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Thursday 3 December 2015
Former Bank Teller Pleads Guilty to Theft of Public MoneyRead the Press Release
Cashed More than 361 Fraudulent Tax Refund Checks
A Columbus, Georgia resident pleaded guilty today to one count of conspiracy to commit theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney G.F. “Pete” Peterman, III for the Middle District of Georgia.
According to court documents, Vicky Wheeler, 54, worked as a bank teller at a Suntrust Bank branch in Columbus. Between February 2013 and May 2014, Wheeler cashed fraudulent tax refund checks at the request of several individuals in exchange for a fee. These individuals informed Wheeler that the tax refund checks were generated from tax returns filed using stolen identities. To disguise the fraudulent nature of the checks, Wheeler made false entries on the face of the checks to make it appear as if she received identification when the checks were cashed. Wheeler never received any forms of identification. In total, Wheeler received and cashed approximately 361 fraudulent tax refund checks that claimed $780,760.17 in tax refunds.
Sentencing is scheduled for April 12, 2016. Wheeler faces a maximum sentence of five years in prison and a fine of up to $250,000, or twice the loss from the offense. As per the plea agreement, Wheeler agreed to pay restitution in the amount of $780,760.17.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Peterman commended special agents of Internal Revenue Service-Criminal Investigation and the U.S. Secret Service, who investigated the case and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Airline Employee Sentenced in Logan Airport StingRead the Press Release
BOSTON – A former JetBlue Airways employee was sentenced today for smuggling thousands of dollars of what he believed to be drug money past security checkpoints at Boston’s Logan International Airport.
Alvin Leacock, 29, of Dania Beach, Fla., was sentenced today by U.S. District Court Judge Rya W. Zobel to 18 months in prison, one year of supervised release and ordered to pay a fine of $4,500. Leacock pleaded guilty to conspiracy to defraud the United States and two counts of illegally entering an airport area with intent to commit a felony.
A federal undercover operation was initiated at Logan Airport in August 2012, after Homeland Security agents discovered lapses in airport security and the potential for airline employees to smuggle contraband around the employee security system. Alvin Leacock was one of several individuals identified as a potential smuggler.
On two occasions between October 2012 and December 2012, Leacock used airport security credentials to evade Transportation Security Administration checkpoints and smuggled $107,000, which was represented to be drug proceeds, from a non-secure airport area to the secured passenger departure area of Logan. Leacock was paid $4,500 as compensation from a cooperating witness. Unbeknownst to Leacock, the cash smuggling plan was part of an HSI undercover sting operation.
Co-defendant Dino Dunkley, 32, of Mattapan, and a former Delta Airlines employee, pleaded guilty yesterday to the similar charges as Leacock and is scheduled to be sentenced on March 8, 2016.
Three other airline workers identified in the investigation were previously sentenced for similar offenses. In January 2015, Rupert Crossley was sentenced to two years in prison and Anthony Trotman was sentenced to 14 months in prison. Eric Vick was sentenced in May 2015 to 18 months in prison.
U.S. Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Bob Allison, Federal Security Director of the Transportation Security Administration; Dwain Troutt, Special Agent in Charge of the Federal Air Marshal Service; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the assistance and cooperation of the Massachusetts Port Authority, JetBlue Airways Corporate Security and Delta Airlines. The case is being prosecuted by Assistant U.S. Attorneys Carlos A. López, Maxim Grinberg, and Dustin Chao of Ortiz’s Criminal Division.
Five Defendants Indicted in Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury indicted five residents of Maryland on charges arising from a bank fraud scheme:
Monika Michelle Hill, age 36, of Cockeysville,
Mark Darnelle Peeples, age 31, of Baltimore,
Dorian Maurice Griffin, age 20, of Baltimore,
Alysia Samon Rascoe, a/k/a “Alysia Simone Roscoe”, age 26, of Baltimore, and
Christopher Vance McKoy, age 24, of Baltimore.The indictment was returned on November 12, 2015 and unsealed upon the arrests of three defendants: Hill, who has been detained; Rascoe, who has been released; and McKoy, who is released and scheduled for arraignment on Friday, December 4, 2015 at 10:45 a.m. Peeples and Griffin remain at large.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to the 18 count indictment, from March 2013 to July 2014, members of the conspiracy would acquire account information and either alter checks to change the payee, or use the information from the check to create counterfeit checks to a new payee. The defendants negotiated fraudulent, stolen, altered and counterfeit checks at branch offices of financial institutions.
The indictment alleges that the defendants created and registered businesses using the identities of others, and opened bank accounts at a bank using the names of these businesses which did not exist other than on paper. The defendants used the identities of identity theft victims or their own identities as the account signatories. They deposited fraudulent, stolen, altered and counterfeit checks into these bank accounts, and then withdrew funds from the accounts by writing checks in their own names.
The indictment alleges that during the course of the scheme, the defendants fraudulently obtained or attempted to obtain over $230,000 from the financial institutions and individual victims, and that they actually received more than $170,000.
Finally, the indictment alleges that from September 24, 2013 to July 2014, Hill was on pretrial release in federal court in Baltimore in case no. 13-0248 ELH, when she conspired to commit bank fraud, and committed bank fraud and aggravated identity theft, as described above.
All of the defendants face a maximum sentence of 30 years in prison for conspiring to commit bank fraud and for bank fraud and a mandatory minimum of two years in prison consecutive to any other sentence imposed for aggravated identity theft. Hill also faces a maximum sentence of 10 years in prison for committing these offenses while on pre-trial release.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Federal Jury Returns Guilty Verdict in Blankenship TrialRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a jury sitting in federal court in Charleston, West Virginia, has returned a guilty verdict following the trial of former Massey Energy Chief Executive Officer Don Blankenship. The jury found Blankenship guilty on a federal charge of conspiracy to willfully violate mine health and safety standards.
“This is a landmark day for the safety of coal miners, and not just coal miners, but all working men and women,” stated U.S. Attorney Booth Goodwin. “The jury’s verdict sends a clear and powerful message: It doesn’t matter who you are, how rich you are, or how powerful you are - if you gamble with the safety of the people who work for you, you will be held accountable.”
Over the course of the trial, in which jury selection began on October 1, 2015, the jury heard evidence from 27 witnesses. Many of these witnesses were coal miners who worked at the Upper Big Branch (UBB) mine prior to the 2010 explosion, and they testified in detail from their firsthand knowledge of the unsafe working conditions at UBB, violations of U.S. Mine Safety and Health Administration (MSHA) regulations, and organized efforts to obstruct and interfere with MSHA inspectors. The jury heard from Bill Ross, former Manager of Technical Services at Massey, who testified that he warned Blankenship about the company’s practice of rampant violations, and told the defendant prior to the UBB explosion that Massey’s standard tactic of ignoring or defrauding MSHA could not be sustained without the possibility of a serious accident that could have fatalities. The evidence also showed that Blankenship received daily updates on safety violations and helped perpetuate them.
“The evidence overwhelmingly showed an enterprise that embraced safety crimes as a business strategy. It was reprehensible, and the jury saw it for what it was. Time and time again the defendant chose to put profits over safety. He got rich and the coal miners who worked for him paid the price,” said Goodwin. “This is the first time that I am aware of that the chief executive officer of a major corporation has been convicted of a workplace safety crime. It is my hope that this case will make a difference throughout this country, and make the places where working men and women spend their days a little bit safer. Everyone deserves to go home to their families and friends when their shift is over.”
Blankenship faces up to one year in federal prison, and a fine of up to twice the gain or loss that resulted from his conduct, when he is sentenced on March 23, 2016, in federal court in Charleston.
The prosecution was the result of a comprehensive investigation that took over five years to complete. Blankenship’s conviction is the fifth criminal conviction credited to this investigation. In addition to the convictions of individuals, the results of the investigation also include a resolution of over $200 million with Alpha Natural Resources after it acquired Massey. This agreement established a foundation dedicated to mine safety and health research, the first of its kind, and set aside nearly $50 million in funding for the foundation. That funding has provided the resources for some of the best and brightest minds in the country to pursue research that will make mines safer all over the world.
This matter was investigated by the Federal Bureau of Investigation and the United States Department of Labor’s Office of Inspector General. United States Attorney Booth Goodwin and Assistant United States Attorneys Steven R. Ruby, Gregory McVey, and Gabriele Wohl handled the prosecution and tried the case before a federal jury.
The prosecution is part of a sustained effort by the United States Attorney’s Office for the Southern District of West Virginia to protect the health and safety of West Virginia workers by vigorously prosecuting workplace safety crimes and holding accountable those responsible for dangerous working conditions.
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Federal Jury Convicts Henrico County Man of Gun and Drug ChargesRead the Press Release
RICHMOND, Va. – Nelson Watts Broadie, Jr., 21, of Henrico County, was convicted by a federal jury yesterday of six separate offenses, including possession of a firearm and ammunition by a previously convicted felon, possession and distribution of crack cocaine, and possession and brandishing of a firearm in furtherance of a drug trafficking crime.
Broadie was indicted on Aug. 4, 2015. According to evidence presented at trial, on June 27, 2015, Broadie participated in an armed robbery of a person at his home and discharged his 9 mm firearm during that robbery attempt. Evidence presented also confirmed that between July 15 and July 24, 2015, Broadie possessed the same loaded 9 mm semiautomatic pistol. On July 15, 20, and 21, 2015, Broadie sold crack cocaine to a confidential informant while under surveillance, and during the July 20, and 21, 2015 sales, Broadie sold the crack cocaine to the confidential informant while under surveillance, and while unlawfully possessing and brandishing the same firearm identified above, in order to intimidate that drug customer.
Broadie will be sentenced on March 4, 2016, and faces a mandatory minimum of 32 years in prison for the two counts of possession and brandishing of a firearm in furtherance of a drug trafficking violation crime, plus additional consecutive terms in prison for the possession of a firearm and ammunition by a previously convicted felon, and three counts of possession and distribution of crack cocaine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants 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; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Douglas A. Middleton, Chief of Police for the Henrico County Police Division, made the announcement after the verdict was accepted by U.S. District Judge Henry E. Hudson.
This case was investigated by officers and detectives with the Henrico County Police Division in conjunction with the FBI’s Central Virginia Violent Crime Task Force. Assistant U.S. Attorney S. David Schiller 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. 3:15-cr-137.
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Federal Grand Jury Indicts Davon Lymon on Narcotics Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of ATF and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division announced today that a federal grand jury has returned a three-count indictment charging Albuquerque resident Davon Lymon, 34, with violating the narcotics trafficking and firearms laws. An arraignment hearing on the indictment has yet to be scheduled.
The three-count indictment charges Lymon with distributing heroin on Sept. 11, 2015 and Oct. 2, 2015, and unlawfully possessing a firearm in Bernalillo County on Oct. 2, 2015 (heroin trafficking indictment) in Bernalillo County, N.M. At the time, Lymon was prohibited from possessing firearms because he previously has been convicted of felony offenses in two state court cases. If convicted on the heroin trafficking counts, Lymon faces a statutory maximum penalty of 20 years in prison. If convicted on the firearms count, he faces a statutory maximum penalty of ten years in prison.
