s laws are in place to ensure that consumers have access to safe and effective prescription drugs,” said Director George M. Karavetsos of the FDA’s Office of Criminal Investigations. “Those who evade those laws risk harming the public’s health. We will continue to work with our law enforcement partners to keep the U.S. marketplace free of illegitimate medical products.”
This case was investigated by the FDA’s Office of Criminal Investigations and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Allen Hurst for the U.S. Attorney’s Office for the Eastern District of Texas and by Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch.
Tennessee Man Pleads Guilty for Role in New Orleans-Based Sex Trafficking SchemeRead the Press Release
WASHINGTON – The Justice Department announced today that Granville Robinson, 27, of Memphis, Tennessee, pleaded guilty to one count of conspiring to commit sex trafficking and one count of sex trafficking for his role in scheme operated out of the Riviera Motel in New Orleans. Six defendants have previously pleaded guilty in connection with the scheme, which used force and threats to compel multiple women to engage in prostitution for the defendants’ profit in New Orleans and elsewhere.
“Human traffickers facilitate a form of modern-day slavery that threatens the dignity of vulnerable individuals and violates the most basic standards of human decency,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to vigorously pursue justice by prosecuting traffickers and protecting victims from this heinous crime that has no place in our society.”
“This defendant recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”
“Granville Robinson is not only the ringleader of this gang, but also the most violent of the group,” said Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division. “In December 2015, the FBI New Orleans Division established the ‘Violent Crime Against Children and Human Trafficking Task Force,’ a stand-alone squad formed to specifically address the Human Trafficking threat in Louisiana. We will continue to aggressively work with our federal, state, and local law enforcement partners to investigate these matters and bring people to justice.”
“Sex traffickers have complete disregard for humanity. They treat people as commodities solely for financial gain,” said Special Agent in Charge Raymond R. Parmer Jr. of Homeland Security Investigations (HSI) New Orleans. “With this guilty plea, we have made our nation safer, ensuring this trafficker can't harm future victims.”
On Oct. 3 2014, Robinson and co-defendants Duane Phillips, Christopher Williams, Anthony Ellis and Laquentin Brown were charged in a second superseding indictment with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution. An additional defendant, Kanubhai Patel, who owned the Riviera Motel where the sex trafficking scheme was based, was charged in the same indictment with benefitting financially from sex trafficking. A seventh defendant, Zacchaeus Taylor, was charged separately on March 28, 2014.
According to Robinson’s admissions during his plea hearing and other court documents, he enforced strict rules on the women he trafficked as part of his conspiracy. These rules included requiring the women to earn a minimum amount each day, to provide him with all of their earnings and to seek his permission to stop prostituting for the night. Robinson confiscated some women’s identification to make it harder for them to leave, and forced some to get tattoos signifying that they belonged to him. When the women broke the rules or did not earn enough money, Robinson physically assaulted them.
Robinson acknowledged compelling and coercing more than 10 different women to engage in prostitution for his profit from 2012 through January 2014 in connection with the charged conspiracy. Robinson admitting using force to punish and control the women, including one instance of punching and kicking a woman in the abdomen, knowing she was pregnant, to punish her for texting without his permission, and another instance of shoving a woman into a toilet tank hard enough to break it, then striking her repeatedly with a wooden board, to punish her for reportedly planning to escape.
Robinson and his co-defendants aided each other by posting bond for each other following arrests, monitoring the women and reporting to each other any violations of the rules the defendants imposed on the women and transporting women together from New Orleans to Texas, Tennessee, Maryland and Washington, D.C., for prostitution. When two women tried to escape on one such trip, Robinson and a co-defendant found them, forced them into a car, and brought them back to New Orleans to continue prostituting.
Robinson and his co-defendants operated out of certain motels, including the Riviera, which generally did not report their activities to the police. The defendants rented multiple rooms at the Riviera where women would meet prostitution clients, and paid the Riviera above-market rates to reflect the high traffic through the rooms.
Robinson is the seventh defendant to plead guilty in connection with this case. On July 1, 2015, Patel pleaded guilty to benefitting financially from human trafficking. In March and April 2015, Phillips, Williams, Ellis and Brown pleaded guilty to conspiracy to engage in sex trafficking by force, fraud and coercion. Ellis and Brown also pleaded guilty to interstate transportation for prostitution. On June 25, 2014, Taylor pleaded guilty to sex trafficking conspiracy and interstate transportation for prostitution.
At sentencing, currently scheduled for May 4, 2016, Robinson faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison. The plea agreement provides for a recommended sentence of 24 and a half years in prison.
