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26 January 2016
Brooklyn NY Man Sentenced to 24 Months Probation for Possession of 15 or More Counterfeit Access DevicesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JAVONTE SHAWN ALEXANDER, age 23, of Brooklyn, New York, was sentenced to 24 months of probation for POSSESSION OF FIFTEEN OR MORE COUNTERFEIT ACCESS DEVICES, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2.
The Indictment alleged that on or about April 24, 2015, within the Eastern District of Oklahoma, the defendant knowingly possessed fifteen (15) or more access devices, which were counterfeit or unauthorized access devices, with said activity affecting interstate commerce.
The charges arose from an investigation by the Oklahoma Highway Patrol and the United States Secret Service.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Broadview Heights man charged for his role in theft of $3.3 million from the Cuyahoga Heights School DistrictRead the Press Release
A two-count criminal information was filed charging a Broadview Heights man for his role in the theft of more than $3.3 million from the Cuyahoga Heights School District, law enforcement officials said.
Dominick Palazzo, 42, was charged with conspiracy to commit mail fraud and conspiracy to commit money laundering.
His brother, Joseph M. Palazzo, was an employee of the Cuyahoga Heights School District. The Palazzos, along with David Donadeo and Dennis Boyles, conspired together to defraud the school district through dozens of fraudulent billings to sham companies controlled by Dominick Palazzo, Donadeo and Boyles, according to court documents.
“This defendant, along with his brother and friends, stole millions of dollars from the children and taxpayers in Cuyahoga Falls,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “They used fraudulent invoices and fake companies to enrich themselves at the expense of kids.”
“This investigation uncovered a multi-million-dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Guy A. Ficco, Acting Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
“Dominick Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”
Joseph Palazzo was employed by the Cuyahoga Heights School District as its Information Technology director until February 2011. He was responsible for managing the district’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the district and its students, according to the information.
Joseph Palazzo devised a scheme to divert millions of dollars of district funds to his personal use and the personal use of others. This scheme involved Joseph Palazzo submitting to the district for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the district’s IT Department to benefit the district. He represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to the information.
However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the district from another source. The companies named on the invoices did not supply such goods to or perform such services for the district and were nothing more than “shells,” according to court documents.
Joseph Palazzo’s actions caused the district to issue checks to these shell vendor corporations, which were established and owned by Dominick Palazzo, Boyles and Donadeo. The shell vendor corporation owners kept approximately half of the stolen money themselves and funneled the remainder of the money back to Joseph Palazzo for his personal use, according to court documents.
These shell companies included Laptops and More, Inc., and Impact Global, LLC, which were established by Dominick Palazzo.
The district sustained a total loss of at least $3,333,448, as a result of the fraudulent scheme according to the information.
Joseph Palazzo was previously found guilty and is currently serving a sentence of more than 11 years in prison. Boyles was sentenced to more than two years in prison and Donadeo’s case is pending.
The case is being prosecuted by Assistant United States Attorney Rebecca Lutzko following an investigation by the Internal Revenue Service -- Criminal Investigation and the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
An information 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.
Blythewood Man Convicted of Massive Government FraudRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Dennis Paulsen, age 45, of Blythewood was convicted of stealing more than $1.5 million from the United States Department of Veteran’s Affairs and the Social Security Administration following a seven-day jury trial in federal court in Columbia. Mr. Nettles stated the maximum penalty Paulsen faces is imprisonment for up to 20 years and fines of $500,000, along with forfeiture of the more than $1.5 million. Senior United States District Judge Margaret B. Seymour of Columbia presided over the trial and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
In conducting one of the largest fraudulent single disability compensation claims in VA history, Paulsen substantially feigned and exaggerated the impairment resulting from his multiple sclerosis (MS) diagnosis. After being diagnosed and discharged from the Navy in the early 1990s, Paulsen began receiving a monthly VA benefit as a result of his diagnosis. Unsatisfied with the amount he was receiving, Paulsen began a pattern of malingering by claiming his MS rendered him unable to use his hands or feet in any respect. Still unhappy with the money he was awarded, Paulsen ramped up his claims, lying to his doctors, presenting himself as house- and wheelchair- bound, and making false claims that he required daily professional medical care to live until his benefits were increased to the maximum disability payments available to a Veteran. At the same time, Paulsen used the same feigned impairments to convince the Social Security Administration that he was entitled to SSA disability benefits. Despite his feigned claims of impairments and presenting himself in a wheelchair to his doctors, Paulsen lived in a non-handicap accessible residence and was able to ride his motorcycle and jet skis plus play baseball and golf on a regular basis. In 1999, Paulsen met his ex-wife at the gym where he exercised and worked training others. In 2004, Paulsen sold their 5,000 square foot house for more than half of a million dollars and moved from Virginia to Blythewood, SC.
In Blythewood, Paulsen purchased a two-story brick house that was not handicapped accessible and stopped going to neurologists for his MS. Illustrating his lack of impairment, Paulsen was active in several gyms, joined a baseball league from 2006 until 2014, and lived an active lifestyle, including playing pool, swimming in his backyard pool, playing on the beach, and driving his Escalade and manual shift Mini-Cooper. In 2014, a concerned citizen reported Paulsen to the VA and explained how Paulsen lacked the impairments that he claimed. Upon learning that the VA was looking into his actual impairment from MS, Paulsen immediately quit his baseball league and began appearing at the VA again in his wheelchair, claiming to be unable to walk or use his hands.
The extensive investigation by the VA and SSA included undercover agents, surveillance, and photographs and video footage from banks, stores, and the Columbia Metropolitan Airport. Family photographs kept by Paulsen’s ex-wife were also obtained showing Paulsen’s many activities with his family, playing baseball, and participating in a Marine Mud Run. Paulsen testified, in a wheelchair, for four hours and called three doctors as expert witnesses in an attempt to support his claim that he was and had been totally disabled. The guilty verdict reflects that the jury did not find this testimony credible.
The case was investigated by the Office of Inspector General for the Veteran?s Administration and Social Security Administration. Assistant United States Attorneys William E. Day II and Jay N. Richardson and of the Columbia office prosecuted the case. Anyone aware of fraud being committed against the Department of Veterans Affairs should call 1-800-488-8244 and report it.
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Benjamin Colby Smith Sentenced to 200 Months for Leadership Role in Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Jan. 25, 2016, Benjamin Colby Smith, 39, of Russellville, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Judge, to serve 200 months in federal prison for his leadership role in a methamphetamine conspiracy centered in the Morristown area of the Eastern District of Tennessee. Smith obtained substantial quantities of methamphetamine from a source of supply in Georgia and redistributed it to others in and around Morristown, Tenn.
According to Smith’s plea agreement on file with U.S. District Court, he was involved in a traffic stop in Morristown in September 2014. This stop lead to the search of the vehicle he was driving and resulted in the seizure of approximately 45 grams of methamphetamine. Smith was arrested and transported to jail. While incarcerated, he made a number of calls, which were recorded. During some of these calls, he directed Stacy Margarita Williams, 24, and Krystal Ann Sexton, 34, both of Morristown, Tenn., to travel to Georgia and meet with his methamphetamine supplier on his behalf.
In September 2014, Williams and Sexton arrived in Georgia, met with Smith’s source and obtained methamphetamine which was to be returned to Tennessee to sell for Smith. On the return trip to Morristown, Williams and Sexton were pulled over for a traffic stop in Georgia. A search of their vehicle resulted in the seizure of at least approximately 51 grams of methamphetamine, a digital scale and a firearm.
Others who were charged and previously sentenced in this prosecution include Williams, Sexton and Cary Ann Winegar, 38, of Morristown, Tenn., who were sentenced to 60 months, 103 months and 97 months, in federal prison respectively.
Law enforcement agencies participating in this investigation included the Morristown Police Department, Hamblen County Sheriff’s Office and Franklin County, Georgia Sheriff’s Office. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Augusta Residents Sentenced to Federal Prison for Their Roles in Armed Bank RobberyRead the Press Release
AUGUSTA, GA – Christopher J. Cunningham, 39, and Willie W. Smith, 38, from Augusta, Georgia, were both sentenced yesterday by Senior U.S. District Court Judge Dudley H. Bowen, Jr. to 10 years and 9 months in prison following their convictions for armed bank robbery. Ricardo M. Mobley, 29, also from Augusta, was sentenced last month to 8 years in prison for his role in the robbery. There is no parole in the federal system. Upon their release from prison, all three defendants will be supervised for 5 years by the U.S. Probation Office.
The evidence at the guilty plea and sentencing hearings revealed that, on the morning of January 9, 2015, Richmond County Sheriff’s Office received a report of an armed bank robbery in progress at a Southern Bank branch in Hephzibah, Georgia. Two men had entered the bank wearing masks, gloves and brandishing a firearm, while a third person – a getaway driver – waited in the car. The two who entered the bank demanded money, and left with over $12,000 in cash. Immediately thereafter, Chief Dwayne Flowers of the Hephzibah Police Department engaged in a high speed chase with the getaway car. The getaway car ultimately crashed in a field next to a country road, and the three defendants fled on foot, making their initial escape in the wooded area nearby. Based on evidence recovered at the scene of the crash, all three defendants were identified. Mobley was arrested later that same day. Smith and Cunningham were arrested some weeks later. Notably, Cunningham had been convicted at trial of another armed bank robbery in 2004. All three defendants ultimately pled guilty in this case.
This prosecution was the result of the cooperative efforts of the Hephzibah Police Department, the Richmond County Sheriff’s Office and the FBI’s Safe Streets Task Force. Also assisting in the investigation were the Georgia State Patrol, the U.S. Marshal’s Service and the U.S. Probation Office. Assistant United States Attorney Nancy Greenwood prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Attorney General’s Smart on Crime Initiative Implemented LocallyRead the Press Release
KNOXVILLE, Tenn.-- At the direction of the U.S. Attorney General in early 2013, the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that would ensure federal laws are enforced more fairly and—in an era of reduced budgets—more efficiently. Five goals were identified as a part of this review:
- To ensure finite resources are devoted to the most important law enforcement priorities;
- To promote fairer enforcement of the laws and alleviate disparate impacts of the criminal justice system;
- To ensure just punishments for low-level, nonviolent offenders;
- To bolster prevention and reentry efforts to deter crime and reduce recidivism; and,
- To strengthen protections for vulnerable populations.
The Justice Department refers to this initiative as “Smart on Crime.” The U.S. Attorney’s Office for the Eastern District of Tennessee partnered with the Chief of the U.S. Probation Office for the Eastern District of Tennessee, Tony Anderson, and his staff to implement the program locally. The local program focuses on ways to make the district safer by providing federal ex-offenders with the resources necessary to successfully re-enter the community and reduce recidivism.
On Monday, Jan. 25, 2016, the local Smart on Crime Initiative started with a Community Resource Expo in Chattanooga, Tenn. Anderson kicked off the inaugural event by addressing the ex-offenders during the expo. The expo included a partnership with or featured community service providers who include Behind the Bars, BlueCross BlueShield, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Bureau of Prisons Half-Way House, Chattanooga Community Kitchen, Chattanooga State Community College, Christian Women’s Job Corp, Father to the Fatherless, Johnson Mental Health, Marion County, Tennessee Jail Chaplain, Mt. Canaan Baptist Church, Northside Neighborhood House, Olivet Church, Salvation Army, Stephens Table, Tennessee Career Center, Tennessee Department of Human Services, Tennessee Department of Labor and Workforce Development Career Center, and the United Way 2-11. Through this network of federal law enforcement officials and community service providers, the Smart on Crime Initiative is working to make this community safer through being both smart and tough on crime. TechTown, a technology and entrepreneurial learning center, provided space for the event and Southern Star, a local Chattanooga-based restaurant, donated full-catering services for the event. Similar events are scheduled for Knoxville and Johnson City, Tennessee this week.