Lymon also is charged in a four-count indictment that was filed on Nov. 17, 2015 (firearms indictment). That indictment charges Lymon with three counts of being a felon in possession of a firearm and ammunition and one count of unlawfully possessing a stolen firearm in Bernalillo County. If convicted, Lymon faces a statutory maximum penalty of ten years in federal prison on each of the four counts in the indictment. Lymon has entered a not guilty plea to this indictment.
Charges in indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The heroin trafficking case was investigated by the Albuquerque offices of ATF and DEA. The firearms case was investigated by the Albuquerque office of ATF and APD, with assistance from the Albuquerque office of the FBI, the U.S. Marshals Service, the New Mexico State Police, the Bernalillo County Sheriff’s Office, the Rio Rancho Police Department and the New Mexico Transportation Police Division.
Assistant U.S. Attorneys Jacob A. Wishard and Elaine Y. Ramirez are prosecuting the two cases as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Lymon Indictment (95.48 KB)
Fargo Grocery Store Employees Sentenced for Defrauding Food Stamp ProgramRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Dec. 3, 2015, Lamia Ali, 48, and Abass Hassan Amedi, 51, both from Fargo, ND, were sentenced before U. S. District Judge Ralph R. Erickson for their roles in defrauding the United States of more than $365,000.
From March 2011 through March 1, 2013, Ali operated Noor Al Huda, a neighborhood grocery store located in Fargo. During this period, Ali and Amedi knowingly conducted fraudulent transactions with Supplemental Nutrition Assistance Program (“SNAP,” a federal government program formerly known as the food stamp program) benefits. SNAP benefits are loaded monthly on to Electronic Benefits Transfer (“EBT”) cards, which work in a manner similar to prepaid credit cards. The SNAP benefits recipients may use the benefits to purchase approved items, such as food. These benefits may not be used to obtain cash.
Over eighteen months, Ali and her co-defendant, Amedi, fraudulently cashed out SNAP benefits loaded on EBT cards, a practice commonly known as “discounting” or “cash-back.” For example, Ali and Amedi would conduct a fraudulent transaction by charging $200 to an EBT card. Noor Al Huda’s bank account would then be reimbursed $200 from the SNAP program. Ali and Amedi would give half of that amount they received from the SNAP program—$100—in cash to the EBT card holder. Ali and Amedi often charged an EBT card for the entire month’s benefit amount in one transaction.
As a result of the conspiracy, Ali and Amedi caused a loss of approximately $365,058.10 to the United States Department of Agriculture. Judge Erickson ordered both defendants to forfeit that amount to the United States, to serve periods of home confinement, to perform community service, and to pay $100 special assessments.
This case was investigated by United States Department of Agriculture-Office of Inspector General (“USDA-OIG”).
Assistant U. S. Attorney Jennifer Puhl prosecuted the case.
Fact Sheet on White House and Justice Department Convening--A Cycle of Incarceration: Prison, Debt and Bail PracticesRead the Press Release
On Dec. 2, 2015, the Justice Department hosted a convening to address the effect and fairness of fees and fines. The department convened judges, academics and practitioners to develop a research and policy agenda that will inform jurisdictions in their efforts to reform court practices. On Dec. 3, the White House and the department co-sponsored an event called, “A Cycle of Incarceration: Prison, Debt and Bail Practices,” to bring public attention to the connection between poverty and the criminal justice system and highlight state reform efforts. The White House Council of Economic Advisers also released an issue brief exploring the economic inefficiency of fines, fees and bail and their disproportionate impact on the poor.
THE JUSTICE DEPARTMENT’S COMMITMENT TO FAIRNESS IN THE CRIMINAL JUSTICE SYSTEM
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Criminal justice reform is a top priority for the administration and specifically for the Justice Department. The department has taken significant steps to prevent vulnerable communities from becoming justice-involved, and to promote initiatives that reduce the likelihood of recidivism.
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The department’s efforts also include addressing problems that obstruct opportunity, such as poverty, since those who are economically disadvantaged are more easily caught up in the criminal justice system and face greater barriers to reentry. Among these efforts are numerous diversion and reentry programs, as well as the White House Legal Aid Interagency Roundtable, which works to improve federal anti-poverty programs by providing access to legal aid.
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The department is particularly concerned about criminal justice system practices that perpetuate and exacerbate poverty by imposing unnecessary and exorbitant fees and fines, unjust collection practices, unwarranted suspension of drivers' licenses and other legal obligations. Such penalties may appear small in isolation, but in the obligations can easily and rapidly add up.
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These and other practices are not only unwise and harmful, but also inconsistent with constitutional mandates. For example, people are routinely assessed fines that they cannot afford and then jailed for nonpayment without any inquiry into their ability to pay, as required by the Constitution.
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These harms are most frequently felt by the most vulnerable members of our communities, and often in cases involving minor offenses, such as traffic citations. Fees and fines have significant consequences. Individuals face repeated, unnecessary incarceration in already overcrowded jails, lose their jobs and their housing, face escalating debt and often become trapped in cycles of poverty that can be nearly impossible to escape.
JUSTICE DEPARTMENT’S REFORM EFFORTS
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Ferguson Report: In March 2015, the Civil Rights Division released its report on the investigation of the Ferguson, Missouri, Police Department. In addition to finding a series of unconstitutional police practices, the investigation found that the city focused its municipal court operations on revenue generation rather than public safety, resulting in practices that violate the constitutional rights of area residents. The investigation found that courts routinely imposed excessive fines; ordered the arrest of low-income residents for failure to appear or make payments, despite inadequate notice and without inquiring into their ability to pay; and used unlawful bail practices resulting in unnecessary incarceration. Many of these practices disproportionately impacted African Americans. The department is committed to systemic reform in Ferguson including ensuring a court system that respects peoples’ constitutional rights and avoids unnecessary incarceration.
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Statements of Interest and Amicus Briefs: The Civil Rights Division and the Office for Access to Justice have filed a number of briefs in courts to protect the rights of the indigent in criminal proceedings, on a range of topics, including unconstitutional bail practices, meaningful right to counsel under the Sixth Amendment and the criminalization of homelessness.
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Assistance to States and Localities:Through the Office of Justice Programs (OJP), the department will make funding available to support innovative approaches and alternatives to criminal justice fees, fines and other legal financial obligations that contribute to the cycle of incarceration and poverty. OJP’s Office of Civil Rights is also evaluating discrimination complaints against several court systems to determine whether their pretrial and bail policies violate federal laws. Following the convening, the OJP Diagnostic Center will prepare a report to outline a research and policy agenda that will help advance the conversation about criminal justice reform.
COUNCIL OF ECONOMIC ADVISERS ISSUE BRIEF
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Increasing Use of Fines, Fees and Bail:As higher levels of incarceration and law enforcement have placed budgetary pressure on states and local governments, they have increasingly turned to criminal justice payments as a source of additional revenue. Available data suggests that about two-thirds of all prison inmates have criminal justice debts, and rising use of bail payments has contributed to a 60 percent increase in the number of un-convicted inmates in jails between 1996 and 2014.
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Disproportionate Impact on the Poor: Because fines and fees do not take into account the defendants’ ability to pay, they place a disproportionate burden on lower-income defendants and create a highly regressive system of raising revenue and paying for criminal justice operations. Low-income individuals with criminal justice debts may face difficult tradeoffs between paying their debt and purchasing other necessities, and those unable to pay can face incarceration, demonstrating the large human cost of these policies as well. Bail payments set without consideration of financial circumstances can also result in detaining the poorest defendants rather than the most dangerous. For example, in New York City in 2010, nearly 80 percent of arrestees failed to make bail at arraignment for bail amounts less than $500.
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Economic Inefficiency: Assigning fines and fees to low-income offenders represents a highly inefficient way to raise revenue, as these individuals likely do not have the means to pay. Some states are able to collect less than 20 percent of some types of fees, and the low rate of collection sometimes means that the cost of operating the program exceeds the revenue collected. Incarcerating individuals for failure to pay only furthers this problem, with the cost of incarceration alone sometimes exceeding the debt owed.
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Energy Company Landman Sentenced to 63 Months in Federal Prison and Ordered to Pay More Than $1 Million in Restitution for Running Oil and Gas Mail Fraud SchemeRead the Press Release
FORT WORTH, Texas — A 33-year-old energy company landman who admitted running a scheme to defraud his employer, XTO Energy, of more than $1 million, was sentenced this morning, announced U.S. Attorney John Parker of the Northern District of Texas.
Steven E. Fisackerly, 33, of Spring, Texas, was sentenced by U.S. District Judge Terry R. Means to 63 months in federal prison and ordered to pay $1,005,131.00 in restitution. Fisackerly pleaded guilty in May 2015 to an information charging one count of mail fraud. He must surrender to the Bureau of Prisons on January 4, 2016.
According to documents filed in the case, from September 2008 until March 2012, Fisackerly worked in the Fort Worth offices of XTO Energy, Inc. as a landman assigned to the Marcellus Shale wells in West Virginia. A landman is primarily responsible for all surface and mineral land-related matters for his assigned area. Among other things, a landman drafts, negotiates, and administers oil and gas leases, amendments, unit designations, assignments, domestic gas use agreements, surface leases, damage agreements, purchase and sale agreements, and similar documents, all related to oil and gas exploration. Landmen have access to and use computer systems specific to XTO, which XTO uses to map oil and gas leases, track costs related to oil and gas bonus payments, and access oil and gas leases.
Fisackerly admits that beginning in January 2009 and ending in approximately January 2011, he devised and ran a scheme to defraud XTO. He used his knowledge of XTO’s oil and gas lease process, his access to previously approved oil and gas leases and reports, XTO computer systems, Harrison County, West Virginia’s online document inquiry public records data base, and his knowledge of XTO’s oil and gas interests in West Virginia to generate bogus oil and gas leases. He also altered/falsified existing information to generate bogus documents.
In January 2009, Fisackerly selected an XTO oil and gas lease packet from a legitimate landowner, J.G. Fisackerly altered that oil and gas lease packet to show that another individual, E.C., was the landowner. Fisackerly prepared and organized the false oil and gas lease documentation under E.C.’s name and routed the lease packet to management for approval. Once approved, XTO issued bonus check for $180,402.50 to E.C. that Fisackerly obtained. That check was deposited into a bank account controlled by E.C., and E.C. wrote two personal checks, totaling $130,000, to Fisackerly from that account.
Fisackerly also created a sham company, Parallel Interests, LLC, using LegalZoom. He listed himself as the 100 percent member, stating in the formation questionnaire that the reason for creating the company was for mineral interests. Fisackerly also opened a bank account at Bank of America in December 2010 that listed Parallel Interests, LLC on the signature card and named Fisackerly as the only signer on the account.
