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22 January 2016
Rochester Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Raymond Collazo, 30, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possession with intent to distribute 100 grams or more of heroin and possession of a firearm in furtherance of a drug trafficking crime. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of $5,250,000 or both.Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Collazo led a Rochester-based drug organization which processed, packaged and resold large quantities of crack cocaine and heroin in the City of Rochester. Collazo and co-defendant Luis Abril utilized multiple locations, including 617 Ridgeway Avenue in Rochester to store, process and distribute the narcotics, and armed themselves while doing so.
On April 24, 2014, Collazo, Abril and others were arrested following the execution of multiple search warrants in Rochester, as well as Collazo’s residence in Orlando, Florida. Collazo and Abril were taken into custody at 617 Ridgeway Avenue where officers seized over 12 grams of cocaine packaged for sale, 200 grams of heroin, three loaded handguns, one of which was stolen, dozens of rounds of ammunition, $2,466 in U.S. currency, and paraphernalia for processing, packaging, and distributing cocaine and heroin.
Abril was previously convicted and sentenced to 10 years in prison.
Today’s plea is the culmination of an investigation by the Organized Crime Drug Enforcement Task Force, and included involvement by the part of Rochester Police Department, under the direction of Chief Michael Ciminelli, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
Sentencing is scheduled for April 25th at 2:15 p.m. before Judge Siragusa.
Repeat Bank Robber Who Struck from Coast to Coast Sentenced to 10+ Years in PrisonRead the Press Release
A 57-year-old repeat bank robber was sentenced today in U.S. District Court in Seattle to 127 months in prison and three years of supervised release for multiple bank robberies and the armed robbery of the Nordstrom fine jewelry department, announced U.S. Attorney Annette L. Hayes. WILLIAM MITCHELL was arrested in Grants Pass, Oregon on November 12, 2014, following a string of robberies in Washington State and the robbery of the downtown Nordstrom fine jewelry department on September 11, 2014. At sentencing U.S. District Judge Richard A. Jones said, “In committing these robberies you displayed a callous disregard for the victims and a callous disregard for the consequences of your actions.”
“Seeing a firearm brandished during a bank robbery is a searing experience for anyone who is there,” said United States Attorney Annette L. Hayes. “I commend the FBI and Seattle Police Department for their work on this case that will ensure this defendant will not be able to victimize more bank tellers and patrons for a very long time.”
According to records filed in the case, MITCHELL was identified as a serial bank robbery suspect following the robberies of Homestreet Bank in Seattle (July 28, 2014), Wells Fargo Bank in Seattle (July 29, 2014), Timberland Bank in Olympia (October 30, 2014) and Numerica Federal Credit Union in Spokane (November 7, 2014). Seattle police also used DNA evidence to connect MITCHELL to the armed robbery of the Nordstrom store. DNA evidence also connected MITCHELL to bank robberies in Naples, Florida on April 4, 2014 and in Santa Barbara, California on October 2, 2014. Speaking with investigators following his arrest, MITCHELL admitted he also committed bank robberies in South Burlington, Vermont on July 5, 2014, Ocean Springs Mississippi on May 23, 2014 and Manchester, New Hampshire, on May 30, 2014.
In some of the robberies MITCHELL was armed with a .22 caliber hand gun. In others he was armed with a pellet gun or an airsoft gun – both of which appeared to the victims to be deadly firearms.
MITCHELL has an extensive criminal history in Canada and the U.S. dating back to the early 1980s. In 1990 MITCHELL was sentenced to 207 months in prison for eleven armed bank robberies in Florida, Wisconsin, California and Washington.
The case was investigated by the FBI and the Seattle Police Department. The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute firearms cases in federal court.
Prison Nurse Sentenced for Smuggling Heroin for Federal InmateRead the Press Release
BEAUMONT, Texas – A 44-year-old Beaumont woman has been sentenced for bringing prohibited drugs into a federal prison in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lakista Lashau Davis pleaded guilty on Aug. 27, 2015, to conspiracy to possess with intent to distribute heroin and was sentenced to 36 months in federal prison on Jan. 21, 2016 by U.S. District Judge Thad Heartfield.
According to information presented in court, from November 2014 to March 2015, Davis, while employed as a contract nurse at the Beaumont Federal Correctional Complex, conspired with an inmate to smuggle heroin into the Beaumont Prison Complex for distribution. Davis agreed to a $5,000 payment in return for smuggling the drugs. Davis was indicted by a federal grand jury on Apr. 2, 2015.
This case was investigated by the Federal Bureau of Prisons, Office of Inspector General and the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John Craft.
Pasco Man Sentenced to Five Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Anthony Ryan Jacobs, age 36, of Pasco, Washington, was sentenced today, after having previously pled guilty on October 1, 2015 to Distribution of Child Pornography. United States District Court Judge Stanley A. Bastian sentenced Brown to a five year term of imprisonment, to be followed by a ten year term of court supervision after he is released from Federal prison. In addition, the Judge ordered Jacobs to forfeit to the United States numerous digital items that he used to store and distribute child pornography. Jacobs is now required to register as a sex offender.
According to information disclosed during the court proceedings, Jacobs was using a Peer to Peer file sharing account to share and distribute child pornography images over the Internet. Undercover law enforcement agents located child pornography files Jacobs was making available for download and later obtained a federal search warrant for Jacobs’ residence. On March 12, 2014, United States Secret Service Agents executed a federal search warrant at Jacobs’ residence and seized Jacobs’ digital devices that he used to store and distribute child pornography. A forensic examination of Jacobs’ personal computer revealed child pornography images and videos of child pornography.
Michael C. Ormsby said, “Prosecuting offenders who are distributing child pornography is a priority for the United States Attorney’s Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation
cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the United States Secret Service. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and Project Safe Childhood Coordinator for the Eastern District of Washington.
Owner and Manager of Three Miami-Area Home Health Agencies Convicted in $57 Million Health Care Fraud SchemeRead the Press Release
The owner and manager of three Miami-area home health agencies was convicted late yesterday for his role in a health care fraud scheme that resulted in the submission of false and fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Khaled Elbeblawy, 39, of Miramar, Florida, was convicted after trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay health care kickbacks.
According to evidence presented at trial, Elbeblawy was the manager of Willsand Home Health Agency Inc. and the owner of JEM Home Health Care LLC and Healthy Choice Home Health Services Inc., all of which were home health agencies in Miami-Dade County. The evidence showed that between January 2006 and May 2013, Elbeblawy and his co-conspirators used the three companies to submit approximately $57 million in false and fraudulent claims to Medicare that were based on services that were not medically necessary, were not actually provided and were for patients who were procured through the payment of kickbacks to doctors and patient recruiters.
The evidence introduced at trial showed that Medicare paid approximately $40 million on those claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. Assistant Chief Nicholas Surmacz and Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section are prosecuting the case, and former Trial Attorney Andrew Warren assisted in the prosecution.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Oroville Man Sentenced to Prison for Smuggling FirearmsRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Tyler Ryan Cuff, age 32, of Oroville, Washington, was sentenced today after having previously pleaded guilty on October 28, 2015 to one count of Dealing in Firearms Without a License. Senior United States District Court Judge Wm. Fremming Nielsen sentenced Cuff to a 30-month term of imprisonment, to be followed by three years of court supervision after he is released from Federal prison. Cuff will serve his sentence concurrently with a sentence he received in Canada for smuggling an AK-47 into that country.
According to information disclosed during the court proceedings, for several years Cuff has been purchasing firearms at gun shows in Washington, smuggling them into Canada, and selling them there. Cuff did not have a federal firearms license. Several of the firearms Cuff sold were subsequently found at crime scenes in Canada.
Michael C. Ormsby stated, “The illegal sale of firearms presents a danger to citizens here in the United States and elsewhere. I commend the Bureau of Alcohol, Tobacco, Firearms, and Explosives for its thorough investigation of this matter. The United States Attorney’s Office for the Eastern District of Washington will aggressively prosecute firearms violations that occur within this District.”
This investigation was conducted by ATF&E. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
Normandie Casino Operator Agrees to Plead Guilty to Federal Felony Charges of Violating Anti-Money Laundering StatutesRead the Press Release
LOS ANGELES – The operator of the Normandie Casino in Gardena agreed in court papers filed this morning to plead guilty to charges that it violated anti-money laundering provisions of the Bank Secrecy Act. As part of an agreement with federal prosecutors, the casino agreed to pay nearly $2.4 million for failing to report large cash transactions to federal authorities.
In a plea agreement filed this morning in United States District Court, the Normandie Club, the partnership operating the Normandie Casino, agreed to plead guilty to two felony offenses – failing to maintain an effective anti-money laundering program and conspiring to avoid reporting to the government the large cash transactions of some of the casino’s “high-roller” gamblers.
Under federal law – specifically, the Bank Secrecy Act – casinos like the Normandie are required to implement and maintain programs designed to prevent criminals from using the casino to launder the large sums of cash that illegal activity can generate. For example, casinos must record and report to the government the details of transactions involving more than $10,000 by any one gambler in a 24-hour period.
“The United States has an array of anti-money laundering statutes designed to prevent criminals from using the American financial system to launder the large sums of cash generated by illegal activity such as organized crime, drug trafficking and human trafficking,” said United States Attorney Eileen M. Decker. “Casinos that fail to follow these rules are particularly vulnerable to criminals who seek to disguise illegal cash as gambling winnings.”
In the plea agreement, the Normandie admitted that its casino engaged independent gambling “promoters” to locate high-rollers and then steer those gamblers to the casino. As part of the conspiracy, “high-level personnel” at the casino agreed to avoid reporting to the government the large sums of cash certain high-rollers would bring to the casino. According to the plea agreement, the casino avoided reporting transactions related to the high-rollers by submitting Currency Transaction Reports that named the promoter instead of the gambler, by “structuring” transactions so that they appeared to be less than $10,000, or simply by failing to record large transactions.
During one six-week period in 2013, a single high-roller won more than $1 million from another party at the casino, and the casino conspired to conceal the identity of that high-roller.
Under the plea agreement, prosecutors and the Normandie agree that the casino should pay the maximum fine of $500,000 for each of the two counts, which would result in a total fine of $1 million. Additionally, the casino agreed to forfeit to the government $1,383,530, which it admitted receiving in 2013 while failing to file Currency Transactions Reports.