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Atlantic Beach Attorney Charged with Embezzling from Bankruptcy EstateRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging William Reid Penuel (37, Ponte Vedra Beach) with embezzlement from a bankruptcy estate and making a false statement. If convicted, he faces up to five years in federal prison on each count. Penuel was arraigned in federal court today and was released on a $50,000 bond.
According to the indictment, between March 2015 and July 2015, Penuel, while serving as the Chapter 7 Trustee in a business bankruptcy case, embezzled estate funds held in a BB&T bank account. The indictment further alleges that, on August 19, 2015, Penuel lied to an FBI agent when he claimed that he had transferred the estate funds to his account at Ameris Bank. In fact, Penuel did not have an account at Ameris Bank.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville office of the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Dale Campion.
10 Year Prison Sentence in Stolen Guns CaseRead the Press Release
Gulfport, Miss – Tyson Lee Gaines, Sr. was sentenced today by U.S. District Judge Sul Ozerden to serve 10 years in federal prison in a case involving the theft of 50 firearms from Friendly Pawn and Auto in Saucier, MS, U. S. Attorney Gregory K. Davis announced.
Gaines, 34, of Gulfport, Mississippi, received the maximum penalty of 10 years in prison on one count of stealing firearms from a licensed dealer. He was also ordered to pay restitution of $9,008.68 and he will serve three years of supervised release following his prison term.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, the Drug Enforcement Administration and the Harrison County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Annette Williams.
25 January 2016
Westerville Man Pleads Guilty in Million Dollar Investment Fraud SchemeRead the Press Release
COLUMBUS – Mark Preston French, 42, of Westerville, Ohio has pleaded guilty in U.S. District Court to one count of wire fraud in connection to investment fraud scheme involving more than $1 million.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), announced the plea entered on Friday before U.S. District Chief Judge Edmund A. Sargus, Jr.
According to court documents, French worked as a stockbroker between 1998 and 2013. An elderly woman from Greenville, Pennsylvania, who believed French was an investment advisor, was his client between 2000 and 2012. In 2008, French advised the elderly woman to begin investing in precious metals.
In 2009, French advised his elderly client to open joint checking and savings accounts with him so he could purchase and sell precious metals on her behalf. French instructed his client deposit funds totaling more than $1.3 million into these joint accounts. French used the funds to purchase and sell gold and silver with the Tulving Company in Newport Beach, California. French deposited a portion of the proceeds received from the sale of the elderly client’s precious metals to the Tulving Company, but also embezzled $120,414.80 of the proceeds for his own purposes.
In September 2012, French advised the elderly client told French she wanted to take physical possession of her gold and silver, which French was storing in his Westerville home. Instead, French sold a majority of the precious metals back to Tulving Company, returning $1,062,820 back to his client, but keeping part of the proceeds for himself. He also kept 11,942 ounces of silver purchased with his client’s funds, which was valued at more than $400 thousand.
French faces up to 20 years in prison and a fine of $250 thousand for his crimes. He must pay restitution to the elderly victim of his fraud scheme as part of his plea agreement. French will be sentenced at a later date.
U.S. Attorney Stewart commended the investigation by FBI, as well as Assistant United States Attorney Dale Williams, who is representing the United States in this case.
West Palm Beach Brothers Sentenced to Prison and Ordered to Forfeit Property Following Mail Fraud and Money Laundering ConvictionsRead the Press Release
West Palm Beach brothers Janio Vico and Jharildan Vico were sentenced to 108 months in federal prison, the forfeiture of $1.87 million and restitution in the amount of $1.92 million, following their mail fraud and money laundering convictions.
Wifredo Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Janio Vico, 32, and Jharildan Vico, 34, both of West Palm Beach, were sentenced by United States District Judge Robin L. Rosenberg in West Palm Beach, following their trial before a jury resulting in guilty verdicts on the 16-count indictment charging conspiracy to commit mail fraud and mail fraud, in violation of Title 18 United States Code, Sections 1349 and 1341; as well as conspiracy to commit money laundering and money laundering, in violation of Title 18, United States Code, Sections 1956(h) and 1957.
According to statements made in court and documents filed in the case, the Vicos established and operated an unlicensed health care clinic known as V & V Rehabilitation Center, Inc., originally located in Lantana and moved to West Palm Beach, for the purpose of defrauding at least 15 automobile insurance companies by submitting claims for personal injury protection (PIP). During a 20 month period, beginning December 2009, through at least October 4, 2011, the brothers received approximately $1.87 million in payments from automobile insurers for relying upon these fraudulent claims that were, in part, based upon staged accidents, real accidents resulting in no injuries, false documents submitted for non-existent treatment, and claims made through an unlicensed clinic. The scheme came about because the Vico brothers were paying claimants to appear at their clinic known as V & V Rehabilitation Center. Much of the money received from the insurance companies was diverted to the brothers’ accounts for their personal use.
Janio Vico and Jharildan Vico each used a portion of the more than $1.2 million transferred from the clinic accounts to accounts they controlled for their personal use to buy residential property, amongst other things.
The Vico brothers claimed that formerly licensed chiropractor co-conspirator, Jennifer Adams, was the owner of V & V Rehabilitation Center Inc., in order to avoid obtaining a license and evade the scrutiny of the Florida Department of Health. The evidence at trial showed that Janio Vico and Jharildan Vico were the true owners of the clinic which was unlicensed during time period charged. According to State of Florida laws, because the Vico brothers were the true owners and did not get a license in their names, the clinic was unlicensed and the claims to insurance companies were illegal.
During the course of the fraud, the Vico brothers purchased at least two residences using moneys obtained through their fraud. After a hearing to determine whether forfeiture of money and properties should occur in this case, the court entered a preliminary order of forfeiture as part of their sentences that requires that both Janio Vico and Jharildan Vico forfeit $1.87 million together with residences at 610 Cresta Circle, West Palm Beach and 669 Pacific Grove Drive, Unit #3, West Palm Beach.
This prosecution was the latest in the ongoing investigation of clinics established in the Palm Beaches to fraudulently bill automobile insurance companies for PIP claims in Operation Sledgehammer. As a result of that investigation, more than 100 individuals have been prosecuted for similar offenses. PIP provides $10,000 of insurance to individuals injured during automobile accidents in Florida regardless of blame, relying upon truthful submission of diagnosis, treatment orders and actual treatment documents provided to the insurance companies. Each time fraudulent claims are submitted, the price of automobile insurance is affected, resulting in higher premiums.
Mr. Ferrer commended the investigative efforts of the FBI and the assistance of the National Insurance Crime Bureau. This case was prosecuted by Assistant United States Attorney Ellen Cohen.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Uniontown Man Admits Producing Child PornographyRead the Press Release
PITTSBURGH - A former Fayette County resident pleaded guilty in federal court to a charge of production and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
David Kinteay Carson, 38, of Uniontown, Pa., pleaded guilty before Senior United States District Judge Maurice B. Cohill.
In connection with the guilty plea, on or about Sept. 26, 2014, Carson produced visual depictions of the sexual exploitation of a minor.
The law provides for a mandatory minimum of 15 years imprisonment, supervised release for no less than five years, and up to life, and a fine of $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Uniontown City Police Department conducted the investigation that led to the prosecution of Carson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Two Men Sentenced for Defrauding Memphis VA Medical Center of $1 MillionRead the Press Release
Memphis, TN – Two men have been sentenced to prison for conspiring to execute a scheme that defrauded the Memphis VA Medical Center of $1 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.
According to the indictment, from August 2007 to July 2013, Andre Reddix, 60, and Ronnie White, 61, both of Memphis, conspired to embezzle more than $1 million from the VA. The medical center provides health care services to veterans in western Tennessee, northern Mississippi, and northeastern Arkansas.
Reddix was an employee at the VA during the scheme’s duration, according to information presented in court. His duties included using a company-issued credit card to buy medical supplies for the VA.
In August 2007, Reddix concocted a scheme with White, which involved White establishing a medical supply company entitled White Pharmaceuticals. Following the company’s formation, Reddix got White Pharmaceuticals approved to serve as a vendor that provided medical supplies to the VA.
For nearly six years, Reddix created fraudulent purchase orders to White Pharmaceuticals for medical supplies that were never delivered to the VA. Subsequently, White prepared and sent the VA fraudulent invoices that corresponded with each of the fraudulent purchase orders.
Reddix used the company-issued credit card to fraudulently pay White Pharmaceuticals for the undelivered medical supplies. The defendants then divided the payments among themselves, using the funds for personal expenses.
Ultimately, more than 300 fraudulent transactions were made by the defendants. The VA was defrauded of more than $1 million during the scheme.
In September 2015, Reddix and White both pled guilty to conspiracy to defraud the VA of approximately $1 million.
On December 11, 2015, White was sentenced by U.S. District Judge Samuel H. Mays Jr. to serve 30 months imprisonment. He was also ordered to pay $1,137,694.14 in restitution.
On January 21, 2016, Reddix was sentenced by Judge Mays to serve 30 months. Reddix was also ordered to pay $1,137,694.14 in restitution.
This case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General.
This case was prosecuted by the U.S. Attorney’s Office.
Two Men Charged in Gas Station Armed RobberiesRead the Press Release
PANAMA CITY, FLORIDA – Zachary Tyler Hubbard and Jarrod Lonnie Moore, both 20, of Georgia, were arraigned today in federal court after a grand jury returned an indictment charging them with conspiracy, interfering with commerce by threats or violence, and brandishing a firearm during a crime of violence. Hubbard was also charged with being a felon in possession of a firearm. The indictment was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The indictment alleges that, on December 7, 2015, Hubbard and Moore forcefully took money from employees at two gas stations located in the Panama City area, while carrying a pistol. The trial is scheduled for March 21, 2016, at 8:30 a.m.
This case resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bay County Sheriff’s Office, and the Panama City Police Department. Assistant United States Attorney Kathryn D. Risinger is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Trio Charged in Illegal Gun SalesRead the Press Release
PHILADELPHIA – An indictment was filed on January 21, 2016 charging three men with dealing in firearms without a license, announced United States Attorney Zane David Memeger. Darien Montae Thompson, 22, Omar Tarik Davenport, 24, and Sekou Maliek Davenport, 21, all of Philadelphia, are charged with selling guns that were previously reported stolen from homes and vehicles. Thompson and Omar Davenport are also charged with conspiracy, interstate travel in furtherance of dealing in firearms without a license, and possession of a short-barreled rifle; Omar and Sekou Davenport are also charged with possession of a firearm by a convicted felon.
According to the indictment, the defendants illegally acquired firearms in the state of Georgia and transported the firearms to Pennsylvania for illegal sale. Guns that the defendants allegedly sold had been reported stolen from homes in Georgia, Pennsylvania, and South Carolina. Omar Davenport was on state parole, following a felony conviction, during the time of the alleged conspiracy.