This case was investigated jointly by the FBI’s New Orleans Division and HIS’s New Orleans Field Office, with assistance from the FBI’s Memphis Division. This case is being prosecuted by Trial Attorney Christine M. Siscaretti and Special Litigation Counsel John Cotton Richmond of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Tennessee Man Pleads Guilty for Role in New Orleans-Based Sex Trafficking SchemeRead the Press Release
Seventh Defendant to Plead Guilty in Sex Trafficking Case
The Justice Department announced today that Granville Robinson, 27, of Memphis, Tennessee, pleaded guilty to one count of conspiring to commit sex trafficking and one count of sex trafficking for his role in scheme operated out of the Riviera Motel in New Orleans. Six defendants have previously pleaded guilty in connection with the scheme, which used force and threats to compel multiple women to engage in prostitution for the defendants’ profit in New Orleans and elsewhere.
“Human traffickers facilitate a form of modern-day slavery that threatens the dignity of vulnerable individuals and violates the most basic standards of human decency,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to vigorously pursue justice by prosecuting traffickers and protecting victims from this heinous crime that has no place in our society.”
“This defendant recruited vulnerable victims from the New Orleans community and brought other victims to New Orleans to engage in commercial sex trafficking,” said U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana. “These crimes often pass without detection because victims live in fear from physical abuse, threats and other forms of coercion. My office is committed to prosecuting individuals who manipulate victims into committing commercial sex acts and profit from this illegal conduct.”
“Granville Robinson is not only the ringleader of this gang, but also the most violent of the group,” said Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division. “In December 2015, the FBI New Orleans Division established the ‘Violent Crime Against Children and Human Trafficking Task Force,’ a stand-alone squad formed to specifically address the Human Trafficking threat in Louisiana. We will continue to aggressively work with our federal, state, and local law enforcement partners to investigate these matters and bring people to justice.”
“Sex traffickers have complete disregard for humanity. They treat people as commodities solely for financial gain,” said Special Agent in Charge Raymond R. Parmer Jr. of Homeland Security Investigations (HSI) New Orleans. “With this guilty plea, we have made our nation safer, ensuring this trafficker can't harm future victims.”
On Oct. 3 2014, Robinson and co-defendants Duane Phillips, Christopher Williams, Anthony Ellis and Laquentin Brown were charged in a second superseding indictment with sex trafficking conspiracy and varying counts of sex trafficking and transportation for prostitution. An additional defendant, Kanubhai Patel, who owned the Riviera Motel where the sex trafficking scheme was based, was charged in the same indictment with benefitting financially from sex trafficking. A seventh defendant, Zacchaeus Taylor, was charged separately on March 28, 2014.
According to Robinson’s admissions during his plea hearing and other court documents, he enforced strict rules on the women he trafficked as part of his conspiracy. These rules included requiring the women to earn a minimum amount each day, to provide him with all of their earnings and to seek his permission to stop prostituting for the night. Robinson confiscated some women’s identification to make it harder for them to leave, and forced some to get tattoos signifying that they belonged to him. When the women broke the rules or did not earn enough money, Robinson physically assaulted them.
Robinson acknowledged compelling and coercing more than 10 different women to engage in prostitution for his profit from 2012 through January 2014 in connection with the charged conspiracy. Robinson admitted to using force to punish and control the women, including one instance of punching and kicking a woman in the abdomen, knowing she was pregnant, to punish her for texting without his permission, and another instance of shoving a woman into a toilet tank hard enough to break it, then striking her repeatedly with a wooden board, to punish her for reportedly planning to escape.
Robinson and his co-defendants aided each other by posting bond for each other following arrests, monitoring the women and reporting to each other any violations of the rules the defendants imposed on the women and transporting women together from New Orleans to Texas, Tennessee, Maryland and Washington, D.C., for prostitution. When two women tried to escape on one such trip, Robinson and a co-defendant found them, forced them into a car, and brought them back to New Orleans to continue prostituting.
Robinson and his co-defendants operated out of certain motels, including the Riviera, which generally did not report their activities to the police. The defendants rented multiple rooms at the Riviera where women would meet prostitution clients, and paid the Riviera above-market rates to reflect the high traffic through the rooms.
Robinson is the seventh defendant to plead guilty in connection with this case. On July 1, 2015, Patel pleaded guilty to benefitting financially from human trafficking. In March and April 2015, Phillips, Williams, Ellis and Brown pleaded guilty to conspiracy to engage in sex trafficking by force, fraud and coercion. Ellis and Brown also pleaded guilty to interstate transportation for prostitution. On June 25, 2014, Taylor pleaded guilty to sex trafficking conspiracy and interstate transportation for prostitution.
At sentencing, currently scheduled for May 4, 2016, Robinson faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison. The plea agreement provides for a recommended sentence of 24 and a half years in prison.