The Normandie also agreed to cooperate in ongoing criminal investigations, and to create, implement, and maintain an effective anti-money laundering program.
The Normandie Club is being arraigned on this case this afternoon. The formal entry of the guilty pleas will take place at a later date.
The investigation into the Normandie was conducted by IRS – Criminal Investigation and the California Department of Justice’s Bureau of Gambling Control.
Noorvik Resident Sentenced to Seven Months in Prison for Burglary of A Post OfficeRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that Theodore Westlake, 19, of Noorvik, Alaska, was sentenced today by U.S. District Judge Sharon L. Gleason to seven months in prison for his burglary of a United States Post Office in the village of Noorvik. Westlake was also ordered to pay full restitution.
According to Assistant U.S. Attorney Aunnie Steward who prosecuted the case, Westlake and two others, forcibly entered the Noorvik Post Office, rifled mail, and attempted to drill into a safe looking for cash. Westlake’s burglary was interrupted when the Village Public Safety Officer responded to the scene. Over $3,000 in damage was done by the forced entry and attempt to drill into the safe.
The important role the U.S. Post Office plays in a community such as Noorvik was noted by Judge Gleason in her sentencing comments.
“Postal Inspectors worked closely with the U.S. Attorney’s Office and the Alaska State Troopers on this investigation and will continue efforts in support of the Postal Inspection Service mission to vigorously protect the U.S. Mail and U.S. Postal Service employees and customers against all forms of criminal attack and misuse,” said Seattle Division Inspector in Charge, Anthony Galetti of the U.S. Postal Inspection Service.
U.S. Attorney Loeffler commends the United States Postal Inspection Service and the Alaska State Troopers for the investigation of this case.
New York Man Sentenced to 51 Months in Prison for International $200 Million Credit Card Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A New York man was sentenced today to 51 months in prison for his role in one of the largest credit card fraud schemes ever charged by the Justice Department, U.S. Attorney Paul J. Fishman announced.
Shafique Ahmed, 55, of Floral Park, New York, previously pleaded guilty before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court to an information charging conspiracy to commit bank fraud. U.S. District Judge Anne E. Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:Ahmed and others were originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; finally, run up large loans.
The scope of the criminal fraud enterprise required Ahmed and his conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Ahmed admitted that he and others helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted they knew the cards would be used fraudulently at businesses.In addition to the prison term, Judge Thompson sentenced Ahmed to five years of supervised release and entered a forfeiture order for $1 million against him.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the guilty pleas, as well as postal inspectors, under the direction of Postal Inspector in Charge Marie L. Kelokates, and special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Kenneth Pleasant. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Criminal Division and Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Joseph Giaramita Esq., BrooklynNew Orleans Man Sentenced to 20 Years in Interstate Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STANLEY FULTON, age 40, a resident of New Orleans, was sentenced yesterday for conspiring to distribute more than a kilogram of heroin in the New Orleans area, after previously having been convicted in federal court for conspiracy to distribute heroin.
U.S. District Judge Carl J. Barbier sentenced FULTON to 240 months in prison, 10 years of supervised release following his prison term, and a $100 special assessment.
According to court documents, a series of court-authorized wiretaps on the cell phones of New Orleans area heroin dealers led Drug Enforcement Administration agents to identify co-defendant Fredrick Douglas Brooks III as a Houston-based heroin trafficker who was distributing kilogram quantities of heroin in the New Orleans market through drug and bulk cash couriers. FULTON was one of the New Orleans drug brokers who purchased kilogram and multi-kilogram quantities of heroin from Brooks’ network for further distribution in New Orleans.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
New Orleans Man Pleads Guilty to One Count of Conspiracy to Receive Illegal KickbacksRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CARY PAYTON, age 61, of New Orleans, pled guilty to one count of conspiracy to receive illegal kickbacks.
On March 12, 2015, PAYTON was indicted along with 19 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud and the BP fraud.
PAYTON was a Licensed Practical Nurse (LPN) at Abide Home Care Services, a home health company operated by owner Lisa Crinel. PAYTON and other LPNs, aides, recruiters and marketers were paid about $150 - $300 for each referral of a Medicare beneficiary to Abide. Abide then fraudulently billed Medicare for medically unnecessary home health services. PAYTON admitted to receiving a $300 payment for his referral of a Medicare beneficiary to Abide.
PAYTON faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for April 20, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Sharan Lieberman and Andre Lagarde are in charge of the prosecution.
New Jersey Man Found Guilty of Robbing and Murdering Ossining ResidentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANTHONY GRECCO, a New Jersey resident, was found guilty today of robbing and murdering Ryan Ennis, a resident of Ossining, New York, and of conspiring to distribute marijuana and heroin. Following a nine-day trial before the Honorable Kenneth M. Karas, a jury found that GRECCO traveled on August 26, 2014 from New Jersey to Ossining, where he robbed and murdered Ennis in furtherance of GRECCO’s narcotics trafficking activities.
U.S. Attorney Preet Bharara stated: “Anthony Grecco took a human life, violently murdering Ryan Ennis, for a few thousand dollars. Today, a unanimous jury reached a swift verdict, holding Grecco accountable for his callous crime. I want to thank our local and federal law enforcement partners for making this conviction possible.”
As established by the evidence at trial:
GRECCO was a marijuana dealer based in New Jersey. As of the spring of 2014, one of his customers was Ryan Ennis, 25, who had been purchasing marijuana from GRECCO and reselling it in the area around Ossining, New York. By late summer 2014, GRECCO’s marijuana supply had dried up and he became desperate for cash.
GRECCO set up a meeting with Ennis on the pretense that he would be bringing more marijuana for Ennis. In fact, GRECCO intended to rob Ennis, and kill him if necessary, in order to get money. He wanted that money not only because he was strapped for cash, but because he intended to invest in the heroin business of another drug dealer in New Jersey. In preparation for the meeting with Ennis, GRECCO obtained a knife and stuffed a backpack full of linens so that Ennis would not realize that GRECCO had arrived without any marijuana.
On August 26, 2014, GRECCO drove with two accomplices from New Jersey to an apartment complex in Ossining, where Ennis was waiting alone in his father’s apartment. After arriving in Ossining, while the other two individuals waited outside, GRECCO went into the apartment and robbed Ennis. In the course of the robbery, GRECCO stabbed Ennis repeatedly and slashed his throat, killing him. GRECCO took $8,900 – the cash that Ennis had prepared for the marijuana deal – as well as a cellphone and a hat, from Ennis. After the murder, GRECCO returned to New Jersey, where he showered and threw away the blood-stained clothes that he had been wearing in an attempt to cover his tracks.
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GRECCO was found guilty on all five counts in the Indictment, namely, (1) conspiracy to commit Hobbs Act robbery; (2) Hobbs Act robbery; (3) conspiracy to distribute marijuana; (4) conspiracy to distribute heroin; and (5) Travel Act murder. Sentencing is scheduled for May 25, 2016. GRECCO faces a maximum sentence of life in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of GRECCO will be determined by the judge.
U.S. Attorney Bharara praised the outstanding investigative work of the Village of Ossining Police Department and the FBI’s Westchester County Violent Crimes Task Force, which is comprised of investigators from the FBI, the Westchester County Police Department, the Westchester County District Attorney’s Office, the City of Peekskill Police Department, the New York City Police Department, and the City of Yonkers Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Michael Gerber, Scott Hartman, and George Turner are in charge of the prosecution.
New Jersey Court Permanently Bars South Florida Man from Preparing Tax Returns for OthersRead the Press Release
A federal court in New Jersey has permanently barred a South Florida man from preparing federal income tax returns for others, the Justice Department announced today.
Felix Taveras Santos, of Doral, Florida, is prohibited individually and doing business as Latino Tax LLC, from operating a tax return preparation business in the future, pursuant to the civil injunction order. Santos agreed to the entry of the injunction but did not admit to the allegations in the civil complaint against him.
According to the complaint, Santos and his business, which was located in Atlantic City, New Jersey, prepared false and improper returns during the 2010 through 2014 filing seasons. The Internal Revenue Service (IRS) audited 43 federal tax returns that Santos or one of his employees prepared, and the audits resulted in adjustment of 80 percent of those returns and a total income tax deficiency of approximately $100,000, according to the complaint. The complaint alleged that Santos and his employees understated their customers’ tax liabilities or inflated their refunds by improperly:
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claiming child tax credits, including for children who lived outside of the United States;
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declaring dependency exemptions, for instance, for customers who had no proof that they supported the children; and
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using incorrect filing statuses, such as single or head-of-household for customers who were married.
The injunction order requires Santos to provide the United States with a list of his customers since 2010 and to send a copy of the court’s injunction order to all customers for whom he and Latino Tax LLC prepared returns starting in 2010.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. A list of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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New Haven Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EARL HOBBY, 37, of New Haven, pleaded guilty yesterday in Hartford federal court to count one of possession of ammunition by a convicted felon.
According to court documents and statements made in court, on December 19, 2014, members of the New Haven Police Department responded to a call concerning a person with a firearm at 154 Frank Street in New Haven. HOBBY was arrested in the vicinity and was found to be in possession of two rounds of Winchester .38 Special ammunition. A loaded Ruger .357 revolver also was found in the area.
Prior to December 2014, HOBBY had sustained multiple narcotics convictions and a weapon conviction. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
HOBBY is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on April 25, 2016, at which time he faces a maximum term of imprisonment of 10 years.
The matter has been investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and Anthony Kaplan.
New Haven Man Pleads Guilty to Federal Assault in Aid of Racketeering and Crack Distribution OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHRISTOPHER GRAHAM, also known as “Ugg,” 28, of New Haven, pleaded guilty yesterday before Chief U.S. District Judge Janet C. Hall in New Haven to one count of assault in aid of racketeering and one count of possession with the intent to distribute crack cocaine.
On September 30, 2015, a federal grand jury in New Haven returned a 34-count indictment against GRAHAM and five co-defendants charging various racketeering, violent crimes in aid of racketeering, firearms, money laundering and narcotics distribution offenses. The indictment described a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies.
