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Tuesday 10 November 2015
Live Oak Police Sergeant Indicted for Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Kyle Adam Kirby (age 35, Live Oak) with possession of child pornography. He faces up to 20 years in federal prison, and a potential life term of supervised release. Kirby was arrested on October 28, 2015, at the Live Oak Police Department. His trial is scheduled to begin on January 4, 2016; Kirby is being detained pending trial.
According to court documents, FBI agents and other law enforcement officers executed a federal search warrant at Kirby’s residence as the result of an online child pornography investigation. That same morning, the Live Oak police chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of the patrol car computer used by Kirby revealed that it contained at least 87 thumbnail images in a “Downloads” folder that either depicted minor children engaged in sexually explicit conduct, including one involving a toddler, or that had titles indicative of child pornography. In addition, the Internet browser history on the computer contained search terms commonly used by individuals who search for child pornography online.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Leader and Supplier for Atlantic City ‘Dirty Block’ Gang Admits Role in Heroin Trafficking Conspiracy and BeingRead the Press Release
TRENTON, N.J. - An Atlantic City, New Jersey, man today admitted engaging in a conspiracy to distribute heroin with members of the “Dirty Block” criminal street gang that allegedly used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City.
Tyrone Ellis, a/k/a “Rome,” 33, pleaded guilty before U.S. District Judge Anne Thompson in Trenton federal court to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, and one count of possessing a firearm and ammunition while being a previously convicted felon.
According to documents filed in this case and statements made in court:
Ellis acted as a supplier of pre-packaged heroin to Mykal Derry, the leader of the Dirty Block criminal street gang. Ellis also distributed heroin to a smaller group of mid-level heroin distributors who sold the heroin to customers all over the Atlantic City area and in surrounding towns.
Ellis was arrested on March 26, 2013, in Vineland, New Jersey. At the time of his arrest, a loaded Glock .40 caliber handgun belonging to Ellis was recovered from a bedroom in the residence and more than $37,000 in cash was seized from various locations inside the residence and in an attached garage.
Tyrone Ellis’ guilty plea marks the 34th felony conviction of the 34 defendants arrested by the FBI and state and local law enforcement officers working with the FBI in March 2013. Ellis and approximately 15 other defendants are awaiting sentencing; the remaining defendants have all been sentenced to prison terms.
The drug conspiracy carries a minimum penalty of five years in prison, a maximum penalty of 40 years in prison, and a maximum potential fine of $5 million. Sentencing is scheduled for Feb. 2, 2016.
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 guilty plea.
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 C. Askin and Justin C. Danilewitz and Special Assistant U.S. Attorney Edmond Mallqui-Burgos.
Defense counsel: Rocco Cipparone Esq., Haddon Heights, New Jersey
Lake City Man Pleads Guilty to Transporting Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Robert Lamar Starling (31, Lake City) has pleaded guilty to transporting child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison and a potential life term of supervision. Starling has been detained since his arrest on May 1, 2014.
According to court documents, beginning in September 2013, FBI agents executed a series of search warrants on several email accounts around the country and determined, among other things, that a particular user in Lake City, Florida had uploaded images of child pornography to the Internet, using an account on a photo sharing site. Further investigation traced the account back to a residence in Lake City, where Starling resided.
On May 1, 2014, FBI agents and other law enforcement officers executed a federal search warrant at the residence. Starling was not at the residence, but was located later that morning driving his golf cart at the Suwannee Music Park & Campground in Live Oak. During an interview at his campsite, Starling stated that he had produced pornographic images of several prepubescent children. Subsequent analyses of Starling’s laptop computer revealed that it contained more than 600 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, the Suwannee County Sheriff’s Office, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Returns Forfeited Assets Derived from Public Corruption Scheme to Korean Minister of JusticeRead the Press Release
LOS ANGELES – The Department of Justice has returned $1,126,951.45 in forfeited assets to the government of the Republic of Korea.
The forfeited assets – which were returned yesterday – were the profits of a public corruption scheme orchestrated by former Korean President Chun Doo Hwan in the 1990s, and were laundered to the United States by Chun’s family members and associates. The assets were forfeited in two recent civil forfeiture actions filed in Los Angeles and Philadelphia as part of the Department of Justice’s Kleptocracy Asset Recovery Initiative.
"The return of these assets is a powerful vindication of the rule of law, and an important victory for the people of the Republic of Korea," said Attorney General Loretta E. Lynch.
"The Department of Justice is committed to ensuring that the proceeds of corruption have no safe haven in this country," said United States Attorney Eileen M. Decker. "We will vigilantly pursue such proceeds and return them to the victims of the corruption."
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigations investigated the cases leading to the U.S. forfeiture of the assets being returned to Korea and served as the seizing agencies.
In 1997, a criminal court in Korea convicted former President Chun of accepting more than $200 million in bribes from Korean corporations and ordered him to pay approximately $212 million in criminal penalties. In 2013, the Anti-Corruption Division of the Korean Supreme Prosecutor’s Office opened a money laundering investigation regarding the potential laundering of the bribery proceeds into the United States by Chun and his associates through the acquisition of U.S. real estate and opening of U.S. bank accounts.
In February 2014, FBI agents seized $726,951.45 in a California escrow account. Those funds represented the net proceeds from the sale of a Newport Beach house that
President Chun’s son, Chun Jae Yong, had purchased in 2005 with proceeds traced to his father’s corruption scheme. In April 2014, the U.S. Attorney’s Office in Los Angeles filed a civil forfeiture action against the $726,951.45.
In February 2015, a second civil forfeiture action was filed in the Eastern District of Pennsylvania against a secured investment worth approximately $500,000 in a Pennsylvania company, which also was traced to Chun’s corruption scheme.
In March 2015, the government reached a settlement agreement of the two civil forfeiture actions, resulting in the forfeiture of a total of $1,126,951.45, which was returned to the government of the Republic of Korea yesterday.
The case filed in Los Angeles was prosecuted by the United States Attorney’s Office and United States Department of Justice, Criminal Division, Asset Forfeiture and Money Laundering Section.
Justice Department Files Antitrust Lawsuit to Block United's Monopolization of Takeoff and Landing Slots at Newark AirportRead the Press Release
Transaction Would Entrench United’s Dominant Position at Newark, New Jersey, Airport – Eliminating Competition and Resulting in Higher Fares and Fewer Choices for Consumers
The Department of Justice today filed a civil antitrust lawsuit seeking to block a proposed transaction between United Continental Holdings Inc. and Delta Air Lines Inc. in order to preserve competition at Newark Liberty International Airport.
The Antitrust Division’s lawsuit, filed in the U.S. District Court for the District of New Jersey in Newark, New Jersey, alleges that United’s planned acquisition of 24 takeoff and landing slots at Newark would increase United’s already dominant position at the airport, and would strengthen a barrier that diminishes the ability of other airlines to challenge United at the airport. As a result, the 35 million air passengers who fly into and out of Newark every year likely would face higher fares and fewer choices.
“A slot is essentially a license to compete at Newark,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “United already holds most of them, and as a result, competition at Newark is in critically short supply. United is already extracting a ‘Newark premium.’ Airfares at Newark are among the highest in the country while United’s service at Newark ranks among the worst. Allowing United to acquire even more slots at Newark would fortify United’s monopoly position, and weaken rivals’ ability to challenge that dominance, leaving consumers to pay the price.”
To manage congestion at Newark, the Federal Aviation Administration (FAA) allocates takeoff and landing authorizations, or slots, in order to limit the number of flights that can service Newark during the majority of the hours of the day. Slots are a scarce resource, and airlines seeking to initiate or expand service at Newark face significant challenges obtaining them in order to support new service.
According to the department’s complaint, United already controls 73 percent of the slots the FAA has allocated to carriers at the airport – over 10 times more slots than its closest competitor. No other airline has more than 70 slots:
The complaint also alleges that United “grounds” as many as 82 slots each day at Newark, depriving Newark passengers of flight options that would exist if the slots were flown.
The complaint also details how consumers benefit when slots are held by United’s airline rivals. In response to the department’s concerns expressed during its review of the United/Continental merger in 2010, United divested its 36 slots at Newark to Southwest Airlines. United’s then-CEO, Jeff Smisek, lauded the settlement as a “fair solution that would allow Continental and United to create an airline that will provide customers with an unparalleled global network and top-quality products and services, while enhancing domestic competition at Newark.” Nevertheless, as alleged in the complaint, United’s proposed acquisition of slots from Delta is United’s third attempt to reverse the benefits of the 2010 divestiture by buying slots from its competitors at Newark.
According to the department’s complaint, the acquisition of Newark slots by rivals, such as Southwest Airlines, Jet Blue, and Virgin America, has forced United to compete, resulting in lower ticket prices and greater choice for consumers. For example, Southwest’s acquisition of 36 slots from United allowed it to introduce new low-fare competition to United on five routes resulting in substantially lowered fares and increased service on five routes into and out of Newark:
Route
Year-over-year Percentage Decrease in Average Fare
Year-over-year Percentage Increase in Number of Passengers
Newark-St. Louis
-27 percent
66 percent
Newark-Houston
-15 percent
53 percent
Newark-Phoenix
-14 percent
57 percent
Newark-Chicago
-11 percent
35 percent
Newark-Denver
-5 percent
49 percent
Similarly, when Virgin acquired slots at Newark in 2012 after several years of trying unsuccessfully to obtain slots, it introduced competing nonstop service to Los Angeles and San Francisco, and fares on these routes dropped precipitously. United later calculated that competing on these routes in response to Virgin’s entry cost it approximately $66 million in annual revenue.
United Continental Holdings Inc. is a Delaware corporation headquartered in Chicago. Last year United, the third largest airline in the world in terms of revenues, flew over 138 million passengers to over 352 destinations throughout the world.
Delta Air Lines Inc. is a Delaware corporation headquartered in Atlanta. Last year Delta, the second largest airline in the world in terms of revenues, flew over 170 million passengers to 316 destinations throughout the world.
US v United Complaint (236.24 KB)
Jackson County Resident Pleads Guilty to Methamphetamine OffenseRead the Press Release
On November 5, 2015, Michael F. Halliday, , a/k/a "Micky," 33, of Elkville, pled guilty to one-count of conspiracy to distribute methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Evidence at the plea hearing established that Halliday was involved with others in the manufacture of methamphetamine. The offense occurred between 2013 and June 2015, in Perry, Jackson, and Randolph Counties. Halliday is currently being held without bond pending a February 23, 2016, sentencing hearing. Halliday faces a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Percy Police Department, Steeleville Police Department, Mascoutah Police Department, Illinois State Police Methamphetamine Response Team, DuQuoin Police Department, Pinckneyville Police Department, and Drug Enforcement Administration. The Randolph and Perry County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Inmate Pleads Guilty to Assaulting Correctional OfficerRead the Press Release
ALBANY, NEW YORK – Lamar McFadden, 30, of Newark, New Jersey, pled guilty yesterday to assaulting a federal officer and inflicting bodily injury, announced United States Attorney Richard S. Hartunian and Steve Langford, Warden of Federal Correctional Institution (FCI) Ray Brook.
McFadden pled guilty pursuant to a plea agreement calling for a sentence of 72 months of imprisonment, to be served consecutively to his current term of imprisonment ,and three years of supervised release. That sentence is subject to approval by Chief U.S. District Court Judge Glenn T. Suddaby; sentencing is scheduled for March 1, 2016 in Albany.
On August 27, 2014, McFadden was an inmate at FCI Ray Brook in Ray Brook, New York, when a Bureau of Prisons officer instructed him to perform his prison job. McFadden refused, and when the officer attempted to escort him to the lieutenant’s office, McFadden pushed the officer to the ground and held him in a headlock in the prison dining hall. In the course of the assault, McFadden wounded the officer’s scalp and forehead, causing bleeding to the scalp.
This investigation was conducted by the U.S. Bureau of Prisons and is being prosecuted by Assistant United States Attorney Cyrus P.W. Rieck.
Illegal Alien from Mexico Sentenced for Leading Alien Smuggling RingRead the Press Release
CORPUS CHRISTI, Texas – An illegal alien from Mexico has been handed a federal prison sentence following his conviction of conspiracy to transport illegal aliens, United States Attorney Kenneth Magidson announced today along with Brian Moskowitz, special agent in charge of Homeland Security Investigations (HSI). Jose Isabel Paz-Martinez, 28, pleaded guilty to the charge July 23, 2015, admitting the conspiracy resulted in the death of a young woman.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Paz-Martinez to 108 months years in federal prison. The sentence was enhanced as the court found he was a leader/organizer in the conspiracy. As an illegal alien, he is expected to face deportation proceedings following his release from prison.