Fisackerly also created false oil and gas leases and lease packets in the name of Paul Hinkle, President of Parallel Interests, LLC, and executed the documents with a forged notary stamp. He created fraudulent deeds and Harrison County Clerk reference numbers for supporting documentation and provided a nonexistent Post Office Box as the mailing address for the bonus checks. He organized the fraudulent documentation and approved the order of payments. He then obtained additional management approvals and routed the lease packets to XTO’s Land Department, where bonus checks for Parallel Interests, LLC were issued. From there, the bonus checks were routed back to Fisackerly, who then deposited them into the Parallel Interests, LLC Bank of America account he controlled.
During the course of the scheme, Fisackerly engaged in approximately nine fraudulent transactions, causing XTO to issue checks totaling $1,005,131.00
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Nancy Larson was in charge of the prosecution.
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Eastern District of North Carolina U.S. Attorney’s Office Collects $15,047,564.36 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that the Eastern District of North Carolina collected $15,047,564.36 in criminal and civil actions in Fiscal Year 2015. Of this amount, $11,011,638.80 was collected in criminal actions and $4,035,925.56 was collected in civil actions.
Additionally, the Eastern District worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $64,395,812.90 in cases pursued jointly with these offices. Of this amount, $64,323,714.67 was collected in criminal actions and $72,098.23 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 3, 2015 that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and half times the approximately 2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“The United States Attorney’s Office has made the efficient and effective collection of restitution on behalf of victims of crime a top priority,” stated Mr. Walker. “Collection of restitution on behalf of the United States is essential during the current budgetary restraints.”
During the past fiscal year the Eastern District of North Carolina has returned millions of dollars to victims of crime. In one such case, US v. Dwight Lane Woolard, over $540,000.00 was recovered and returned to the Department of Defense. In another case, US v. Clay Taylor Strickland, the office recovered and returned $298,415.00 to the United States Department of Agriculture following Strickland’s conviction.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Eastern District of North Carolina, working with partner agencies and divisions, collected $3,915,737.00 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Douglas D. Jackson Sentenced to 295 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Douglas D. Jackson, age 26, of South Bend, Indiana, was sentenced to 295 months imprisonment, on Thursday, December 3, 2015, in federal court by Judge Robert L. Miller, Jr. Jackson was convicted by a jury trial on July 16, 2015 to six counts of sex trafficking of a minor and one count of possession of a handgun in furtherance of a crime of violence.
According to documents in the case, during May and June, 2014, Jackson transported a minor female to several cities throughout the Midwest for the purposes of prostitution. These cities were Atlanta, Chicago, Indianapolis, Louisville, Memphis, Fort Wayne, and Grand Rapids.
This case was the result of an investigation by the Federal Bureau of Investigation, in coordination with the Michigan State Police and Wyoming Michigan Police Department. The case was handled by the Assistant United States Attorney John M. Maciejczyk
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Dorchester Man Pleads Guilty to Sex Trafficking ChargesRead the Press Release
BOSTON –A Dorchester man pleaded guilty today in U.S. District Court in Boston to transporting two 14 year-old girls from Massachusetts to Rhode Island for the purpose of prostituting them.
Derek Miranda, a/k/a Dub, 21, pleaded guilty to transporting the two girls from Massachusetts to Providence, R.I. on or about Jan. 15, 2015 with the intent for them to engage in prostitution. The following day, Miranda was arrested. He was indicted in July 2015. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 9, 2016.
On Jan. 14, 2015, Miranda met two 14 year-old girls who had run away from their homes in Lowell and brought them to a hotel in Brockton where he provided them with different clothes and told them that he “had guys coming over.” One of the girls texted a friend for help who then notified the police and a search was initiated. The girls left the hotel and temporarily stayed with a friend in Brockton. However, as runaways with no place to go, they contacted Miranda who arranged to have them picked up by an Uber driver. Miranda then had them driven to a house in Providence where he intended to have the girls provide sex for a fee. One of the girls texted a friend to notify local law enforcement authorities who then rescued them and arrested Miranda.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston, made the announcement today. The case was investigated with the assistance of the Massachusetts State Police assigned to Attorney General Maura Healey’s Office, the Providence, Lowell and Brockton Police Departments, and the Rhode Island Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of Ortiz’s Civil Rights Enforcement Team and Special Assistant U.S. Attorney Deborah Bercovitch, Chief of AG Healey’s Human Trafficking Division.
District of Montana Collects $4.9 Million in Civil and Criminal Actions in FY 2015Read the Press Release
U.S. Attorney Michael W. Cotter announced today that the Montana United States Attorney’s Office collected $4.9 million in Fiscal Year (FY) 2015 related to criminal and civil actions. In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice. During the past five fiscal years, the U.S. Attorney’s Office for the District of Montana has collected $53.3 million in criminal and civil actions.
Attorney General Loretta E. Lynch announced on December 3, 2015 that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“The collections program illustrates an important aspect of the USAO’s public service mandate that is often overlooked,” said U.S. Attorney Michael W. Cotter. “By recovering funds for victims and the federal treasury that are commensurate to our annual operating budget, we ensure that taxpayer dollars are maximized in our efforts to reduce crime, to compensate its victims, and to ensure that its perpetrators are unable to profit from their illegal activities.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid directly to the victim, criminal fines and felony assessments are paid to the department?s Crime Victims? Fund, which distributes the funds to state victim compensation and victim assistance programs.
Occasionally, assets from criminals are forfeited by court action. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. Forfeited assets include currency or bank accounts, real property and cars purchased with illegal proceeds or used to facilitate crimes, guns held by convicted felons, and computers used for child pornography.
Those who regularly follow the news are aware of the function of the United States Attorney’s Office regarding federal criminal prosecution. Equally important, but perhaps not as well known, is the mission, function and success of the Montana USAO in recovering money for the benefit of victims of crime and the U.S. Treasury. This critical mission is accomplished in large part by the Financial Litigation Unit (FLU). The FLU collects criminal restitution, fines, and penalties ordered to be paid to federal agencies when federal programs are defrauded. In addition the FLU Unit helps federal prosecutors identify and forfeit assets that represent the proceeds of or that were used to facilitate federal crimes.
Defendant Sentenced to Prison for Procurement Fraud, Embezzling Employee Benefits and Evading TaxesRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” age 50, of Keymar, Maryland, today to a year and a day in prison followed by three years of supervised release for two fraud schemes and tax evasion. Judge Motz entered an order requiring Joanne Tucker to pay restitution totaling $2,092, 961, specifically, $1.6 million for employee benefit fraud, and $492,961 to the IRS for tax evasion. As part of her plea agreement, Tucker will also be required to forfeit $30 million and her residence in Keymar.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven Anderson, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Marc I. Machiz, Director of the Philadelphia Regional Office of the Labor Department’s Employee Benefits Security Administration; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Small Business Administration Inspector General Peggy E. Gustafson; and Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations.
According to her plea and court documents, Joanne and her husband, Shaun Tucker, were controlling officers and majority shareholders of Quantell, Inc. and Intaset Technologies Corporation from 2007 to 2010. Quantell and Intaset provided labor services to federal government agencies. In 2010, the Tuckers sold Intaset, but continued to influence its operations.
Federal Procurement Fraud
From 2007 to 2013, the Tuckers and their co-conspirators made false representations to the government regarding the eligibility of Quantell and Intaset for small business, Service Disable Veteran Owned Small Business and other set-aside contracts, including the 2007 Camp Lejeune contract, 2007 Battle Creek, Michigan contract, 2008 Andrews Air Force Base contract, 2008 Beale Air Force Base contract, 2011 Langley Air Force Base contract and 2011 Camp Lejuene contract. The Tuckers and their co-conspirators falsely represented the past revenues, ownership, controlling officers, distribution of profits, location and other key attributes of Quantell and Intaset to multiple federal agencies. When bid protests were lodged by competing firms, the Tuckers and co-conspirators prepared and submitted false responses. The Tuckers’ actions prevented other companies, which the government meant to support with set-aside contracts, from providing contracting services to the federal government.
The Tuckers used the money from the government contracts for their own personal benefit, including: building, purchasing and leasing a 5,000 square foot residence in Swanton, Maryland; additions to property in Taneytown, Maryland, including a personal residence, gym, bar and break room equipped with high definition TVs, top of the line weight equipment, video games and combat wrestling equipment; additions to their residence in Keymar; a 45 foot sailboat named “Quantell;” 2008 Audi A8; 2011 BMW; and mortgage payments related to real estate, watercraft and vehicles.
The Tuckers and their co-conspirators used aliases and false identities to communicate with the U.S. Department of Defense (DOD) in order to falsely portray the past performance of Quantell. They created a fake corporate entity named Staff-It with a fake period of performance from 2005 to 2008 involving more than $12 million of work by Quantell for Staff-It, and falsely indicated that Quantell was supplying service workers at military treatment facilities for Staff-It. Then they created phone lines and had conspirators participate in false phone conversations with DOD representatives so as to deceptively win the 2011 Camp Lejeune contract. The Tuckers and their co-conspirators carried out similar schemes with respect to other past performances, establishing internet phone lines to spoof the location of businesses, and labeling the phone lines based on the fake company contact person.
As a result of the procurement fraud conspiracy, the full value of the contracts awarded to Quantell and Intaset based on the false representations was at least $30 million.
Employee Benefit Fraud
The service contracts awarded by the United States to Quantell and Intaset, as well as the McNamara-O’Hara Service Contract Act (SCA), required Quantell and Intaset to provide bona-fide health and welfare benefits to their service contract employees hired to work for the federal government.
Quantell and Intaset had previously used FCE Benefits Administrators, Inc. (FCE) as a third party administrator, to help fulfill their obligations under the SCA. FCE used the SCA funds to create ERISA Plans for Quantell and Intaset. In July 2009, Shaun Tucker sent letters to FCE and the trustees of employee retirement plans so that he could obtain approximately $285,000 from the existing retirement plans into which the SCA money had previously been paid. The letters falsely claimed that Quantell and Intaset were transferring money to another health and welfare plan, when in fact the Tuckers knew that the money was instead being transferred into a bank account Joanne Tucker had asked a relative to open. Joanne Tucker caused such money to be spent on the Tuckers’ vacation home in Western Maryland and other personal benefits.
In a related fraud, the Tuckers lied to employees of Quantell and Intaset, to FCE and to multiple federal agencies, regarding the compliance of Quantell and Intaset with the SCA, so that the Tuckers and their co-conspirators could divert more than $1 million in SCA monies paid by the government to Quantell and Intaset under service contracts for their own personal benefit. The Tuckers and their co-conspirators used shell companies and companies that they were associated with to conceal the diversion of SCA funds to them. The Tuckers falsely told employees that they would be receiving health and welfare benefits, when in fact the money was being diverted to buy luxury vehicles, and make improvements on the Tuckers’ residences.