In pleading guilty, GRAHAM admitted that he was a member of the RSGB in 2014. As part of his gang membership, on December 23, 2014, he committed a violent assault of an individual over a .40 caliber pistol that the victim allegedly stole from him. GRAHAM also admitted that he committed the assault along with another RSGB member whom he had called to the scene after realizing the victim had stolen the gun.
GRAHAM further admitted that, on October 10, 2014, he possessed 34 baggies of crack cocaine that he intended to distribute, and on multiple occasions in December 2014, either distributed or possessed with the intent to distribute quantities of crack cocaine.
GRAHAM has been detained since his arrest on October 6, 2015. He is scheduled to be sentenced by Judge Hall on April 15, 2016 and faces a maximum penalty of 20 years of imprisonment and a $250,000 fine on the assault count, and 20 years of imprisonment and a $1 million fine on the drug count.
This ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert M. Spector and Peter D. Markle. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Money Transmitter Pleads Guilty to Willful Failure to Maintain Adequate Anti-Money Laundering ProgramRead the Press Release
Assistant U.S. Attorney Daniel C. Silva at (619) 546-9713
NEWS RELEASE SUMMARY – January 22, 2016
SAN DIEGO – San Diego-based money transmitter Baltazar Fitch pleaded guilty today in federal court to failing to maintain an adequate anti-money laundering program at his various money transmitting businesses (“MTBs”). Fitch was the manager, supervisor, and owner of the MTBs.
As defined in the Bank Secrecy Act (the “BSA”), a money transmitting business is an entity that provides various financial services, including but not limited to accepting currency and transmitting the currency by any means. As part of Fitch’s duties as manager, supervisor, and owner of the MTBs, he coordinated the receipt, transmission, and delivery of currency for the MTBs’ customers. He was aware that the BSA, at Title 31, United States Code, Section, 5318(g), required the MTBs to “report any suspicious transaction relevant to a possible violation of law or regulation” (a “5318(g) Report”) with the Department of Treasury.
As detailed in the Plea Agreement entered today in front of U.S. Magistrate Judge Mitchell D. Dembin, the MTBs repeatedly accepted large quantities of cash from Mexican-based currency exchange houses, knowing that the cash transactions were relevant to a possible violation of law or regulation without filing any 5318(g) Reports. Fitch, acting through the MTBs, provided currency exchange and transmission services to clients in Mexico and the U.S. In order to be able to deposit currency into U.S. bank accounts and wire transfer those funds to locations abroad, Fitch partnered with businesses located within the Southern District of California that maintained active bank accounts at various U.S. financial institutions. By utilizing these bank accounts, Fitch knew that the banks falsely believed the cash deposits were revenues/expenses generated from the sale of goods, when, in reality, they were funds transferred on behalf of the MTBs.
Fitch was also aware that the BSA, specifically Title 31, Code of Federal Regulations, Section 1022.210, required each MTB to develop, implement, and maintain an effective anti-money laundering program that: (i) was reasonably designed to prevent the MTBs from being used to facilitate money laundering; (ii) maintained written policies, procedures, and controls governing the verification of customer identification, the filing of reports such as 5318(g) Reports, the creation and retention of records, response to law enforcement requests, and other compliance with BSA requirements; and (iii) the MTBs designated a compliance officer, who was responsible for assuring that the business complied with all BSA requirements. Fitch failed to comply with any of these regulations.
The criminal case is assigned to U.S. District Court Judge Cynthia Bashant (16cr123-BAS). U.S. Magistrate Judge Mitchell D. Dembin allowed Fitch to remain on pretrial release, pursuant to the terms of a bond posted by Fitch.
“When criminal networks attempt to evade U.S. banking regulations by concealing unlawful money transfers with legitimate business transactions, they can expect to quickly find law enforcement on the money trail,” said Dave Shaw, special agent in charge for ICE Homeland Security Investigations in San Diego. “I commend the investigators for their work that not only unraveled a significant financial scheme with cross border ties, but underscores HSI’s commitment to combating financial crime.”
DEFENDANT Case No. 16cr123-BAS
Baltazar Fitch Chula Vista, CA
SUMMARY OF CHARGES
Willful Failure to Maintain Adequate AML Program – Title 31, U.S.C., Section 5322
Maximum penalty: Five years’ imprisonment, $250,000 fine or twice the gross gain resulting from offense, whichever is greatest
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Members of Counterfeit Currency Conspiracy SentencedRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Sandra Nieves (41, Orlando) to three years and ten months in federal prison for conspiring to pass and possess counterfeit currency. Her co-conspirator, Eileen Santos (51, Orlando), was sentenced to seven months in federal prison for her role in this case. Both women were found guilty by a federal jury on October 28, 2015.
According to evidence presented during trial and sentencing, between December 2011 and January 2012, Nieves, Santos, along with co-conspirators Jorge Ortiz-Pulgarin, Ramon Rodriguez, Carlos Fuentes, and others, traveled from central Florida up the east coast of the United States with approximately $40,000 in counterfeit currency. The group stopped at more than 30 locations to make small purchases. They used counterfeit $100 bills and received genuine U.S. currency as change. Additionally, Nieves made two trips to Colombia to obtain more than $100,000 in counterfeit currency to bring back into the United States.
Five others members of the conspiracy were previously federally charged, convicted, and sentenced for their roles in this case. Fabian Ortiz and Erik Rodriguez were each sentenced to 27 months’ imprisonment; Jorge Ortiz-Pulgarin was sentenced to 21 months in federal prison; Ramon Rodriguez and Carlos Fuentes were sentenced to serve 7 and 6 month sentences, respectively.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorneys Embry J. Kidd and Shawn P. Napier.
Member of Minneapolis-Based Gang Sentenced to 10 Years in Prison for Conspiracy to Distribute Crack CocaineRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of CARNEL LAVEL HARRISON, a/k/a “Boo Man,” 27, with conspiring to distribute crack cocaine in the Twin Cities and Greater Minnesota. HARRISON pleaded guilty on April 30, 2015. He was sentenced on January 21, 2016 before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
Assistant U.S. Attorney David Steinkamp said: “The defendant and other members of his violent street gang sold significant quantities of crack cocaine to the citizens of St. Cloud and Minneapolis. A sentence of 10 years provides deterrence to others who may try to profit from the misery that drug addiction brings, and will also protect the public from an individual with a history of violent crime.”
According to his guilty plea and documents filed in court, between January and December 2014, HARRISON was closely associated with the Minneapolis-based Taliban/Young N Thuggin (YNT) street gangs. Taliban/YNT gang members use hand gestures, social media, and specific language to communicate amongst each other and to convey membership. They claim an area of north Minneapolis as their territory, and other north Minneapolis gangs, including the 19-Dipset and Stick Up Boys, as enemies.
According to his guilty plea and documents filed in court, HARRISON and his co-conspirators made money by trafficking in illegal drugs, among other criminal activity. Members of the Taliban/YNT frequently traveled to St. Cloud and Duluth, Minnesota, and to Fargo, North Dakota, to sell crack. Crack that the Taliban/YNT could sell in Minneapolis for $20 could be sold for $50 in Greater Minnesota and in North Dakota. Similarly, an amount of crack cocaine sold for $150 in the Metro area would sell for between $220 and $250 in Greater Minnesota.
According to his guilty plea and documents filed in court, HARRISON and his co-conspirators would carry guns to protect themselves and their money while trafficking crack cocaine. They also use guns to both protect against attacks by rival gangs and to retaliate violently to threats or assaults by their rivals. Their use of weapons is intended to gain street supremacy and further the gang’s ability to sell illegal drugs.
This case was the result of an investigation conducted by the Safe Streets Task Force, which is comprised of federal and local law enforcement agencies, including, but not limited to, the FBI, Minneapolis Police Department, Minnesota Bureau of Criminal Apprehension and St. Paul Police Department. The St. Cloud Violent Crimes Task Force and the St. Cloud Police Department were a critical part of this investigation.
This case was prosecuted by Assistant U.S. Attorney David Steinkamp.
Defendant Information:
CARNEL LAVEL HARRISON, a/k/a “Boo Man,” 27
Unknown
Convicted:
- Conspiracy to Distribute Crack Cocaine, 1 count
Sentenced:
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10 years in prison
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Five years supervised release
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Media Advisory: National Slavery and Human Trafficking Prevention Month Highlighted with Program EffortsRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa will join with Homeland Security Investigations (HSI), the Marion Police Department, Iowa DOT Motor Vehicle Enforcement, and Cedar Rapids Gives to hold a press conference on January 25th to discuss efforts to combat human trafficking and to assist victims touched by this crime. President Barack Obama signed a Presidential Proclamation declaring January as National Slavery and Human Trafficking Prevention Month.
Speakers from each organization will comment on their efforts to combat this crime and to assist victims. U.S. Department of Homeland Security’s Blue Campaign will also be discussed. To learn more about this campaign visit: http://www.dhs.gov/blue-campaign.
Also present and speaking will be a victim-survivor of human trafficking.
Event Details
When: Monday, January 25, 2016
Where: Marion Police Department (Training Center), 6315 US-151, Marion, Iowa
Time: 10:30 a.m.
A press release will be provided and interview opportunities will be available following the press conference.
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Marshall County, WV woman convicted of unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Tricia Renee Thames, 36, of Moundsville, West Virginia, was convicted of unlawful possession of firearms today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Thames pled guilty today to an Information charging her with one count of “Felon in Possession of a Firearm.” Thames, who has a felony conviction for “Manslaughter” from the State of Oklahoma, was discovered to be in possession of a .357 caliber revolver and a .22 caliber pistol in Ohio County, West Virginia in 2015.
She faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Marion County, WV man convicted of unlawful possession of firearmsRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Basile, 64, of Fairview, West Virginia, pled guilty in federal court today to unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Basile pled guilty today to an Information charging him with one count of “Possession of Stolen Firearms.” Basile was discovered in possession of two stolen firearms in Marion and Monongalia Counties.
He faces up to 10 years in prison and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Man Who Injected Woman with Heroin Causing Her to Overdose Sentenced to PrisonRead the Press Release
A man who injected a woman with heroin causing her to overdose was sentenced today to two years in federal prison.
Richard Roberts, age 37, from Cedar Rapids, Iowa, received the prison term after an October 7, 2015 guilty plea to distribution of heroin.