The conspiracy lasted from Jan. 1, 2014, to Dec. 18, 2014. Paz-Martinez was responsible for coordinating the transportation of illegal aliens from Border Patrol checkpoints to Houston. His role included obtaining vehicles and hiring drivers to transport the illegal aliens. Approximately 87 illegal aliens had been transported during the course of the conspiracy.
On June 10, 2014, a 21-year old woman from El Salvador was with a group of illegal aliens picked up in a truck driven by one of Paz-Martinez’s drivers. As the woman was trying to climb into the back of the truck, the truck sped away prematurely and she slipped and fell onto the highway. Soon after, she was run over by a tractor trailer.
Paz-Martinez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case is being investigated by HSI and is being prosecuted by Assistant United States Attorney Chad W. Cowan.
Husband and Wife Convicted of Tax Fraud SchemeRead the Press Release
Following a six-day trial before United States District Court Chief Judge K. Michael Moore, a jury convicted husband and wife, Raul Sosa and Maura Sosa, of criminal tax offenses arising out of a five-year scheme to defraud the Internal Revenue Service.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to evidence presented at trial, starting in 2003, Raul and Maura Sosa owned and operated Accion 1 Auto Sales, Inc., an automobile salvage and recycling business in Hialeah. After purchasing junked and non-functioning cars, the defendants would strip the cars, sell the usable parts and components to businesses in the secondary auto parts market, and then sell the remaining metal as scrap to a local metal recycler. On some occasions, the defendants would resell whole cars, without stripping them.
The defendants’ fraud scheme revolved around their underreporting of Accion 1’s annual sales revenue on the businesses’ federal income tax returns. Through this scheme, Raul and Maura Sosa depressed the net profits reported on the businesses’ returns, the income reported on their individual returns, and their federal income tax owed.
From 2004 through 2008, the Raul and Mara Sosa’s business had sales of over $28.6 million. However, the defendants’ reported only approximately 14% of their sales, or $3.9 million, on the businesses’ federal income tax returns during that period. As a result of the scheme the defendants failed to report at least $4.5 million in net profits from their business and defrauded the Internal Revenue Service out of over $1.6 million in federal income taxes.
Evidence introduced at trial included records and witness testimony indicating that the defendants’ spending in 2008, on automobiles, real estate, jewelry, and credit card payments exceeded the total income reported on their joint individual income tax return by at least $900,000.
The defendants are scheduled to be sentenced by Chief Judge Moore on February 3, 2016, at 2:00 pm.
Mr. Ferrer commended the investigative efforts of the IRS. The case is being prosecuted by Assistant United States Attorneys Michael Davis and John Byrne.
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
Houma Man Charged with Possession of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MICHAEL CHAUVIN, age 30, of Houma, was taken into custody today after previously being charged in a one-count Indictment by a federal grand jury with possession of images and videos depicting the sexual exploitation of children under the age of twelve.
If convicted, CHAUVIN faces a maximum term of imprisonment of twenty years, followed by up to a lifetime of supervised release, and a $250,000 fine per count. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
United States Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Home-Health Agency Owners and Director of Nursing Indicted in $13 Million Medicare Fraud ConspiracyRead the Press Release
The owners, the director of nursing and patient recruiters of a home-health agency based in Houston were arrested early this morning for their alleged roles in conspiracies to defraud Medicare, to pay illegal healthcare kickbacks and to commit money laundering. The defendants were charged in an indictment unsealed earlier today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) Dallas Regional Office and Special Agent in Charge D. Richard Goss of the Internal Revenue Service-Criminal Investigation Division (IRS-CI) Houston Field Office made the announcement.
According to the indictment, Ebong Tilong, 51, and Marie Neba, 51, both of Sugar Land, Texas, used the Texas-based, home-health agency that they owned to bill Medicare for home-health services that were not provided or not medically necessary. They allegedly orchestrated this scheme by paying kickbacks to a series of individuals. First, Tilong and Neba allegedly paid illegal kickbacks to physicians in exchange for authorizing medically unnecessary home-health services. Using the money that Medicare paid for such fraudulent claims, Tilong and Neba allegedly paid illegal kickbacks to Daisy Carter, 56, of Wharton, Texas, and Connie Ray Island, 48, of Houston, in exchange for referring Medicare beneficiaries for home-health services. Finally, all four defendants allegedly paid illegal kickbacks to Medicare beneficiaries, in exchange allowing Tilong and Neba to bill Medicare using their Medicare information for home-health services that were not medically necessary or not provided. Neba, who also served as the company’s director of nursing, also allegedly falsified medical records to make it appear that Medicare beneficiaries qualified for and received home-health services. From in or around February 2006 to in or around June 2015, Tilong and Neba received approximately $13 million for these allegedly fictious or unnecessary home-health services.
An indictment is merely a formal accusation. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, HHS-OIG and IRS-CI under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas. The case is being prosecuted by Trial Attorney William S.W. Chang of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is 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.
Hollister Man Pleads Guilty to Armed Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Hollister, Mo., man pleaded guilty in federal court today to the armed robbery of Central Bank in Branson, Mo.
Joseph E. Cyrus, 76, of Hollister, pleaded guilty before U.S. Magistrate Judge David P. Rush to stealing $30,946 from Central Bank, 1115 James Epps Road in Branson on Oct. 16, 2015.
According to court documents, Cyrus entered the bank at approximately 9 a.m. and was wearing a blue ski mask and rubber gloves. He was carrying a black semi-automatic pistol. Cyrus approached the teller counter, pointed the pistol at the tellers, and said, “This is a robbery.”
Cyrus demanded that all of the bank’s employees who were positioned behind the teller counter come out where he could see them. He demanded that the tellers give him cash from their teller drawers, and at one point told one of the tellers that he would shoot her in the knee.
Cyrus handed one of the bank employees a blue reusable shopping bag and they put the cash in the bag. Cyrus ordered the employees and customers in the lobby to get down on the ground, then he left the bank and walked to a white Ford Ranger pickup truck that was parked in the parking lot across the street from the bank.
Surveillance photos depict the truck with an unknown state’s license plate, which had been attached to the vehicle backwards (with the face of the plate against the truck’s bumper). Four of the six numbers/letters were clearly visible. Branson police dispatchers broadcast the description of the robber and the vehicle to area law enforcement agencies. An off-duty Branson police officer heard the description of the truck and recalled having seen a similar vehicle parked near the Yacht Club Mobile Home Park in Hollister. The officer was familiar with the truck because it had a “for sale” sign in it and he previously called the listed phone number to inquire about purchasing the truck.
At about noon on the day of the robbery, the officer drove to the parking lot and saw the truck parked in the lot. The truck had a West Virginia license plate and was registered to Cyrus. The manager of the mobile home park told the officer that Cyrus had paid his rent and checked out at approximately 11 a.m. the same day. Cyrus left the mobile home park in another vehicle and left the pickup in the parking lot, hoping that it would sell.
A federal agent made a ruse call to the telephone number listed on the “for sale” sign in the truck. The call went to voice mail, and the agent left a message indicating that he was interested in purchasing the truck. The agent was able to contact Cyrus through an intermediary who called Cyrus and told him he had a potential buyer for the truck. The agent spoke to Cyrus, posing as the potential buyer. Cyrus later called the agent back and told him that he was not returning to Hollister but that the agent could arrange to wire the money to purchase the truck.
On Wednesday, Oct. 21, 2015, Cyrus turned himself in at the Branson Police Department.
Under federal statutes, Cyrus is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Branson, Mo., Police Department and the Hollister, Mo., Police Department.
Herrin Man Pleads Guilty to Heroin OffensesRead the Press Release
On November 5, 2015, James N. Taylor, a/k/a "James Taylor, Jr.", "James Taylor, II," and "Oolie," 47, of Herrin, Illinois, pled guilty to a two-count indictment charging conspiracy to distribute heroin and distribution of heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2014 and July 2015, in Williamson County. Evidence at the plea hearing established that Taylor was involved with others in the distribution of heroin. On June 26, 2015, Taylor sold heroin to a confidential source working for law enforcement. During June 2015 searches of Taylor and his Herrin residence, agents located pre-packaged heroin and pre-recorded buy money. Upon his arrest, Taylor admitted that he was involved with others in the distribution of heroin.
Taylor is currently being held without bond pending a February 10, 2016, sentencing hearing. At that time, Taylor faces up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
The ongoing investigation is being conducted by the Southern Illinois Enforcement. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Hansen Sentenced to 10 Years in Federal Prison for Possession of Child PorngraphyRead the Press Release
SALT LAKE CITY – A Salt Lake City man who admitted he had more than 600 images of child pornography in his possession, including images depicting young children being sexually assaulted by adults, has been sentenced to 10 years in federal prison.
Steven Seth Hansen, age 36, of Salt Lake City, who has a previous federal conviction for use of interstate facilities to transmit information about a minor, must also register as a sex offender, pay restitution in the case, and forfeit a phone and tablet.
As a part of a plea agreement reached with federal prosecutors, Hansen pleaded guilty to one count of possession of child pornography, which included a minimum mandatory sentence of 10 years in federal prison. U.S. District Court Judge Robert J. Shelby, who imposed the sentence last week, ordered Hansen to report to federal prison to begin serving his sentence on Jan. 15, 2016.
Law enforcement officers executed a search warrant at Hansen’s home in March, following up on tips from the National Center for Missing and Exploited Children. Agents and officers with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Utah Internet Crimes Against Children task force recovered a tablet and phone with child pornography images on them. Hansen was charged with receipt of child pornography and possession of child pornography in an indictment returned in March.
This case was investigated and prosecuted as a part of Utah Project Safe Childhood, an initiative targeting child sexual exploitation. Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
Grand Jury Returns Indictment Charging Llewelyn with Embezzling Money from Programs Receiving Federal FundsRead the Press Release
SALT LAKE CITY – A grand jury returned a one-count indictment Tuesday afternoon charging Jason Thomas Llewelyn, age 45, of Helper, Utah, with theft from programs receiving federal funds.
The indictment alleges that from about Dec. 16, 2011, through about Aug. 19, 2015, Llewelyn, as an agent of Carbon County, embezzled money from grants given to the county and administered by the U.S. Department of Homeland Security. The county received a series of grants in excess of $10,000 beginning in August 2010 and continuing through September 2014.
According to the indictment, Llewelyn used the money to purchase hundreds of items for his houseboat and other personal interests. The indictment alleges he misapplied property worth at least $5,000.
Llewelyn will be issued a summons to appear in federal court for an initial appearance on the charge in the indictment. The potential maximum penalty for the charge is up to 10 years in prison and a fine of $250,000.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
The case is being investigated by special agents of the FBI and prosecuted by the U.S. Attorney’s Office in Salt Lake City.
Georgia Man Indicted for ID Theft, Tax Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Loganville, Ga., man has been indicted by a federal grand jury for a fraud scheme in which he stole personal identity information from several victims in order to file fraudulent federal income tax returns.
Chike Uzodinma Agogbua, 42, of Loganville, a Nigerian national and a naturalized U.S. citizen, was charged in an eight-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Sept. 28, 2015. That indictment was unsealed and made public upon Agogbua’s arrest and initial court appearance. Agogbua, who was arrested in Georgia in October, had his initial court appearance in the U.S. District Court in Jefferson City today.
Agogbua allegedly stole the names, Social Security numbers and dates of birth of victims, then used that information to file federal income tax returns. According to the indictment, Agogbua also reported false employment, wages earned and taxes withheld in order to obtain refunds for himself. As a result of Agogbua’s fraud scheme, the IRS wired tax refunds, in the names of other persons, to bank accounts under Agogbua’s control.
The federal indictment charges Agogbua with five counts of wire fraud, related to tax refunds sent from the IRS Financial Center in Kansas City, Mo., and direct deposited into Agogbua’s bank account, and three counts of aggravated identity theft.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI and IRS-Criminal Investigation.
Four More Individuals Sentenced in Large a-PVP ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Between Oct. 26 and Nov. 9, 2015, four more individuals involved in an extensive a-PVP (alpha-pyrrolidinopentiophenone) distribution conspiracy centered in northeast Tennessee, southwest Virginia and western North Carolina, were sentenced to serve time in federal prison by the Honorable Pamela L. Reeves, U.S. District Court Judge.
Melissa Carol Williams, 39, of Greeneville, Tenn., was sentenced to serve 115 months; Jason Kyle Dulworth, 35, of Greeneville, Tenn., was sentenced to serve 46 months; Jonathon Rae Watson, 32, of Concord, N.C., was sentenced to serve 80 months; and, Richard Carmen Ware, 72, of Hendersonville, N.C., was sentenced to serve 60 months. Twelve others who were previously sentenced in this conspiracy received prison sentences ranging from 110 to 235 months.