As a result of the fraud involving employee benefits, more than $1.6 million of the SCA funds were fraudulently diverted for the co-conspirators’ benefit from at least 350 individual employees.
Tax Fraud
Finally, the Tuckers attempted to evade income tax due of $492,961 for tax years 2009, 2010 and 2011.
Shaun Tucker, a/k/a “Shawn Turner,” and “Mark Tyler,” age 50, of Keymar, Maryland, previously pleaded guilty to his participation in the fraud schemes and was sentenced on November 20, 2015 to eight years in prison. Judge Motz also entered an order that Shaun Tucker forfeit $30 million and his residence in Keymar; and pay restitution of $1.6 million for the employee benefit fraud, and $492,961 to the IRS for tax evasion.
In a related case, co-conspirator Jonathan Mickle, age 43, of Asheville, North Carolina, formerly of Taneytown, Maryland, pleaded guilty on June 25, 2015 to conspiracy to commit wire fraud and tax fraud in connection with the fraud schemes. Judge Motz has scheduled sentencing for Mickle for February 19, 2016, at 9:30 a.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This and other cases brought by members of the Task Force demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor –OIG/Office of Labor Racketeering and Fraud Investigations; IRS – Criminal Investigation; U.S. Department of Labor - Employee Benefits Security Administration; DCIS; SBA Office of Inspector General; and Air Force Office of Special Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who prosecuted the case.
Dallas Man Sentenced to 20 Years in Federal Prison on Child Porn ConvictionRead the Press Release
DALLAS — A Dallas man, Andrew Berko, 45, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 20 years in federal prison following his guilty plea in May 2015 to one count of transporting and shipping child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Berko has been in custody since his arrest in April 2015 on a related federal criminal complaint.
According to documents filed in the case, the investigation began when a detective with the Sherman Police Department, who was investigating the sharing of child pornography on a file-sharing network called BitTorrent, identified 27 files matched to a law enforcement database as files containing child pornography. The files were linked to an IP address later identified as Berko’s.
Special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a federal search warrant at Berko’s residence on March 31, 2015. A forensic analysis of his computer they seized revealed 8190 images and 860 videos of child pornography, including more than 800 images and videos of infants and toddlers. Some of the images and 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.”
ICE HSI and the Sherman Police Department investigated. Assistant U.S. Attorneys Camille Sparks and Lori Walker prosecuted.
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Crime Pays: United States Attorney Stephen R. Wigginton Announces Monies Collected in Southern IllinoisRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that his office collected $19,428,426.20 in criminal and civil actions in Fiscal Year 2015. Of this amount, $9,337,630.59 was collected in criminal actions and $10,090,795.61 was collected in civil actions.
Additionally, the Southern District of Illinois worked with other United States Attorney’s Offices and components of the Department of Justice to collect an additional $36,117,452.46 in cases pursued jointly with these offices. Of this amount, $14,468.49 was collected in criminal actions and $36,102,983.97 was collected in civil actions.
Attorney General Loretta E. Lynch announced on Thursday, December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse," said Attorney General Loretta Lynch. "The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work."
"My Office will not stop in its efforts to collect monies owed the United States. The honest and law-abiding citizens of Southern Illinois deserve no less than our best efforts, and, I can assure them that they will continue to receive those best efforts on their behalf. As always, no legal avenue to collect debts owed the United States will go unused." noted United States Attorney Wigginton.
As examples, United States Attorney Wigginton highlighted that his office recovered over $7.75 million dollars from a mortgage fraud case in the Carbondale area and a joint collection of over $25 million dollars from fraud in contracts out of Scott Air Force Base.
Individual United States Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Finally, the United States Attorney’s Office for the Southern District of Illinois, working with partner agencies and divisions, collected $537,950.00 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Couple Sentenced on Methamphetamine ConvictionsRead the Press Release
PLATTSBURGH, NEW YORK – Billy Slick, age 54, was sentenced today to 60 months in prison as a result of his conviction for conspiracy to manufacture, possess with intent to distribute and distribute methamphetamine.
The announcement was made by United States Attorney Richard S. Hartunian, Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration (DEA), and New York State Police Superintendent Joseph A. D’Amico.
Chief United States District Judge Glenn T. Suddaby also sentenced Billy Slick to serve a four-year term of supervised release, to begin after his release from prison.
On August 26, 2015, Billy Slick’s wife, Danielle Trombly Slick, age 33, was sentenced to 46 months in prison for her role in the methamphetamine conspiracy. Chief Judge Suddaby also sentenced Danielle Slick to serve a three-year term of supervised release, to begin after her release from prison.
The Slicks had lived in Augusta, Georgia, but moved to Clinton County in 2011 and remained in the area through 2013. During that time, the Slicks manufactured and distributed methamphetamine.
This case was investigated by the Drug Enforcement Administration, the New York State Police, the High Intensity Drug Trafficking Areas Program of New York and New Jersey, the Plattsburgh Police Department, the Clinton County District Attorney’s Office, and the Essex County District Attorney’s Office. Assistant United States Attorney Katherine Kopita prosecuted the case.
Civil Settlement Reached with Environmental Testing Company over Claims That Testing Procedures Were Not FollowedRead the Press Release
NEWARK, N.J. – An environmental testing company headquartered in Dayton, New Jersey, will pay $3 million to resolve allegations that it failed to follow proper EPA methodology during some of its tests, U.S. Attorney Paul Fishman announced today.
Accutest Corp., also known as Accutest Laboratories (Accutest) is an environmental testing laboratory founded in 1956. It provides environmental analytical services to industrial, engineering/consulting, and government clients, according to its website.
The settlement resolves allegations that between Jan. 1, 2011, and Dec. 31, 2013, Accutest failed to properly follow EPA standards in analyzing certain soil and water samples in its semi-volatile and extraction laboratories. It was alleged that Accutest did not properly extract samples because: (1) It did not perform the required number of shakes for waste water samples, (2) it did not wait the required amount of time in between shakes of the samples, and (3) it did not properly “spike” samples with a known compound as part of the quality control process, possibly affecting the quality control process in place to ensure that materials in the sample were fully extracted. It was also alleged that Accutest altered the settings on their gas chromatography/mass spectrometry machines and disregarded calibration protocols.
In addition to the $3 million payment by Accutest, the company has agreed to fully comply with the requirements of its certifying bodies regarding notice of the allegations and has agreed to notify any of its clients that could have been impacted by the alleged conduct.
U.S. Attorney Fishman credited special agents of the Environmental Protection Agency under the direction of Special Agent in Charge Thomas E. Muskett of the Environmental Protection Agency, Office of Inspector General, Office of Investigations, Washington Field Office; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig W. Rupert; the U.S. Army Criminal Investigation Division, Major Procurement Fraud Unit, Mid-Atlantic Fraud Field Office, under the direction of Special Agent in Charge Larry S. (Scott) Moreland. He also thanked the U.S. Navy Criminal Investigative Service – Northeast Field Office and the U.S. Air Force Office of Special Investigations.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark.
The case is captioned U.S. ex rel. Koroush Vaziri, et al. v. Accutest Laboratories, Civil Action, No. 3:13-CV-02223-FLW-TJB.
Defense counsel: Lisa A. Krigsten Esq., Kansas City, Missouri
Counsel for relator: Neil Mullen Esq., Montclair, New Jersey
Child Pornography Charges Filed Against Montgomery County ManRead the Press Release
PHILADELPHIA - Kurt Eichert, 51, of Wyndmoor, Pennsylvania, was charged today by Indictment with one count of production of child pornography, two counts of distribution of child pornography, and one count of possession of child pornography announced United States Attorney Zane David Memeger. The indictment alleges that on or about June 2005 to on or about September 2015, Eichert produced child pornography. Eichert is alleged to have surreptitiously recorded children changing their clothes in Dorney Park in Allentown, Pennsylvania. Eichert is also charged with distributing child pornography in May 2015 and possessing images of child pornography in September 2015.
If convicted the defendant faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of 80 years.
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 the Abington Township Police Department. It 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.
Chicken of the Sea and Bumble Bee Abandon Tuna Merger After Justice Department Expresses Serious ConcernsRead the Press Release
Thai Union Group P.C.L., owner of Tri-Union Seafoods LLC, d/b/a Chicken of the Sea International, and Bumble Bee Foods LLC abandoned their plans to merge after the Department of Justice informed the companies it had serious concerns that the proposed transaction would harm competition.
Thai Union’s proposed acquisition of Bumble Bee would have combined the second and third largest sellers of shelf-stable tuna in the United States in a market long dominated by three major brands, as well as combined the first and second largest domestic sellers of other shelf-stable seafood products.
“Consumers are better off without this deal,” said Assistant Attorney General Bill Baer of the department’s Antitrust Division. “Our investigation convinced us – and the parties knew or should have known from the get go – that the market is not functioning competitively today, and further consolidation would only make things worse.”
Thai Union, a publicly-held Thai corporation headquartered in Samutsakhon, Thailand, is the largest global producer of shelf-stable tuna and also offers other shelf-stable and frozen seafood products globally. Thai Union’s Chicken of the Sea subsidiary is headquartered in San Diego, California. Chicken of the Sea sells shelf-stable seafood products under the brand names “Chicken of the Sea,” “Van Camps,” “Genova,” “Pacific Pearl,” and “Ace of Diamonds.” In 2013, Chicken of the Sea earned over $400 million in U.S. revenues.
Bumble Bee is also headquartered in San Diego. Bumble Bee sells shelf-stable seafood products under the brand names “Bumble Bee,” “Wild Selections,” “Beach Cliff,” “Brunswick,” and “Snow’s.” Bumble Bee is wholly owned by privately-held Lion Capital LLP.
Chesapeake Man Pleads Guilty to Armed RobberiesRead the Press Release
NORFOLK, Va. – Raymond Wyche, 47 of Chesapeake, pleaded guilty today to charges involving armed robberies of a Wilco-Hess gas station in Virginia Beach and an Exxon gas station in Chesapeake.
In a statement of facts filed with the plea agreement, Wyche committed these robberies brandishing what appeared to be a firearm aiming it at employees and demanding that they give him money. He stole $651 from the two robberies with which he pleaded guilty. While Wyche covered his face during the armed robberies, three witnesses that know Wyche well were able to identify him through video and audio surveillance. They recognized his voice, certain phrases he used, his mannerisms, size, shape, articles of clothing he wore, and a distinctive pinky ring that he had on his right pinky during all eight armed robberies. After the Exxon gas station armed robbery in Chesapeake, Wyche is seen on video shedding his clothing behind the station and in the process his face became visible.