In a plea agreement, Roberts admitted that, in August 2015, he injected a woman with heroin, after which she lost consciousness. Roberts called 911 to obtain medical assistance. When paramedics arrived, she was unconscious with labored breathing and a weak pulse. Emergency responders had to revive the woman with Narcan, an opiate antidote. Roberts admitted that, without the medical intervention by emergency responders, the woman had a substantial risk of anoxic brain injury and death.
Roberts was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade, who called Roberts’s crime and “extremely reckless act.” Roberts was sentenced to 24 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Roberts is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement. The case was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information available https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-79-LRR.
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Man Sentenced to 21 Months in Federal Prison for Failing to Register as a Sex OffenderRead the Press Release
LUBBOCK, Texas — Joe Coleman, 47, was sentenced today by Senior U.S. District Judge Sam R. Cummings to 21 months in federal prison, following his guilty plea in September 2015 to one count of failing to register as a sex offender, announced U.S. Attorney John Parker of the Northern District of Texas.
Coleman was sentenced on November 30, 2000, to 21 months in prison after he was convicted of Criminal Sexual Conduct in the Second Degree, in Anoka County, Minnesota. The conviction related to a sexual offense against a 10-year-old female. Coleman was released from prison on October 24, 2001, but thereafter was incarcerated during his conditional release period and served time in prison until June 23, 2009.
In 2009, Coleman came to Texas, and he has been residing in the Lubbock area since that time. He has also been employed in Lubbock for much of the time and was employed in Lubbock at the time of his arrest on July 23, 2015.
Based on this conviction, Coleman was a sex offender under the Sex Offender Registration and Notification Act (SORNA) and was required to register as a sex offender under state and federal law. Coleman, however, never registered in Texas as a sex offender, as required by the SORNA and he never appeared in person in any jurisdiction in which he was required to register to inform that jurisdiction of the changes in his status, as required, after he moved to Texas.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The U.S. Marshals Service investigated the case and Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
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Los Lunas Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – James Sparks, 37, of Los Lunas, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Under the terms of his plea agreement, Sparks will be sentenced to 60 months in federal prison followed by a term of supervised release to be determined by the court.
The guilty plea was announced by U.S. Attorney Damon P. Martinez, 13th Judicial District Attorney Lemuel Martinez, Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division and Valencia County Sheriff Louis Burkhard.
Sparks was charged in an indictment on Nov. 5, 2015, with possession of methamphetamine with intent to distribute on June 16, 2014, in Valencia County, N.M. Sparks was arrested on Nov. 10, 2015, after he was transferred to federal custody from state custody where he was being held on related state charges which were later dismissed in favor of federal prosecution.
During today’s proceedings, Sparks pled guilty to the indictment and admitted that on June 16, 2014, Valencia County Sheriff’s deputies stopped him for speeding on his motorcycle. Sparks admitted that he attempted to run from deputies when they discovered that Sparks was in possession of more than five grams of methamphetamine and drug paraphernalia, but was eventually apprehended and arrested by the deputies.
Sparks remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Valencia County Sheriff’s Office with assistance from the 13th Judicial District Attorney’s Office. Assistant U.S. Attorney Rumaldo R. Armijo is prosecuting the case.
The case is being prosecuted as part of the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Valencia County, under this initiative.
Leader of Jewelry Heist Ring Sentenced to 31 Years in Prison for Robbing and Attempting to Rob Jewelers in Chicago and Lake ForestRead the Press Release
CHICAGO — The leader of a jewelry heist ring that robbed two Chicago jewelers and attempted to rob another in Lake Forest was sentenced today to more than 31 years in federal prison.
Over the course of two weeks in September and October 2012, PALO BROWN and his crew robbed two jewelry stores in Chicago and a gas station in Forest Park, and also attempted to rob a jeweler in Lake Forest. As they fled the final robbery in Chicago’s Edgewater neighborhood, Brown and another member of his crew tried to car-jack a woman at gunpoint. The woman screamed and fought back, and the pair fled.
Brown, 34, of Chicago, pleaded guilty last year to one count of conspiracy to obstruct, delay and affect commerce by robbery; one count of using, carrying and brandishing a firearm during a crime of violence; and one count of attempted car-jacking. U.S. District Judge Virginia M. Kendall imposed the 376-month sentence in federal court in Chicago.
Assistant U.S. Attorney Peter M. Flanagan said Brown was “the mastermind of a multi-week campaign of armed violence.” Flanagan argued in the government’s sentencing memorandum that Brown “organized a crew that threatened numerous people with guns.”
Brown admitted in a plea agreement that he and his crew robbed Thornton’s Gas Station in Forest Park on Sept. 24, 2012. During the robbery, another member of the crew, PARIS STARWALT, pistol-whipped a customer over the head. The robbery netted the crew $500 and two cartons of cigarettes.
The first jewelry heist occurred the following day at Arab Jewelry in the East Albany Park neighborhood of Chicago. Brown, Starwalt and a third member of the crew, FELICE DESILVIA, took about $200,000 worth of diamonds and jewelry. During the robbery, DeSilvia duct-taped a store employee to a chair to prevent him from running away.
The following week, Brown and DeSilvia attempted to rob Lake Forest Jewelers in Lake Forest. Shortly after the pair entered the store armed with concealed handguns, an employee walked outside to place a call on his cellphone. Fearing that the employee was calling the police, Brown and DeSilvia abandoned their plans and exited the store.
On Oct. 8, 2012, Brown, Starwalt and DeSilvia robbed Bryn Mawr Jewelry in the Edgewater neighborhood of Chicago. Starwalt held two employees at gunpoint while Brown and DeSilvia collected $120,000 worth of loose diamonds and jewelry. After Brown and Starwalt exited the store, they attempted to car-jack a woman at gunpoint in a nearby garage. The woman screamed and bit Starwalt on the arm and hands, causing her and Starwalt to fall to the ground. Brown and Starwalt ran off and were quickly apprehended by Chicago Police officers.
Starwalt, of Mattoon, Ill., pleaded guilty in 2014 to the same charges as Brown. His sentencing hearing is set for April 1, 2016, at 1:00 p.m., before Judge Kendall.
DeSilvia, of Chicago, pleaded guilty in 2014 to one count of conspiracy to obstruct, delay and affect commerce by robbery; and one count of using, carrying and brandishing a firearm during a crime of violence. Her sentencing hearing before Judge Kendall will be scheduled at a later date.
Brown’s sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Jeffery Magee, Special Agent in Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Chicago Police Acting Superintendent John Escalante; and Cook County State’s Attorney Anita Alvarez.
The government is represented by Mr. Flanagan.
Latham Man Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
ALBANY, NEW YORK – Gnoan Pierre Kablan, age 52, of Latham, New York, pled guilty today to aiding and assisting in the preparation of false tax returns.
The announcement was made by United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
As part of his plea, Kablan admitted that he prepared 16 tax returns that contained false information. These returns, which Kablan prepared for clients for the tax years 2008 through 2011, contained false deductions for charitable gifts, false deductions for unreimbursed employee expenses, and false solar property and energy efficiency credits. These false deductions and credits gave his taxpayer clients refunds that they were not entitled to.
Kablan faces up to 3 years in prison, a maximum fine of $100,000, and a maximum term of supervised release of 1 year when he is sentenced on May 23, 2016 by United States District Judge Mae A. D’Agostino. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors. Kablan may also be ordered to pay restitution to the government in the amount of the tax loss that his conduct is found to have caused.
This case was investigated by the New York Field Office of the IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Laredoan Gets Nearly 16 Years for Methamphetamine ConvictionRead the Press Release
LAREDO, Texas – A 36-year-old Laredo man has been handed a significant sentence following his conviction of possession with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Victor Hugo Gonzalez pleaded guilty Aug. 25, 2015.
Today, visiting U.S. District Judge Janis Graham Jack ordered he serve 188 months in federal prison to be immediately followed by five years of supervised release.
On July 17, 2016, agents with Homeland Security Investigation (HSI) received information identifying a black Nissan Altima that would be used to transport narcotics. Laredo Police Department (LPD) officers and HSI special agents discovered the vehicle and performed a traffic stop.
Gonzalez was cited for driving without a license and consented to a search of the vehicle. With the assistance of an LPD canine, officers soon discovered two bottles in the backseat of anti-freeze with small crystals forming at the top. Agents tested the bottles and found that both bottles contained liquid methamphetamine with a combined gross weight of 8.55 kilograms.
Gonzalez admitted he picked up the bottles of anti-freeze from a truck driver in an industrial area in Laredo. He further added that he knew the bottles contained narcotics and that he was transporting the bottles to an unknown person.
As part of his sentence, Gonzalez will be required to complete an intensive drug treatment program and a mental health program while in prison.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by HSI and LPD. Assistant United States Attorney Jorge Vela is prosecuting the case.
Kingston Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE - Gene Mondalto, 37, of Kingston, New Hampshire, pled guilty on January 21, 2016 in United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
A joint investigation by the New Hampshire Crimes Against Children Task Force, Homeland Security Investigations Manchester, and the Kingston, New Hampshire Police Department resulted in the issuance of a search warrant for Mondalto’s residence in Kingston. When that warrant was executed in August 2015, officers discovered several hundred images of child pornography located on Mondalto’s laptop computer.
Scheduled for sentencing in May 2016, Mondalto faces a maximum prison term of 10 years, to be followed by a term of at least 5 years of supervised release and a fine of up to $250,000.