If convicted of all charges, Thompson faces a maximum statutory sentence of 30 years in prison and a $500 special assessment; Omar Davenport faces a maximum statutory sentence of 55 years in prison and a $700 special assessment; Sekou Davenport faces a maximum statutory sentence of 15 years in prison and a $200 special assessment. Each defendant also faces supervised release and a possible fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Mark Miller.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Men Sentenced to Lengthy Federal Prison Terms for Roles in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Three North Texas men were sentenced this morning by U.S. District Judge Reed C. O’Connor to lengthy federal prison terms for their respective roles in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Winfred Morgan Trammel, 39, of Breckenridge, Texas, was sentenced to 262 months in federal prison. Co-conspirators Larry Hawkins, 59, of Wichita Falls, Texas, and Jackie Lynn Watters, 50, of Fort Worth, Texas, were each sentenced to 180 months in federal prison. Trammell was convicted at trial in September 2015 on one count of conspiracy to possess with the intent to distribute methamphetamine. Hawkins and Watters each pleaded guilty in October 2015 to the same offense.
At trial, the jury found that from before July 2014 to approximately June 2015, Trammel and others conspired together to possess with intent to distribute 50 grams or more of methamphetamine. According to plea documents filed in the case, since approximately 2014, Hawkins received more than 50 grams of methamphetamine from others charged in the indictment and distributed it to his customers in the Wichita Falls, Texas, area. Since approximately 2014, Watters assisted others in their distribution of methamphetamine by acting as a lookout or collecting drug proceeds.
A total of 29 defendants were charged in the case; 28 have been convicted, and most of those have been sentenced. Earlier this month, co-defendants Matthew Rutledge, 33, and Joel Prickett, 37, were sentenced to 324 months, and 160 months, respectively, in federal prison for their roles in the conspiracy.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Texas Department of Public Safety and the Fort Worth Police Department investigated the case. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Three Involved in Network of Conspirators That Targeted Medicaid Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Two men and a woman involved in a network of conspirators that targeted Medicaid by submitting fraudulent reimbursement claims have been sentenced to prison on health care fraud conspiracy charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank Whitney sentenced today Alexander Bass, 42, and Torrey Darnell Moton, 45, both of Fuquay-Varina, N.C., to 32 and 25 months in prison, respectively, three years of supervised release and ordered both defendants to pay $370,372.37 as restitution to Medicaid.
On January 13, 2016, a third conspirator, LaChanda Clotiel Parks, 40, of Charlotte, was ordered to serve 28 months in prison followed by three years of supervised release and to pay $352,565.69 in restitution for her role in the conspiracy.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
According to information in filed court documents and court proceedings, at various times between October 2012 and August 2013, Bass, Moton and Parks were part of a health care fraud ring that defrauded Medicaid by filing false claims for mental and behavioral health services to beneficiaries which were never actually provided. According to court records, the network of conspirators executed the fraud through a number of mental and behavioral health services companies, including “United Rehabilitation Services” (URS) in Erwin, N.C., which was owned and operated by Bass and Moton.
Court records show that Bass and Moton agreed to pay $4,000 per month to Cynthia Harlan, who is currently facing federal health care fraud charges, in exchange for coordinating the filing of fraudulent claims to Medicaid on behalf of URS. At the direction of Harlan, Bass and Moton also paid another conspirator, who operated as the scheme’s patient-recruiter, to collect Medicaid beneficiary numbers which were then used to file the false claims. Court records indicate that between January and July 2013, Harlan, Bass and Moton filed over $1.1 million in fraudulent claims, and Medicaid paid out approximately $370,000 directly to Bass and Moton.
According to court filings, Parks was responsible for generating some of the fake paperwork used to support the fraudulent claims, including fake intake sessions, fake clinical assessments and fabricated therapy notes.
The three defendants will be ordered to report to the Federal Bureau of Prisons to begin serving their sentences upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. Assistant U.S. Attorney Kelli Ferry is in charge of the prosecution.
The investigation is the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Texas Woman Sentenced in Credit Card Fraud SchemeRead the Press Release
BOISE – Brooke Ashley Darby, 29, of Fort Worth, Texas, was sentenced today to 28 months in prison, followed by three years of supervised release for committing wire fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Darby to pay $15,325.25 in restitution. Darby pleaded guilty on November 10, 2015.
According to Darby’s plea agreement, she admitted to traveling to Idaho, along with her co-defendant, Charmaine Montgomery, for the purpose of making fraudulent purchases of gift cards and merchandise from retail stores, using stolen credit card numbers encoded onto stock gift cards. Darby admitted to obtaining the stock debit cards encoded with unauthorized credit card numbers, and making purchases at retail stores on June 23 and June 24, 2015. In all, Darby admitted that she and Montgomery purchased approximately $13,095.90 in gift cards and merchandise with the fraudulently encoded gift cards. Upon her arrest, Darby and Montgomery were found in possession of approximately 250 gift cards encoded with unauthorized credit card numbers.
Montgomery pleaded guilty on December 1, 2015, to committing wire fraud and aggravated identity theft. Her sentencing is set for February 11, 2016.
The case was investigated by the United States Secret Service and the Boise Police Department.
Texas Man Sentenced to 27 Months in Prison for Role in Bath Salts Conspiracy; Must Forfeit More Than $750,000 in AssetsRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 40-year-old Texas man was sentenced today to serve 27 months in prison and ordered to forfeit his interest in more than $750,000 in assets for his role in a conspiracy to distribute and possess with intent to distribute alpha-pvp, commonly known as “bath salts,” by U.S. District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney Peter Smith, the defendant, Thanh Duc Tran, of Houston, Texas, previously pleaded guilty to conspiring with others to distribute alpha-pvp to customers in at least 32 states, including Pennsylvania, over various web sites during 2011 through March 2014.
Thanh Duc Tran was indicted by a federal grand jury in March 2014, as a result of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, United States Postal Inspectors, the Pennsylvania State Police, and West Pittston Police.
Judge Mannion ordered the defendant to forfeit to the government his interest in a residence in Texas valued at approximately $300,000, coins valued at more than $260,000, four bank accounts containing over $200,000, two vehicles, over $7000 in cash and more than $17,000 in uncashed money orders, and two firearms. Tran must also spend three years on supervised release following his prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Texas Man Sentenced for Cocaine DistributionRead the Press Release
Stacy L. Harden, 42, from Desoto, Texas, was sentenced on January 22, 2016, in federal district court, in East St. Louis, Illinois, for one count of Possession with Intent to Distribute More than Five Kilograms of Cocaine, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Harden was sentenced to 120 months in prison, 5 years of supervised release, fined $750, and ordered to pay a $100 special assessment. Court proceedings revealed that on October 21, 2010, a confidential informant told DEA agents that Harden was in the St. Louis area with a large amount of cocaine for sale. DEA agents tracked Harden down and on October 22, 2010, observed Harden leave an O’Fallon home with a plastic shopping bag. Harden then went to another residence in Swansea, Illinois, where he left with a black bag. Shortly thereafter, the Fairview Heights Police Department conducted a traffic stop on Harden at the direction of the DEA agents. Harden sped off, driving into a residential area and throwing items out of the window, as witnessed by officers. Approximately 4 kilograms of cocaine were seized by officers. Harden was placed under arrest and later admitted to possessing a total of 7 kilograms of cocaine.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration (DEA), and the Fairview Heights Police Department. This case was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Surgeon Receives 78 Months in Prison for Distributing OxycodoneRead the Press Release
ALBANY, NEW YORK – Jeffrey Gundel, age 51, an orthopedic surgeon from Gansevoort, New York, was sentenced today to 78 months in prison for illegally authorizing the distribution of tens of thousands of oxycodone pills.
The announcement was made by United States Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, Drug Enforcement Administration.
On December 3, 2014, Gundel pled guilty to one count of unlawful distribution of oxycodone. As part of his guilty plea, Gundel admitted that, between May 2011 and April 2014, he wrote over 200 prescriptions authorizing the dispensation of at least 59,520 30-milligram oxycodone tablets for no legitimate medical purpose. Gundel also admitted that he received cash kickbacks after co-conspirators filled the prescriptions and sold the oxycodone pills on the black market. On several occasions, Gundel prescribed oxycodone to undercover law enforcement agents he never met, treated, or communicated with in any way.
U.S. District Judge Mae A. D’Agostino also sentenced Gundel to a term of 3 years of supervised release, to be served following his release from prison. In sentencing Gundel, Judge D ’Agostino told him that he “became a common criminal drug dealer” and that there was “no way to quantify how many people became addicted to oxycodone because of your actions.”
Oxycodone is an addictive and often abused Schedule II narcotic prescribed to treat severe pain. The typical street value of a single tablet of the type prescribed by Gundel ranges from $30 to $45.
United States Attorney Richard S. Hartunian said: “Prescription drug abuse kills thousands of Americans every year and results in countless others transitioning to heroin to support their opioid addictions. Doctor Gundel’s reprehensible violation of his duties as a physician caused the streets of this District to be flooded with tens of thousands of deadly, addictive oxycodone pills. Those who misuse their privilege to prescribe and distribute controlled substances need to understand that they will be investigated and prosecuted just like the criminals selling heroin and other dangerous drugs on the street.”
Special Agent in Charge James J. Hunt said: “Diverted oxycodone is today’s ‘gateway drug’ for heroin, leading to tens of thousands of overdose deaths in the U.S last year. This guilty plea reiterates that doctors who illegally prescribe pain medication for profit are fueling heroin abuse throughout America’s cities. I commend our law enforcement partners and the DEA’s Albany District Office for their diligent efforts throughout this investigation.”
This case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney Wayne A. Myers.
Stephentown Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
ALBANY, NEW YORK – Joseph M. Jackson, age 36, of Stephentown, New York, pleaded guilty today to being a felon in possession of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
On September 27, 2015, Jackson, a felon, was found to be in possession of a Rohm Gesellschaft .38 caliber revolver, one box of Winchester .38 caliber live ammunition and one round of 9x19 caliber ammunition. The gun and the ammunition were found in a safe; the safe was in a car that was registered to Jackson.
Jackson faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when he is sentenced on May 23, 2016 by U.S. District Judge Mae A. D’Agostino. Actual sentences are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the ATF and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Emily Farber.
St. Croix Man Pleads Guilty to Manufacturing MarijuanaRead the Press Release
St. Croix, USVI – Raymond Mathurin, 48, of St. Croix, pleaded guilty today in District Court on St. Croix to one count of manufacturing a controlled substance, specifically, marijuana, United States Attorney Ronald W. Sharpe announced.
As part of his plea, Mathurin admitted that on June 26, 2014, he was growing a total of 69 marijuana plants near his property on St. Croix. At the conclusion of the hearing, Magistrate Judge George Cannon continued his release pending sentencing. Mathurin’s sentencing date has not been scheduled.
Mathurin is facing a maximum sentence of five years in prison, a $250,000 fine and a $100.00 special assessment.
The case was investigated by the United States Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Rami S. Badawy.
South Dakota Man to Serve 22 ½ Years in Federal Prison for Sexual Exploitation of Champaign MinorRead the Press Release
Urbana, Ill. – In federal court today, U.S. District Judge Colin S. Bruce ordered a South Dakota man to serve 22 ½ years (270 months) in federal prison for blackmailing a minor female to send him nude photographs of herself. Austin A. Burns, 21, of Huron, S.D., was ordered to serve five years supervised release following completion of his prison sentence. Burns will be required to register as a sex offender.