Wyche was indicted by a federal grand jury on August 5, 2015, on eight counts of interference with commerce by means of robbery and two counts of using a firearm during a crime of violence. The indictment charged the following eight robberies:
Date
Location
Feb. 11, 2014
7-Eleven, 6673 Indian River Road, Virginia Beach
March 19, 2014
Wilco-Hess, 6048 Indian River Road, Virginia Beach
March 25, 2014
7-Eleven, 201 S. Witchduck Road, Virginia Beach
April 25, 2014
Exxon, 841 S. Military Highway, Virginia Beach
June 6, 2014
BP, 4900 Princess Anne Road, Virginia Beach
June 25, 2014
Exxon, 1102 S. Military Highway, Chesapeake
June 29, 2014
7-Eleven, 5444 Virginia Beach Boulevard, Virginia Beach
July 16, 2014
Gulf, 6029 Indian River Road, Virginia Beach
Wyche faces a maximum penalty of 20 years in prison when sentenced on March 16, 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; Mark R. Herring, Attorney General of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by U.S. Magistrate Judge Doug E. Miller.
This case was investigated by ATF’s Washington Field Division with assistance from the Chesapeake and Virginia Beach Police Departments. Assistant U.S. Attorney William D. Muhr and Special Assistant U.S. Attorney John F. Butler are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-97.
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Chatham Area Transit Officials Indicted in Bribery and Kickback SchemeRead the Press Release
SAVANNAH, GA – Chadwick L. Reese, 44, the Executive Director of the Chatham Area Transit Authority (CAT), and Joel T. Morris, 53, CAT’s Director of Maintenance, were indicted this week by a federal grand jury sitting in Savannah, Georgia for their alleged roles in a bribery and kickback scheme. According to the allegations contained in the Indictment, from April of 2014 to the present, Reese and Morris used their official positions at CAT to enrich themselves by soliciting and accepting cash and other payments in exchange for rigging the award of CAT contracts to selected individuals and companies.
Reese and Morris each face multiple counts of mail fraud and extortion. Each count of mail fraud carries a maximum sentence of 20 years in prison, $250,000 fine and 3 years of supervised release. Each count of extortion also carries a maximum sentence of 20 years in prison, $250,000 fine and 3 years of supervised release. An indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by the Savannah and Jacksonville offices of the FBI. First Assistant United States Attorney James D. Durham is prosecuting the case on behalf of the United States. Any questions should be directed to Mr. Durham at (912) 201-2547.
Charlotte-Area Appliance Repairman Sentenced to 30 Months on Wire Fraud and Tax Fraud ChargesRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney today sentenced John Wesley Clark, 43, of Charlotte, to 30 months in prison on wire fraud and tax fraud charges, receiving over $576,000 in payments for fraudulent warranty claims, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Clark was also ordered to serve two years under court supervision after his release from prison and to pay $576,669.75 in restitution to Samsung and $184,710.00 as restitution to the IRS. He pleaded guilty to one count of wire fraud and one count of filing a false tax return in June 2015.
Thomas J. Holloman, III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service join U.S. Attorney Rose in making today’s announcement.
According to the filed court documents and today’s sentencing hearing, Clark was the owner and operator of various Charlotte-area appliance repair companies, including JA Appliance Co; Fitzgerald Appliance Co; BR Appliance; C&A Appliance Co.; D&L Appliance Co.; and J&S Appliance Co. Court records show that beginning in at least 2010 and continuing through 2012, Clark, who is also known as John Isaacs, Jonathan Fitzgerald, and JA Adams, defrauded a major electronics company based in New Jersey by submitting false and fraudulent warranty work order claims, for warranty work that was not performed. According to court records, Clark, sometimes using an alias, established his companies as authorized service centers for the major electronics company. He then submitted the fraudulent warranty work orders that listed, among other things, false customer information, false addresses, false part numbers, and false repair dates. Clark received $576,000 in payments for the fraudulent warranty claims.
Court records also show that for tax years 2010 through 2012, Clark failed to report all of the income he obtained through the fraudulent warranty claims on his federal tax returns. Additionally, Clark filed fraudulent forms W-2 with his federal tax returns that falsely stated that tax withholding had been paid over to the IRS.
Clark will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
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In a separate case, on Monday, November 30, 2015, Judge Whitney also sentenced Sammie Marks, 42, of Matthews, N.C., to 12 months and 1 day in prison and one year of supervised release on a tax evasion charge. He was also ordered to pay $158,614 as restitution to IRS.
According to court records, Marks was the owner of “Marks Metal and Salvage,” located in Charlotte. Court records in that case show that between tax years 2009 and 2013, Marks deposited checks and cash receipts from his businesses and its customers totaling over $1.1 million into his personal bank account, which he did not include in his personal or business tax returns filed with IRS. As a result of the unreported gross receipts, Marks had additional tax liability of $158,614.
The investigation into Clark was handled by IRS-CI and the U.S. Postal Inspection Service. Marks’ investigation was handled by IRS-CI. Both cases were prosecuted by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Charlotte Man Sentenced to 9 Years in Prison for Firearms OffenseRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced Stephon Deangleo Caldwell, 28, of Charlotte, to 108 months in prison for a firearms offense, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Caldwell was also ordered to serve 2 years under court supervision following his prison sentence.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and today’s sentencing hearing, on or about December 1, 2014, CMPD officers were attempting to serve Caldwell multiple state warrants at his residence in Charlotte. Court records show that Caldwell began shooting at the officers with his firearm, a Sig Sauer Model P232 pistol. Officers returned fire striking Caldwell who then attempted to flee on foot, but was apprehended shortly thereafter. According to court records, Caldwell is a member of the United Blood Nation gang and has a prior felony conviction which prohibits him from possessing or carrying a firearm. Caldwell pleaded guilty in April 2015, to one count of possession of a firearm by a convicted felon.
At the sentencing hearing, prosecutors urged Judge Whitney to impose a sentence that promotes respect for the law, stating that we must send a message that violence against our law enforcement officers will not be tolerated.
Caldwell has been in federal custody since December 2014. Upon designation of a federal facility, he will be transferred to the custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and CMPD. The prosecution was handled by Assistant United States Attorneys Elizabeth Greene and William Bozin of the U.S. Attorney’s Office in Charlotte.
Certified Public Accountant Sentenced for Using Her Tax Preparation Business to Facilitate an Income Tax Refund Fraud SchemeRead the Press Release
A Certified Public Account (CPA) was sentenced to 78 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution in the amount of $3,684,921.20 for using her tax preparation business to facilitate an income tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Pamella B. Watson, 61, of Davie, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343.
According to court documents, Watson operated Watson & Associates Business Services, Inc., a tax preparation business in Miami. Defendant Watson prepared the client’s tax return and provided him/her a copy showing a refund amount and/or an amount payable to the IRS. Without the client’s knowledge or authorization, the figures on the return were changed, and a tax return showing a higher refund amount was filed with the IRS. The client’s bank account received the refund amount reflected on the copy they received from defendant Watson, and the remainder of the tax refund was deposited into an account controlled by Watson. The client did not have any knowledge of the refund falsification and splitting.
Court documents state that Watson prepared approximately 557 U.S. Individual Income Tax Returns (Forms 1040) for tax years 2010 through 2013 for her clients. Approximately 395 (71%) had refunds split into an account controlled by defendant Watson, or the entire refund diverted into Watson’s bank account. From approximately January 2011 through September 2014, defendant Watson deposited $3,405,479.20 of client tax refunds from 183 individual taxpayers into accounts she controlled.
According to court documents, Watson also diverted checks totaling $222,676 into her personal IRS account, and an additional $56,766 in IRS payments from Watson’s clients was applied to an associate’s tax account. These checks were generated by clients who were informed by defendant Watson that they were paying their own tax liability.
Mr. Ferrer commended the investigative efforts of IRS-CI, and thanked the Jamaican Financial Investigations Division for its substantial assistance. The case is being prosecuted by Senior Litigation Counsel Neil Karadbil.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Central District of Illinois’ U.S. Attorney’s Office Collects $5.77 Million in Criminal and Civil Actions in FY 2015Read the Press Release
Springfield, Ill. - U.S. Attorney Jim Lewis announced today that the Central District of Illinois collected $5,769,736 million for taxpayers in criminal and civil actions in fiscal year 2015. Of this amount, $3,402,513 was collected in criminal actions by the Central District and $2,367,233 in civil actions. In addition, working with other Department of Justice entities, $23,420 was collected in criminal actions and $1,362,086 was collected in civil actions.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in the same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“We hold people accountable when the law says that they should be accountable,” said U.S. Attorney Lewis. “We collect restitution for victims of crime, we collect damages if there has been fraud in government programs, we collect debts owed to the government, and we protect federal funds and the public treasury. We do our very best to make sure that justice is done.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Central District of Illinois, working with partner agencies and divisions, collected $218,374 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Canadian Man Sentenced for Conspiring to Use Counterfeit Access DevicesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Yvgeniy Bandarmaliev, 52, of Toronto, Ontario, Canada, who was convicted of conspiring to possess and use counterfeit access devices with intent to defraud, was sentenced to three months in prison by Senior U.S. District Court Judge William M. Skretny. In addition, the defendant was ordered to pay restitution in the amount of $20,176.27 to the Royal Bank of Canada and $66,795.74 to the Canadian Imperial Bank of Commerce.Assistant U.S. Attorney John E. Rogowski, who handled the case, stated that the defendant was charged as a result of his co-conspirator, Petar Petrov, being arrested on September 2, 2013, as he entered the United States from Canada at the Lewiston Bridge. An alert Customs and Border Patrol officer found 10 counterfeit access devices in Petrov’s car. The devices were gift cards which had been altered by having legitimate credit card numbers imbedded in the magnetic strips on the back of the cards. Agents determined that all 10 cards were counterfeit.
Bandarmaliev and Petrov placed “skimming devices” on ATM’s in Canada to obtain account information. The scheme also involved the use of surreptitiously placed cameras to record the personal identification numbers (PINS) used by customers to transact business on ATM’s in Canada. The account information was then placed on the magnetic strips of various gift cards, creating counterfeit access devices. The defendant also used several counterfeit access devices in the Buffalo area between July and September of 2013 to withdraw money from various Canadian bank accounts.
Petrov was also convicted and sentenced to three months in prison.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.
Buffalo Man Arrested on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Darryl Bagby, 32, of Buffalo, NY, was arrested and charged by criminal complaint with being a felon in possession of ammunition.Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the complaint, on November 25, 2015, the Erie County Sheriff’s Department executed a search warrant at the defendant’s residence at 116 Bidwell Parkway in Buffalo. Deputies recovered one round of 7.62 X 39 caliber ammunition and one round of 9mm caliber ammunition, more than $19,000 of cash in United States currency, cocaine, a digital scale and other drug paraphernalia. Further investigation determined that some of the ammunition was manufactured in Russia.