The case was investigated by the New Hampshire Crimes Against Children Task Force in conjunction Homeland Security Investigations Manchester, and the police departments of Kingston and Hampton, New Hampshire. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jury Finds Los Angeles Gang Member and College Student Guilty of Trafficking PCPRead the Press Release
Oklahoma City, Oklahoma – Today, a federal jury found WESLEY TAVION GRANT (a/k/a "Olajawan Bush"), 23, a "Bloods" gang member from Los Angeles, California, and LARENZO MONTEL GABOUREL, 20, a community college student also from Los Angeles, guilty of conspiracy to distribute PCP and possession with intent to distribute PCP, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma. The jury also found Grant guilty of distribution of PCP and Gabourel guilty of possessing a firearm in furtherance of drug trafficking
According to evidence at trial, on May 19, 2015, an undercover FBI agent purchased a large amount of PCP from Grant in the Walmart parking lot at Memorial and Penn Avenue. Law enforcement executed a search warrant at an abandoned apartment that was being used as a “stash house” in northwest Oklahoma City which resulted in the seizure of the nearly a gallon of PCP kept in water bottles and vanilla extract bottles. The drugs, representing nearly 3,200 individual doses of PCP, had a street value of well over $40,000. During the arrest and search, Gabourel was found in the apartment with a loaded .32 revolver in his pants. The jury also heard evidence of Grant’s prior Oklahoma City arrest for PCP distribution and from a Las Vegas Metro Police Officer who discussed a Las Vegas arrest in which PCP was found. Testimony was presented from a fellow Blood gang member who testified about driving Gabrouel from Los Angeles to Oklahoma City and the making of the PCP.
The trial lasted for three days and the jury deliberated for approximately seven hours before finding both defendant’s guilty on all counts. After the verdict was read, both Grant and Gabourel were remanded to the custody of the U.S. Marshals.
At sentencing, both defendants face up to life in prison. A sentencing date will be set by the court in approximately 90 days. Reference is made to the court record for further information.
This case was the result of an investigation by the Federal Bureau of Investigation and the Oklahoma City Police Department. The case was prosecuted by Assistant U.S. Attorneys Nicholas Patterson, Robert Don Gifford, II, and David McCrary.
Jury Finds Elk Grove Man Guilty of National Guard Recruiting FraudRead the Press Release
SACRAMENTO, Calif. — After a seven-day trial, a federal jury found Richard C. Sihner, 54, of Elk Grove, guilty of 18 counts of wire fraud and one count of false statements to a federal agent for a scheme to fraudulently obtain bonuses in a recruitment program for the California National Guard, United States Attorney Benjamin B. Wagner announced.
Sihner is a retired member of the California National Guard, and participated in the Guard Recruiter Assistant Program (G-RAP). The United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer G-RAP. Under G-RAP, members of the California National Guard served as recruiting assistants (RA). If an RA referred a potential Guard member to a recruiting office and that person ultimately enlisted, the RA was eligible to receive monetary compensation disbursed by DOCUPAK. RAs would typically receive a $1,000 payment when a nominee enlisted and a second $1,000 payment when the nominee left for boot camp. Ultimately, the G-RAP program was discontinued following the discovery of widespread fraud. People who walked into recruiting offices entirely on their own initiative, without having been referred by an RA, were claimed by corrupt RAs in DOCUPAK’s system, often with the assistance of corrupt recruiters.
According to court documents and evidence produced at trial, from December 27, 2007 to April 16, 2010, Sihner was an RA in the G-RAP program. A recruiter gave him information about new recruits so that Sihner could falsely claim to have referred them. Sihner made false claims and wrote elaborate falsehoods in the notes section of the DOCUPAK online portal indicating that he had referred the recruits. In fact, the recruits had made contact with the Guard to discuss potential enlistment for reasons entirely unrelated to Sihner. Sihner was paid $95,000 in compensation for purportedly referring 51 soldiers to enlist. Of the 39 recruits federal agents contacted prior to indictment, none had been referred to the Guard by Sihner. When confronted, Sihner lied to federal law enforcement agents investigating the fraud by repeatedly claiming that he had personally referred all of the new soldiers and that he had taken them to the recruiting office to introduce them.
“Sihner and others who corrupted the G-RAP program were parasites on the Army National Guard, sucking dollars from the services that defend this country,” said U.S. Attorney Wagner. “Richard Sihner was the latest to be brought to justice in this district, but he won’t be the last.”
“When Richard Sihner decided to cheat the California Army National Guard by abusing the G-RAP recruitment incentive program, he threw away the honor earned during his entire career in uniform,” said FBI Special Agent in Charge Monica Miller of the Federal Bureau of Investigation's Sacramento field office. “Men and women in the armed services sacrifice much to protect our country. The FBI and our partners at Army Criminal Investigative Command will continue to honor such sacrifice by stopping criminals like Sihner, who place self-enrichment above the virtues of service and personal integrity.”
Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service stated, “While the vast majority of military service members are honest in their work and passionately committed to the mission of protecting this nation, some choose to abuse public trust. Public corruption is always unacceptable and the Defense Criminal Investigative Service will use all tools available to protect the public's trust and taxpayer interest.”
“Mr. Sihner's guilty verdict is further proof we will hold soldiers accountable should they partake in criminal behavior,” said Maj. Gen. David S. Baldwin, Adjutant General for the California National Guard. “I'd like to express our appreciation for the United States Attorney's painstaking efforts to account for these crimes.”
Sihner is scheduled to be sentenced by United States District Judge John A. Mendez on May 3, 2016. Sihner faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud, and a maximum sentence of five years in prison and a $250,000 fine for false statements. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Matthew G. Morris and Katherine T. Lydon are prosecuting the case.
Other National Guard members and recruiters have been charged in similar recruiting‑fraud schemes in the Eastern District of California. The following defendants have pleaded guilty and await sentencing.
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2:14-cr-153 TLN — Brian Kaps, 42, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. Sentencing is set for January 28, 2016.
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2:14-cr-152 TLN — Sarah Nattress, 28, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. A status conference for sentencing is set for January 28, 2016.
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1:14-cr-107 DAD — Leonardo Pesta, 47, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud. Sentencing is set for April 26, 2016.
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1:14-cr-108-LJO — Nicholas Huerta, 33, of Fresno, pleaded guilty on September 14, 2015 to one count of wire fraud. Sentencing is set for January 26, 2016.
Charges are pending against the following (the charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt):
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1:14-cr-106 DAD — Joaquin Cuenca, 38, of San Diego, was a recruiter and allegedly is responsible for causing $30,000 in fraudulent bonuses. The trial in that case is currently ongoing in the U.S. courthouse in Fresno. The next date of the trial is January 26, 2016.
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2:15-cr-005 TLN — Steel A. Davis, 43, of Paradise, was charged with eight counts of wire fraud on January 8, 2015. A status conference is set for January 28, 2016.
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1:14-cr-109 LJO — Jimmy Maldonado, 35, a recruiter, and his wife Mayra Garcia Maldonado, 29, a recruiting assistant, both of Fresno, are allegedly responsible for causing $40,000 in fraudulent bonuses. Trial is scheduled for May 3, 2016.
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Jury Convicts Fresno Man for Receiving and Distributing Child PornographyRead the Press Release
FRESNO, Calif. — After a three–day trial, a federal jury found Shane Paul Young, 45, of Fresno, guilty today of receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Dale A. Drozd.
According to evidence presented at trial, federal investigators in Fresno received a lead regarding an email address in Fresno that was distributing child pornography. Investigators determined that Young was the user of that Fresno email account. The evidence showed that Young sent and received hundreds of videos and images containing child pornography over the Internet with users across Europe and North America.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Department, the Kings County District Attorney’s Office, and the Fresno Internet Crimes Against Children (ICAC) task force. ICAC is a federally and state-funded task force with agents from federal, state, and local agencies. The Fresno ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorneys Mark J. McKeon and Jeffrey A. Spivak are prosecuting the case.
“Dark and twisted predators who prey on the young and innocent will be identified and brought to justice,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Together with our law enforcement partners, we were able to apprehend this criminal and provide a safer community for our children.”
Young is scheduled to be sentenced by Judge Drozd on April 11, 2016. Young faces a maximum statutory penalty of 40 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Jury Convicts Constable Woman of Marijuana ConspiracyRead the Press Release
ALBANY, NEW YORK – A jury on Thursday convicted Stacie Demers, age 53, of Constable, New York, of a drug conspiracy involving 1,000 kilograms or more of marijuana.
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.
Demers faces at least 10 years and up to life in prison, and a term of post-imprisonment supervised release of at least 5 years and up to life, when she is sentenced on May 19, 2016 by United States District Judge Mae A. D’Agostino.
The jury convicted Demers following a three-day trial in Albany. The evidence at trial demonstrated that Demers, who lived on the Canadian border in Northern New York, worked with members of her family and other co-conspirators to smuggle tens of thousands of kilograms of marijuana from Canada and into the United States. After the loads of marijuana crossed the border, Demers stored the marijuana in a shed behind her home and in other places. The marijuana was then picked up by drivers who transported it to street-level marijuana dealers throughout the Eastern United States.
This case was investigated by the Drug Enforcement Administration, New York State Police, and United States Border Patrol, and is being prosecuted by Assistant U.S. Attorneys Katherine E. Kopita and Cyrus P.W. Rieck.
January Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 15 indictments charging 15defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Ruben Arredondo-Diaz, age 50, is charged with illegal reentry into the United States on or about December 26, 2015, following deportation after conviction for a felony offense. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Martha Carmen Bazan-Herrera, age 42, of Fremont, is charged with illegal reentry into the United States on or about December 17, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alfredo Chavarria Miranda, age 26, of Omaha, is charged with illegal reentry into the United States on or about December 21, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alberto Angel Coronel, age 25, of Coachella, California, is charged with possession with intent to distribute 500 grams or more of a mixture containing methamphetamine on or about December 3, 2015. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Kayne Farquharson, age 31, of Omaha, is charged in a three-count Indictment. Count I of the Indictment alleges that on or about May 24, 2014, the defendant made a false statement in an application for a passport to secure for his own use. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges that on or about December 8, 2015, Farquharson used a means of identification of another person to apply for a passport knowing that the means of identification belonged to another person. The maximum possible penalty if convicted is 2 years consecutive to previous penalty in Count I, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about May 28, 2014 the defendant misused a social security number knowing said document was not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Elio Gomez-Perez is charged with illegal reentry into the United States on or about December 1, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Alex Larsen, age 26, of Grand Island, is charged with felon in possession of a firearm on or about January 1, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Hugo Leyva-Martinez is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute more than 500 grams of a mixture of methamphetamine on or about December 7, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Leyva-Martinez with alien in possession of a firearm on or about December 7, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, as a result of the violations or involved in the violations, should be forfeited to the United States.