On Sept. 21, 2015, Burns pled guilty to one count of sexual exploitation of a minor. Burns admitted that soon after he began communicating online with a minor female, in 2014, she told him that she was 13 years old. Burns admitted that he demanded the girl send him naked photographs of herself and threatened that if she did not comply, he would post naked photographs of her online.
Burns has remained in the custody of the U.S. Marshals Service since he was arrested on Aug. 14, 2014, in Huron, S.D.
Assistant U.S. Attorney Elly M. Peirson prosecuted the case. The Champaign Police Department, the Huron, S.D. Police Department, and U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and 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.
Oneil Scott Arrested and Charged in Manhattan Federal Court with Violent Attempted Robbery and Kidnapping of Bronx Man Resulting in His DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Michael Greco, the Southern District of New York United States Marshal (“USMS”), and William Bratton, the Police Commissioner of the City of New York (“NYPD”), announced the arrest of ONEIL SCOTT on charges of robbery conspiracy, attempted robbery, kidnapping conspiracy, kidnapping resulting in death, and firearms offenses. At the time he was charged, SCOTT was serving a federal sentence on a robbery conviction arising from his participation in a Bronx armed robbery in approximately September 2010. Two other defendants, ALVIN HENRY and CHAI GREEN, were arrested on Tuesday, January 19, 2016, in connection with the same charges, contained in an Indictment unsealed the same day. All three defendants have been remanded and remain in custody.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these three defendants, for no reason other than greed, carried out a scheme to kidnap and rob a suspected narcotics trafficker, ultimately taking his life. Those who use violence to terrorize our communities will be prosecuted to the fullest extent of the law.”
U.S. Marshal Michael Greco said: “Oneil Scott is a dangerous individual who was involved in a myriad of criminal activity. The diligent and joint efforts by the U.S. Attorney’s Office, the New York Police Department and the Marshals Service in getting him back to New York in order to face these additional charges makes our streets safer and is another win for the justice system.
NYPD Commissioner William Bratton said: “As alleged, these individuals participated in a kidnapping so violent that it resulted in death of their intended target. Adding insult to injury, the victim was set on fire, and his body abandoned in the back seat of a vehicle in a Bronx alleyway. I commend the work of the NYPD detectives, prosecutors and U.S. Marshals for their work and cooperation in this long-term investigation that resulted in theses arrests and indictments for this heinous crime.”
According to the allegations contained in the Indictment[1] and other documents in the public record, and statements made in court:
In 2014, SCOTT, HENRY, GREEN, and others committed multiple armed robberies of suspected narcotics traffickers. During one of these attempted armed robberies, they violently assaulted and ultimately killed their intended target. Just after midnight on the morning of March 11, 2014, SCOTT, HENRY, GREEN, and others apprehended the victim, Wayne Thomas, then 22 years old, of the Bronx, as the victim was parking his car in front of his residence. The defendants suspected that the victim was a drug trafficker who might be in possession of narcotics and/or narcotics proceeds. During the kidnapping, which was caught on surveillance video, several individuals violently grabbed the victim, pistol-whipped him, forced him into another car, and drove off with him. During both the kidnapping and the defendants’ subsequent attempts to obtain information about the whereabouts of drugs and drug money, the victim was seriously assaulted.
At approximately 5:30 a.m. on March 11, 2014, members of the New York City Police Department and the New York City Fire Department responded to 911 calls reporting a burning vehicle in an alleyway in the Bronx. Upon arriving at the scene, they observed a car still on fire. The Fire Department extinguished the fire, and officials then became aware that the victim’s body was in the back seat of the car. The Office of the Chief Medical Examiner of New York City subsequently performed an autopsy on the victim, and concluded that the cause of death was not fire-related injuries, but rather blunt force trauma, indicating that the victim had died before being placed in the rear of the vehicle.
ALVIN HENRY’s true name was unknown until his arrest by law enforcement officials on January 19, 2016 in connection with the instant charges.
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SCOTT, 33, of the Bronx, HENRY, 27, of the Bronx, and GREEN, 36, of the Bronx are each charged with one count of robbery conspiracy, which carries a maximum sentence of 20 years in prison; one count of attempted robbery, which carries a maximum sentence of 20 years in prison; one count of kidnapping conspiracy, which carries a maximum sentence of life in prison; one count of kidnapping resulting in death, which carries a maximum sentence of death; and one count of use of a firearm, which carries a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by a judge
Mr. Bharara praised the investigative work of the USMS and the NYPD.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Christopher J. DiMase and Margaret Graham are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
New Hartford Woman Sentenced to Prison for Tax Fraud and Structuring OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on January 22, 2016, ANDREA M. DOBROZENSKY, 62, of New Harford, was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to five months of imprisonment, followed by five months of home confinement, for filing false tax returns and structuring currency transactions. Judge Arterton also ordered DOBROZENSKY to serve one year of supervised release and pay a $3,000 fine.
According to court documents and statements made in court, between 2007 and 2009, while working as an office manager for a medical practice in Hartford, DOBROZENSKY made numerous transfers and deposits from the medical practice business bank account into her personal bank account as compensation for her services to the medical practice and untaken vacation time. During those three years, DOBROZENSKY willfully failed to provide her tax return preparer with information concerning her receipt of approximately $247,000 in additional taxable income. Each year, DOBROZENSKY signed her completed federal tax return and it was filed with the IRS. As a result, $247,000 in taxable income was not reported on DOBROZENKY’s federal tax returns for the 2007, 2008 and 2009 tax years, and she failed to pay a total of $76,750 in additional taxes owed.
DOBROZENSKY also unlawfully structured financial transactions. On November 27, 2012, DOBROZENSKY was at a branch of Farmington Bank in Avon with a friend, David Raymond, who told her to write checks in amounts below $10,000. DOBROZENSKY wrote two checks, one to herself for $9,900 and one to Raymond for $9,900. She then cashed the check payable to her and received $9,900 in cash. Raymond cashed the check payable to him and received $9,900 in cash. He later handed the $9,900 to DOBROZENSKY.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
As part of her sentence, DOBROZENSKY was ordered to forfeit $9,900 related to her structuring activity.
On December 19, 2013, IRS Special Agents interviewed DOBROZENSKY at her residence. On that date, DOBROZENSKY admitted that she should have reported the additional income on her federal tax returns. She specifically stated that, on November 16, 2007, she wrote a check in the amount of $100,000 on the medical business account payable to herself, received the funds and did not report those funds on her federal tax return. DOBROZENSKY also admitted that, as to the structuring violation, Raymond had advised her to keep any payments under $10,000 to avoid filling out a form.
Prior to sentencing, DOBROZENSKY paid the IRS $97,986 in back taxes and interest. She also is required to pay penalties on her unpaid taxes.
On October 13, 2015, DOBROZENSKY pleaded guilty to one count of filing a false tax return and one count of unlawfully structuring financial transactions.
On October 19, 2015, Raymond, of Glastonbury, pleaded guilty to one count of structuring financial transactions. He awaits sentencing.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Morris Anthoney Phillips Sentenced to 144 Months in Marijuana, Money Laundering and Oxycodone ConspiraciesRead the Press Release
GREENEVILLE, Tenn. – On Jan. 19, 2016, Morris Anthoney Phillips, 39, of Culver City, Cal., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 144 months in federal prison for his leadership role in an extensive marijuana, oxycodone and money laundering distribution conspiracy centered in the Eastern District of Tennessee and the Western District of Virginia. Phillips was the primary source of supply responsible for the distribution of these drugs from the Los Angeles, California area to Tennessee and Virginia.
According to the plea agreement on file with the U.S. District Court Clerk, Phillips admitted that he was accountable for at least 954 kilograms of marijuana and 1,000 (30 mg) oxycodone pills. In July 2011, law enforcement officers coordinated a 500 pound marijuana reversal operation with Phillips in California. Upon weighing the marijuana, it turned out to be 562 pounds, instead of 500 pounds. Phillips sent another individual to retrieve the money for the additional 62 pounds of marijuana. The other individual was later pulled over for a traffic stop and a search of his vehicle revealed a quantity of cash commensurate with the price for 62 pounds of marijuana (approximately $34,590.00). Officers subsequently knocked on the door of Phillips’ residence and he attempted to flee. Upon seeing officers surrounding the residence, he went back inside the residence and barricaded himself for a period of time. A search warrant was executed which resulted in the seizure of 562 pounds of marijuana, packaging materials, two .40 caliber pistol magazines, a black holster, and a paper bag with $11,000 in U.S. currency. A 12 year old child was also present in the residence with Phillips during all of these activities. A search warrant was then obtained for the address in Burbank, where Phillips’ co-conspirator went to get additional monies for the remaining marijuana, and which was operated as a stash house. A search of that residence revealed $249,015.00 in two suitcases. One of these suitcases had a hidden compartment built into it to hide the money. Another suitcase contained $519,920.00 in cash. A black bag was also found in the residence containing $70,700.00. In total, approximately 1.2 million dollars was seized from the residences and vehicles searched at the Los Angeles and Burbank addresses.
Phillips took over dealing to his Tennessee co-conspirators in approximately 2010 after their former Jamaican source of supply was deported back to Jamaica. Phillips flew from Los Angeles to either Nashville or Knoxville on at least 14 separate occasions dating back to March 2012 to meet with co-defendants Glenn Draughn, 69, and James Wright, 59, both of Kingsport, Tenn., and pick up bulk cash for drugs he was delivering to them and others. By 2013, Phillips involved his brother, co-defendant Antonio Barrington Parsley, 24, of Culver City, Cal., in the criminal conspiracies and introduced him to Draughn and Wright, among others. Usually, these meetings occurred every two months and involved at least $100,000.00 in cash each time. Phillips and/or Parsley took the money they received from Draughn, Wright and others and put it in a hidden compartment in their luggage to conceal and transport back to Los Angeles.
In July 2014, Parsley, Wright and Draughn were all arrested in Nashville, Tenn., at a meeting in a local motel room near the airport. Parsley conducted this transaction for Phillips. A search of the motel room resulted in the seizure of approximately $100,000.00 in cash, which was payment for another marijuana shipment from California to Tennessee, in addition to $10,500.00 for approximately 100 oxycodone pills. The pills had been hidden in a Skittles candy bag, re-sealed and placed inside Parsley’s suitcase.
Others who have been previously sentenced in this prosecution include Draughn, Parsley, Larry Williams, 68, of Mendota, Va., and Kenny Russell, 57, of Kingsport, Tenn., who were sentenced to 63 months, 46 months, 140 months and 60 months, in federal prison respectively. Wright is scheduled to be sentenced in February 2016.
“These sentences send a clear message that drug and money laundering violations are serious crimes. IRS Criminal Investigation is proud to work with our law enforcement partners, by providing our financial investigative expertise, to stop the flow of illegal drugs into our communities,” stated Tamera Cantu, Acting Special Agent in Charge.