This case was investigated jointly by the FBI’s New Orleans Division and HIS’s New Orleans Field Office, with assistance from the FBI’s Memphis Division. This case is being prosecuted by Trial Attorney Christine M. Siscaretti and Special Litigation Counsel John Cotton Richmond of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Robinson Plea Agreement
Sumter County Convicted Felon Pleads Guilty to Federal Drug and Firearms OffensesRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III, announces that Thomas Franklin Dinkins, Jr. (25, Lake Panasoffkee) has pleaded guilty to possessing with the intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime. He faces a maximum penalty of 20 years in federal prison for the drug offense and a consecutive sentence of at least 5 years, up to life, for the firearms offense. A sentencing date has not yet been set.
According to the plea agreement, on December 16, 2014, deputies from the Sumter County Sheriff’s Office (SCSO) stopped Dinkins for an expired tag. After a narcotics canine subsequently alerted on the car, deputies performed a search and found a locked, portable safe in the trunk. The key to the safe was in Dinkins’s jacket. Inside the safe, deputies found methamphetamine, two digital scales, plastic baggies, and a loaded .22 caliber handgun with an obliterated serial number. Deputies also located a backpack containing additional plastic bags and ammunition. A check of Dinkins’s criminal history revealed he was a multi-convicted felon who is prohibited from possessing firearms and ammunition under federal law. Dinkins later admitted that the firearm was “probably stolen” and that he had it to protect himself while distributing drugs.
On March 21, 2015, a discarded cellphone was discovered by a citizen and turned over to SCSO. After reviewing some of its contents, deputies determined that it had belonged to Dinkins. Multiple pictures and text messages found on the phone linked the recovered handgun, another shotgun, and numerous drug sales to Dinkins.
This case was investigated by the Sumter County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
St. Francis Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on January 25, 2016, by U.S. District Judge Roberto Lange.
Allan Left Hand Bull, age 23, was sentenced to 42 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Left Hand Bull was indicted for Assault with a Dangerous Weapon by a federal grand jury on October 14, 2015. He pled guilty on December 8, 2015.
On August 10, 2015, Left Hand Bull and his girlfriend, the victim, were drinking alcoholic beverages in St. Francis. Left Hand Bull was intoxicated and became upset with the victim. Left Hand Bull left the area where they were drinking, but soon thereafter saw the victim walking down a street in St. Francis and ran toward her with a knife. Left Hand Bull put his arm around the victim and choked her.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Left Hand Bull was immediately turned over to the custody of the U.S. Marshals Service.
Shreveport man sentenced to 27 months in prison for evasion of tax paymentsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man was sentenced Tuesday to 27 months in prison for evading the payment of more than $250,000 in taxes for 10 years.
Joseph Lanza, 72, of Shreveport, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of attempting to evade and defeat payment of tax. He was also sentenced to three years of supervised release. Lanza attempted to evade payment of income taxes in 1996 through 1999, 2001, 2002 and 2004 through 2007 by concealing his income from the IRS.
The IRS conducted the investigation. Assistant U.S. Attorney William J. Flanagan prosecuted the case.
Schenectady Man Indicted for Firearm OffensesRead the Press Release
ALBANY, NEW YORK – A federal grand jury today returned a two-count superseding indictment charging John Coffin, age 46, of Schenectady, New York, of being a felon and armed career criminal in possession of a firearm, as well as possessing a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
The superseding indictment alleges that on March 23, 2015, Coffin possessed a Walther P22 semi-automatic pistol and .22 caliber ammunition.
The superseding indictment also alleges that on July 28, 2015, Coffin possessed a Hi-Point 995 9-millimeter rifle and 9-millimeter ammunition, and possessed that rifle and ammunition in connection with a drug trafficking crime.
The charges in the superseding indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Coffin has three prior convictions for violent felonies or drug trafficking crimes, making him an armed career criminal under federal law and subject to a minimum 15-year prison sentence if convicted. Additionally, any person convicted of possessing a firearm in furtherance of a drug trafficking crime is subject to a minimum 5-year prison sentence.
Coffin faces the maximum of life imprisonment and a $250,000 fine if convicted of either count. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
Trial is scheduled to begin on March 21, 2016 before United States District Judge Gary L. Sharpe. Coffin is detained until trial.
This case is being investigated by the Federal Bureau of Investigation and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Kofi Sansculotte.
Schenectady Man Indicted as an Armed Career CriminalRead the Press Release
ALBANY, NEW YORK – An indictment was unsealed this week charging Tameen Johnson, age 38, of Schenectady, New York, of being a felon and armed career criminal in possession of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Johnson, who was indicted on December 23, 2015, is alleged to have possessed a Hi-Point .40 caliber pistol and ammunition in April 2015. At the time, Johnson had three prior convictions for violent felonies or drug trafficking crimes, making him an armed career criminal under federal law and subject to a minimum 15-year prison sentence if convicted.