* Javier Mendez Salazar, age 37, of Bellevue, is charged with illegal reentry into the United States on or about December 3, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Adalberto Ocampo Ramirez, age 38, of San Diego, California, is charged with illegal reentry into the United States on or about June 24, 2015, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Martese Roland is charged in an eleven-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 100 grams or more of a mixture containing heroin and less than 50 kilograms of marijuana beginning as early as April 1, 2014, and continuing through December 5, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Counts II through IX of the Indictment charge Roland with distribution of a mixture containing heroin. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count X of the Indictment charges the defendant with possession with intent to distribute a mixture containing heroin and marijuana on or about December 4, 2015. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count XI of the Indictment charges Roland with use or possession of a firearm during and in relation to or in furtherance of a drug trafficking crime. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.The indictment also alleges any and all property, real or personal, that constitutes or is derived, directory or indirectly, as a result of the said violation, should be forfeited to the United States.
* Alex Rosa, age 29, of Sherburn, Minnesota, is charged with possession with intent to distribute 50 grams or more of a mixture containing methamphetamine on or about October 4, 2015. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Ashley D. Rupp, age 26, of Arapahoe, Nebraska, is charged with theft of mail on or about November 4, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Allen C. Weitzel, age 24, of Sioux City, Iowa, is charged in a two-count Indictment. Counts I and II of the Indictment charge the defendant with assault with a dangerous weapon on or about August 6, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Jimme D. Windham, III, age 20, is charged with unlawful user of a controlled substance in possession of a firearm from on or about December 11, 2015, and continuing to on or about December 12, 2015. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
Husband and Wife Sentenced to Prison in Investor Fraud SchemeRead the Press Release
STATESBORO, GA: Karen K. Ransom, 45, from Atlanta, Georgia was sentenced earlier this week to a year and a day in federal prison by Chief U.S. District Court Chief Judge Lisa Godbey Wood for her role in an investor fraud scheme. Ransom’s husband, Joseph D. Garcia, 49, from Albuquerque, New Mexico, was sentenced last month to 37 months in prison for his role in the fraud scheme.
Evidence presented during the guilty plea and sentencing hearings revealed that Garcia and Ransom defrauded numerous victims throughout the United States of over a half of a million dollars. Many of the victims lived in the Statesboro area, within the Southern District of Georgia. Garcia and Ransom set up a phony investment firm called “Omega Capital Consultants” and fraudulently solicited hundreds of thousands of dollars from investors. Instead of investing the money they received from investors, Garcia and Ransom spent the money to fund a lavish lifestyle.
United States Attorney Edward J. Tarver said, “This couple stole hundreds of thousands of dollars from numerous unsuspecting victims. The Defendants’ promises turned to nightmares for their victims. The U.S. Attorney’s Office will not tolerate those who defraud others for their own greedy purposes.”
In addition to prison, Garcia and Ransom were also ordered to pay $635,000 in restitution. After serving their prison sentence, Garcia and Ransom will serve 3 years of supervised release.
FBI Special Agent Marcus Kirkland conducted the investigation which led to the indictment. Assistant United States Attorney Lamont A. Belk 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.
Heroin Supplier for Atlantic City ‘Dirty Block’ Gang Sentenced to 13 Years in PrisonRead the Press Release
TRENTON, N.J. - A Paterson, New Jersey, man was sentenced today to 156 months in prison for his role as a primary heroin supplier for a criminal street gang that used threats, intimidation and violence to maintain control of the illegal heroin trade in Atlantic City, New Jersey, U.S. Attorney Paul J. Fishman announced.
Mark Frye, 35, previously pleaded guilty before U.S. District Judge Anne E. Thompson to a superseding information charging him with conspiracy to distribute more than one kilogram of heroin. Judge Thompson imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
Frye and Maurice Thomas, 34, of Patterson, worked together in a sophisticated drug distribution scheme which was based in the Presidential Towers apartment complex in Paterson.
Law enforcement agents obtained several wiretaps over a period of six months and recorded thousands of phone calls and text messages, including calls between Frye and “Dirty Block” leader Mykal Derry, 35, of Atlantic City, and Tyrone Ellis, 33, of Galloway, New Jersey, two Atlantic City heroin dealers. In addition, FBI agents conducted surveillance of drug meetings at the apartment complex in Paterson and observed and photographed Frye meeting with both Derry and Ellis on numerous occasions.
Frye, along with Thomas, obtained large quantities of pre-packaged heroin from major drug suppliers in the Paterson area and then supplied the drugs to numerous customers, routinely selling thousands of dollars’ worth of pre-packaged heroin to Derry and Ellis.
On Feb. 17, 2013, Frye was arrested by troopers from the New Jersey State Police after they seized an Audi Sedan he was driving and found a bag containing 200 “bricks” of heroin (each brick contained 50 individual packets of heroin, for a total of approximately 10,000 packets of heroin). Frye was able to make bail within 24 hours, but was ultimately arrested in March 2013 by FBI agents on the federal drug conspiracy charge. Sentencing in the state case in Passaic County Superior Court is still pending.
At his plea hearing, Frye admitted that he supplied at least 1, 200 bricks of heroin as part of the conspiracy. The wire recordings of Frye’s numerous calls and text messages with Derry and Ellis, as well as the trial testimony of a cooperating witness with firsthand knowledge of Frye’s drug trafficking activities, establish that Frye supplied heroin on a daily basis for at least six months between October 2012 and March 2013.
In addition to the prison term, Judge Thompson sentenced Frye to serve eight years of supervised release.
Thomas pleaded guilty on Sept. 18, 2014 to conspiracy to distribute more than one kilogram of heroin and awaits sentencing. Ellis pleaded guilty on Nov. 10, 2015 to conspiracy to distribute more than 100 grams of heroin and awaits sentencing. Derry, who was convicted at trial for drug conspiracy and weapons charges, was sentenced Jan. 7, 2015 to a lifetime in prison.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police, the Atlantic County Sheriff’s Office, the Northfield Police Department, the Vineland Police Department, the Brigantine Police Department, and the Millville Police Department for their contributions.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Mallqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel: Michael Engle Esq., Philadelphia
Glen Carbon Man Indicted for Armed RobberyRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today that Jonathan Michael Malone, 53, of Glen Carbon, Illinois, was indicted by a federal grand jury in the United States District Court in East Saint Louis, Illinois. Malone was charged in the first count with Interference of Commerce by Robbery in violation of Title 18, United States Code, Section 1591, in the second count with Brandishing a Firearm During and In Relation to a Crime of Violence in violation of Title 18, United States Code, Section 924(c), and in the third count with Unlawful Possession of a Firearm by a Convicted Felon in violation of Title 18, United States Code, Section 922(g). The armed robbery charge carries a maximum penalty of twenty years in prison, a $250,000 fine, and three years of supervised release. The brandishing of a firearm charge carries a maximum penalty of life in prison and not less than seven years of prison, to run consecutive to any term imposed on the armed robbery charge, a $250,000 fine, and not less than five years of supervised release. The felon in possession of a firearm charge carries a maximum penalty of ten years in prison, a $250,000 fine, and three years of supervised release.
The Indictment alleges that on January 14, 2016, Malone robbed the One Stop Shop Gas Station in Maryville, Illinois. During the robbery, Malone brandished a handgun at the owner. Furthermore, Malone possessed the handgun unlawfully after having been previously convicted of armed robbery.
An Indictment is a formal charge against a Defendant. Under the law, a Defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the United States must prove guilt beyond a reasonable doubt.
The case was investigated by the Glen Carbon Police Department, the Maryville Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William E. Coonan.
Four Indicted by Federal Grand Jury for Prisoner Tax Fraud SchemeRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that four men have been indicted by a federal grand jury in Anchorage for conspiracy to defraud the government with respect to claims related to a prisoner tax fraud scheme.
The four defendants named in the indictment are Jesse Scott Wilson, 41, William Wesley Hines, aka Speedy, 54, Jason Donald Schmidlkofer, 34, and Nick Lewis Thurmond, 30. Wilson, Hines, and Schmidlkofer are residents of Alaska. Thurmond is currently a resident of Colorado.
According to the indictment, between 2008 and 2012, the defendants joined in a conspiracy to file false tax returns and obtain tax refunds from the United States Treasury to which the defendants knew they were not entitled. The defendants obtained the names and social security numbers of individuals, many of whom were inmates at correctional facilities. The defendants prepared false individual income tax returns claiming false wages and withholding amounts listed on the tax returns for which there were no Forms W-2 issued. Each return claimed that the taxpayer was owed thousands of dollars in refunds to which they were not entitled. The conspirators forged the individuals’ signatures on the tax returns and used their own personal addresses and fake addresses on the tax returns. The conspirators mailed the false income tax returns to the Internal Revenue Service. During the course of the conspiracy, the conspirators prepared and submitted by mail approximately 375 false tax returns using the names and social security numbers of approximately 185 individuals for approximately $580,912 in fraudulent refund claims, and illegally obtained approximately $380,605 in fraudulent refund claims paid by the United States Treasury.
If convicted, the defendants face a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
U.S. Attorney Loeffler commends the Internal Revenue Service – Criminal Investigation for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Four Family Members Sentenced to Federal Prison for Purchasing Theme Park Tickets with Counterfeit Credit CardsRead the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp has sentenced four family members for their involvement in an access device fraud ring. Eileen Hightower (50, Kissimmee) was sentenced to three years and ten months in federal prison. Her children, Samuel Velasquez, Jr. (26, Kissimmee) and Sabrina Velasquez (25, Kissimmee), along with her niece, Jennifer Cancel (28, Hartford, CT), were each sentenced to serve a term of three years’ imprisonment. The Court also ordered the individuals to pay a total of $107.097.33 in restitution. Each previously pleaded guilty for their role in this case.
According to court documents, the group had obtained counterfeit driver licenses and counterfeit credit cards encoded with stolen account information. The account numbers actually belonged to cardholders who were victimized by this scheme. The counterfeit credit cards were used by Hightower and her family members to purchase Orlando-area theme park tickets at hotel ticket kiosks throughout central Florida. They then sold the fraudulently-obtained tickets to ticket resellers in Kissimmee. Over a period of a few months, more than $100,000 in theme park tickets were fraudulently purchased and then resold.
This case was investigated by the United States Secret Service and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel C. Irick.