According to the plea agreements on file with the U.S. District Court Clerk, the combined aggregate total of a-PVP stipulated to by Williams, Dulworth, Watson and Ware was approximately 19,275 grams.
A-PVP is a synthetic drug, primarily ordered from China, which is commonly referred to on the street as “gravel” or “flakka.” Common effects on users include: extreme paranoia; hallucinations; elevated blood pressure; extremely high body temperature; excited delirium; staying awake for days; hostility and having exceptional strength without apparent fatigue. These characteristics of the drug make it very dangerous for both the user and law enforcement responding to people who are using the drug. Users of a-PVP have referred to the substance as “meth on steroids.”
Law enforcement agencies participating in this investigation included the Drug Enforcement Administration, Bureau of Alcohol, Tobacco and Firearms, Homeland Security Investigations, Sullivan County Sheriff’s Office, Kingsport Police Department, Hawkins County Sheriff’s Department, Johnson City Police Department, Greeneville, Tennessee Police Department, Hendersonville, North Carolina Police Department, and the Scott County, Virginia Sheriff’s Office, all of which provided invaluable assistance during the course of the investigation. Assistant U.S. Attorney Wayne Taylor represented the United States.
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Forty-Seven Defendants Facing Drug, Gun, and Fraud Charges in Ongoing Investigation in Helena-West HelenaRead the Press Release
HELENA-WEST HELENA, Ark.—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), Dax Roberson, Acting Special Agent in Charge of the Office of Inspector General Southwest Region of the United States Department of Agriculture (USDA), and Colonel William J. Bryant, of the Arkansas State Police, announced today the simultaneous unsealing of eleven federal indictments charging 39 defendants as part of a continuing investigation into drug, firearm, and fraud offenses in Phillips County. The indictments were returned by the Grand Jury on November 4, 2015, and were unsealed today following a coordinated roundup of the charged defendants, along with eight defendants charged as part of the same investigation with state drug offenses.
The arrests resulted from two Organized Crime and Drug Enforcement Task Force (OCDETF) investigations, Operation Delta Blues and Operation Plastic Castle, which began in 2011 with a goal to target drug trafficking, violent crime, and public corruption in the Arkansas Delta, including Phillips County. Early Tuesday morning, approximately 300 law enforcement officers and support personnel, including approximately 130 tactical officers, executed 17 federal and 8 state arrest warrants in a targeted takedown that resulted in the arrests of 13 federal defendants and five state defendants on drug, firearm, or fraud charges. Seven defendants are now fugitives. Most of the defendants are residents of Helena-West Helena (see attachments for complete list of defendants, charges and penalties).
"Just over four years ago, during the original Operation Delta Blues, I made a commitment to help clean up the Arkansas Delta," Thyer said. "It has been evident for some time that violent drug traffickers are overrunning the Arkansas delta, including Phillips County. Today’s operation is a reminder to those criminals that the federal and state law enforcement authorities will pursue you until this community is returned to its law-abiding citizens. Where drugs, violence, fraud and corruption fester, we will take action."
From 2012 through 2015, agents with the FBI, ASP, and 1st Judicial District Drug Task Force coordinated more than 60 controlled purchases of drugs resulting in the acquisition of significant amounts of crack cocaine. Agents also utilized two court-authorized wiretaps in the drug-trafficking and firearms investigation. FBI and USDA agents also engaged in undercover transactions involving the illegal transfer of Supplemental Nutrition Assistance Program (SNAP) benefits.
"Today’s arrests are evidence of our continued resolve to make an impact on crime in the Arkansas delta," Resch said. "We appreciate the unfaltering efforts of the United States Attorney’s Office, Arkansas State Police, and the 1st Judicial District Drug Task Force."
"The Arkansas State Police is a committed partner in a team of law enforcement officers with a common objective to restore hope, law, and order in communities overwhelmed by drug dealers and violent offenders who have no regard for the community or the people they prey upon," Bryant said.
In addition to the arrest warrants served today, 24 defendants who were charged in a single indictment with defrauding the USDA by selling their SNAP benefits at the Stop and Shop in Helena-West Helena for cash will receive summonses over the course of the next several days. SNAP benefits provide economic assistance for low-income individuals to purchase food.
The indictment alleges that Khalid Alkarsh, who owns Stop and Shop, and Bakil Mohamed Alqirsh, who is a cashier and manager at the convenience store, allowed SNAP recipients to trade their SNAP benefits for ineligible items such as beer and cigarettes, and for cash. When a SNAP recipient redeemed their benefits for cash, Alkarsh and Alquirsh paid the recipient approximately 60% of the transaction amount, and the Stop and Shop kept 40%. The loss amount for the alleged fraud is in excess of $250,000.
The counts in today’s unsealed indictments include conspiracy to distribute and possess with intent to distribute crack cocaine, distribution and possession with intent to distribute crack cocaine, possession of a firearm in relation to a drug trafficking crime, use of a telephone to facilitate a drug trafficking crime, conspiracy to unlawfully redeem SNAP benefits, and unlawful transfer of SNAP benefits.
Those arrested today will be arraigned in federal court in Little Rock before United States Magistrate Judge Patricia S. Harris beginning at 2 p.m. on Thursday, November 12, 2015. Defendants receiving summonses will be arraigned on Friday, November 20, 2015, at 1 p.m.
The investigations were conducted by FBI, USDA, and ASP, in partnership with the 1st Judicial District Drug Task Force. The cases are being prosecuted by Assistant U.S. Attorney Julie Peters. An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
West Helena Press Release Attachment
Fort Worth Woman Sentenced to 20 Years in Federal Prison for Role in Methamphetamine Distribution ConspiracyRead the Press Release
FORT WORTH, Texas — Rachel Adams, 30, of Fort Worth and Weatherford, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to serve 240 months (20 years) in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Adams pleaded guilty in July 2015 to one count of conspiracy to possess with intent to distribute at least 50 grams of methamphetamine.
According to documents filed in the case, since approximately 2014, Adams received multi-ounce and pound quantities of methamphetamine from a coconspirator. Other coconspirators received multi-ounce and pound quantities of methamphetamine on consignment form Adams. In turn, Adams and others distributed methamphetamine to various customers in the Benbrook, Fort Worth, Arlington, and Wichita Falls, Texas areas.
Adams’ sentence is to be served concurrently with any sentence she may receive in related cases pending in Tarrant County.
The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fort Worth Police Department investigated the case. Assistant U.S. Attorney Shawn Smith was in charge of the prosecution.
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Former Waiter Pleads Guilty in Credit Card Fraud SchemeRead the Press Release
Greenbelt, Maryland – A former waiter at an Annapolis restaurant, Andrew Anamanya, age 25, of Glen Dale, Maryland pleaded guilty today in connection with his role in stealing customers’ credit card information, as part of a conspiracy to commit access device fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge James Murray of the United States Secret Service - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Chief Murray “Jay” Farr of the Arlington County, Virginia Police Department.
According to Anamanya’s plea agreement, while working as a waiter at an Annapolis restaurant, Anamanya was approached by two co-conspirators and agreed to use a credit card reading device, known as a “skimmer,” to steal credit and debit card information. The co-conspirators supplied Anamanya with the skimmer and when Anamanya’s customers paid their bills using credit or debit cards, Anamanya secretly swiped their cards through the skimmer. A few days later, Anamanya met with his co-conspirators and gave them the skimmer he had used in return for another skimmer. From July through October 2009, Anamanya repeated this process, compromising the credit card information of approximately 12 individuals. One of the co-conspirators transferred the data from the skimmer onto a laptop computer and then re-encoded the information onto other debit cards. Those fraudulently re-encoded cards were then used to make purchases at retail stores in the Washington, D.C. metropolitan area, the Eastern Shore of Maryland, and Delaware.
The total loss reasonably attributable to Anamanya’s conduct was $10,153.81. Four other co-conspirators have pleaded guilty to their roles in the scheme and are awaiting sentencing. A sixth defendant is scheduled to go to trial on November 17, 2015.
Anamanya faces a maximum sentence of five years in prison. U.S. District Judge Peter J. Messitte has scheduled sentencing for March 30, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Prince George’s County Police Department, Maryland State Police, and the Arlington County, Virginia Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Former Swinomish Police Chief Sentenced to 16 Months in Prison for Stealing Tribal FundsRead the Press Release
The former Police Chief of the Swinomish Tribe was sentenced today in U.S. District Court in Seattle to 16 months in prison and two years of supervised release for theft of tribal funds, announced United States Attorney Annette L. Hayes. THOMAS J. SCHLICKER, 57, of Stanwood, Washington, served as the Swinomish Police Chief from 1997 until September 2014, when his employment was terminated. SCHLICKER stole more than $30,000 that belonged to the tribe. At sentencing U.S. District Judge John C. Coughenour called the crime “a breach of trust” and ordered SCHLICKER to pay $17,849 for a total restitution to the Swinomish tribe of more than $33,000.
“This defendant betrayed the trust placed in him by the Swinomish Tribe,” said U.S. Attorney Annette L. Hayes. “As the Chief of Police for the tribe for nearly 25 years, his job was to protect the tribe – not steal from it. We will continue to work with the Federal Bureau of Investigation and the Tribes in Western Washington to ensure that those who embezzle funds are identified and held to account.”
“It is a sad day for our community. We entrusted him for 25 years… We trusted him and he betrayed our trust,” Swinomish Tribal Chairman Brian Cladoosby told the court. “People need to know that when they come to work in Indian Country… that this is not acceptable.”
According to the plea agreement, between 2008 and 2014 SCHLICKER set up a secret bank account in the name of the Swinomish Police Department, without the knowledge of the tribal accounting department. SCHLICKER then deposited checks made out to the tribal police into the secret account and withdrew the proceeds in cash, which he then used for his own purposes. SCHLICKER also used the Tribe’s Chevron/Texaco credit card to purchase gas for his and his family members’ personal vehicles. The total loss to the Swinomish Tribe is $33,622.
In asking for a sentence at the high end of the guidelines range, prosecutors noted the crime was a repeated betrayal of trust by a 20+ year employee. “This is far from an isolated misjudgment during a time of weakness. Rather, this was a calculated offense that occurred over five years and involved 38 fraudulent deposits and 37 fraudulent withdrawals, for a total of 75 fraudulent transactions on the Secret Account alone. Each of these transactions was a separate decision to commit a crime, as was each decision to misuse the tribal gas card or submit a fraudulent reimbursement request,” prosecutors wrote in their sentencing memo.
The case was investigated by the FBI, the Washington State Patrol, and the Swinomish Tribe. The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Ye-Ting Woo.
Former San Fernando Valley Man Pleads Guilty to Smuggling Protected South American Fish Species to CanadaRead the Press Release
LOS ANGELES – A man who was recently extradited from Mexico to face federal charges related to the illegal trafficking of the world’s largest freshwater fish pleaded guilty this afternoon to smuggling two Arapaima gigas to Canada.
Isaac Zimerman, 66, who formerly resided in West Hills, pleaded guilty today to the smuggling charge before United States District Judge Otis D. Wright II.
In a plea agreement filed yesterday in United States District Court, Zimerman admitted that he smuggled two Arapaima gigas to Canada. At the time, Zimerman knew that he was illegally exporting the fish because they are protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and they could not be exported to another country without a CITES re-export permit, which he did not have.
Zimerman was initially charged in 2009, along with his company, River Wonders LLC, and his wife, Leonor Catalina Zimerman.
River Wonders also pleaded guilty this afternoon to attempted smuggling of 10 Arapaima gigas to a resort in the Bahamas.
While Leonor Zimerman pleaded guilty to a misdemeanor offense in 2010, Isaac Zimerman fled the United States that same year after prosecutors filed additional charges alleging that he continued to illegally export fish while on bond. Special agents with the United States Fish & Wildlife Service tracked Zimerman’s movements through Europe, to Israel and eventually to Mexico.
On March 3, 2015, concluding a four-year manhunt, Zimerman was arrested near Metepec, Mexico. During his flight to avoid prosecution, Zimerman changed his appearance and took other steps to avoid detection and arrest. Mexico extradited Zimerman in September.
As a result of today’s guilty plea, Zimerman faces a statutory maximum sentence of 10 years in federal prison when he is sentenced by Judge Wright on February 8.
Leonor Zimerman pleaded guilty in 2010 to a misdemeanor count of illegal fish trafficking. She was sentenced by United States District Judge Valerie Baker Fairbank in January 2011 to 21 months of probation and was ordered to pay a $1,500 fine.