The complaint is the culmination of an investigation by the Erie County Sheriff’s Department, under the direction of Timothy Howard and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Boise Man Sentenced for Possession and Distribution of Meth and Unlawful Possession of a FirearmRead the Press Release
BOISE – Brenon Lawrence, 28, of Kuna, Idaho, was sentenced today to 77 months in prison for possession and distribution of methamphetamine, and possession of a firearm in furtherance of drug trafficking, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Lawrence to pay a $500 fine and serve five years of supervised release following his incarceration. Lawrence pleaded guilty on July 21, 2015.
According to court proceedings, Lawrence was arrested in Boise, Idaho, on December 9, 2014. Boise police officers went to the Boise residence where Lawrence was then residing to arrest him on a state parole warrant. As he and a female friend left the residence to get into a vehicle, the officers approached him. Lawrence dropped a backpack as he ran back toward the residence. Inside the backpack officers found a loaded 9 mm semi-automatic pistol, a folding knife, an expandable baton, small plastic baggies containing 14.5 grams of meth. Lawrence admitted he had he been “jocky-boxing” in Boise the night before and had stolen the gun from a car to get money.
The case was investigated by the Boise Police Department and the Bureau of Alcohol, Tobacco and Firearms.
Atlanta Drug Trafficker Pleads Guilty to Importing Kilograms of Cocaine into SumterRead the Press Release
Contact Person: JD Rowell (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Bryant C. Ford, age 39, of Mableton, Georgia, pled guilty today in federal court in Columbia, South Carolina, to conspiracy to possess with intent to distribute and to distribute cocaine, in violation of Title 21, United States Code, Sections 841 and 846. Chief United States District Court Judge Terry L. Wooten presided over the guilty plea hearing and will sentence Ford after the United States Probation Office prepares a presentence report.
Evidence gathered as part of months-long investigation into drug trafficking in and around Sumter, established that Ford brought more than forty kilograms of cocaine into South Carolina from September of 2014 through June of 2015. The investigation concluded when, on June 16, 2015, Ford brought 5 kilograms of cocaine to supply his codefendant Harold McFadden in exchange for cash. After Ford and McFadden met outside of Augusta, Georgia, Troopers with the South Carolina Highway Patrol, working in conjunction with the FBI and Sumter Police Department, conducted a traffic stop of McFadden near Aiken, South Carolina. Troopers found the 5 kilograms of powder cocaine hidden in a secret compartment in the dashboard of a Chrysler van, which Ford had previously provided to McFadden. After Ford returned to his home in Mableton, Georgia, FBI Atlanta executed a search warrant at his home and found over $300,000 in cash, cocaine, and various drug and money laundering paraphernalia.
The case was investigated by the FBI and Sumter Police Department. Assistant United States Attorneys JD Rowell and Jay Richardson prosecuted the case.
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Arizona U.S. Attorney’s Office Collects over $9.3 Million in Civil and Criminal Actions in Fiscal Year 2015Read the Press Release
PHOENIX - U.S. Attorney John S. Leonardo announced today that the U.S. Attorney’s Office for the District of Arizona collected $9,334,911 in fiscal year 2015. These recoveries were split nearly equally between criminal actions ($4,603,192) and civil actions ($4,731,718). Additionally, the District of Arizona worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $2,200,808 in jointly-pursued cases and collected an additional $7,856,523 in asset forfeiture actions.
“We are very pleased to have collected millions of dollars on behalf of crime victims and taxpayers in the past year. We and our law enforcement partners take seriously our responsibility to enforce such obligations,” stated U.S. Attorney John S. Leonardo.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
In addition, Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
The U.S. Attorneys’ Offices, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. Restitution is paid to the victim while criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and corporations for violations of federal health, safety, civil rights, and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the. Department of Housing and Urban Development, the Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the Department of Education.
RELEASE NUMBER: 2015-118_FY15Collections
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Arizona Man Sentenced to Federal Prison for Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Jose Marcos Armendariz, 31, of Phoenix, Ariz., was sentenced today in federal court in Albuquerque, N.M., to 48 months in prison followed by three years of supervised release for his methamphetamine trafficking conviction.
Armendariz was arrested in May 2015, on a criminal complaint charging him with possession of methamphetamine with intent to distribute after DEA agents found approximately .60 kilograms of methamphetamine concealed inside Armendariz’s baggage during an interdiction investigation at the Greyhound Bus Station in Albuquerque on May 1, 2015. Armendariz was indicted on the same charge on May 12, 2015.
On Aug. 19, 2015, Armendariz pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. Armendariz admitted that on May 1, 2015, he was transporting a large amount of methamphetamine in his backpack when he was stopped by DEA agents at the Greyhound Bus Station in Albuquerque.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Samuel A. Hurtado prosecuted the case.
Anaconda Attorney Sentenced to 42 Months in Prison for FraudRead the Press Release
MISSOULA – David Michael McLean, 75, of Anaconda, MT, was sentenced today in Missoula federal court. In August, McLean pleaded guilty before U.S. Magistrate Jeremiah Lynch to two counts of wire fraud and one count of aggravated identity theft. Senior U.S. District Court Judge Robert H. Whaley, of the Eastern District of Washington, Sentenced McLean to 18 months on the wire fraud counts—to run concurrently—and an additional 24 months on the aggravated identity theft charge for a total of 42 months. McLean will also have to serve three years of supervised release and pay an as yet undetermined amount of restitution. McLean was charged by indictment in July with five counts of wire fraud and five counts of aggravated identity theft.
Assistant United States Attorney Timothy Racicot stated in court documents that if called upon to prove its case at trial, the United States would have been prepared to demonstrate that McLean embezzled money from his clients and from the Montana Chapter of the American Board of Trial Advocates (ABOTA) from 2009 until 2014. During that time, McLean stole approximately $465,614 from his clients and $62,325 from ABOTA. He later incrementally repaid $29,611 of the ABOTA funds. McLean served as ABOTA’s secretary/treasurer during this period.
McLean wrote checks from ABOTA’s account to himself or his law firm, signing his own name as treasurer and forging another ABOTA officer’s signature, and deposited the checks in his own firm’s operating account. McLean stole money from his clients by settling cases without the client’s knowledge or consent, retaining the proceeds in accounts he controlled, and lying to his clients about the status of their cases. He also forged his clients’ names on settlement documents. This fraudulent behavior was ultimately discovered in July of 2014. McLean subsequently admitted his fraud and reported himself to the State Bar’s Office of Disciplinary Counsel (“ODC”). As a result of the ODC investigation, McLean was ultimately disbarred by the Montana Supreme Court in March of 2015.
In its his sentencing memo on behalf of the United States, Assistant U.S. Attorney Racicot emphasized the significance of McLean’s breach of trust both to the organization of which he was an officer and more particularly to his clients. The memo stressed the importance of the sentence in sending a deterrent message to other attorneys who might be tempted to misappropriate client funds.
“The duty of loyalty an attorney holds on behalf of his clients is a sacred one, and McLean breached that duty,” said United States Attorney Mike Cotter. “Because we belong to a largely self-policing profession—one moreover in which we are entrusted with the most sensitive personal and financial information of our clients—It is vital that a breach of this severity be punished appropriately. Pure and simple, Attorney McLean broke the law. The court’s sentence reflects the gravity of McLean’s offense and sends a message to the broader legal community that this type of behavior will not be tolerated.”
This case was prosecuted by Assistant U.S. Attorney Timothy Racicot and investigated by the FBI.
Albuquerque Man Sentenced to Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Andres Salinas, 21, of Albuquerque, N.M., was sentenced today in federal court to 72 months in prison followed by 25 years of supervised release for possessing child pornography. Salinas will be required to register as a sex offender after completing his term of imprisonment.
Salinas was arrested by Homeland Security Investigations (HSI) on Sept. 4, 2014, and charged in a criminal complaint with receipt and possession of visual depictions of minors engaged in sexually explicit conduct. Salinas subsequently was indicted on Sept. 23, 2014, on the same charges.
Court filings reflect that HSI initiated an investigation into Salinas in July 2014, after receiving a referral from the Internet Crimes Against Children (ICAC) Unit of the New Mexico Office of the Attorney General. In July 2014, investigators identified an IP address that was being used to download and share child pornography. Subsequent investigation revealed that the IP address was subscribed to the residence in which Salinas lived. In Sept. 2014, investigators interviewed Salinas at his residence and he admitted that he had used the file sharing network to download images and videos consistent with child pornography and child erotica. Investigators seized computers, a video recorder, a cellular phone and computer-related media that contained child pornography after learning that Salinas regularly used the computer while he lived in the residence.
On May 5, 2015, Salinas pled guilty to possessing child pornography and admitted that from July 20, 2014 through Aug. 9, 2014, he possessed visual depictions of minors engaged in sexually explicit conduct.
This case was investigated by the Albuquerque office of HSI, the New Mexico Office of the Attorney General and was prosecuted by Assistant U.S. Attorney Jacob Wishard; all members of the New Mexico Internet Crimes Against Children (ICAC) Task Force
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alaska Resident Sentenced to 7 Years in Prison for Drug Dealing and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Today, United States District Judge Troy L. Nunley sentenced DuWayne LeDoux, 55, of Kodiak, Alaska, to seven years in prison for possession with intent to distribute methamphetamine and conspiracy to structure cash deposits, United States Attorney Benjamin B. Wagner announced.
According to court documents, LeDoux enlisted Sacramento resident Jennifer MacDougal, 45, to obtain and ship methamphetamine and crack cocaine to LeDoux at various addresses in Kodiak and under various names, so that LeDoux could sell the drugs. LeDoux paid for the drugs by depositing cash into a Wells Fargo account held by MacDougal in amounts designed to avoid bank reporting requirements.
Kodiak, Alaska is on Kodiak Island off the southern coast of Alaska. The island has a total of approximately 14,000 residents, with approximately 6,000 of them in Kodiak.
Co-defendant MacDougal pleaded guilty in November 2012, and was sentenced to five years in prison.
This case is the product of an investigation by the Drug Enforcement Administration and the Internal Revenue Service’s Financial Crimes Task Force. Assistant United States Attorneys Jason Hitt and Jean M. Hobler are prosecuting the case.
***media Advisory***Read the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin, joined by FBI Special Agent James Lafferty, U.S. Department of Labor Office of Inspector General (DOL OIG) Special Agent Jeffrey Carter, and Assistant United States Attorneys Steve Ruby, Greg McVey, and Gabriele Wohl, will address the jury verdict in the trial of former Massey Energy Chief Executive Officer Don Blankenship today at a press conference at 1:00 p.m. in the U.S. Marshal’s Office – Suite 3600 - located in the Robert C. Byrd United States Courthouse in Charleston, West Virginia.
WHO:
- United States Attorney Booth Goodwin
- FBI Special Agent James Lafferty
- DOL OIG Special Agent Jeffrey Carter
- Assistant United States Attorney Steve Ruby
- Assistant United States Attorney Greg McVey
- Assistant United States Attorney Gabriele Wohl
WHAT:
- Press conference to address the jury verdict in the trial of former Massey CEO Don Blankenship
WHERE:
- Robert C. Byrd United States Courthouse
- U.S. Marshal’s Office – Suite 3600
- 300 Virginia Street, East
- Charleston, WV 25301
WHEN:
- Today at 1:00 p.m.