Law enforcement agencies participating in this investigation include: the Tennessee Bureau of Investigation; IRS, Criminal Investigation Division; Second District Judicial Drug Task Force; Kingsport Police Department; Russell County, Virginia Sheriff’s Office; and, LA IMPACT (Los Angeles Interagency Police Apprehension Crime Task Force), which includes the Hawthorne, Hermosa Beach, Alhambra, Pomona, Inglewood and Culver City Police Departments. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Montgomery County Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA – On January 22, 2016, Mark A. Yeager, 61, of rural Emerson, Iowa, was sentenced by United States District Court Judge Stephanie Rose to 36 months in prison for possession of child pornography announced Acting United States Attorney Kevin E. VanderSchel. Yeager was ordered to serve 10 years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund.
Yeager pled guilty to the charge on September 1, 2015. According to the plea agreement, on April 16, 2014, investigators seized several computers and items of computer paraphernalia from Yeager’s residence. A forensic examination revealed images of child pornography on a thumb-drive seized from Yeager’s home.
This matter was investigated by the Iowa Division of Criminal Investigation, Iowa Internet Crimes Against Children Task Force, and the Montgomery County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Minneapolis Man Pleads Guilty to Human Trafficking of a ChildRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Jan. 25, 2016, Anthony Lamarr Sims, 21, a.k.a. Mar Mar, Minneapolis, Minn., pled guilty before U. S. District Judge Ralph R. Erickson to one count of Sex Trafficking of Children.
This case came to the attention of law enforcement after a Fargo Police Officer encountered the 15-year-old victim during a traffic stop on January 16, 2015. Following an investigation, it was discovered that Sims brought the victim from Minneapolis to Fargo for the purpose of prostitution. Before he traveled to Fargo on January 15, 2015, Sims directed others to post an advertisement on backpage.com wherein it was advertised that there were women available for commercial sex.
Sentencing has tentatively been set for April 18, 2016, at the U. S. District Court in Fargo. Sims could face a 10-year mandatory-minimum but up to a life sentence, lifetime supervised release, and/or a $250,000 fine.
This case is being investigated by the Fargo Police Department and the Department of Homeland Security - Homeland Security Investigations.
This case is being prosecuted by Assistant U. S. Attorney Jennifer Puhl.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Meth Traffickers Receive Lengthy Federal Prison SentencesRead the Press Release
FORT WORTH, Texas — Two North Texas men have been sentenced to lengthy federal prison terms for their roles in a methamphetamine distribution conspiracy that operated in North Texas for approximately two years, announced U.S. Attorney John Parker of the Northern District of Texas.
Eric Summers, 40, of Arlington, Texas, and David Godinez, 35, of Balch Springs, Texas, were sentenced on Friday by U.S. District Judge John McBryde to 360 months and 250 months, respectively, in federal prison. Summers’ sentence is to be served concurrently with pending state cases.
Each pleaded guilty in August 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. According to documents filed in the case, since approximately 2012, Summers and Godinez received methamphetamine from co-conspirators and distributed it to others. All nine individuals charged in the conspiracy have pleaded guilty; five have been sentenced to federal prison sentences ranging from 250 months to 480 months.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Texas Department of Public Safety investigated. Assistant U.S. Attorney Shawn Smith prosecuted.
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Media Advisory - Prosecutor of the Year PresentationRead the Press Release
The United States Attorney’s Office, District of South Dakota, will host the presentation of the Outstanding Prosecutor Award for the Midwest High Intensity Drug Trafficking Areas (HIDTA.)
Midwest HIDTA officials will make the presentation to Jennifer Mammenga, Assistant U.S. Attorney, with the District of South Dakota.
WHO: Randy Seiler: U.S. Attorney
Jennifer Mammenga: Assistant U.S. Attorney
Bob Hartman: Regional Coordinator - Midwest HIDTA
Jeff Stamm: Executive Director - Midwest HIDTA
David Mizell: Deputy Director - Midwest HIDTA
Bryan Gortmaker: Director - SD Division of Criminal Investigation
WHAT: Presentation of 2015 HIDTA Outstanding Prosecutor Award
WHEN: Thursday, January 28, 2016, at 9:00 a.m. CST.
WHERE: United States Attorney's Office
325 S. 1st Ave., Suite 300
Sioux Falls, SD 57104
NOTE: Media must enter through the third floor reception area. Media will be required to go through security and present a government-issued photo ID. Press inquiries regarding logistics should be directed to Ace Crawford at 605.341.1915.
Lynden Man Sentenced to Prison and Home Detention for Assault on Federal OfficersRead the Press Release
A Lynden, Washington man who was prosecuted in 2010 for interfering with a U.S. Border Patrol helicopter, was sentenced today to eight months in prison, four months of home detention and a $10,000 fine for assault on a federal officer, announced U.S. Attorney Annette L, Hayes. In July 2015, WAYNE P. GROEN, 46, intentionally drove his truck at a high rate of speed towards three U.S. Border Patrol agents who were working on the side of a road near GROEN’s home. At the sentencing hearing U.S. District Judge James L. Robart called GROEN’s conduct “deeply disturbing” and said it was “extremely dangerous, extremely stupid and extremely filled with the potential for dangerous harm to others.”
According to records filed in federal court, GROEN has had a series of escalating interactions with law enforcement over the last six years. In 2010, he was sentenced to 60 days in jail after he shined a spotlight at a CBP helicopter flying near his property, temporarily blinding the pilot who was forced to take precautions to avoid a crash. Even after that conviction and jail time, GROEN did not change his behavior and engaged in various aggressive interactions with law enforcement, culminating in the July 2015 event where he saw the agents working near his property. GROEN got into his truck for the sole purpose of trying to run the agents off the road. GROEN first swerved at high speed towards two agents on one side of the road, and then drove in the lane for on-coming traffic to swerve towards a third agent on the other side of the road. Fortunately, all three agents were able to jump out of the way.
GROEN has been in prison since he was arrested for the assault in August 2015. After GROEN pleaded guilty, he met with representatives of the U.S. Border Patrol to apologize for his conduct. In court today GROEN claimed he now understands the damaging impact of his conduct, and is hoping for a positive relationship with the Border Patrol. GROEN said he is working with his family to ensure they are co-operative with law enforcement in the future. Judge Robart sentenced him to 50 hours of community service as well as the prison term, home confinement and fine. Judge Robart suggested GROEN do some of that community service by telling groups in the Lynden community what he has learned from his criminal conviction.
The case was investigated by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) and the Whatcom County Sheriff’s Office. The case was prosecuted by former Assistant United States Attorney Jerrod Patterson and by Assistant United States Attorney Todd Greenberg.
Lockport Man Arrested, Charged with Bank Robbery, Attempted Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that David E. Foltz, 34, of Lockport, NY, was arrested and charged by criminal complaint with bank robbery and attempted bank robbery for incidents in Rochester and Brockport, NY. The charges carry a maximum sentenced of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that according to the complaint, on August 12, 2015, the defendant entered the Canandaigua National Bank and Trust on Alexander St. in Rochester. Foltz approached a teller and indicated that he wanted to open an account. After a short time, the defendant was taken into the office of a manager at which time he asked once again about opening an account as well as a safe deposit box. Foltz asked to go to the safe deposit box area but was told he could only go to the area if he purchased a box. At that time, the defendant lifted up his shirt revealing a black box with green buttons and black wires and a black handgun. Foltz stated “I’ve got this and this, so take me back to the vault.” The defendant then ordered the manager to get all of the $100’s, $50’s and $20’s from the tellers. After collecting the money, Foltz left the bank. After reviewing surveillance photos, law enforcement officers believe the defendant was wearing a bullet proof vest.
The complaint further states that on November 12, 2015, the defendant entered the Chase Bank branch on Main St. in Brockport. After waiting in line with several other customers, Foltz left the bank appearing agitated and rushed. The defendant returned approximately 30 minutes later and got back in to the teller line. Foltz once again inquired about opening an account and a safe deposit box. After adjusting his shirt, a bank employee noticed what appeared to be the handle of a gun and activated an alarm. The defendant asked twice if the alarm was activated but the employee did not answer. At that time, Foltz left the bank without any money. After reviewing surveillance photos, law enforcement officers believe the defendant was once again wearing a bullet proof vest.
According to the complaint, the defendant committed similar incidents on November 14, 2015 in Brooklyn, NY and December 4, 2015 in Erie, Pennsylvania.
Foltz made an initial appearance before U.S. Magistrate Judge Jonathan W. Feldman and is being held pending a detention hearing on January 27, 2016 at 3:30 p.m.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation’s Rochester Area Major Crimes Task Force, under the direction of Special Agent in Charge Adam S. Cohen; the New York State Police Troop E Canandaigua, Special Investigations Unit Buffalo, and Troop T Dunkirk; the Rochester Police Department, the Brockport Police Department, the New York City Police Department; the FBI New York Office; the Erie, PA Police Department; the FBI Pittsburgh Office; the Girard, Ohio Police Department; the FBI Cleveland Office; and the Lockport Police Department.
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.
Local students learn the facts about drugs from U.S. Attorney’s OfficeRead the Press Release
WHEELING, WEST VIRGINIA – Area elementary school students learned the facts about drugs and alcohol today as part of National Drug Facts Week, recognized from January 25 through 31, 2016, United States Attorney William J. Ihlenfeld, II, announced.
Since 2010, the National Institute on Drug Abuse has coordinated National Drugs and Alcohol Facts Week, an annual series of events and promotional campaigns designed to connect young people with experts and resources to shatter common myths and misperceptions about substance abuse by providing factual, easy to understand information about illicit drugs. This year, the National Institute on Drug Abuse has partnered with the National Institute on Alcohol Abuse and Alcoholism to incorporate key information related to alcohol.
Today, United States Attorney Ihlenfeld facilitated an interactive presentation and discussion with fifth grade students at Bethlehem Elementary School in Ohio County, West Virginia. Ihlenfeld spoke with the students about a variety of topics, including commonly abused drugs, the impact of illicit substances on the human brain, the science behind substance abuse disorders, and the importance of recognizing and speaking up about the signs of addiction.
“Educating young people is a critical component in the ongoing effort to combat the drug problem facing West Virginia,” said Ihlenfeld. “Children are exposed to information about illegal drugs from a variety of sources and we want to empower them to make informed, healthy decisions based on accurate information.”
Throughout National Drug Facts Week, the United States Attorney’s Office will also utilize its @NDWVnews Twitter account to engage in a social media campaign to highlight important factual information regarding substance abuse and addiction, including the science of addiction, marijuana, prescription painkillers, heroin, and resources available for individuals struggling with substance abuse disorders.
Individuals interested in obtaining additional information about National Drug and Alcohol Facts Week or finding factual information on substance abuse and illegal drugs are encouraged to visit the National Institute on Drug Abuse website at www.drugabuse.gov. Individuals, educators, and other community organizations interested in scheduling substance abuse education initiatives and events in the Northern District of West Virginia are encouraged to contact Tara Tighe at the United States Attorney’s Office at (304) 234-0100.
Kansas Man Sentenced in Struggle That Exposed Marshals to PCPRead the Press Release
KANSAS CITY, KAN. – A Kansas man was sentenced Monday to two years in federal prison for causing a struggle in which U.S. Marshals were exposed to the drug PCP, U.S. Attorney Barry Grissom said.