The arrest of Isaac Zimerman concluded a four-year manhunt led by the United States Fish & Wildlife Service, which received assistance from the Mexico City attaché of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, the FWS Intel Unit, Interpol, the U.S. Department of Justice’s Environment and Natural Resources Division, and the U.S. Department of Justice’s Office of International Affairs.
Former Sales Manager Sentenced for Conspiracy in Bribes, Kickbacks for Glock FirearmsRead the Press Release
TOPEKA, KAN. – A former sales manager for the company that makes Glock firearms was sentenced Monday to 18 months in federal prison for conspiring to take bribes and kickbacks, U.S. Attorney Barry Grissom said.
James Craig Dutton, 44, Acworth, Ga., pleaded guilty to one count of conspiracy to defraud Glock by accepting bribes and kickbacks from a gun dealer in return for preferential treatment.
Co-defendant John Sullivan Ralph, III, was sentenced to 18 months after pleading to conspiracy. Ralph, who owned Global Guns & Hunting, Inc., of Olathe, doing business as OB Guns, admitted he paid 140 bribes and kickbacks to Glock employees totaling approximately $900,000. Dutton, who was an assistant national sales manager for Glock, admitted he conspired with Ralph and others. Dutton received cash payments, gifts and other things of value from Ralph and he concealed those payments from Glock.
Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Former Public Employees Union Treasurer Charged with Embezzling $65,000 from Local 477Read the Press Release
WICHITA, KAN. - A former public employees union treasurer was indicted Tuesday on federal charges of embezzling $65,000, U.S. Attorney Barry Grissom said.
Shelly Sutton, formerly known as Shelly Burngardt, 46, Augusta, Kan., is charged with one count of bank fraud. The alleged crime took place while she was the treasurer of the American Federation of Government Employees (AFGE) Local 477 in Wichita. The indictment alleges Sutton:
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Forged signatures on union checks.
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Made unauthorized cash withdrawals from the union’s accounts.
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Made electronic payments from the union’s account to her own creditors
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Used the union’s debit card to make unauthorized purchases.
The indictment seeks a $65,000 personal money judgment against Sutton.
If convicted, she faces a maximum penalty of 30 years in federal prison and a fine up to $1 million. The U.S. Department of Labor – Office of Labor-Management Standards investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER GRAND JURY INDICTMENTS
Hector M. Birrueta, 31, Pasco, Wash., is charged with one count of possession with intent to distribute approximately 57 pounds of methamphetamine. The crime is alleged to have occurred Oct. 17, 2015, in Ellis County, Kan.
If convicted he a penalty of not less than 10 years and a fine up to $4 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting
Joshua A. Haskins, 40, Wichita, is charged with one count of sexual exploitation of a child, one count of attempted production of child pornography, and one count of distributing child pornography. The crimes are alleged to have occurred in February and July 2015 in Wichita.
If convicted, he faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution count, and a penalty of not less than 15 years and not more than 30 years and a fine up to $250,000 on each of the other counts. Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Raymundo Ochoa-Ortiz, 34, a citizen of Mexico, is charged with illegally re-entering the United States after being deported. He was found Oct. 28, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Genaro Ruvalcaba-Sandoval, 30, a citizen of Mexico, is charged with illegally re-entering the United States after being deported. He was found Oct. 21, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Juan Salmeron-Acevedo, 37, a citizen of Mexico, is charged with illegally re-entering the United States after being deported. He was found Nov. 4, 2015, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Sostenes Sanchez-Isidoro, 37, a citizen of Mexico, is charged with one count of making a false statement on a passport application, one count of misusing a passport, one count of making a false claim of U.S. citizenship, two counts of misusing a Social Security number, one count of using false documents to be employed in the United States, two counts of aggravated identity theft and one count of unlawful production of an identification document. The crimes are alleged to have occurred at various times from 2007 to 2013 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
False statement: A maximum penalty of 10 years in federal prison and a fine up to $250,000.
Misuse of a passport: A maximum penalty of 10 years in federal prison and a fine up to $250,000.
False claim of citizenship: A maximum penalty of three years and a fine up to $250,000.
Misusing a Social Security number: A maximum penalty of five years and a fine up to $250,000.
Using false documents: A maximum penalty of 10 years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutively and a fine up to $250,000 on each count.
Unlawful production of an identification document: A maximum penalty of 15 years and a fine up to $250,000.
The Kansas Department of Revenue and Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Luis Mendoza-Ortiz, a citizen of Mexico, is charged with two counts of using a false document to be employed in the United States, two counts of making a false statement, two counts of misusing a Social Security number, two counts of aggravated identity theft and one count of unlawfully re-entering the United States after being convicted of a felony and deported. The crimes are alleged to have occurred in 2014 and 2015 in Cowley and Montgomery counties.
Upon conviction, the crimes carry the following penalties:
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Using false documents: A maximum penalty of 10 years and a fine up to $250,000 on each count.
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False statement: A maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count.
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Misusing a Social Security number: A maximum penalty of five years and a fine up to $250,000 on each count.
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Unlawfully re-entering the United States after being convicted of a felony and deported: A maximum penalty of 10 year and a fine up to $250,000.
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Aggravated identity theft: A mandatory two years to run consecutively and a fine up to $250,000 on each count.
The Kansas Department of Labor and Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Homero Arambula, 28, Wichita, Kan., is charged with one count of wire fraud. The indictment alleges he fraudulently collected more than $8,900 in unemployment benefits from the Kansas Department Labor. The crime is alleged to have occurred in 2013 and 2014 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The U.S. Department of Labor investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Mark D. Capps, 55, Wichita, Kan., is charged with one count of wire fraud. The indictment alleges he fraudulently collected more than $17.000 in unemployment benefits from the Kansas Department of Labor. The crime is alleged to have occurred at various times from 2007 to 2012 in Wichita, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The U.S. Department of Labor investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Joseph Bussart, Jr., 24, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction and one of unlawful possession of a firearm with an obliterated serial number. The crimes are alleged to have occurred Aug. 7, 2015 in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on the charge of felon in possession, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Pamela Randle, 37, Wichita, Kan., is charged with one count of wire fraud. The indictment alleges she fraudulently collected more than $36,000 in unemployment benefits from the Kansas Department of Labor. The crime is alleged to have occurred at various times from 2008 to 2014 in Wichita, Kan.
If convicted, she faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The U.S. Department of Labor investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Former President of Law Enforcement Labor Union Sentenced in Manhattan Federal Court for Defrauding Union of FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOHN EARVIN, the former president of the United Federation of Law Enforcement Officers (“UFLEO” or the “Union”), was sentenced by U.S. District Judge Paul A. Engelmayer to three years of probation, including six months of home confinement. EARVIN pled guilty on June 19, 2015, to one count of wire fraud.
According to the Indictment and statements made in court:
The UFLEO represents Special Inspectors employed by the Metropolitan Transportation Authority of New York (“MTA”). From February 2007 through April 2010, EARVIN was the Union’s president, supervising the affairs of the Union and managing the Union’s finances, including through sole control of the Union’s bank account (the “Account”). Through his presidency, EARVIN perpetrated a scheme to defraud the Union by diverting Union dues payments deposited into the Account for his own benefit, principally by making hundreds of ATM withdrawals at off-track betting facilities and other locations and making personal use of the funds. In perpetuating the scheme and preventing its discovery, EARVIN repeatedly lied to Union members about the Account by, for example, claiming that he could not provide an accounting of funds to Union members because an independent auditor was reviewing the Union’s finances. As a result of the scheme, EARVIN defrauded the Union and its members of approximately $28,012.
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EARVIN, 67, of New Rochelle, New York, was also sentenced to 600 hours of community service and ordered to pay restitution of $2,000 a month.
U.S. Attorney Preet Bharara thanked the DOL-OLMS for its work in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Carrie H. Cohen and Jennifer Gachiri are in charge of the prosecution.
Former Postal Worker Pleads Guilty to StealingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former employee at the North Kansas City, Mo., post office pleaded guilty in federal court today to stealing money from a cash drawer.
Jacob Crisp, 24, formerly of Kansas City, Mo., pleaded guilty before U.S. District Judge Dean Whipple to misappropriating federal postal funds.
Crisp was a sales and service distribution associate working at the front counter of the North Kansas City, Mo., post office. From June 3, 2013, to Feb. 11, 2014, Crisp embezzled money from the Postal Service by not properly recording stamp sales with customers. He falsely reported voided and no-sale transactions, and did not report other stamp sales with customers, thereby reducing the amount of cash he remitted in his daily deposits. This allowed him to embezzle the money paid by customers for post office products, including stamps.
Crisp estimated that beginning in October 2013, he stole approximately two to three times per week, about $200 per week, which the government contends totaled $5,040 worth of retail transactions.
Crisp was observed on video conducting sales transactions, but hitting the “void” key so that the sale wasn’t recorded in the computer terminal. Crisp was also observed on video taking money from the cash drawer and putting it in his pocket.
Under federal statutes, Crisp is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Postal Service Office of Inspector General.
Former Pico Rivera Businessman Pleads Guilty to Federal Tax Fraud and Identity Theft Charges in Scheme that Netted nearly $550,000Read the Press Release
LOS ANGELES – A former Pico Rivera businessman pleaded guilty late this afternoon in relation to a stolen identity refund fraud scheme in which he conspired to use stolen identities to file fraudulent tax returns with the Internal Revenue Service that fraudulently generated approximately $550,000 in tax refunds.
Frank Ruben Candelaria, 53, of Los Angeles, pleaded guilty to one count of conspiracy to defraud the United States and two counts of making false claims against the United States by filing fraudulent tax returns in his own name.
According to the plea agreement filed in the case, beginning in December 2008 and continuing through September 2009, Candelaria and co-conspirator Edgar Rene Nunez, 61, caused at least 143 fraudulent income tax returns to be filed with the IRS. As a result of the fraudulent tax returns that sought well over $1 million in refunds, the IRS issued approximately $548,447 in fraudulent tax refund checks.
"Stolen identity refund fraud, known as SIRF, victimizes both the United States and the individuals who have had their identities stolen," said United States Attorney Eileen M. Decker. "The Department of Justice will continue to prosecute aggressively criminals seeking to profit from the identities of others."
In executing the scheme, Nunez and others obtained the names and Social Security numbers of individuals without their knowledge and consent. The co-conspirators created bogus Forms W-2 (IRS Wage and Tax Statements) in the names of the identity theft victims that reported false employment and income information, as well as false tax withholding amounts. Using the falsified information reported on the Forms W-2, fraudulent individual income tax returns were prepared and filed claiming false tax refunds. The tax returns were filed without the knowledge or consent of the identity theft victims.
The fraudulent tax refunds were then either mailed to addresses that Candelaria and Nunez, as well as others, controlled or directly deposited to bank accounts that Nunez and others controlled.
"IRS Criminal Investigation has declared investigating refund fraud and identity theft a top priority," stated Special Agent in Charge Erick Martinez of the Los Angeles Field Office. "Filing fraudulent tax returns in the names of other individuals creates irreparable harm to those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury."
In addition to the tax fraud scheme outlined above, Candelaria filed fraudulent tax returns in his own name for the 2006 and 2007 tax years claiming false refunds of $9,955 and $9,720, respectively.
When sentenced by U.S. District Court Judge Michael W. Fitzgerald on February 1, Candelaria faces a statutory maximum sentence of 20 years in federal prison and a fine of $750,000. Candelaria has agreed to pay full restitution to the IRS in the amount of $568,152.
Nunez pleaded guilty on March 31, 2015 to one count of conspiracy to submit false claims, nine counts of submitting false claims against the U.S. government, two counts of mail fraud, and one count of identity theft. When he is sentenced on February 22, Nunez faces a statutory maximum sentence of 97 years in federal prison and a fine of $3,250,000.
The investigation into Candelaria and Nunez was conducted by IRS Criminal Investigation and the Federal Bureau of Investigation.
Former Owner of Empire Towers Sentenced to over Five Years in Prison for Fraudulent $7 Million Bond Scheme and Filing a False Tax ReturnRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Wilfred T. Azar, III, age 54, formerly of Queenstown, Maryland, today to 63 months in prison followed by three years of supervised release, for securities fraud and filing a false tax return. Judge Quarles also entered an order that Azar must perform 100 hours of community service while on supervised release, and pay restitution of $7,219,362 to the victim investors and $469,936 in restitution to the IRS.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Deputy Assistant Attorney General Bruce M. Salad for the Tax Division of the Department of Justice; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
“Today’s sentencing reaffirms IRS Criminal Investigation is diligent in unraveling the fraudulent financial transactions of those who scheme to defraud investors and U.S. taxpayers,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “In partnership with our law enforcement partners, we will continue to pursue those who engage in this type of conduct in order to protect the integrity of our financial system.”