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Johnson faces a maximum of life imprisonment and a $250,000 fine if convicted. A defendant’s sentence is imposed by a judge based on a combination of factors including the U.S. Sentencing Guidelines and relevant statutes.
Trial is scheduled to begin on April 25, 2016 before United States District Judge Gary L. Sharpe. Johnson is detained until trial.
This case is being investigated by the Federal Bureau of Investigation and the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Wayne A. Myers.
Sacramento Man Sentenced to 18 Months in Prison for Tax Refund SchemeRead the Press Release
SACRAMENTO, Calif. — United States District Judge Kimberly J. Mueller sentenced Manuel Ruiz, 47, of Sacramento, to 18 months in prison for making false claims for tax refunds on federal income tax returns, United States Attorney Benjamin B. Wagner announced. Ruiz pleaded guilty on May 26, 2015.
According to court documents, Ruiz engaged in a scheme to fraudulently prepare tax returns for clients of a tax preparation business he operated from his home. As part of the scheme, Ruiz reported false wages and listed false dependents on his clients’ returns to qualify them for the Earned Income Credit (EIC) when they would not otherwise have been eligible, and to maximize the tax benefits of the EIC beyond the legitimate amounts to which his clients were actually qualified.
In total, between tax years 2009 and 2011, Ruiz made false claims on more than 180 returns, including returns that he filed on his own behalf and on behalf of others, which resulted in over $650,000 in fraudulent refunds paid out by the IRS. During that period, Ruiz directed more than $460,000 in tax refunds from the false claims into bank accounts he controlled. After payments to clients, Ruiz retained at least $192,000 from the false claims.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Sherry D. Hartel Haus and André M. Espinosa prosecuted the case.
Rockwall Man Sentenced to 180 Months in Federal Prison on Child Pornography Conviction Involving Images of Prepubescent ChildrenRead the Press Release
DALLAS — Christopher Michael Burgess, 33, of Rockwall, Texas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to 180 months in federal prison, following his guilty plea to an indictment charging one count of possession of prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in May 2013, an individual (mother) looked on Burgess’s computer, found child pornography, and immediately took the computer to the Rockwall Police Department. Based on this information, law enforcement obtained a warrant to search the computer’s content.
The North Texas Regional Computer Forensic Lab examined the hard drive and located more than 500 images and 10 videos of child pornography, some videos involving infants. Burgess admits that some of the videos he collected depicted sadistic and/or violent content.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Rockwall Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Robert Durst Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERT DURST, age 72, pled guilty today to being a felon in possession of a firearm.
A judge in Los Angeles, California, signed an arrest warrant for DURST on March 11, 2015, for the 2000 murder of Susan Berman. Agents of the Federal Bureau of Investigation (“FBI”), New Orleans Field Office, located DURST in a local hotel on March 14, 2015, where he had checked in under the alias “Everette Ward.” A lawful search of DURST’s hotel room found him to be in possession of a loaded Smith and Wesson .38 caliber revolver, a realistic mask, and over $40,000 in cash.
DURST was indicted in April of this year in the Eastern District of Louisiana. The indictment alleged that DURST possessed the firearm after having previously been convicted in 2004 of federal felony firearms offenses in the Eastern District of Pennsylvania.
DURST faces a maximum of ten years imprisonment, a fine of $250,000, not more than three years of supervised release, and $100 special assessment fee. U.S. District Judge Kurt D. Engelhard set sentencing for April 27, 2016.
U.S. Attorney Polite praised the work of the Orleans Parish District Attorney’s Office, the FBI, the Los Angeles Police Department, and the Los Angeles County District Attorney’s Office in investigating this matter. Assistant United States Attorneys Michael McMahon and Myles Ranier are in charge of the prosecution.
Richmond Man Sentenced to 27 Years in Prison for Armed RobberyRead the Press Release
RICHMOND, Va. – Marcus Deante Bennett, 32, of Richmond, was sentenced today to 324 months in prison for robbery and brandishing a firearm.
Bennett pleaded guilty on Aug. 11, 2014. According to court documents, on Jan. 9, 2015, Bennett and another individual robbed a McDonald’s restaurant in Henrico. Bennett, who entered the restaurant armed with a black revolver and wearing a mask, approached the restaurant manager and brandished the firearm, ordering the manager to hand over the money in the safe. Bennett then went to the drive through window cashier and forced the cashier to hand over an additional sum of money. In addition to this crime, Bennett admitted to committing three additional armed robberies. Bennett was also given additional prison time for having violated the terms of his federal supervised release related to a series of armed robberies he participated in 12 years ago.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge James R. Spencer. Assistant U.S. Attorney Angela Mastandrea-Miller prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15cr134.