Frederick E. Pendleton, 32, Kansas City, Kan., pleaded guilty to one count of assaulting, resisting or impeding a federal employee. In his plea he admitted the incident occurred Dec. 30, 2014, when U.S. Marshals attempted to arrest him for violating supervised release in a criminal case. The marshals went to Liberty Fruit Co., in Kansas City, Kan., where Pendleton was working. Pendleton resisted arrest, struggling with the marshals. During the struggle, a vial of PCP Pendleton was carrying in his waistband leaked, soaking his groin in the chemical. Two marshals suffered injuries on their hands that came into contact with the PCP. They were treated at a hospital for exposure to the drug.
PCP, also known as angel dust, can cause numbness, loss of motor control, convulsions and hallucinations.
The 24-month sentence will be consecutive to an 18-month sentence in the previous case.
Grissom commended the U.S. Marshals Service and Assistant U.S. Attorney Terra Morehead for their work on the case.
Justice Department Announces Leodan Privatbank AG Reaches Resolution Under Swiss Bank ProgramRead the Press Release
The Department of Justice announced today that Leodan Privatbank AG (Leodan), reached a resolution under the department’s Swiss Bank Program.
The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States. Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts. Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.
Under the program, banks are required to:
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Make a complete disclosure of their cross-border activities;
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Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
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Cooperate in treaty requests for account information;
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Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
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Agree to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations; and
- Pay appropriate penalties.
Swiss banks meeting all of the above requirements are eligible for a non-prosecution agreement.
According to the terms of Leodan’s non-prosecution agreement, Leodan agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a penalty in return for the department’s agreement not to prosecute Leodan for tax-related criminal offenses.
Leodan, which is organized as a corporation owned by private shareholders, is a small private bank that commenced doing business in September 2009. Leodan previously was known as PHZ Privat- und Handelsbank Zürich AG until it changed its name in August 2015 as part of a new business strategy. Leodan focuses on asset management, which encompasses advisory, brokerage and custodial services, for private and institutional clients. Leodan’s sole office is in Zurich, Switzerland. On Jan. 11, 2016, a meeting of Leodan’s shareholders was convened, and the shareholders voted to voluntarily wind-down Leodan’s banking operations.
Until June 2013, Leodan conducted a U.S. cross-border banking business that aided and assisted certain of its U.S. clients in opening and maintaining undeclared accounts in Switzerland and concealing the assets and income they held in these accounts from the U.S. government. Six private bankers at Leodan, including the Chief Executive Officer, serviced the 44 U.S.-related accounts at the bank. Leodan offered a variety of traditional Swiss banking services, including hold mail and code-name or numbered account services, that it knew could assist, and did in fact assist, U.S. clients in the concealment of assets and income from the Internal Revenue Service (IRS). Leodan opened and maintained accounts belonging to U.S. taxpayers who had left other banks being investigated by the department without ensuring that each such account was compliant with U.S. tax law. Leodan accepted instructions in connection with U.S.-related accounts not to invest in U.S. securities and not to disclose the names of U.S. clients to U.S. tax authorities, including the IRS. Leodan also processed significant securities or precious metals electronic transfers in relation to U.S.-related accounts at or around the time the clients’ accounts were closed, even though Leodan knew, or had reason to know, that some of the accounts contained undeclared assets.
Leodan opened and maintained undeclared accounts in the names of sham structures that were beneficially owned by U.S. taxpayers, while knowing, or having reason to know, that these structures were used by U.S. clients to help conceal their identities from the IRS. These structured accounts were non-U.S. domiciled entities, such as an offshore corporation or trust, which aided and abetted the clients’ ability to conceal their undeclared accounts from the IRS. These non-U.S. domiciled entities were established in the British Virgin Islands, Cyprus, Germany, Hong Kong, Liechtenstein and Panama. Because Swiss law requires Leodan to identify the true beneficial owner of structures on a document called a Form A, it knew that these were U.S. client accounts. Nonetheless, for certain U.S. client accounts, Leodan private bankers and other employees aided and assisted some of these U.S. clients in concealing these assets and income from the IRS.
On Dec. 22, 2010, the Chief Executive Officer and the Chief Operating Officer of Leodan met in the bank’s offices with an external asset manager (EAM #1) and two private bankers, who were not satisfied with their positions at UBS. EAM #1 presented his company and proposed a business relationship. During this meeting, EAM #1 informed Leodan’s management that he was under investigation in the United States. Later that same month and viewing a potential relationship with EAM #1 as a business opportunity, Leodan made a decision to hire the two private bankers commencing May 2011 and to enter into a business relationship with EAM #1.
Leodan opened 19 U.S.-related accounts for 13 clients of EAM #1. Of these 19 accounts, 16 were structured accounts held by non-U.S. domiciled entities. EAM #1 served as a director of his 16 structured accounts at Leodan, and EAM #1 had a power of attorney for the non-U.S. domiciled entity that held the account in its name. The relationship with EAM #1 brought more than 40 percent of the U.S.-related accounts to Leodan. EAM #1 was later indicted in the United States for conspiring with U.S. taxpayers to help them evade their U.S. tax obligations.
Between May 2011 and October 2012, Leodan made no efforts to ascertain the status of the criminal investigation against EAM #1. On Oct. 16, 2012, representatives of Leodan’s Board of Directors and Management Board met with representatives of FINMA. After discussing with FINMA the indictment of EAM #1, which had taken place more than 15 months earlier in July 2011, Leodan made the decision to terminate its relationship with EAM #1 and exit his clients. Between November 2012 and January 2013, Leodan transferred the 19 U.S.-related accounts of EAM #1 to other banks. The majority of the assets in these accounts were transferred per the clients’ instructions to one specific Swiss bank and two banks in Liechtenstein, and these transfers continued to aid some of those clients in evading their U.S. taxes.
During the period since Aug. 1, 2008, Leodan held a total of 44 U.S.-related accounts, which included both declared and undeclared accounts, with an aggregate peak of approximately $59.42 million in assets under management. Leodan will pay a penalty of $500,000.
In accordance with the terms of the Swiss Bank Program, Leodan mitigated its penalty by encouraging U.S. accountholders to come into compliance with their U.S. tax and disclosure obligations. While U.S. accountholders at Leodan who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS Offshore Voluntary Disclosure Program, the price of such disclosure has increased.
Most U.S. taxpayers who enter the IRS Offshore Voluntary Disclosure Program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts. On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement. With today’s announcement of this non-prosecution agreement, noncompliant U.S. accountholders at Leodan must now pay that 50 percent penalty to the IRS if they wish to enter the IRS Offshore Voluntary Disclosure Program.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the IRS and in particular, IRS-Criminal Investigation and the IRS Large Business & International Division for their substantial assistance. Acting Assistant Attorney General Ciraolo also thanked Kimberle E. Dodd, who served as counsel on this matter, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Jury Returns Guilty Verdicts Against Andover Attorney in $1 Million IRS ScamRead the Press Release
BOSTON – Following a two-week trial, an Andover attorney was convicted today of laundering more than $1 million in fraudulently-obtained IRS refund checks through several different bank accounts, including the attorney’s trust accounts.
R. David Cohen, 64, was convicted by a federal jury of on one count of conspiracy, 14 counts of conversion and receipt of stolen United States property, and one count conspiracy to commit money laundering. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 26, 2016.
The evidence at trial demonstrated a scheme in which individuals filed fraudulent tax returns with fictitious W-2 information, usually a name and social security number of a resident of Puerto Rico, whose residents are not required to file federal income tax returns. Once the fraudulent returns were accepted by the IRS, refund checks were sent to designated addresses in Lawrence, East Boston, and New York controlled by Cohen’s co-conspirators.
Beginning in October 2011, Cohen and his co-conspirators deposited over 100 fraudulently-obtained tax refund checks totaling over $1 million into banks to launder them through Cohen’s “Interest On Lawyer’s Trust Accounts” (IOLTA), as well as through bank accounts in the name of AD Professional Association, Inc. When questioned by bank officials about the large amount of U.S. Treasury checks Cohen was depositing and negotiating through his IOLTA and personal accounts, Cohen falsely claimed that the payees were his clients. When one bank requested proof concerning one of the IRS refund checks, Cohen provided a fake participation agreement and affidavit purporting to state that he had the client’s authority to deposit her IRS refund check into his IOLTA account.
The charge of conspiracy to convert and receive stolen United States property 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 loss or gain from the offense. The charge of conversion and receipt of United States property provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross loss or gain for each count from the offense. The charge of conspiracy to launder funds provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross loss or gain from the offense. 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 William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by S. Theodore Merritt and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Judge Sentences New Kensington Man to 64 Months in Prison for Drug Law ViolationsRead the Press Release
PITTSBURGH - A resident of New Kensington, PA pleaded guilty and was sentenced in federal court to 64 months imprisonment on his conviction of violating the federal narcotics laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on William Hughley, Jr., 39, of New Kensington, PA.
According to information presented to the court, on Feb. 6, 2014, Hughley attempted to possess with intent to distribute a quantity of cocaine and carried a Smith and Wesson .357 caliber handgun during and in furtherance of that offense. Hughley also possessed with intent to distribute quantities of cocaine and heroin.
Prior to imposing sentence, Judge Diamond stated that the 64-month term was adequate to achieve the objectives of sentencing and deter others.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation leading to the successful prosecution of Hughley.
Jefferson City Attorney, Two Women Sentenced for Marriage Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., attorney, a Ukrainian national and an El Paso, Texas, woman were sentenced in federal court today for their roles in two marriage fraud conspiracies.
James Douglas Barding, 63, of Jefferson City, was sentenced by U.S. District Judge Stephen R. Bough to one month in prison, followed by one year of supervised release. The Court also ordered Barding to pay a $3,000 fine.
Barding pleaded guilty on Aug. 4, 2015, to enlisting a U.S. citizen to marry co-defendant Darya Chernova, 41, a citizen of Ukraine who currently resides in Chandler, Ariz. The purpose of the conspiracy was so that Chernova (with whom Barding was having an affair) could remain in the United States and seek citizenship.
Chernova, who pleaded guilty on Aug. 17, 2015, to her role in the marriage fraud conspiracy, was sentenced today to three years of probation (including 100 hours of community service) and ordered to pay a $1,000 fine.
Barding, an attorney and a married U.S. citizen, had a long-running affair with Chernova, who entered the United States on a student visa. During the marriage Chernova lived in Jefferson City and Barding was a frequent visitor and an overnight guest at her residence. Chernova’s residence was a couple of blocks away from the home Barding shared with his wife. Chernova has since moved out of the state and the two children she had with Barding now live with him.
Chernova received a bachelor’s degree in 2002 and an MBA from Lincoln University in 2005. She received a bachelor of science degree in mechanical engineering in 2010 and a master’s degree in mechanical and space engineering in 2011 from the University of Missouri.
Barding admitted that he told another co-conspirator, a friend identified as T.D., in late 2004 that, if he agreed to marry Chernova, he would not have to live with her and could get divorced after she gained sufficient status to remain in the United States. They were married on March 13, 2005, in Cape Girardeau, Mo., so that persons they knew in Cole County, Mo., would not be likely to find out about the marriage. Barding, who was a pilot and owned a plane, flew Chernova and T.D. to Cape Girardeau for the marriage ceremony and acted as a witness to their wedding.
Although they never lived together, Chernova and T.D. each filled out forms falsely claiming they shared a Jefferson City apartment. Chernova also submitted documents that purported to show they shared accounts and bills when, in truth, the majority of the submissions were in name only and no accounts or bills were actually shared. The only purpose for their marriage was so that she could evade immigration laws and remain in the United States with Barding. At various times Chernova made material false statements regarding her address and the true purpose of her marriage, which resulted in her being granted conditional permanent resident status on Nov. 27, 2008.