In 1999, Azar became president and majority owner of Empire Corporation and exercised complete control over the operations of Empire. Empire Corporation owned Empire Towers Corporation. Empire Towers Corporation’s primary asset was Empire Towers, a 10 story office building in Glen Burnie, Maryland.
According to Azar’s plea agreement and court documents, by January 2006, Empire Corporation could no longer pay its expenses and was effectively insolvent. By 2007, Empire Towers Corporation had exhausted its lines of credit from lending institutions.
From January 2006 to April 2010, Azar caused Empire Corporation to sell bonds to 64 individual investors for more than $7 million. While many of the bonds were titled “registered,” the bonds were not registered with either the U.S. Securities and Exchange Commission (SEC) or the state of Maryland. In addition, Azar falsely told investors that Empire Corporation was in good financial health and that the company generated enough revenue to pay the promised 10 percent annual rate of return. Azar falsely represented that the money invested would be used for a specific renovation project or other capital improvement at the Empire Towers office building. Azar failed to inform investors that he used most of the money raised from previous bond sales for his own personal purposes. Although the bonds were issued by Empire Corporation, Azar diverted millions of dollars of proceeds from the bond sales to his own bank account and the bank accounts of other companies that he controlled.
During the period of the fraud, Azar misappropriated approximately $7,219,362 in investor proceeds raised through the sale of bonds. Azar used the bond proceeds: to purchase a $100,000 Aston Martin luxury automobile; to pay the $3,000 monthly mortgage on his primary residence; to pay $51,000 to an Azar trust; to purchase Baltimore Ravens season tickets for $17,298; and to pay $25,389 in country club dues. In addition, Azar charged over $420,000 to a credit card paid by Empire Management Services, including daily living expenses, lavish vacations, and university tuition for one of his children. Azar also diverted more than $1.07 million in Empire funds as “loans” to other unrelated businesses he controlled which were never repaid, and another $3.31 million to make lulling payments.
Finally, Azar filed to report approximately $1,959,250 of embezzled income on his 2009 tax return, thereby avoiding $469,936 in federal income taxes.
The SEC has also filed a complaint against Azar and another individual in connection with the scheme, and that case is pending.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the Tax Division, IRS-CI and the SEC for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke and Trial Attorney Kenneth C. Vert of the Justice Department’s Tax Division, who prosecuted the case.
Former Mount Juliet Police Sergeant Sentenced for Federal Program Fraud and Wire FraudRead the Press Release
Jason Ezell, 40, of Lebanon, Tenn., was sentenced today by Chief U.S. District Judge Kevin H. Sharp, to serve six months in prison and one year supervised release, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Ezell, a former sergeant with the Mount Juliet Police Department, pleaded guilty on July23, 2015, to federal program fraud and wire fraud. The Court also ordered him to pay more than $13,000 in restitution.
Ezell was charged on July 10, 2015, with fraudulently preparing time cards and submitting fraudulent overtime logs, falsely claiming that he worked more than 500 hours of overtime in support of and assisting in federal Organized Crime Drug Enforcement Task Force (OCDETF) investigations during the period of January 2013 through April 2015. During that time, Ezell was a sergeant with the Mount Juliet Police Department and supervised the Crime Suppression Unit.
In sentencing Ezell, Chief Judge Sharp noted that “there was an abuse of trust of the position the people placed him in to be a good steward of the public’s money.” Judge Sharp also said the sentence “needs to reflect the seriousness of the offense and send a message that you can’t dip into the public till and receive probation if you’re caught.”
This case was investigated by the Tennessee Bureau of Investigation; the FBI; the District Attorney’s Office for the 19th Judicial District; and the DOJ Office of Inspector General. Assistant U.S. Attorney Thomas J. Jaworski is prosecuting the case.
Former Maryland Businessman Sentenced to Prison for Fraudulent $7 Million Bond Scheme and Filing a False TaxRead the Press Release
A Hampton Bays, New York man was sentenced today to 63 months in prison followed by three years of supervised release, for securities fraud and filing a false tax return.
Wilfred T. Azar, III, 54, formerly of Queenstown, Maryland, was sentenced by U.S. District Judge William D. Quarles Jr, who also entered an order that Azar must perform 100 hours of community service while on supervised release, and pay restitution in the amount of $7,219,362 to the victim investors and $469,936 to the IRS.
The sentence was announced by Acting Deputy Assistant Attorney General Bruce M. Salad of the Department of Justice’s Tax Division; U.S. Attorney Rod J. Rosenstein of the District of Maryland; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Washington, D.C. Field Office and Special Agent in Charge Kevin Perkins of the FBI’s Baltimore Division.
In 1999, Azar became president and majority owner of Empire Corporation and exercised complete control over the operations of Empire. Empire Corporation owned Empire Towers Corporation. Empire Towers Corporation’s primary asset was Empire Towers, a 10-story office building in Glen Burnie, Maryland.
According to Azar’s plea agreement and court documents, by January 2006, Empire Corporation could no longer pay its expenses and was effectively insolvent. By 2007, Empire Towers Corporation had exhausted its lines of credit from lending institutions.
From January 2006 to April 2010, Azar caused Empire Corporation to sell bonds to 64 individual investors for more than $7 million. While many of the bonds were titled “registered,” the bonds were not registered with either the U.S. Securities and Exchange Commission (SEC) or the state of Maryland. In addition, Azar falsely told investors that Empire Corporation was in good financial health and that the company generated enough revenue to pay the promised 10 percent annual rate of return. Azar falsely represented that the money invested would be used for a specific renovation project or other capital improvement at the Empire Towers office building. Azar failed to inform investors that he used most of the money raised from previous bond sales for his own personal purposes. Although the bonds were issued by Empire Corporation, Azar diverted millions of dollars of proceeds from the bond sales to his own bank account and the bank accounts of other companies that he controlled.
During the period of the fraud, Azar misappropriated approximately $7,219,362 in investor proceeds raised through the sale of bonds. Azar used the bond proceeds: to purchase a $100,000 Aston Martin luxury automobile, to pay the $3,000 monthly mortgage on his primary residence, to pay $51,000 to an Azar trust, to purchase Baltimore Ravens season tickets for $17,298 and to pay $25,389 in country club dues. In addition, Azar charged over $420,000 to a credit card paid by Empire Management Services, including daily living expenses, lavish vacations and university tuition for one of his children. Azar also diverted more than $1.07 million in Empire funds as “loans” to other unrelated businesses he controlled which were never repaid and another $3.31 million to make lulling payments.
Finally, Azar failed to report approximately $1,959,250 of embezzled income on his 2009 tax return, thereby avoiding $469,936 in federal income taxes.
The SEC has also filed a complaint against Azar and another individual in connection with the scheme and that case is pending.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit www.stopfraud.gov.
Acting Deputy Assistant Attorney General Salad and U.S. Attorney Rosenstein praised the IRS-CI, FBI and SEC for their work in the investigation. Acting Deputy Assistant Attorney General Salad and U.S. Attorney Rosenstein thanked Assistant U.S. Attorney Martin J. Clarke and Trial Attorney Kenneth C. Vert of the Justice Department’s Tax Division, who prosecuted the case.
Former Dance Instructor Pleads Guilty to Interstate Travel to Engage in Illicit Sexual ConductRead the Press Release
PROVIDENCE, R.I. – Keith Sampson, 37, formerly of Providence, RI, pleaded guilty in federal court in Providence today to interstate travel to engage in illicit sexual conduct, admitting to the court that in December 2007 he transported one of his dance studio students, a fifteen-year-old girl, from Rhode Island to Easton, Mass., for the purpose of engaging in illicit sexual conduct, announced United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to court documents and information presented to the court, on December 29, 2007, the girl had been left in Sampson's care by her mother on the pretense that she would be spending the night at Sampson's Providence residence in the company of his wife and child. Instead, Sampson admitted to the court that he drove the victim to the home of a relative in Easton, Mass., where he provided the victim with alcohol and then sexually assaulted her.
According to court documents, the assault of the fifteen-year-old victim occurred while Sampson was awaiting trial in Massachusetts state court on two counts of statutory rape of a child in an unrelated matter. In that case, on January 10, 2008, a jury found Sampson guilty of one count of statutory rape. He was sentenced in February 2008 to serve not less than four and not more than seven years' imprisonment in Massachusetts state prison as a result of this conviction.
Additionally, based on the December 29, 2007, assault of his dance studio student, Sampson was indicted and charged in Massachusetts state court with rape of a child with force and providing liquor to a person under 21. He pleaded guilty to the charges on November 14, 2011, and was sentenced to not less than two-and-a-half and not more than three years' imprisonment, to be served consecutively to the sentence he received as a result of his January 2008 conviction.
In total, Sampson served approximately seven years in prison in Massachusetts. Upon his release from Massachusetts state prison, Sampson was placed in federal custody and brought to Rhode Island to face charges in U.S. District Court in Providence brought as a result of the December 2007 assault.
Sampson is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 29, 2016.
The case is being prosecuted in federal court in Providence by Assistant U.S. Attorneys Richard W. Rose and Zachary A. Cunha.
The matter was investigated by the FBI, with the assistance of the Warwick, Rhode Island, and Easton, Massachusetts, Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Cleveland resident charged with tax fraudRead the Press Release
A 13-count indictment charging a former Cleveland woman with tax fraud, obstruction and related charges was unsealed, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Troy Stemen, Acting Special Agent in Charge, Criminal Investigation, Cincinnati Field Office.
Lerona Renay Shelton, 46, of Birmingham, Alabama, pleaded not guilty at his arraignment. Shelton is charged wtih conspiracy to defraud the United States, six counts of aiding and abetting tax returns, obstruction of an official proceeding, four counts of making false statements and one count of perjury.
Shelton in 2010 obtained taxpayer names, addresses and W-2 forms that claimed false employments, wages and taxes withheld. Shelton sent this information to Sean Houston, of Cleveland, who prepared and submitted false tax returns to the IRS, according to the indictment.
Shelton was questioned in the Grand Jury about his activities with Houston and gave answers that he knew to be false, according to the indictment.
Houston pleaded guilty on April 13, 2015 to one count of conspiracy to file false claims for income tax refunds with the IRS and 10 counts of filing false claims for income tax refunds with the IRS. He is scheduled to be sentenced on November 24, 2015.
Another related defendant, Nikita Griffin, pleaded guilty on April 14, 2015 to one count of conspiracy to file false claims for income tax refunds with the IRS. She is scheduled to be sentenced on November 19, 2015.
The case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by IRS-CI.
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Archer County Justice of the Peace Faces up to 10 Years in Federal Prison for Stealing County FundsRead the Press Release
WICHITA FALLS, Texas — Joseph Charles Boyle, the former Justice of the Peace for Precinct 2 in Holliday, Texas, appeared in federal court this afternoon, before U.S. Magistrate Judge Robert K. Roach, and pleaded guilty to a felony Information charging one count of theft concerning programs receiving federal funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Boyle, 63, of Holliday, faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. He could also be ordered to pay restitution. He will remain on bond pending sentencing, which is set for March 14, 2016, before U.S. District Judge Reed C. O’Connor.
Boyle resigned his position as Justice of the Peace yesterday. In late August 2015, he retired from the Texas Department of Criminal Justice, where he worked as a correctional officer at the James V. Allred Unit in Iowa Park, Texas
According to documents filed in the case, Boyle served in his elected position in Archer County, Texas, since January 2003. As Justice of the Peace, Boyle was authorized to impose fines and assess fees on individuals cited with a variety of violations, such as minor in possession of alcohol, speeding, illegal passing, driving without a valid license, and other traffic violations.
From approximately January 1, 2013, through May 5, 2015, on numerous occasions, Boyle stole, embezzled, and obtained by fraud, funds that he collected as payment of fees, fines and penalties, and failed to turn that money over to its rightful owner, Archer County.
Boyle told individuals who had been cited with a violation that the fine was a certain amount, obtained payment from the individual in that amount, and provided the individual with a receipt in that amount. Boyle, however, then kept a portion of the individual’s payment and falsely reported to Archer County that the fine assessed, and the amount received as payment of the fine, was less than the amount he had actually assessed and received.
To help facilitate his theft, Boyle often requested that individuals pay their fines in cash. Frequently, he kept a portion of the cash the individual paid, and then purchased a money order to make the payment to Archer County, all in an effort to disguise the fact that he had been paid in cash.