Former Washington State Woman Sentenced to Prison for Defrauding Immigrants of More Than $200,000 with Promises of Legal StatusRead the Press Release
SEATTLE - A former resident of Mercer Island, who stole more than $220,000 from immigrants with promises of immigration assistance, was sentenced today in U.S. District Court in Seattle to 16 months in prison and $222,900 in restitution for four counts of wire fraud, announced U.S. Attorney Annette L. Hayes. DALIA IVETTE SINGH, aka Dalia Pena, 62, now a resident of Clearwater, Florida, pleaded guilty in October 2015. At the sentencing hearing U.S. District Judge Richard A. Jones called her behavior “predatory” saying she preyed on those “least able to defend themselves... Her sole purpose was to take money from people who could least afford it.”
“This defendant not only stole money from vulnerable immigrants, she created false hopes and destroyed dreams,” said United States Attorney Annette L. Hayes. “This case is a reminder that there are imposters who prey on those who fear deportation. As this case demonstrates, members of our immigrant communities can safely reach out to law enforcement to report these kinds of scams and frauds, and be assured that those responsible will be held to account.”
According to court records, between 2008 and 2011, SINGH defrauded more than 40 immigrants from the Caribbean and Latin America. SINGH charged some families as much as $36,000, claiming she had a contact with U.S. Citizenship and Immigration Services (USCIS) who could provide the immigrants with legal status in the United States. SINGH claimed her USCIS contact ran a special program the immigrants could use to get legal status. There was no such program and no USCIS contact – SINGH fabricated the story to defraud the victims. The fake program SINGH described required enrollment of a group of people, not just individuals, and so she encouraged victims to recruit more people to enroll with them. In one instance, Singh defrauded about 30 members of a church out of nearly $100,000 with her false promises.
“Those who choose to capitalize on the fear of deportation to victimize immigrants and undermine our nation’s legal immigration system will be held accountable for their actions,” said Shawn Fallah, resident agent in charge of ICE’s Office of Professional Responsibility in Seattle. “We will continue to work tirelessly with our law enforcement counterparts to investigate criminals and imposters who manipulate and exploit the system for their own personal gain and see that they are brought to justice.”
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and its Office of Professional Responsibility (OPR).
Former Police Officer Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — Brian Kelley of Quinlan, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to the statutory maximum of 10 years in federal prison, to be followed by a lifetime of supervised release, for possessing child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Kelley, 41, pleaded guilty in January 2015 to a superseding information charging one count of possession of child pornography. Today, Judge Fitzwater remanded him into federal custody.
According to documents filed in the case, Kelley admitted that in September 2013, he possessed a flash drive that contained still images and a video depicting a minor female engaged in sexually explicit conduct.
Kelley most recently worked as a UT Southwestern Police Officer. Prior to that, he was a deputy sheriff with the Hunt County Sheriff’s Office.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Flower Mound Police Department and the Texas Rangers investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
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Former Niagara Falls Man Sentenced for Making A False StatementRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jing Lin, 35, currently of Stanley, North Carolina, formerly of Niagara Falls, NY, who was convicted of making a false statement, was sentenced to one year of probation by U.S. District Judge Richard J. Arcara.Special Assistant U.S. Attorney Brian J. Counihan, who handled the case, stated that the defendant, originally from China, has been a permanent resident of the United States since 2012. Lin operated the Jing Buffet Restaurant on Military Road in Niagara Falls. During an inspection of the restaurant’s workforce, the defendant made false statements about the number of people working for him and the citizenship status of his employees.
The sentencing is the result of an investigation by Immigrations and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Former Miami Dade Police Officer Pleads Guilty to Accepting BribesRead the Press Release
A former uniformed police officer with the Miami Dade County Police Department pled guilty today to accepting bribes in furtherance of an illegal pirate towing scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Juan Perez, Acting Director, Miami-Dade Police Department (MDPD), made the announcement.
Yuri Millan, pleaded guilty to participating in a conspiracy against the laws of the United States, that is, engaging in a wire fraud scheme resulting in the deprivation of his honest services and accepting bribes in connection with his official duties at MDPD, an agency that receives federal funding, in violation of Title 18, United States Code, Section 371. Millan’s codefendants, Oriel Ugardes, and Jose Guim, previously pled guilty to the same charge on January 13, 2016.
According to the court record, including documents filed in support of the defendants’ guilty pleas, between December 2013 and May 2014, Millan accepted bribes from Ugardes and Guim in exchange for Millan secretly using his position as a police officer to assist their towing businesses. Millan would provide Ugardes and Guim information regarding and access to MDPD accident scenes, where Ugardes and Guim would illegally solicit stranded drivers for business. In January 2014, after MDPD switched to an encrypted radio communication system, Millan agreed to rent his MDPD radio to Ugardes and Guim so that they could listen to encrypted police communications in an effort to locate accidents before their competitors. Millan’s misconduct resulted in Ugardes and Guim illicitly acquiring more than $5,000 worth of business.
The plot was uncovered through the use of recordings by confidential informants, wire intercepts on Ugardes’s telephone, and the seizure of Millan’s police radio from Ugardes after investigators watched Ugardes pick the radio up from Millan’s residence. In their own separate plea agreements, Ugardes and Guim also admitted paying thousands of dollars of bribes to Millan and another former MDPD employee, Public Service Aide Elina Rodriguez.
Millan, Ugardes, and Guim are scheduled to be sentenced on April 14, 2016, in front of U.S. District Court Judge Darrin P. Gayles. Each defendant faces a maximum sentence of 5 years’ imprisonment and 3 years’ supervised release. The court may also impose a maximum fine of $250,000.
In December 2015, Rodriguez pled guilty to related federal conspiracy charges before U.S. District Court Judge Ursula Ungaro. Rodriguez is scheduled to be sentenced in that case on February 22, 2016.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the MDPD Internal Affairs Division. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
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
Former Iowa Police Officer and Disbarred Attorney Sent to Federal Prison for Dealing Counterfeit U.S. CurrencyRead the Press Release
A former Iowa police officer, who is also a disbarred Iowa attorney, was sentenced yesterday to two years in federal prison. Brian Loren Stowe, 43, from Waverly, Iowa, received the prison term after a September 30, 2015 guilty plea to the federal charge of dealing in counterfeit currency.
In 2013, the Iowa Supreme Court disbarred Stowe, once a partner at a Des Moines law firm, after he was convicted of felony forgery charges and received a deferred judgment for possession of methamphetamine in state court. Prior to becoming an attorney, Stowe was a sworn law enforcement officer with the police department in Nevada, Iowa, and worked on a local drug task force.
In a plea agreement dated September 14, 2015, Stowe admitted that, in November 2014, he offered to sell an undercover officer $500 in counterfeit U.S. currency for $100. Then, in February 2015, he accepted $250 for $900 in counterfeit currency.
At sentencing, Stowe admitted that, in fact, he manufactured the counterfeit currency. And when dealing the counterfeit currency, Stowe explained he used a “formula” to “wash” or remove ink from genuine bills. He also advised the undercover officer to put the counterfeit bills in a dryer with poker chips so that the bills would look wrinkled and worn. He also told the undercover officer to spend the bills on small items at fast food restaurants where teenagers work, because they are less likely to detect counterfeit bills.
During the sentencing hearing, the district judge found that Stowe intentionally misled a federal magistrate judge about the status of his law license. While discussing whether he might represent himself in these federal proceedings, he told the magistrate judge his law license was “expired” when, in truth, it had been revoked by the Iowa Supreme Court in 2013. In the written decision revoking Stowe’s license, the Iowa Supreme Court detailed his ethical failings and characterized Stowe’s “life story” as one that “mirrors that of Dr. Jekyll and Mr. Hyde.”
Also at sentencing, the district court determined that Stowe had made a series of telephone calls from jail shortly after his arrest on the federal counterfeiting charge, in which Stowe demonstrated he was a “master manipulator” of his father, mother, and girlfriend by “grooming” them on what to say at an upcoming federal hearing. The district court indicated the jail calls proved Stowe’s “criminal thinking” and “substance abuse” “to the max”.
Stowe was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Stowe was sentenced to 24 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the United States Secret Service, the Iowa Department of Public Safety, Divisions of Narcotics Enforcement and Criminal Investigation, the Waterloo Police Department, the Palo Alto County Sheriff’s Office, the Linn County Sheriff’s Office, and the United States Department of State, Diplomatic Security Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-2034-LRR.
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Former IRS Employee and Another Individual Charged with Stolen Identity Tax Refund Fraud SchemeRead the Press Release
FRESNO, Calif. — Lorita Marie Rocha, 35, of Fresno, and Nereida Rodriguez, 28, of Firebaugh, were indicted in connection with a long-term tax refund fraud scheme that involved the use of stolen identities and false and fraudulent tax returns, United States Attorney Benjamin B. Wagner announced today.
On January 14, 2016, a federal grand jury returned a five-count indictment against Rocha and Rodriguez charging them with conspiracy to commit wire fraud and four counts of wire fraud. A status conference was set for February 29, 2016, before Magistrate Judge Sheila K. Oberto.
According to court documents, between February 2008 and January 2012, Rocha and Rodriguez conspired to obtain, and help others obtain, payment of false and fraudulent claims for refunds from the IRS. Through her employment by the IRS as a seasonal tax examiner, Rocha obtained the personal information of numerous individuals. Rocha and Rodriguez misappropriated the personal information of more than two dozen individuals and prepared and submitted fraudulent tax returns, making fraudulent claims for refunds in excess of $100,000.
This case is the product of an investigation by the Treasury Inspector General for Tax Administration (TIGTA) and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
If convicted, Rocha and Rodriguez face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Amarillo Resident Sentenced to 10 Years in Federal Prison on Attempted Child Sex Trafficking ConvictionRead the Press Release
AMARILLO, Texas — Xzavion Dayshaun Ragsdale, a/k/a “Yung Billy,” 19, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 10 years in federal prison following his guilty plea in November 2015 to one count of attempted sex trafficking of a child, announced U.S. Attorney John Parker of the Northern District of Texas.
According to plea documents filed in the case, Ragsdale admitted that from approximately March 30, 2015 to April 3, 2015, he attempted to recruit a 15-year-old girl to engage in commercial sex acts.