Approximately nine months and 16 days after the fraudulent marriage, a child was born to Barding and Chernova. A second child was born to them the following year, which she falsely claimed on immigration forms and on the birth certificate was the biological child of T.D., to prevent federal officials from suspecting the marriage was fraudulent.
Barding admitted that he met Chernova and T.D. on April 20, 2010, the day before Chernova and T.D. were scheduled to be questioned by representatives of the U.S. Citizenship and Immigration Service. The purpose of the meeting was to go over their testimony and Barding advised them to stick to their false stories regarding their fraudulent marriage. On April 21, 2010, Barding gave them a ride to the interview in St. Louis, Mo., where Chernova made false statements with Barding’s knowledge.
Soon afterward, Barding assured Chernova and T.D. that, if they stayed together and stuck to their stories, they would not get caught with their plan to deceive the government, and she could remain in the United States.
T.D.’s ex-girlfriend approached law enforcement and the Missouri Bar through an attorney, because she believed that Barding had committed a crime by getting T.D. to fraudulently marry Chernova for the sole purpose of allowing her to remain in the United States. The letters written by T.D.’s ex-girlfriend led to the initiation of investigations by the Missouri Bar’s Office of Chief Disciplinary Counsel (OCDC), local and federal law enforcement, and immigration authorities.
Also sentenced today, in a separate but related case, was Patricia Anne Ewalt, 64, of El Paso. Ewalt was sentenced by U.S. District Judge Stephen R. Bough to three years of probation and ordered to pay a $1,000 fine.
Ewalt pleaded guilty on Aug. 5, 2015, to her role in a conspiracy to commit marriage fraud so that co-defendant Oleksandr Nikolayevich Druzenko, also known as “Alex,” 35, a Ukrainian national residing in Jefferson City, could remain in the United States and seek citizenship. Druzenko also pleaded guilty to his role in the conspiracy and was sentenced on Nov. 18, 2015, to time served.
Druzenko and Ewalt were married on June 22, 2007, in Jefferson City. Druzenko entered the United States on a student visa in August 2004 and attended college in Missouri and elsewhere. He was employed at the Missouri Office of Administration in Jefferson City at the time of the Oct. 3, 2012, indictment.
In 2007, Druzenko’s student visa was expiring and he would soon have to leave the United States. After two failed attempts to persuade U.S. citizens to marry him so that he could remain in the country, Ewalt agreed to marry him.
Druzenko and Ewalt, along with Barding and Chernova, conspired to arrange a fraudulent marriage between Druzenko and Ewalt so that he could remain in the United States in violation of the law.
Druzenko and Ewalt falsely claimed that they resided together, when, in fact, Druzenko and Ewalt did not live with each other. Druzenko and Ewalt each admitted that they knowingly submitted documents that were materially false and would serve to deceive the U.S. Citizenship and Immigration Service into believing Druzenko’s marriage to Ewalt was genuine. They also admitted that they submitted fraudulent documents so that Druzenko could achieve resident status in the United States.
As a result of his fraudulent marriage to Ewalt, and the submission of false material statements to U.S. Citizenship and Immigration Service, Druzenko was allowed to remain in the United States and gained permanent resident status when in fact he should not have been allowed to remain in the country and did not lawfully qualify for any adjustment to status.
These cases were prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the U.S. Citizenship and Immigration Services and the Jefferson City, Mo., Police Department.
Inland Empire Man Who Threatened to Kill U.S. Forest Service Officer Investigating Trash Dumping Sentenced to 18 Months in PrisonRead the Press Release
LOS ANGELES – A man who repeatedly threatened to kill a United States Forest Service Law Enforcement Officer who contacted the man in relation to an investigation into trash dumped in the San Bernardino National Forest was sentenced today 18 months in federal prison.
Richard Latka, 57, of Hemet, was sentenced this morning by United States District Judge Dale S. Fischer.
Latka was found guilty by a federal jury in October of threatening to assault and murder the federal officer. According to the evidence presented at the trial, the Forest Service Officer went to a residence on Persimmons Lane in Hemet in October 2014 to investigate a large amount of trash that had recently been dumped in the nearby national forest. The officer encountered Latka in the front yard of the residence, and Latka reacted angrily when the officer said he wished to speak to the owner of the home. Latka then ran toward the officer with clenched fists. Believing that Latka intended to hit him, the officer drew his Taser and ordered Latka to stop. Latka stopped running but continued screaming at the officer. The officer tried to diffuse the situation by retreating to his car, but Latka followed the officer, continued to scream at him, and then pounded with both fists on the driver’s side window of the officer’s marked law enforcement vehicle. The officer drove away, but Latka pursued the officer in his own car, screaming that he was going to kill the officer. At one, Latka pulled up beside the officer and yelled, “Next time you’re dead!” Witnesses reported that Latka later returned to the home and screamed to them that he was going to kill the officer.
“This federal law enforcement officer faced serious threats of assault and murder. The officer did everything he could to de-escalate the situation,” said United States Attorney Eileen M. Decker. “Instead of de-escalating, Mr. Latka made repeated threats to harm the officer, who was acting both lawfully and prudently. As a result of his dangerous conduct, his unwillingness to comply with law enforcement, and his failure to accept responsibility for his crime, Mr. Latka has earned this prison term.”
The case against Latka was the product of an investigation by the United States Forest Service.
Individual Sentenced to Life in Prison for Drug TraffickingRead the Press Release
SAN JUAN, P.R. – Delfin Robles-Alvarez was sentenced to life in prison for his participation in a conspiracy to distribute cocaine for the purpose of unlawful importation, conspiracy to import cocaine, and conspiracy to commit money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The defendant went to trial and was found guilty by a federal jury on August 18, 2015.
Seven other co-conspirators had already pled guilty, two are awaiting sentence and one other defendant recently extradited is pending trial.
According to the indictment, throughout the year of 2005 and continuing up to 2014, the defendant, along with others, intentionally combined, conspired and agreed to possess with intent to import and distribute more than 5 kilograms of cocaine from Saint Martin, Netherlands Antilles into Puerto Rico.
During trial, the government presented video, audio, and telephone recordings of a Drug Enforcement Administration investigation into a drug trafficking organization responsible for importing over 2,000 kilograms of cocaine from Saint Martin, Netherlands Antilles, to Puerto Rico for distribution and sale as well as the laundering of funds in excess of 12 million U.S. dollars. The complex conspiracy involved numerous players with various roles, the smuggling of money and drugs both by sea and by air, and various methods to launder the proceeds from these illegal activities, including through the Puerto Rico Lottery System.
The case was prosecuted by Assistant United States Attorney Mariana Bauzá and Special Assistant United States Attorney Glenn Goetchius.
Indictment: Topeka Man Filed False ReturnsRead the Press Release
TOPEKA, KAN. – A Topeka tax preparer was charged in an indictment unsealed today with filing false tax returns, U.S. Attorney Barry Grissom said.
Maurice L. Stewart, 38, Topeka, Kan., is charged with 13 counts of filing false tax returns and 13 counts of wire fraud. The indictment alleges the government paid more than $479,000 in refunds to Stewart’s customers based on returns containing false information.
Stewart filed returns in clients’ names, falsely claiming the returns were self-prepared. He fraudulently reported that clients had suffered business losses. He filed returns electronically using the IP address of a Topeka business where he formerly was employed as an online IT technical services coordinator. He prepared returns using an online program where he had opened an account using another person’s name.
If convicted, he faces a maximum penalty of three years in federal prison and a fine up to $250,000 on each count of filing a false return, and a maximum penalty of 20 years and a fine up to $250,000 on each wire fraud count. Internal Revenue Service-Criminal Investigation investigated. Assistant U.S. Attorney Rich Hathaway is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Huntington woman pleads guilty in Detroit-based heroin schemeRead the Press Release
HUNTINGTON, W.Va. – A Huntington woman pleaded guilty today in federal court to a drug charge for her role in a heroin conspiracy, announced Acting United States Attorney Carol Casto. Charon Chere Harris, 36, entered her guilty plea to maintaining a residence for the purpose of distributing heroin.
During May and June of 2015, Harris leased an apartment located at 2736 Rear 4th Avenue in Huntington. The terms of the lease provided that Harris would be the tenant of the apartment for a year beginning in May of 2015. However, Harris never resided in the apartment and actually leased it for the purpose of allowing Eddie William Randall, of Detroit, to reside there and distribute heroin that was transported from Detroit to the Huntington area.
On June 25, 2015, officers with the Huntington FBI Drug Task Force executed a search warrant at the apartment. During the search, officers seized approximately 40 grams of heroin, drug paraphernalia, a loaded 9mm pistol, and $13,030 in cash. During the search of another residence in Huntington on 25th Street, also identified through the investigation, officers seized approximately 280 grams of heroin and a loaded .45 caliber pistol. Randall admitted that he possessed the heroin from both residences for distribution and that he possessed the guns in an effort to protect himself from theft or robbery of heroin or cash.
Harris faces up to 20 years in federal prison and a fine of up to $500,000 when she is sentenced on April 25, 2016. Randall previously pleaded guilty and faces a mandatory minimum of 10 years and a maximum of life in federal prison when he is sentenced on April 11, 2016.
The investigation was conducted by the Huntington FBI Drug Task Force, the Huntington Police Department, and the Cabell County Sheriff’s Department. Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Honduran National Sentenced for “Illegal Re-Entry After Deportation by an Aggravated Felon”Read the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Jose Zuniga-Amador, age 33, a Honduran citizen, was sentenced on January 22, 2016 to 30 months’ imprisonment for Illegal Re-Entry After Deportation By An Aggravated Felon.
Zuniga-Amador pled guilty to the federal charge on October 7, 2015. At his change of plea hearing in October, Zuniga-Amador admitted that he had been previously deported from the United States to Honduras on five separate occasions between 2000 and 2012.
In addition to the 30 month sentence on his new federal case, Zuniga-Amador’s supervised release was also revoked on a previous 2012 federal conviction for the same offense. Zuniga-Amador was sentenced to 10 months on his earlier case, to be served consecutively, for a total sentence of 40 months imprisonment. Upon release from federal prison, the Court noted that Zuniga-Amador will be placed in deportation proceedings.
The investigation which resulted in Zuniga-Amador’s arrest and conviction was conducted by the Immigration and Customs Enforcement Agency (ICE), and by the St. Clair County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Home Health Care Company Owner Pleads Guilty to Income Tax Fraud, Health Care Fraud & Money Laundering ChargesRead the Press Release
COLUMBUS, Ohio – JoAnna M. Ochieng, 67, of Columbus, Ohio, pleaded guilty in U.S. District court today to one count each of income tax evasion, conspiracy to commit health care fraud and money laundering relative to a scheme to defraud Medicaid of $436,305.69.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Lamont Pugh, Special Agent in Charge, Department of Health and Human Services Office of Inspector General, Ohio Attorney General Mike DeWine and Guy A. Ficco, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), announced the plea entered today before U.S. District Court Judge Gregory L. Frost.
According to court documents, beginning in 2003, Ochieng owned Healthy Solutions Home Health Services (Healthy Solutions) which provided nursing and home health services to Medicaid recipients and their families. Since 2003, Healthy Solutions has operated out of six locations, including Columbus, Bexley, Washington Courthouse and Hillsboro, Ohio.