Follow us on Twitter: SDWVNews
Wednesday 2 December 2015
Wheeling, WV woman sentenced for heroin, cocaine, and painkiller traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Amanda Caretti, 24, of Wheeling, was sentenced today to twelve months and one day in prison for her role in a drug trafficking scheme involving heroin, cocaine, and oxycodone, United States Attorney William J. Ihlenfeld, II, announced.
Throughout 2014, Caretti conspired with other individuals to possess and distribute heroin, cocaine, and oxycodone in Marshall and Ohio Counties in West Virginia. She pled guilty in September 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Schedule I and Schedule II Controlled Substances.”
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Wayne County men indicted for distributing Adderall, other prescription drugsRead the Press Release
A federal grand jury returned a two-count indictment charging Ryan L. Peltan, 30, of Doylestown, and Derik W. Snell, 39, of Wooster, with possession with intent to distribute controlled substances, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Count 1 of the indictment alleges that on October 26, 2015, Peltan and Snell possessed with the intent to distribute approximately 2,952 dose units of Adderall and approximately 90 dose units of Adderall patches, Schedule II controlled substances.
Count 2 of the indictment alleges that on the same date, Peltan and Snell possessed with the intent to distribute approximately 999 dose units of Alprazolam (Xanax), approximately 592 dose units of Conazepam, approximately 1,494 dose units of Lorazepam, and approximately 1,052 dose units of Tramadol, Schedule IV controlled substances.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Akron Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Warren County Man Charged on Federal Child Exploitation ChargesRead the Press Release
St. Louis, MO – CHRISTOPHER DAVID SCHROEDER, Marthasville, Missouri, was charged in a criminal complaint alleging that he transported a minor from Ohio back to Missouri to engage in criminal sexual activity. He appeared for his initial appearance in federal court Wednesday afternoon.
If convicted, these charges carry penalties ranging from 15 years to life in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Union County, New Jersey, Man Admits Role in $6 Million Mortgage Fraud SchemeRead the Press Release
NEWARK N.J. – An Elizabeth, New Jersey, man today admitted recruiting straw buyers and submitting bogus loan applications as part of large-scale mortgage fraud scheme involving properties in northern New Jersey, U.S. Attorney Paul J. Fishman announced.
Miguel LaRosa, 48, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court of an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
LaRosa admitted that, from March 2011 through November 2012, he conspired with others to fraudulently obtain mortgages using falsified loan applications, supporting documents and closing documents. In addition to recruiting straw buyers to purchase properties, LaRosa and others created misleading certifications that bank accounts contained a specific amount of money when they actually contained less, prepared false appraisal reports, back-dated deeds and used unlicensed title agents to close transactions and disburse the mortgage proceeds.
Overall, the conspiracy in which LaRosa was involved resulted in more than $6 million in fraudulent loans and exposed lenders and the Federal Housing Administration to more than $2 million in potential losses.
The conspiracy to commit wire fraud charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for March 10, 2016.
U .S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for their roles in the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Acting Chief Barbara Ward of the Asset Forfeiture Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Defense Counsel: Dennis S. Cleary Esq., Newark
U.S. Secret Service Officer Indicted for Attempting to Send Obscene Images to a MinorRead the Press Release
WILMINGTON, Del. – A federal grand jury in Wilmington, Delaware, indicted a resident of Church Hill, Maryland, today on one count of attempting to transfer obscene materials to a minor, U.S. Attorney Charles M. Oberly III of the District of Delaware announced today.
Lee Robert Moore, 37, was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest. Moore was arrested on Nov. 9, 2015, and has remained in custody since that time.
According to the indictment and court documents filed in the case, Moore allegedly maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore allegedly engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats allegedly between Moore and the supposed female minor were sexual in nature and, on several occasions, Moore allegedly sent pictures of himself, including one depicting his penis.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force conducted the investigation. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 http://www.justice.gov/psc.
U.S. Secret Service Officer Indicted for Attempting to Send Obscene Images to a MinorRead the Press Release
A federal grand jury in Wilmington, Delaware, indicted a resident of Church Hill, Maryland, today on one count of attempting to transfer obscene materials to a minor, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware announced today.
Lee Robert Moore, 37, was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest. Moore was arrested on Nov. 9, 2015, and has remained in custody since that time.
According to the indictment and court documents filed in the case, Moore allegedly maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore allegedly engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats allegedly between Moore and the supposed female minor were sexual in nature and, on several occasions, Moore allegedly sent pictures of himself, including one depicting his penis.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force conducted the investigation. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 http://www.justice.gov/psc.
Two more defendants sentenced for role in counterfeiting schemeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that two women were sentenced in federal court today in Charleston, West Virginia, for passing counterfeit $100 bills. Nyteria Green, 36, of Columbus, Ohio, was sentenced to three years in federal prison. O’wynn Rogers, 27, of Beckley, was sentenced to one year in federal prison.
Green and Rogers previously pleaded guilty on August 18, 2015, and admitted to passing counterfeit $100 bills at locations around Beckley, West Virginia, in April 2014. Both women admitted to passing the counterfeit money at several businesses, including at multiple locations in the Crossroads Mall in Mt. Hope and at the IHOP on Harper Road in Beckley.
In a related case, Paula Green, of Columbus, Ohio, pleaded guilty to three counts of passing counterfeit $100 bills in Beckley and Charleston, and faces up to 60 years in prison when she is sentenced on February 24, 2016, at the federal courthouse in Beckley. In another related case, Kenyata Smith, of Beckley, was sentenced on October 21, 2015, to two years of probation for her involvement in the passing of counterfeit money.
The investigation of this case was conducted by the United States Secret Service. Assistant United States Attorneys Eric Bacaj handled the prosecution.
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Two West Virginia men charged with wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging Jeffery L. Burdine, 38, of Hundred, West Virginia, and Devin K. Wright, 25, of Fairmont, West Virginia, with wire fraud, United States Attorney William J. Ihlenfeld, II, announced.
Burdine owned and operated Express Towing, a towing company in Hundred, West Virginia, through which he would assist customers to rent trucks from national rental companies, such as Penske, the Avis Budget Group, and U-Haul. Burdine allegedly conspired with various customers to stage false motor vehicle accidents involving the rented trucks. Instead of calling the national rental companies and arranging for their preferred and approved towing companies to tow the damaged vehicles, Burdine allegedly towed the trucks himself or had the customers return the trucks to his business. He would then allegedly make interstate telephone calls to the national rental companies in which he would demand payment of his towing fees before he would return the truck to the rental companies.
Burdine and Wright are each charged with one count of “Conspiracy to Commit Wire Fraud” and two counts of “Wire Fraud.” They each face up to 20 years in prison and a fine of up to $250,000 on each of the three counts. 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 Robert McWilliams is prosecuting the case on behalf of the government. The Federal Bureau of Investigation is leading the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Associates of Decavalcante Crime Family Admit Distributing CocaineRead the Press Release
NEWARK, N.J. – Two associates of the DeCavalcante organized crime family of La Cosa Nostra today admitted their roles in distributing more than 500 grams of cocaine, U.S. Attorney Paul J. Fishman announced.
John Capozzi, 34, of Union, New Jersey, and Mario Galli, 23, of Toms River, New Jersey, each pleaded guilty before U.S. District Judge William H. Walls to an information charging them with one count of distribution of more than 500 grams of cocaine.
According to documents filed in this case and statements made in court:
Capozzi and Galli were arrested and charged by complaint in March 2015, along with eight members of the DeCavalcante crime family. They both admitted that between Dec. 12, 2014, and March 2015, in conjunction with other family associates, they sold more than one-half a kilo of cocaine to an undercover FBI agent for at least $78,000.
The drug distribution count to which Capozzi and Galli each pleaded guilty carries a mandatory minimum of five years, a maximum of 40 years in prison and a $5 million fine. Sentencing for both defendants is scheduled for March 21, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Defense counsel:
Capozzi: Neil G. Duffy III Esq., Union, New Jersey
Galli: James N. Butler Jr. Esq., Asbury Park, New Jersey
Tennessee Businessman Pleads Guilty to Stock Fraud SchemeRead the Press Release
BOSTON – A Tennessee businessman pleaded guilty today in U.S. District Court in Boston to defrauding investors in connection with the fraudulent sale of millions of dollars of stock in a medical technology company.
Shane Gunn, 40, of Medina, Tenn., pleaded guilty to one count of wire fraud. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 2, 2016.
From 2010 to 2013, Gunn, an information technology expert, sold stock in CareXGen, whose principal asset was a patent for a system, he claimed to have designed, that would facilitate the electronic exchange of health information. To lure investors, Gunn repeatedly misrepresented CareXGen’s profitability and how investors’ money would be used. He also represented to investors that CareXGen had large contracts lined up worth millions of dollars. In fact, CareXGen did not have any major contracts and Gunn spent over $1 million of victim investors’ money on himself, his wife and his former girlfriend.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stephen Heymann of Ortiz’s Economic Crimes Unit.
Tax Preparers Plead Guilty to Federal Offenses in Separate CasesRead the Press Release
DALLAS — Two tax preparers who operated tax preparation businesses in Irving, Texas, and Duncanville, Texas, recently pleaded guilty to federal offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
In one case, Hector Gerardo Nunez pleaded guilty to one count of aiding and assisting in the preparation of a false tax return. According to the factual resume filed in his case, from at least 2007 through 2010, Nunez did business under the name of Speedy Tax Service, located on W. Airport Freeway in Irving. During this period, Nunez knowingly and willfully prepared, and caused to be filed with the Internal Revenue Service (IRS), income tax returns that were materially false. Nunez would include false or inflated deductions and credits that were intended to produce a fraudulently inflated refund to be paid by the IRS. He would then collect a fee that was deducted from the refund generated by each return he prepared. Nunez faces a maximum statutory penalty of three years in federal prison as well as a fine and restitution. Sentencing is set for March 10, 2016, before U.S. District Judge Jane J. Boyle.
In the other case, Sherene Warren pleaded guilty to the same offense as well as to one count of theft of government money. According to the factual resume filed in her case, Warren was the owner and manager of the tax preparation business Fast Tax Services that was located on N. Cedar Ridge Drive in Duncanville and then later on W. Wheatland Road in Duncanville. Warren falsified, according to the factual resume, line items on clients’ tax returns to obtain larger refunds. She also admitted receiving approximately $121,701 in 2010, $218,517 in 2011 and $360,491 in 2012 in fees/bonuses for preparing the tax returns. Warren further admitted that she did not disclose any Fast Tax Services’ income on her 2010 tax returns, and that she did not file a tax return in 2011 or 2012.