The investigation began when a Task Force Officer (TFO) with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) learned that a particular individual, later identified as Ragsdale, was using Facebook to recruit and entice teenage females for prostitution. In March 2015, the TFO set up an undercover Facebook account representing himself as a 15-year-old female, “A.M.,” and the two exchanged messages about A.M. working as a prostitute, with Ragsdale claiming, “you can make 2500 in a week if you really put the work into it.” Ragsdale sent A.M. his phone number and the two discussed a meeting; however, the conversation ended without any arrangements being made.
On April 1, 2015, A.M. received a private message on his undercover Facebook account from “Deswan Newsome,” a defendant in a related case. Newsome and A.M. exchanged messages about A.M. engaging in prostitution, and A.M. advised Newsome that she was 15-years-old.
On April 2, 2015, an Amarillo Police Department officer, posing as A.M., made a phone call to Newsome, who answered, but turned the call over to a female who provided more details about prostitution to A.M. A.M. advised the female that she was 15-years-old.
On April 3, 2015, A.M. and Newsome exchanged messages and agreed to meet at a convenience store in Amarillo so A.M. could engage in prostitution. When Newsome arrived at the location he was identified and arrested. He admitted talking to A.M. on Facebook and said that he was going to have someone else teach her how to perform sex acts, and that he’d get 60 percent of the money she made for performing the commercial sex acts.
Newsome, 19, of Amarillo, pleaded guilty in July 2015 to one count of attempted sex trafficking of a child. He was sentenced in September to serve 135 months in federal prison.
The Amarillo Police Department and ICE HSI investigated. Assistant U.S. Attorney Joshua Frausto prosecuted the case.
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Florida Couple Plead Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
A Pembroke Pines, Florida, couple pleaded guilty for conspiring to use stolen identities to file fraudulent tax returns with the Internal Revenue Service (IRS), announced U.S. Attorney Wifredo Ferrer of the Southern District of Florida, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation, Miami Field Office.
According to court documents, between July 2009 and August 2014, Walther Wilson Godfrey, 37; Rhonda Peggy Gittens, 35, and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Gittens owned and operated 2G Inc., a tax return preparation business and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines. Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization and used this information to file false income tax refund claims for 2009 through 2011. Gittens and Godfrey recruited a co-conspirator to obtain Electronic Filing Identification Numbers (EFINs) in his name that would be used to file the fraudulent income tax returns. In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name in order to negotiate the fraudulently obtained income tax refund checks. Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.9 million in income tax refunds. In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.
Godfrey and Gittens pleaded guilty to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud. Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge, a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge and a statutory maximum sentence of 15 years in prison and three years of supervised release for the access device fraud charge. Godfrey and Gittens must serve the two year sentence for aggravated identity theft in addition to any sentence the court imposes on the other charges. Each charge also carries a maximum fine of $250,000. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
U.S. Attorney Ferrer and Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
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.
Florida Couple Plead Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
A Pembroke Pines, Florida, couple pleaded guilty for conspiring to use stolen identities to file fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Wifredo Ferrer of the Southern District of Florida and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation, Miami Field Office.
According to court documents, between July 2009 and August 2014, Walther Wilson Godfrey, 37; Rhonda Peggy Gittens, 35, and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Gittens owned and operated 2G Inc., a tax return preparation business and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines. Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization and used this information to file false income tax refund claims for 2009 through 2011. Gittens and Godfrey recruited a co-conspirator to obtain Electronic Filing Identification Numbers (EFINs) in his name that would be used to file the fraudulent income tax returns. In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name in order to negotiate the fraudulently obtained income tax refund checks. Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.9 million in income tax refunds. In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.
Godfrey and Gittens pleaded guilty to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud. Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge, a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge and a statutory maximum sentence of 15 years in prison and three years of supervised release for the access device fraud charge. Godfrey and Gittens must serve the two year sentence for aggravated identity theft in addition to any sentence the court imposes on the other charges. Each charge also carries a maximum fine of $250,000. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Ferrer commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Sentenced in Conspiracy Related to Acquiring FirearmsRead the Press Release
HOUSTON – Four area men and another from Brownsville have been ordered to federal prison for a conspiracy to make false statements in the acquisition of firearms, announced United States Attorney Kenneth Magidson.
Martin Olivares Garza, 50, Martin Ivan Garza, 24, Christopher Steven Foreman, 24, and Ricardo Luna, 27, all of Houston, and Gabriel Kisabel Trejo-Torres, 25, of Brownsville, had all previously pleaded for their respective roles.
Today, U.S. District Judge Gray Miller ordered Olivares Garza to serve 51 months in federal prison, while Ivan Garza, Foreman, Trevor-Torres and Luna received respective sentences of 12, 13, 33 and 46 months of imprisonment.
The investigation revealed that during a six-month time period, several of these defendants and others conspired to purchase approximately 80 firearms from various gun dealers in the Houston area. In the purchases, they claimed they were the buyers of the firearms, but were actually straw purchasers for other people. The false statements were made on the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) form 4473s. Straw purchasers knowingly made false statements on those farms, claiming they were purchasing for themselves when they actually purchased for others who provided monies and directed them as to which types of firearms to buy.
Ivan Garza, Foreman, Luna, Trejo-Torres and others were paid additional money to make purchases of firearms for Olivares Garza and Rosendo Padilla Jr.
The firearms included an assortment of various types of handguns and rifles. Approximately 30 of the firearms have been recovered in Mexico and an additional 11 were recovered during the investigation.
Padilla, 40, of Houston, also pleaded guilty and will be sentenced next week. Three other Houston residents - Gustavo Albano Decesaris, 25, Rebecca Andrea Villareal, 31, and Yuliana Sugey Trejo, 31 - also pleaded guilty and are awaiting sentencing.
Olivares and Trejo-Torres are in custody. The others were permitted to remain on bond.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Houston Police Department, the Pasadena Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Glenn Cook is prosecuting the case.
Federal Jury Finds Albuquerque Couple Guilty on Wire Fraud Charges Arising Out of Scheme to Defraud Office Supply BusinessRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque, N.M., returned a verdict late this afternoon finding an Albuquerque couple guilty on wire fraud charges after a seven-day trial. Matthew Channon, 38, and his wife Brandi Channon, 35, were convicted on a conspiracy charge and six wire fraud charges arising out of a sophisticated scheme to defraud an office supply business out of more than $100,000.
In announcing the jury’s guilty verdict, U.S. Attorney Damon P. Martinez said, “These individuals stole money and property, using computers and e-mail as tools of their trade. This conviction shows the U.S. Attorney’s Office’s commitment to the investigation and prosecution of theft, whether electronic or at the point of a gun.”
“Criminals who cheat companies wind up costing hard-working families more at the cash register,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “I am proud of the FBI Special Agents and support staff who investigated this case, and I congratulate the U.S. Attorney’s Office for a successful prosecution.”
The indictment charged the Channons with conspiracy to commit wire fraud, Matthew Channon with four counts of wire fraud, and Brandi Channon with two counts of wire fraud. The indictment alleged that the Channons perpetuated a scheme to defraud OfficeMax by using interstate wire communications to create numerous MaxPerk Rewards accounts in fictitious names to avoid OfficeMax’s policy of issuing only one account per person. The Channons then used the accounts to fraudulently claim rewards from OfficeMax to which they were not entitled. According to the indictment, the scheme continued from Aug. 2009 through June 2011, during which time the Channons fraudulently obtained MaxPerk Rewards certificates valued at more than $105,000.00.
Trial of the Channons commenced on Jan. 13, 2016, and concluded late this afternoon when the jury returned a guilty verdict on all seven counts of the indictment. The evidence at trial established that the Channons conspired to defraud OfficeMax by fraudulently creating more than 5000 MaxPerk Rewards accounts in the names of fictitious people. The couple went online and used the fraudulent accounts to falsely claim rewards-program credit for purchases that other customers had in fact made. The Channons falsely claimed that they engaged in more than 60,000 transactions with OfficeMax involving almost $2,000,000.00 worth of purchases, in over 300 stores located in over 20 states. As a result of their fraudulent conduct, the Channons defrauded OfficeMax of more than $100,000 worth of property.
At sentencing, the Channons face a statutory maximum penalty of 20 years in prison and a $250,000.00 fine. Their sentencing hearings have yet to be scheduled.
The case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorneys Margaret M. Vierbuchen, Holland S. Kastrin and C. Paige Messec.
Federal Jury Convicts Corporate Executive for Lying to Federal Agents During Public Corruption Investigation Involving Dallas County CommissionerRead the Press Release
DALLAS — Following a nearly three-day trial in federal court in Austin, Texas before U.S. District Judge Sam Sparks, a federal jury convicted a corporate executive for lying to Special Agents of the Federal Bureau of Investigation in the public corruption investigation of Dallas County Commissioner John Wiley Price and others, announced U.S. Attorney John Parker of the Northern District of Texas and U.S. Attorney Richard L. Durbin, Jr., of the Western District of Texas.
Helena Tantillo, 59, of Austin, was an executive at BearingPoint when the firm won a contract in 2005 to digitize Dallas County records. The jury’s verdict today found Tantillo guilty on all counts of the indictment returned by an Austin federal grand jury in June 2015, which charged her with two counts of making false statements to law enforcement. She faces a maximum statutory penalty of five years in federal prison and a $250,000 fine on each count, and will remain on bond pending sentencing, set for April 22, 2016, in Austin.
The evidence at trial showed that Tantillo lied in an interview with the FBI in June 2014, when she falsely claimed that a temporary $10,000 increase in Christian Campbell’s consulting fees was to make a charitable donation to the favorite charity of another Dallas County Commissioner. Contrary to her false statement, Tantillo knew that the increase was at least, in part, in order to pay Kathy Nealy.
The jury also determined that Tantillo told a second lie to FBI agents in that same interview when she claimed that, after an earlier interview with FBI agents, she called her former BearingPoint supervisor, who supposedly reminded her that the charitable donation was the reason for Campbell’s increased monthly payment. Phone records and other evidence at trial demonstrated that this call never happened.
The FBI and Internal Revenue Service Criminal Investigation are conducting the investigation. Assistant U.S. Attorneys Walt M. Junker and J. Nicholas Bunch and Deputy Criminal Chief Assistant U.S. Attorney Katherine Miller are handling the prosecution.
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