Between November 2011 and March 2013, Ochieng conspired with others employed at Healthy Solution to defraud the Ohio Medicaid program by making false statements in connection with the delivery of, and payment for, health care benefits by means of fraudulent representations.
Specifically, Healthy Solutions employees, under the direction of Ochieng, instructed parents who were providing home health care services to their children to “swap” time sheets with other parents who were also providing home health care services to their children. This would give the false appearance that parents were providing home health services to children other than their own. Under the Medicaid Program, a home health aide cannot be the parent, foster parent, or legal guardian of a patient who is under 18 years of age.
In addition, in order to maximize the amount of reimbursement paid by the Medicaid Program, Ochieng and other co-conspirators working at Healthy Solutions instructed Healthy Solution nurses to submit Skilled Nursing Visit Notes that falsely reflected the hours nurses were providing home health services. Specifically, the nurses were instructed to “split shifts” on their time sheets to make it appear that they made three or more separate home visits, when in fact they made no more than two. By falsely representing the hours of service, Healthy Solutions received inflated payments from the Medicaid Program.
The fraudulent claims submitted by Healthy Solutions, under the direction of Ochieng, resulted in a loss to the Medicaid Program of $436,305.69.
During 2012 and 2013, Healthy Solutions received payments from the Medicaid Program for nursing and home health services totaling $6,037,659.76 and $3,056,866.23, respectively. Knowing that taxes were due and owing to the IRS for the proceeds from her business operations at Healthy Solutions, Ochieng willfully failed to file income tax returns and pay taxes on those proceeds for the 2012 and 2013 income tax years, resulting in a tax loss of $274,205.55.
Funds received by Ochieng and Healthy Solutions as part of the health care fraud scheme were deposited into a local bank account and comingled with other income from Medicaid. In February 2013 and March 2013, as part of her plan to evade the payment of income taxes, Ochieng electronically transferred $600,000 and $410,000, respectively, to an account in a nominee name in the Turks and Caicos Islands. Each transaction involved at least $10,000 of funds derived from the health care fraud scheme.
Conspiracy to commit health care fraud and money laundering are crimes punishable by up to 10 years in prison. Income tax evasion is a crime punishable by up to five years imprisonment.
In addition, Ochieng agreed to forfeit $1 million held in a trust account in the Turks and Caicos Islands.
“The Medicaid Fraud Control Unit within my office is dedicated to working with federal authorities to investigate and prosecute those who manipulate the health care system to collect money that they are not entitled to,” said Attorney General DeWine. “Those who believe that they can outsmart the investigators trained to identify this type of fraud should think again.”
"Ochieng’s attempt to evade taxes by hiding income and failing to file income tax returns was a theft from the American public," said Guy A. Ficco, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The conduct detailed in this case is egregious. Health care fraud affects every American and contributes to the rising cost of health care and degrades the integrity of our health care system and legitimate patient care.”
U.S. Attorney Stewart commended the cooperative law enforcement investigation, as well as Assistant U.S. Attorneys Kenneth F. Affeldt and Daniel A. Brown and Maritsa Flaherty with the Ohio Attorney General’s Office, who are prosecuting the case.
Georgia Tax Return Preparer Charged in Refund Fraud SchemeRead the Press Release
An Atlanta, Georgia tax return preparer self-surrendered earlier today after being indicted by a federal grand jury on Dec. 1, 2015 for 10 counts of wire fraud, 10 counts of aggravated identity theft and 10 counts of filing false claims against the United States, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
Cheryl Singleton, 28, owned and operated Advanced Tax Services, a tax return preparation business with multiple offices in the Atlanta area, according to the indictment and other information presented in court. Singleton’s initial court appearance was earlier today in U.S. District Court for the Northern District of Georgia. Beginning in 2012, Singleton is alleged to have participated in a scheme with others to obtain tax refunds by filing false federal income tax returns. The indictment states that as part of this scheme, Singleton falsely advised individuals that they could apply for a government stimulus payment by providing their personal identification information to Advanced Tax Services. Singleton and the other participants in the scheme are also accused of using this personal identification information to electronically file false income tax returns in those individuals’ names, without their knowledge or consent. These tax returns each claimed fraudulent tax refunds of at least $1,000.
If convicted, Singleton faces a statutory maximum sentence of 20 years in prison for each wire fraud count, five years in prison for each false claims count and a mandatory minimum sentence of two years in prison for the aggravated identity theft counts, which will run consecutively to any other prison term she receives. Singleton also faces substantial monetary penalties and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Melanie A. Smith of the Tax Division and Assistant U.S. Attorney Thomas J. Krepp of the Northern District of Georgia, who are prosecuting the case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Fresno Man Sentenced to 5 Years in Prison for Methamphetamine TraffickingRead the Press Release
FRESNO, Calif. — Jose Nicolas Olivas Zazueta, 35, of Fresno, was sentenced today by United States District Judge Lawrence J. O'Neill to five years in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, on August 2, 2014, Zazueta and co-defendant Jorge Hernandez, 35, of Fresno, brought six pounds of methamphetamine to a parking lot on east Kings Canyon Road, in Fresno, where they were arrested and the methamphetamine was seized. Hernandez was sentenced to five years by Judge O’Neill on January 19, 2016.
This case was the product of an investigation by the United States Drug Enforcement Administration and the Federal Bureau of Investigation. Assistant United States Attorney Michael S. Frye is prosecuting the case.
Four Plead Guilty in Dexter Area Drug Conspiracy CaseRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that John Williams, a/k/a “John-John”, 39, of Stetson, Maine, Cynthia Williams, a/k/a “Cindy”, 43, of Stetson, Maine, Whitney Chadbourne, 22, of Harmony, Maine and Corey Pomerleau, 24, of Harmony, Maine, pleaded guilty today at the U.S. District Court in Bangor to conspiring to distribute and possess with the intent to distribute controlled substances.
According to court records, between January 1, 2002 and November 22, 2014, there existed a conspiracy to distribute and possess with the intent to distribute oxycodone and five kilograms or more of cocaine. The drugs were being brought into the Dexter, Maine area from Rhode Island and then were being distributed by members of the conspiracy. John Williams, Cindy Williams and Whitney Chadbourne participated in the conspiracy during all or a portion of its existence. The Williams were involved in the distribution of the drugs in the Dexter area, whereas Chadbourne was involved in transporting the drugs to Maine from Rhode Island.
In addition, between February 10, 2011 and November 22, 2014, there existed a related conspiracy to distribute and possess with the intent to distribute oxycodone only. The drugs were being brought into the Dexter, Maine area from Rhode Island and then were being distributed by members of the conspiracy. Corey Pomerleau participated in the conspiracy during a portion of its existence by distributing oxycodone in the area.The conspiracy counts carry a maximum penalty of up to 20 years imprisonment, a $1,000,000 fine and at least three years supervised release and up to life supervised release.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, the Penobscot County Sheriff’s Office and the Piscataquis County Sheriff’s Office.Four Individuals Involved in O’Brien County Meth Conspiracy Sentenced to Federal PrisonRead the Press Release
On January 25, 2016, the last of two men and two women who conspired together to distribute methamphetamine was sentenced to federal prison.
Isaac Esquivel, 37, from Sanborn, Iowa; Mackenzie Jellema, 31, from Sioux City, Iowa; Joe Leal, 49, from Hartley, Iowa; and Valerie Ortega, 30, from Sanborn, Iowa, each received prison terms after guilty pleas to conspiracy to distribute methamphetamine.
At the guilty pleas, each admitted their involvement in a conspiracy that distributed more than 50 grams of actual (pure) methamphetamine in the O’Brien County, Iowa area. In total, law enforcement made undercover purchases and seizures from the group totaling 271.78 grams of methamphetamine.
Ortega and Esquivel were sentenced in Sioux City by United States District Court Judge Donald E. O’Brien, and Leal and Jellema were sentenced by United States District Court Judge Mark W. Bennett. Esquivel was sentenced to 36 months’ imprisonment and a term of supervised release of two years. Jellema was sentenced to 48 months’ imprisonment; Leal was sentenced to 81 months’ imprisonment and Ortega was sentenced to 42 months’ imprisonment. A special assessment of $100 was imposed for each. Jellema, Leal and Ortega must each also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Department of Narcotics Enforcement, Spencer Iowa Police Department, Clay County Iowa Sheriff’s Office, O’Brien County Iowa Sheriff’s Office, Sheldon Iowa Police Department, Iowa Great Lakes Drug Task Force and the Southwest Iowa Narcotics Enforcement Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 14-4052. Follow us on Twitter @USAO_NDIA.
Former Treasurer Sentenced to Two Years for Stealing Money from Charlotte Area Non-profit EmployerRead the Press Release
CHARLOTTE, N.C. – The former Treasurer of a Charlotte area non-profit organization was sentenced on Tuesday, January 19, 2016, to 24 months in prison for stealing more than $344,262 from his employer, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Floyd Kevan Weaver, 53, of Charlotte, was also sentenced to two years of supervised release and was ordered to pay $344,262.71 as restitution. Weaver pleaded guilty to one count of uttering counterfeit and forged securities in October 2015.
U.S. Attorney Rose is joined in making this announcement by Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service.
According to filed court documents and court proceedings, from 2000 to 2013, Weaver was employed by a Charlotte-area non-profit organization. As the non-profit’s elected Treasurer, Weaver was responsible for the organization’s financial affairs and acted as custodian of its funds. Weaver previously admitted that from 2008 to 2013, he engaged in a scheme to defraud his employer by fraudulently diverting the organization’s funds for his personal benefit. According to court records and the sentencing hearing, Weaver forged the name of one of the non-profit’s officers on the organization’s bank checks and deposited the forged checks into his own bank account. He concealed the fraud by logging the stolen funds as travel expenses, mileage reimbursement, office supplies and postage. According to court records, Weaver forged approximately 116 checks totaling more than $326,545, and also used the non-profit’s debit card to steal more than $17,717 for his personal use. Court documents show that Weaver used the stolen money to purchase jewelry and a car, among other things.
Weaver will be ordered to report the Federal Bureau of Prisons to begin serving his sentence. All federal sentences are served without the possibility of parole.
The investigation was handled by the USPIS. The prosecution for the government is being handled by Assistant United States Attorney Jenny Sugar of the U.S. Attorney’s Office in Charlotte.
Former Police Officer Sentenced for Deprivation of Civil RightsRead the Press Release
PITTSBURGH - A Fayette County resident has been sentenced in federal court to three years of probation, the first six months of which are to be served on home detention, on his conviction of Deprivation of Civil Rights, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Norman L. Howard, 43, of Grindstone, Pa. As part of the disposition of Howard’s case, Howard agreed that his judgment would include that he permanently relinquish his Pennsylvania law enforcement credentials and to never seek employment through law enforcement in the future.
According to information presented to the court, on or about May 26, 2013, Howard, a police officer of the Redstone Township Police Department, willfully deprived an individual identified as D.N. by punching D.N. in the face, without justification, thereby causing bodily injury to D.N. The indictment further alleged that on or about May 26, 2013, Howard made false statements in a police report regarding the incident, claiming that the man had shoved him and had resisted arrest.
Assistant United States Attorneys Cindy K. Chung and Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Howard.