Boyle admitted that the total amount of money that he stole, embezzled and obtained by fraud from Archer County was more than $40,000.
The FBI investigated the case. Assistant U.S. Attorney Douglas Brasher is in charge of the prosecution.
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Former Amarillo Resident Pleads Guilty to Attempted Child Sex Trafficking OffenseRead the Press Release
AMARILLO, Texas — Xzavion Dayshaun Ragsdale, a/k/a “Yung Billy,” 19, pleaded guilty this afternoon before U.S. Magistrate Judge Clinton E. Averitte to one count of attempted sex trafficking of a child, announced U.S. Attorney John Parker of the Northern District of Texas.
Ragsdale, formerly of Amarillo, Texas, and most recently Dallas, faces a statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. A sentencing date was not set.
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 is in charge of the prosecution.
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Folk Nation Gang Member Sentenced to Five Consecutive Terms of Life ImprisonmentRead the Press Release
Earlier today, Jamal Laurent, a member of a set of the violent street gang Folk Nation operating primarily in the Crown Heights and East Flatbush neighborhoods of Brooklyn, was sentenced to five consecutive terms of life imprisonment at the federal courthouse in Brooklyn, New York. Last week, on November 6, 2015, one of Laurent’s co-defendants, Trevelle Merritt, was sentenced to 40 years of imprisonment. On March 18, 2015, both defendants, along with a third defendant, Yasser Ashburn, were convicted, following a jury trial, of racketeering and racketeering conspiracy, including as racketeering acts the murders of Courtney Robinson, Brent Duncan, and Dasta James, and related crimes. Ashburn is scheduled to be sentenced on January 8, 2016, and faces a mandatory term of life imprisonment.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“The defendants committed a string of shootings, robberies, and other senseless acts of violence that for years terrorized the law-abiding members of their community,” stated United States Attorney Capers. “We hope that the sentences imposed give a measure of comfort and closure to the victims and their families, and serve as a warning and deterrent to those who would continue to commit crimes in the name of this violent gang.” Mr. Capers expressed his grateful appreciation to the FBI and the NYPD, the agencies that led the government’s investigation.
From approximately 2007 until their arrests, the defendants, all members of the Folk Nation gang, were responsible for numerous acts of gang-related violence, including homicides, non-fatal shootings, and robberies in and around Crown Heights and East Flatbush, as well as elsewhere in the tri-state area.
During the course of the summer of 2010, Laurent committed seven armed robberies and three shootings. On June 19, 2010, Laurent shot and killed 18-year-old Brent Duncan while Duncan sat in his car outside a party in Brooklyn. Laurent subsequently told a friend that he shot Duncan because Duncan was a member of the rival Crips gang, but no evidence ever established that Duncan belonged to, or was even associated with, that gang.
On July 7, 2010, the same day that Laurent robbed three individuals at gunpoint, Laurent also attempted to murder Louis Ivies, who Laurent believed to be a member of the Crips. After greeting Ivies on the street, Laurent removed a gun from his waistband and fired at him eight times, hitting him five times. Ivies was seriously injured but ultimately survived.
During a three-week period in January 2011, Merritt and fellow gang members participated in a robbery spree that culminated in murder. In the first two robberies, Merritt and others robbed two residents of the Ebbets Field Houses of their cell phones. On January 28, 2011, Merritt, Laurent, and another man attempted to rob Dasta James at his residence on McKeever Place in Brooklyn. During the course of the robbery, James was shot in the back and head. He was taken to Kings County Hospital, where he died.
The government’s case is being prosecuted by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Darren LaVerne, M. Kristin Mace, and Margaret Lee are in charge of the prosecution.
The Defendants:
JAMAL LAURENT, also known as “Tails”
Age: 25
Brooklyn, NYTREVELLE MERRITT, also known as “Tiger”
Age: 22
Brooklyn, NYE.D.N.Y. Docket No. 11-CR-303 (NGG)
Florida Man Pleads Guilty in Manhattan Federal Court to Concealing A Bank Account in Liechtenstein Worth More Than $1 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HARRY FALTERBAUER pled guilty today to willfully failing to file a Report of Foreign Bank and Financial Accounts (“FBAR”) with the IRS regarding a secret offshore bank account he maintained and controlled. FALTERBAUER, a United States citizen and resident of Florida, maintained the undeclared account at a bank in Liechtenstein from approximately 1988 to 2008. During that time, the account reached a high balance of more than $1.5 million. FALTERBAUER, who was arrested in July 2015, entered his guilty plea before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “As he admitted, Harry Falterbauer tried to conceal his million-dollar offshore bank account from U.S. authorities. Today’s plea is a reminder that we continue to work with the IRS to investigate and prosecute taxpayers who seek to use bank-secrecy laws abroad to avoid legal obligations in the U.S.”
According to the Indictment previously filed in Manhattan federal court and statements made in court in connection with FALTERBAUER’s guilty plea:
FALTERBAUER opened an account at Liechtensteinische Landesbank AG, a bank based in Vaduz, Liechtenstein (“LLB-Vaduz”), in the late 1980s. Although FALTERBAUER opened the account in his own name, the bank referred to the account exclusively by its number in order to conceal the connection to FALTERBAUER. In an affidavit provided to the bank in 2003, FALTERBAUER declared that he was a U.S. citizen and that he was not authorizing LLB-Vaduz to disclose his name to U.S. tax authorities.
The account generated capital gains and losses from investments, reaching a high balance of more than $1.5 million in approximately 2007. It had a balance of more than $1.1 million before its closure in 2008.
For the calendar year 2008, FALTERBAUER willfully failed to disclose on his tax returns both his interest in the LLB-Vaduz account and the income that account generated. For the same year, FALTERBAUER also willfully failed to file an FBAR with the IRS, as the law required him to do.
Liechtenstein amended its laws in 2012 to permit banks to produce documents relating to certain U.S. taxpayers to the Department of Justice. LLB-Vaduz subsequently provided files from undeclared accounts, including FALTERBAUER’s, to this Office.
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FALTERBAUER, 60, faces a maximum sentence of five years in prison. As part of his plea agreement, FALTERBAUER has agreed to pay a civil penalty of $794,500, file amended tax returns, and pay back taxes of at least $15,013. He is scheduled to be sentenced by Judge Furman on February 24, 2016 at 4 p.m. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of IRS-CI. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for its assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sarah Paul and David Abramowicz are in charge of the prosecution.
Final Defendant from Operation "Spa City Special" Sentenced to Nine Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas - Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Tyrong Godbold, aka “Bull”, age 43, of Hot Springs, was sentenced today on one count of Distribution of Cocaine Base to 108 months in federal prison followed by three years of supervised release. The Honorable Susan O. Hickey presided over the sentencing in the United States District Court in El Dorado.
Beginning in March of 2012, the Hot Springs Street Crimes Unit in conjunction with the ATF launched an investigation in response to the emerging gang violence and drug trafficking. Over 80 controlled buys of crack cocaine and methamphetamine were conducted during the course of this investigation. The investigation resulted in the seizure of over 500 grams of crack cocaine, seven vehicles valued at over $50,000, 17 firearms, methamphetamine, and over $15,000 in cash. 24 defendants were originally charged in state and federal court in this operation called the Spa City Special. Godbold was the final defendant to be sentenced.
This case was investigated by the Hot Springs Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Federal Officials Close Review into the Death of Dontre HamiltonRead the Press Release
The Justice Department announced today that there is insufficient evidence to pursue federal criminal civil rights charges against former Milwaukee Police Officer Christopher Manney for the death of Dontre Hamilton on April 30, 2014.
Officials from the U.S. Attorney’s Office of the Eastern District of Wisconsin, the Department of Justice’s Civil Rights Division and the FBI met today with Hamilton’s family and their representatives to inform them of this decision.
Federal authorities conducted a comprehensive and independent review of the evidence collected related to the death of Hamilton, who was shot during a struggle with Manney. This included reviewing all information from the state investigation, reviewing all recorded interviews, consulting with the Milwaukee County medical examiner and reviewing the transcripts from Manney’s termination hearing by the Milwaukee Fire and Police Commission.
The team of experienced federal prosecutors and FBI agents considered whether Manney violated federal law by willfully using unreasonable force against Hamilton. Under the applicable federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a Constitutional right. To establish willfulness, federal authorities must show that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by law. Mistake, misperception, negligence or poor judgment are not sufficient to establish a federal criminal civil rights violation.
In this case, there were numerous civilian witnesses who saw some part of the physical confrontation between Manney and Hamilton. Based on those eyewitness accounts, the account of the former officer involved, the physical evidence and the assessments of independent use of force experts, the team of experienced federal prosecutors and FBI agents determined that the evidence was insufficient to prove, beyond a reasonable doubt, that Manney acted willfully with a bad purpose to violate the law. Accordingly, the federal review of this incident has been closed without prosecution. This decision is limited strictly to an application of the high legal standard required to prosecute the case under the federal civil rights statute; it does not reflect an assessment of any other aspect of the incident that led to Hamilton’s death.
The U.S. Attorney’s Office of the Eastern District of Wisconsin, the Civil Rights Division and the FBI are committed to investigating allegations of civil rights violations by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Officials Close Review into the Death of Dontre HamiltonRead the Press Release
WASHINGTON – The Justice Department announced today that there is insufficient evidence to pursue federal criminal civil rights charges against former Milwaukee Police Officer Christopher Manney for the death of Dontre Hamilton on April 30, 2014.
Officials from the U.S. Attorney’s Office of the Eastern District of Wisconsin, the Department of Justice’s Civil Rights Division and the FBI met today with Hamilton’s family and their representatives to inform them of this decision.
Federal authorities conducted a comprehensive and independent review of the evidence collected related to the death of Hamilton, who was shot during a struggle with Manney. This included reviewing all information from the state investigation, reviewing all recorded interviews, consulting with the Milwaukee County medical examiner and reviewing the transcripts from Manney’s termination hearing by the Milwaukee Fire and Police Commission.
The team of experienced federal prosecutors and FBI agents considered whether Manney violated federal law by willfully using unreasonable force against Hamilton. Under the applicable federal criminal civil rights statute, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a Constitutional right. To establish willfulness, federal authorities must show that the officer acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by law. Mistake, misperception, negligence or poor judgment are not sufficient to establish a federal criminal civil rights violation.
In this case, there were numerous civilian witnesses who saw some part of the physical confrontation between Manney and Hamilton. Based on those eyewitness accounts, the account of the former officer involved, the physical evidence and the assessments of independent use of force experts, the team of experienced federal prosecutors and FBI agents determined that the evidence was insufficient to prove, beyond a reasonable doubt, that Manney acted willfully with a bad purpose to violate the law. Accordingly, the federal review of this incident has been closed without prosecution. This decision is limited strictly to an application of the high legal standard required to prosecute the case under the federal civil rights statute; it does not reflect an assessment of any other aspect of the incident that led to Hamilton’s death.
The U.S. Attorney’s Office of the Eastern District of Wisconsin, the Civil Rights Division and the FBI are committed to investigating allegations of civil rights violations by law enforcement officers and will continue to devote the resources required to ensure that all allegations of serious civil rights violations are fully and completely investigated. The department will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
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Federal Jury Finds 2 Guilty of All Counts in Sacramento-Area Builder Bailout Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal jury found two defendants guilty today of mail fraud and making false statements on loan applications in a scheme that provided financial incentives to straw buyers to get them to purchase homes that developers were having difficulty selling, United States Attorney Benjamin B. Wagner announced.
Edward Khalfin, 58, of San Mateo, was found guilty of 12 counts of mail fraud and 11 counts of making false statements on loan applications. Robin Dimiceli, 53, of Brentwood, was found guilty of six counts of mail fraud and six counts of making false statements on loan applications.
According to court documents, from August 2006 through May 2008, two brothers, Volodymyr Dubinsky, 56, formerly of Folsom, and Leonid Doubinski, 50, formerly of Copperopolis, built, developed, and sold real estate in Carmichael, Sacramento, and Copperopolis. As the real estate market declined, the brothers recruited family members, employees, and associates with good credit to act as straw buyers for residential properties. The Dubinsky brothers have not been apprehended and are fugitives thought to be residing in Ukraine.
Khalfin was a licensed mortgage broker; his company was called Bay Financial Co. Dimiceli was a licensed real estate salesperson and was self-employed at Trinity Mortgage Capital, which was affiliate with Windsor Mortgage Capital. Khalfin and Dimiceli assisted in the scheme by submitting the loan applications for the straw buyers. They allegedly prepared and submitted applications to lenders that falsely stated the straw buyers’ income, assets, and intent to occupy the homes as their primary residences. Dimiceli was a straw buyer for at least two properties involved in the scheme.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Todd A. Pickles and Roger Yang are prosecuting the case.