Warren also submitted false and fraudulent information about her income and employment to the Dallas Housing Authority in connection with receipt of Section 8 housing benefits, admitting that she stole approximately $28,786 in housing assistance to which she was not entitled. Each year, the factual resume goes on to state, Warren submitted false and fraudulent documents to the Dallas Housing Authority showing she had no income, when, as she well knew, she received substantial income from the operation of Fast Tax Service.
Warren faces a maximum statutory penalty of three years in federal prison on the tax conviction and five years on the theft of government money conviction, as well as fines and restitution. Warren was also charged with stealing disability benefits and, according to the plea agreement filed, while she did not plead to that offense, she has agreed to pay restitution of an amount proven at sentencing to the IRS, the U.S. Department of Housing and Urban Development (HUD) and the Social Security Administration (SSA). Sentencing is set for March 17, 2016, before U.S. District Judge Reed C. O’Connor.
IRS Criminal Investigation is investigating both cases. HUD Office of Inspector General and the SSA Office of Inspector General are also investigating the Warren case.
Assistant U.S. Attorney Christopher Stokes is prosecuting the Nunez case, and Assistant U.S. Attorney Nicholas Bunch is prosecuting the Warren case.
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Tax Preparer Admits Filing Thousands of False Returns in Multi-Million Dollar Tax Return ScamRead the Press Release
Assistant U.S. Attorneys Joseph J.M. Orabona (619) 546-7951 or Alexandra Foster (619) 546-6735
NEWS RELEASE SUMMARY – December 2, 2015
SAN DIEGO – The owner of a tax preparation business pleaded guilty today in federal court, admitting that she filed more than 4,000 false income tax returns with the Internal Revenue Service in order to obtain more than $7 million in bogus refunds.
Melissa Ann Vega, also known as Lisa Vega, was a local tax preparer and owner of L&T Works, a tax return preparation business on Miramar Road. She entered her plea to charges of conspiracy to file false, fictitious, and fraudulent claims for federal tax refunds, tax evasion and aggravated identity theft before U.S. Magistrate Judge Bernard G. Skomal.
According to her plea agreement, Vega, conspired with others from at least December 2009 through April 2015 to submit thousands of false income tax returns to the IRS in order to fraudulently obtain tax refunds to which Vega, her co-conspirators, and her clients were not entitled. In carrying out her scheme, Vega falsified her clients’ tax returns without their knowledge or consent. As part of the conspiracy, Vega claimed thousands of dollars in false education expenses and tax credits for which her clients were not qualified.
Vega told her co-conspirators and employees that they should maximize clients’ refunds by filing for a $4,000 education credit, even though the client did not attend school for that tax year. To conceal her role in the fraud, Vega intentionally omitted her name and tax return preparer identification number on the false tax returns she prepared for her clients. In total, Vega’s fraud caused the IRS to pay more than $7 million in artificially-inflated tax refunds based solely on the false education credits. Moreover, Vega admitted that she and her co-conspirators stole the identities of other persons, including minors, and used them on the false tax returns in order to further inflate the amount of the tax refund paid by the IRS.
Vega did not shy away from personally profiting from her fraudulent scheme. In addition to charging her clients between $150 and $200 per return, Vega also admitted that she stole more than $300,000 in false tax refunds from her clients by directing their refunds into bank accounts that she controlled. Vega spent this money for her own personal benefit. Vega also admitted that she evaded her own income taxes and filed false personal tax returns in which she fraudulently claimed withholding credits, education credits, and tax credits for minor dependents that she did not support and were not related to her. According to court documents, Vega evaded more than $156,000 in taxes due to the IRS for tax years 2009 through 2013.
The plea agreement also sets forth a forfeiture provision whereby Vega, a previously convicted felon, agreed to the surrender of several firearms seized from her residence during the execution of a search warrant in April 2014, including a sawed-off shotgun, shotgun shells, a 9mm handgun, and 9mm ammunition. Vega’s husband, Jamie Lang, pleaded guilty to possessing the unregistered sawed-off shotgun and is scheduled to be sentenced in this case before U.S. District Judge Jeffrey T. Miller on December 18, 2015 at 9:00 a.m. In addition, Vega consented in her plea agreement to the forfeiture of approximately $18,600 in cash, also seized during the search warrant, which represented proceeds of her tax fraud.
Furthermore, as part of her plea agreement, Vega agreed to be permanently enjoined from preparing or filing federal income tax returns for anyone other than herself. A civil complaint will be filed against Vega, and a permanent injunction will be entered to prevent Vega from acting as a tax preparer in the future.
Vega was released on bond in this case on January 28, 2015. Although the court informed her not to commit another federal crime, Vega once again began filing false tax returns with the IRS within days of her release. Without the clients’ knowledge, Vega fraudulently inflated or created credits and deductions to maximize her clients’ false returns. The IRS uncovered her fraud, and Vega was arrested on February 25, 2015. In furtherance of her conspiracy, Vega agreed with Deanna Dave (charged in Criminal Case No. 15CR2715-JM) to misrepresent to the grand jury that Dave was the owner and paid-return preparer for the tax returns filed in February 2015. In truth, Vega continued as the owner of her tax preparation business and prepared the false tax returns which she filed for her clients. On November 17, 2015, Dave pleaded guilty to making a false declaration before the grand jury, and her sentencing is scheduled for February 5, 2016 before Judge Miller.
“Tax return preparers owe a duty to their clients to prepare tax returns that are accurate and comply with the law,” said U.S. Attorney Laura Duffy. “Tax return preparers who defraud the IRS out of millions of dollars, intentionally falsify tax returns, and steal the identities of minor dependents breach the public’s trust and undermine confidence in the tax system. This Office and our law enforcement partners will vigilantly pursue allegations of such misconduct in order to protect the community and the public.”
With a new tax return filing season right around the corner, U.S. Attorney Duffy reminded the public to always review a copy of any tax return prepared and filed on their behalf and to be skeptical of tax preparers that offer to obtain substantial tax refunds.
Erick Martinez, Special Agent in Charge for IRS Criminal Investigation commented: “As we approach tax filing season, those who might consider committing refund fraud and identity theft should be aware of the extremely negative consequences of doing so,” said IRS Criminal Investigation's Special Agent in Charge Erick Martinez. “IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false income tax returns.”
“The Secret Service remains committed to vigorously investigating and seeking prosecution of those individuals who commit identity theft. We are grateful for the efforts of the U.S. Attorney’s Office and our federal partners at the Internal Revenue Service in this investigation,” said David Murray, Special Agent in Charge, United States Secret Service, San Diego Field Office.
Separately, three other defendants have entered guilty pleas admitting their roles in the tax fraud conspiracy. Earlier this year, co-conspirators Tammie Cowles, Stephen Elliott, and Justin Vega entered guilty pleas to conspiracy to file false claims for tax refunds. Co-conspirator Justin Vega is scheduled to be sentenced before U.S. District Judge Jeffrey T. Miller on January 22, 2016, and co-conspirators Tammie Cowles and Stephen Elliott are scheduled for sentencing before Judge Miller on March 4, 2016.
Vega is scheduled to be sentenced for her crimes before U.S. District Judge Jeffrey T. Miller on March 4, 2016 at 9:00 a.m.
DEFENDANT Criminal Case No. 14CR3658-JM
Melissa Ann Vega Age: 44 San Diego, CA
SUMMARY OF CHARGES THAT DEFENDANT VEGA PLEADED GUILTY TO:
Count 1 – Title 18, United States Code, Section 286 B Conspiracy to File False Claims
Maximum penalties: 10 years in prison, $250,000 fine, 3 years of supervised release.
Count 2 – Title 26, United States Code, Section 7201 – Tax Evasion
Maximum penalties: 5 years in prison, $250,000 fine, 1 year of supervised release.
Count 3 – Title 18, United States Code, Section 1028A – Aggravated Identity Theft
Maximum penalties: 2 years in prison to be served consecutive to any other term of imprisonment, $250,000 fine, 3 years of supervised release
OTHER CO-CONSPIRATORS AND CHARGES:
Tammie Cowles Age: 41 San Diego, CA Criminal Case No. 15CR1591-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Stephen Elliott Age: 28 San Diego, CA Criminal Case No. 15CR1003-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Justin Vega Age: 26 San Diego, CA Criminal Case No. 15CR2198-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Deanna Dave Age: 49 San Diego, CA Criminal Case No. 15CR2715-JM
Pleaded Guilty to: Title 18, United States Code, Section 1623 – False Declaration before Grand Jury
Jamie Lang Age: 27 San Diego, CA Criminal Case No. 14CR3658-JM
Pleaded Guilty to: Title 26, United States Code, Section 5861(d) – Possession of Saw-Off Shotgun
INVESTIGATING AGENCIES
Internal Revenue Service-Criminal Investigation
United States Secret Service
Bureau of Alcohol, Tobacco, and Firearms
Store Owner Sentenced to Three Years for Defrauding Government Assistance ProgramRead the Press Release
PHILADELPHIA - Saud Saleh, 30, of Philadelphia, PA, was sentenced today to three years in prison for defrauding the United States Department of Agriculture (USDA)’s Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. The defendant had pleaded guilty to charges of trafficking in SNAP benefits and committing wire fraud.
The defendant owned and operated Twinz Meat Market, a retail grocery store, now defunct, that was located at 3083 Kensington Avenue in Philadelphia. At his guilty plea hearing, the defendant admitted that he knowingly trafficked in SNAP benefits, and directed his employees to traffic in SNAP benefits, by purchasing those benefits from customers of Twinz Meats, which is illegal. The defendant admitted that within a 12-month period, he was responsible for a program loss of $1,125,586.
In addition to the prison term, United States District Court Judge Gerald J. Pappert ordered restitution of $1,125,586 to USDA and three years of supervised release.
The case was investigated by the United States Department of Agriculture Office of Inspector General, and U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Floyd J. Miller.
Stockton Woman Sentenced to over 4 Years in Prison for Participation in Bank Fraud and Identity Theft Scheme Using Mail Stolen from Sutter County and Sacramento County Post OfficesRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Breneth L. Chase, 44, of Stockton, today to four years and 10 months in prison for bank fraud, aggravated I.D. theft, and possession of counterfeit I.D. documents, United States Attorney Benjamin B. Wagner announced.
According to court documents, Chase and others obtained U.S. mail and postal keys stolen during burglaries of post offices in Sutter County and Sacramento County. She used the stolen mail to manufacture checks and identification documents to cash phony checks, apply for lines of credit, and make purchases at local department stores. According to court documents, Chase possessed over five different manufactured identifications including U.S. Military identifications and badges. Chase admitted that she possessed personal and financial information for numerous Sutter and Sacramento County residents.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “Postal Inspectors work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail, postal property and complex financial crimes committed against the public and the Post Office.”
This case was the product of an investigation of the United States Postal Inspection Service, Sutter County Sheriff's Office, Stockton Police Department, and Sutter Creek Police Department, with the assistance from the Sacramento County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez prosecuted the case.