Three other indictments were brought relating to this scheme. Four defendants have pleaded guilty and are scheduled to be sentenced: Svetlana Dubinsky, 51, of Boca Raton, Fla.; Serge Doubinski, 32, of San Francisco; Zinayda Chekayda, 52, of Antelope, (docket # 2:12-cr-327 WBS); and Kory Schmidli, 37, of Linden (docket # 2:12-cr-330 GEB). A trial is pending for Diana Woods, 58, of Citrus Heights, on March 8, 2016 (docket # 2:12-cr-329). Volodymyr Dubinsky and Leonid Doubinski are fugitives. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Sentencing is set for Khalfin and Dimiceli for February 1, 2016, by United States District Judge William B. Shubb. The defendants face a maximum statutory penalty of up to 20 years in prison and a $250,000 fine for mail fraud and 30 years in prison and a $1 million fine for false statements on a loan or credit application. 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.
Federal Inmate Sentenced for Assaulting a Correctional OfficerRead the Press Release
PANAMA CITY, FLORIDA –Kenneth Hobson, 33, of Memphis, Tennessee, was sentenced today to 92 months in prison for knowingly assaulting and injuring a correctional officer at the Federal Correctional Institution in Marianna. The sentence was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The jury convicted the defendant after the government presented evidence that, in July 2014, Hobson forcibly assaulted a corrections officer when the officer attempted to search him for possession of contraband. During the assault, Hobson delivered multiple punches to the officer’s face and body, punching and kicking the officer as he was rendered unconscious. The officer fell to the ground, and Hobson continued to punch and kick him. The officer sustained contusions to his face and jaw, a fractured cheek bone, and a loose tooth.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Kathryn D. Risinger.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Federal Grand Jury Returns Indictment Against Convicted Felon for Drugs and Firearms ViolationsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Robert Samuel Hollingsworth, age 37, was charged in a multi-count indictment. The indictment alleges that Hollingsworth violated federal law on two dates. First, it alleges that on November 15, 2014, Hollingsworth possessed with the intent to distribute methamphetamine, hydrocodone, marijuana, diazepam, and carisoprodol. Also on November 15, 2014, the indictment alleges that Hollingsworth possessed a firearm, a Smith & Wesson .40 caliber pistol, in furtherance of a drug trafficking crime and did possess the firearm and ammunition associated with the firearm after having been convicted of a felony.
Second, the indictment alleges that on June 18, 2015, Hollingsworth possessed ammunition after having been convicted of a felony.
If convicted on the charges in the indictment, Hollingsworth faces up to 30 years imprisonment on the drug charge plus an additional 5 years to life imprisonment on the firearms charges. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Greenville County Sheriff’s Office, Greenville County Department of Public Safety, and the Greer Police Department investigated the case. Andy Moorman with the U.S. Attorney?s Office will be prosecuting.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Essex County, New Jersey, Man Sentenced to 30 Years in Prison for Taking Cellphone Pictures While Sexually Abusing Two ChildrenRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was sentenced today to 360 months in prison for sexually abusing two girls and recording the conduct on his cellphone, U.S. Attorney Paul J. Fishman announced.
Justin Kinney, 26, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an indictment charging him with two counts of producing child pornography. Judge Chesler imposed the sentence today in Newark federal court.
According to the documents filed in the case and statements made in court:
On Oct. 25, 2012, law enforcement executed a search warrant on Kinney’s laptop computer and cellphone, which revealed several files of child pornography that appeared to be taken with Kinney’s cellphone. Kinney admitted that two of the images, dated Aug. 19, 2012 and Oct. 10, 2012, were taken by him while he sexually abused two girls.
In addition to the prison term, Judge Chesler sentenced Kinney to a lifetime term of supervised release. Kinney is required to register as a sex offender.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Danielle M. Corcione and Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Public Defender John H. Yauch Esq., Newark
El Paso Man Sentenced to Federal Prison on Child Enticement ChargeRead the Press Release
In El Paso today, 37–year-old Salvador Lopez of El Paso was sentenced to 125 months in federal prison followed by five years of supervised release for attempting to entice a minor into engaging in sexually explicit conduct announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
On August 21, 2015, Lopez pleaded guilty to the enticement charge. By pleading guilty, Lopez admitted that in April 2013, he engaged in sexually explicit communications, with whom he believed to be a 14-year-old female, in an attempt to coerce and entice her into having unlawful sexual intercourse.
Lopez has remained in federal custody since his arrest on May 1, 2013, when he arrived to a pre-arranged meeting with the minor who turned out to be an undercover agent.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Ian Hanna and Robert White.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Doctors and Associates Indicted in First Wave of Massive Bribery SchemeRead the Press Release
For Further Information, Contact: Assistant U.S. Attorneys Fred Sheppard (619) 546-8237, Valerie Chu (619) 546-6750, and Caroline Han (619) 546-6968
NEWS RELEASE SUMMARY – November 10, 2015
SAN DIEGO – Eight medical professionals and associates are charged in federal grand jury indictments with buying and selling patients in a bribery scheme involving $25 million in improper claims for medical services and devices which were then billed to California Workers’ Compensation insurance companies.
FBI agents along with investigators from the California Department of Insurance and the San Diego County District Attorney’s Office served five search warrants and three seizure warrants today at locations in San Diego, Chula Vista, National City, Murietta and Los Angeles. Authorities arrested five people, including a radiologist, a chiropractor, a medical equipment provider, a medical clinic administrator and a so-called medical marketer. An attorney and a medical service provider were summoned to appear in federal court on Thursday. One indicted defendant, Gonzalo Paredes, remains a fugitive and a warrant has been issued for his arrest.
These defendants, plus six corporations, are charged in three federal grand jury indictments unsealed today with conspiracy and honest services mail fraud. The indictments allege that these players either paid or received tens of thousands of dollars to buy or sell hundreds of patients, without the patients’ knowledge - therefore depriving those patients of their right to their doctors’ honest services.
“Today’s indictments are only the first wave of charges in what we believe is rampant corruption on the part of some physicians and chiropractors in their dealings with the health care system in general, and California’s Workers’ Compensation System in particular,” said U.S. Attorney Laura Duffy. “A patient puts his trust, and his very life, into the hands of his physician. A doctor’s decisions should never, under any circumstances, be influenced by anything other than the patient’s best interest.”
“Today's indictments show how the defendants in this case allowed greed and corruption to influence their patient care decisions and treated their patients as a commodity to be bought and sold,” said FBI Special Agent in Charge Eric S. Birnbaum. “The FBI will continue to use our intelligence and investigative expertise to identify, disrupt and dismantle sophisticated criminal conspiracies that unlawfully enrich individuals at the expense of patient care. The FBI and our law enforcement partners are committed to rooting out corruption in our health care system.”
“This criminal network bought and sold patients like cattle,” said District Attorney Bonnie Dumanis. “They cashed in on people who trusted them with their health and they conspired to illegally game the system on a level that we’ve not seen before. But, the game is over.”
“Our detectives from the California Department of Insurance worked closely with the FBI, United States Attorney's Office and San Diego District Attorney's office to investigate and arrest these medical providers for insurance fraud, which adds crippling costs to California's workers compensation system,” said Department of Insurance Commissioner Dave Jones. “These are not victimless crimes. When medical providers defraud insurers, those costs are passed on to California businesses and consumers, who already are struggling to make ends meet.”
This is how the schemes worked:
Patients who said they were injured on the job filed a workers’ compensation claim with the state of California and sought treatment for their injury. In this round of indictments, the workers sought help from a chiropractor.
The chiropractors were the gateway to a wide-array of health care fraud. In these cases alone they prescribed medical equipment, referred the patients for MRIs and X-Rays, and ordered specialized treatments such as Shockwave therapy.
As alleged in one of the indictments, Los Angeles radiologist Ronald Grusd paid bribes to a San Diego chiropractor in exchange for patient referrals. The bribes were funneled to the chiropractor via Grusd’s corporation, Willows Consulting, a shell company. The checks were labeled “professional services,” but this was a sham.
In order to further hide the illegal kickbacks, checks were issued to intermediaries - defendants Alexander Martinez and his father, Ruben - through their front companies, “Line of Sight” and “Desert Blue Moon.” The Martinezes took their “cut” and then, in turn, paid off the chiropractor.
Grusd’s practice, California Imaging Network Medical Group, has clinics in San Diego, Los Angeles, Beverly Hills, Fresno, Rialto, Santa Ana, Studio City, Bakersfield, Calexico, East Los Angeles, Lancaster, Victorville and Visalia.
In another indictment, a second San Diego chiropractor, Dr. George Reese, with offices on El Cajon Boulevard, referred patients to a Los Angeles area medical service provider (controlled by attorney Lee Mathis and Fernando Valdes, president of Foremost Shockwave Solutions ) in return for bribes. The bribes were set by the conspirators at $100 per patient and paid through an intermediary. After taking a cut amounting to $25 per patient, the intermediary would pay the remaining $75 per patient to Reese.
Although disguised as “office rent” payments, the illegal bribes were paid in cash during clandestine exchanges in restaurants and parking lots. For example, $6,000 in cash was delivered to Reese in the parking lot of the Jolly Roger in Oceanside, hidden in a gift bag. Other times, it was passed in envelopes or stashed inside newspapers.
According to the indictment, Reese and his codefendants generated and submitted bills to insurers totaling in the tens of millions of dollars. Most of these treatments involved the providing of “Shockwave therapy,” which uses low energy sound waves to initiate tissue repair. Proceeds from the insurance claims generated through this scheme were paid to Mathis and Valdes.
In the final indictment, a San Diego chiropractor referred patients to a licensed provider of durable medical equipment, Julian Garcia. In return Garcia paid the chiropractor $50 for each patient – in cash, to disguise the kickbacks. Garcia then improperly billed Workers Comp insurers millions for hot and cold packs for patients who had been secured by bribes.
Anyone with information about healthcare fraud may call the FBI at 1-800-CALL-FBI, or 1-800-225-5324 or the California Department of Insurance’s toll-free fraud hotline, 800-927-4357.
An arrest itself is not evidence that the defendant committed crimes charged. The defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANTS Case Number: 15cr2821-BAS
Ronald Grusd Age 69 Los Angeles, CA
**Gonzalo Ernesto Paredes Age 59 LaVerne, CA
Alexander Martinez Age 37 Calexico, CA
Ruben Martinez Age 59 Murietta, CA
California Imaging Network Incorporated in 2007 Beverly Hills, CA
Willows Consulting Company Incorporated in 2011 Beverly Hills, CA
Line of Sight, Inc. Incorporated in 2002 Calexico, CA
Desert Blue Moon Incorporated in 2001 Las Vegas, NV
DEFENDANTS Case Number: 15cr2822-CAB
George K. Reese Age 50 San Diego, CA
*Lee Mathis Age 70 San Clemente, CA
*Fernando Valdes Age 50 Westminster, CA
George K. Reese Chiropractic Corp. Incorporated in 2001 San Diego, CA
Foremost Shockwave Solutions Incorporated in 2005 Garden Grove, CA
DEFENDANT Case Number: 15cr2820-BAS
Julian Garcia Age 32 National City, CA
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Mail Fraud, in violation 18 U.S.C. 371
Maximum Penalty: Five years in custody; $250,000 fine and three years’ supervised release
Honest Services Mail Fraud, in violation of 18 U.S.C. Secs. 1341 and 1346
Maximum Penalty: Twenty years in custody; $250,000 fine or twice the pecuniary gain or loss, whichever is greater, and three years’ supervised release
Travel Act, in violation of U.S.C. 1952
Maximum Penalty: Five years in custody; $250,000 fine and three years’ supervised release
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County District Attorney’s Office
California Department of Insurance
*Not arrested, but were summoned to appear before a judge on Thursday.
**Still at large
District Man Pleads Guilty to Federal Charge for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – A resident of the District of Columbia pleaded guilty today to a charge stemming from his involvement in a far-reaching stolen identity refund fraud scheme in which he and others working with him obtained over $315,000 through the filing of fraudulent federal income tax returns seeking refunds, the Justice Department announced.
Ezekiel Raspberry, 39, is the second defendant to plead guilty to federal charges in recent weeks. Approximately 14 people have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million from the U.S. Treasury.
The guilty plea was announced by Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service, Washington Division, and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Raspberry pleaded guilty to conspiracy to defraud the United States with respect to claims. Sentencing was set for Jan. 15, 2016. Under federal sentencing guidelines, Raspberry faces an advisory guideline range of 24 to 30 months in prison and a fine of up to $50,000 at his sentencing before the Honorable U.S. District Judge Ellen S. Huvelle of the District of Columbia. In addition, as part of his plea agreement, Raspberry must pay $315,076 in restitution to the IRS.
According to the government’s evidence, Raspberry participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, from September 2008 through November 2010, Raspberry and others conspired to defraud the IRS of approximately $315,076 through the filing of 145 fraudulent federal income tax returns. Raspberry received refund checks from a co-conspirator and deposited them into his bank account. He would then withdraw the funds and provide them to the co-conspirator, keeping a portion of the proceeds for himself.
The refund checks were generated by filing false U.S. federal income tax returns, attaching the Schedule C or C-EZ Net Profit From Business, which falsely claimed that each “taxpayer” operated a business as a sole proprietorship, including a “barber” or “childcare.” The returns falsely stated that the “taxpayer” had gross receipts and two or more dependent children, when, in fact, the “taxpayer” was either a victim of identity theft, was misled into providing his or her identifying information, or was a willing participant in the scheme. No such business had been operated by the “taxpayer;” and the “taxpayer” had no such dependents.
In a related action, Bernard Rankin, 43, of Glenarden, Maryland, pleaded guilty on Nov. 4, 2015, to conspiracy to defraud the United States with respect to claims. Rankin admitted permitting the use of his residential address and bank account in the scheme and recruiting another individual to deposit fraudulently obtained tax refund checks into that individual’s bank account as well.
In announcing the pleas, Acting Assistant Attorney General Ciraolo, U.S. Attorney Phillips, Special Agent in Charge Jankowski, Inspector in Charge Bowers and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Delano Man Sentenced to 6.5 Years in Prison for Receiving and Distributing Child PornographyRead the Press Release
FRESNO, Calif. — Michael David Wilson, 32, of Delano, was sentenced late Monday afternoon by Senior United States District Judge Anthony W. Ishii to six and a half years in prison for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, between September 2012 and April 2013, Wilson received and distributed more than 1,400 images and video files depicting minors engaged in sexually explicit conduct. The illicit files also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of prepubescent minors. On July 25, 2013, Wilson was charged with receiving and distributing child pornography, and he pleaded guilty to the charge on August 27, 2014.
“The actions of child predators cause irreparable harm to children across our nation,” said Ryan L. Spradlin, special agent in charge for HSI San Francisco. “The victims of these criminals deserve outcomes like today. With the tireless efforts made by HSI and our law enforcement partners, we will continue to hunt down predators and hold them accountable for their disturbing actions.”
This case was the product of an investigation by the Bakersfield office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos prosecuted the case.
DC Man Pleads Guilty to Federal Charges for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
A District of Columbia resident pleaded guilty today to a charge stemming from his involvement in a far-reaching stolen identity refund fraud scheme in which he and others working with him obtained more than $315,000 through the filing of fraudulent federal income tax returns seeking refunds, the Justice Department announced.
Ezekiel Raspberry, 39, is the second defendant to plead guilty to federal charges in recent weeks. Approximately 14 people have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million from the U.S. Treasury.
The guilty plea was announced by Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge David G. Bowers, U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Raspberry pleaded guilty to conspiracy to defraud the United States with respect to claims. Under federal sentencing guidelines, Raspberry faces at his Jan. 15, 2016 sentencing, an advisory guideline range of 24 to 30 months in prison and a fine of up to $50,000 at his sentencing before the Honorable U.S. District Judge Ellen S. Huvelle of the District of Columbia. In addition, as part of his plea agreement, Raspberry must pay $315,076 in restitution to the IRS.
According to the government’s evidence, Raspberry participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. In other cases, the refunds were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, from September 2008 through November 2010, Raspberry and others conspired to defraud the IRS of approximately $315,076 through the filing of 145 fraudulent federal income tax returns. Raspberry received refund checks from a co-conspirator and deposited them into his bank account. He would then withdraw the funds and provide them to the co-conspirator, keeping a portion of the proceeds for himself.
The refund checks were generated by filing false U.S. federal income tax returns, attaching the Schedule C or C-EZ Net Profit From Business, which falsely claimed that each “taxpayer” operated a business as a sole proprietorship, including a “barber” or “childcare.” The returns falsely stated that the “taxpayer” had gross receipts and two or more dependent children, when, in fact, the “taxpayer” was either a victim of identity theft, was misled into providing his or her identifying information, or was a willing participant in the scheme. No such business had been operated by the “taxpayer” and the “taxpayer” had no such dependents.
In a related action, Bernard Rankin, 43, of Glenarden, Maryland, pleaded guilty on Nov. 4, to conspiracy to defraud the United States with respect to claims. Rankin admitted permitting the use of his residential address and bank account in the scheme and recruiting another individual to deposit fraudulently obtained tax refund checks into that individual’s bank account as well.
In announcing the pleas, Acting Assistant Attorney General Ciraolo, U.S. Attorney Phillips, Special Agent in Charge Jankowski, Inspector in Charge Bowers and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Construction Contractor Indicted for Making Fradulent Bonding Applications to Win Government ContractsRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of GERARD LEAONRD ROY for fraud, money laundering and concealing assets in anticipation of filing for bankruptcy in connection with a series of construction companies he owned and operated. ROY is charged with using the various companies to fraudulently obtain and attempt to obtain government contracts.
“Competitive bidding for government contracts requires all companies to play by the rules,” said U.S. Attorney Luger. “This defendant is charged with gaining an unfair advantage by breaking those rules, failing to meet his obligations and then trying to reap a windfall by declaring bankruptcy. The white collar section in the U.S. Attorney’s Office and our partners in law enforcement will continue to investigate and disrupt fraudulent business practices.”
“The role of IRS Criminal Investigation becomes even more important in bankruptcy and fraud cases due to the complex financial transactions that can take time to unravel,” said Shea Jones, Special Agent in Charge, St. Paul Field Office. “IRS Criminal Investigation is committed to investigating financial fraud and money laundering schemes where individuals attempt to conceal the true source of their money.”
“According to the indictment, committing insurance fraud was just part of business as usual for Gerard Roy and his construction companies,” said Minnesota Commerce Commissioner Mike Rothman. “Roy created fraudulent insurance documents to win bids on multiple construction projects. He took business away from honest contractors, while victimizing his clients and subcontractors with unfinished projects and unpaid bills, all without the financial protection that legitimate insurance bonds would have provided.”
According to the indictment and documents filed in court, between 2010 and February 2015, ROY owned and operated at least seven construction companies, including RSI Associates, Inc., Restoration Specialists, Inc., Road Spec Corporation, Omni Construction Services, Inc., Omni Construction Company, Omni-Midwest, Inc., and Olympic Construction Services, Inc. Through these companies ROY bid on construction contracts offered by public and quasi-governmental organizations, including the City of Minneapolis, City of Hastings, Washington County, Metropolitan Council, Minnesota State Colleges and Universities and others.
According to the indictment and documents filed in court, in order to commission construction projects, public and quasi-governmental entities generally solicit bids from multiple contractors. Among other things, contractors submitting bids are required to obtain surety bonds issued by a third-party insurer, guaranteeing satisfactory completion of the construction project and the payment of all labor and material costs. Such bonds generally cost the contractor between .5 and two percent of the amount of the construction contract.
According to the indictment and documents filed in court, between 2010 and February 2015 ROY used the aforementioned construction companies that he controlled to fraudulently obtain construction contracts from public and private entities through the submission of fraudulent construction bonds asserting that the projects were insured if ROY could not complete the contract or failed to pay subcontractors. In fact, ROY had no such insurance and was ineligible to bid on the projects. ROY fraudulently obtained at least $3 million in construction contracts, at least $1.8 million in payments on those contracts, and caused losses to clients, subcontractors and others of at least $700,000.
According to the indictment and documents filed in court, between 2010 and 2012, ROY controlled and operated Omni Construction Services, through which he bid on construction projects. In order to secure projects commissioned by public or quasi-governmental entities, ROY falsely claimed on bid documents that he had purchased surety bonds. ROY created phony bond documents, including bid bonds, performance bonds and payment bonds, purportedly issued by a surety on behalf of ROY or his company. In order to create these phony documents, ROY forged the signatures of the relevant sureties, witnesses and public notaries. Between 2010 and 2012, ROY obtained at least five construction contracts using fraudulent bid and bond documents, with a total value of at least $850,000.
According to the indictment and documents filed in court, between June 2011 and July 2012, ROY withdrew at least $400,000 from Omni Construction Services’ bank accounts and used that money for his own purposes. In 2012, ROY deposited at least $300,000 in receivables belonging to Omni Construction Services into accounts he opened in the names of other companies. He used a significant portion of those funds for his own purposes, including making house payments and transferring money into a personal bank account. On July 13, 2012, Omni Construction Services filed for Chapter 7 bankruptcy in an attempt to avoid paying approximately $600,000 in liabilities.
According to the indictment and documents filed in court, after serving roughly one year in jail on an unrelated matter, ROY continued operating a construction business, now under the names of RSI Associates and Restoration Specialists. Between 2013 and early 2015, ROY obtained or attempted to obtain at least six construction contracts using fraudulent bid and bond documents, with a total value of at least $2.6 million.
According to the indictment and documents filed in court, between January 2014 and February 2015, ROY used at least $400,000 from RSI’s bank accounts to buy jet skis, snowmobiles, gold coins and luxury automobiles such as a Corvette and Jaguar. ROY also opened a bank account in the name of Road Spec Corporation, into which he deposited at least $100,000 from RSI’s bank accounts. He used those funds for his own purposes. On February 19, 2015, RSI Associates, Inc., filed for Chapter 11 bankruptcy in an attempt to avoid paying approximately $500,000 of RSI’s liabilities.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Minnesota Department of Commerce Fraud Bureau, and United States Postal Inspection Service.
This case is being prosecuted by Assistant United States Attorney Benjamin Langner.
Defendant Information:
GERARD LEONARD ROY, 53
Prior Lake, Minn.
Charges:
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Mail fraud, 2 counts
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Wire fraud, 5 counts
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Transactional money laundering, 4 counts
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Concealment of bankruptcy assets, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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College Park Man Convicted in Scheme to Obtain More Than $7 Million of Fraudulent Tax RefundsRead the Press Release
Greenbelt, Maryland – A federal jury convicted Charles W. Parker, Jr., age 49, of College Park, Maryland, today of conspiring to file false federal income tax returns and six counts of filing false tax returns.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Principal Deputy Assistant Attorney General Caroline D. Ciraolo, of the Justice Department’s Tax Division; and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
“Criminal conspiracies involving fraudulent refund schemes victimize our nation’s honest taxpayers,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s guilty verdict is a reminder that IRS-CI will remain vigilant in our investigation of these schemes and work with prosecutors to combat this type of criminal conduct.”
According to evidence presented during the trial, from March to June 2009, Parker recruited clients for co-conspirator Penny Jones. Jones, a resident of Idaho, was a tax return preparer who prepared tax returns falsely reporting the amount of taxes withheld and purportedly paid to the IRS. Parker collected financial information from the client and provided the information to Jones for the preparation of the false tax returns. Parker paid Jones to prepare false tax returns for Parker and others. For example, Parker paid Jones $3,000 on March 19, $750 on March 31, and $2,450 on April 13, 2009 to prepare false returns for himself and others. Parker mailed the false tax returns to the IRS for tax years 2005 to 2008, claiming large tax refunds to which the taxpayers were not entitled.
On May 26, 2009, after Parker paid Jones to prepare a false tax return for two co-conspirators who were residents of Atlanta, Parker and Jones caused the IRS to issue a tax refund to the co-conspirators of $1,723,693. On June 3, 2009, Parker emailed the co-conspirators directing them to wire funds to Parker’s bank account. The next day, the co-conspirators transferred $182,370 into Parker’s account.
Parker and his co-conspirators caused the IRS to issue two fraudulent tax refunds totaling $2,007,568. In 2013, Jones was sentenced to 120 months in prison for her role in a scheme to help individuals obtain fraudulent tax refunds from the IRS.
Parker faces a maximum sentence of 10 years in prison for the conspiracy, and a maximum sentence of five years in prison for each of the six counts of filing a false tax return. U.S. District Judge Roger W. Titus has scheduled sentencing for March 28, 2016 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the Tax Division and IRS-Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Leah Jo Bressack and Trial Attorney Erin Pulice of the Department of Justice Tax Division, who are prosecuting the case.