Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 22 October 2015
Owings Mills Woman Posing as a Tax Preparer Sentenced to 4 Years in Prison for Tax and Visa FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Karen Kimble, a/k/a “Karen Kimble-Mamah” and “Karen Mamah,” age 40, of Owings Mills, Maryland, to four years in prison followed by three years of supervised release for six counts of wire fraud, five counts of subscribing to a false tax return, five counts of aiding in the filing of a false tax return, four counts of aggravated identity theft and visa fraud. Judge Quarles also entered an order that Kimble pay $84,411 in restitution to the IRS and $26,419.92 in restitution to the State of Maryland.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS), Baltimore District Office.
According to evidence presented to the court during the two day trial, Kimble falsely held herself out to others as a tax preparer with the skill and knowledge to prepare tax returns for others. From 2007 to 2012, Kimble falsely inflated credits and deductions on her personal and client tax returns in order to fraudulently increase the tax refund. Kimble increased the mortgage interest deduction on her and her alleged husband’s tax returns, often nearly doubling the amount she could properly claim, claimed education credits where she had not incurred expenses and invented tens of thousands of dollars in unreimbursed job expenses, when she had none.
Kimble provided some of her clients with a tax return that did not reflect the false deductions and credits, nor did she inform these clients of the fraudulent deductions/credits. She filed these fraudulent returns using their personally identifiable information. Kimble directed that the tax refunds be mailed or directly deposited to her, or that some of the refund was to be sent to the taxpayer and some to Kimble. On other occasions, Kimble prepared tax returns for friends, and without their knowledge, falsely inflated the deductions to obtain a larger refund, which she passed directly on to her friends.
The fraud loss related to the scheme totals $181,786 in fraudulent federal and state tax refunds, none of which she reported as income on her own tax returns. After accounting for the allowable, legitimate refunds for each victim, the amount owed to the IRS is $84,411 and the amount owed to the State of Maryland is $26,419.92.
Additionally, on February 14, 2008, Kimble married a Ghanian citizen, knowing that the marriage was not valid because the Ghanian was not legally divorced from his first wife. Kimble prepared and filed false documents in state court and with the USCIS, purporting to show that the Ghanian citizen had divorced before she married him.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, IRS-Criminal Investigation and the USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who prosecuted the case.
Oklahoma Man Pleads Guilty to Conspiring to Distribute Synthetic Drugs and Launder MoneyRead the Press Release
A synthetic drug wholesaler from Oklahoma pled guilty on October 20, 2015, in federal court in Cedar Rapids.
Ahmad Saeed, age 48, from Broken Arrow, Oklahoma, was convicted of conspiring to distribute controlled substances and conspiring to launder drug money.
In a plea agreement, Saeed admitted that between at least 2012 and continuing through at least June 2013, he acted as a wholesaler distributing synthetic drugs to convenience stores in Oklahoma, Iowa, and Missouri. Saeed admitted he was supplied by regional drug suppliers in various locations, including suppliers in Kansas City, Missouri. He also admitted that the packaging for the synthetic drug products he sold to the convenience stores bore some form of statement that the product was “not for human consumption.” Despite the statements on the packaging, Saeed admitted he knew the synthetic drug products were for human consumption and that he actually intended the products to be consumed.
Saeed also obtained purported laboratory reports from his suppliers and provided them to his customers. The reports claimed the synthetic drug products did not contain certain drugs listed in the federal drug schedules. The drug lists on the reports were not comprehensive, and did not state what substance was allegedly in the supposedly tested product. Saeed admitted he used these reports as a means to make it appear he was complying with federal drug laws, although he knew his conduct did not comply with those laws.
He also admitted that the store owners, including Chaudhry, often paid for the synthetic drug products by check. Saeed admitted Chaudhry, or his representative, would leave the check’s “Pay to the order of” line blank, and the “memo” line would state “Loan.” Saeed admitted that these transactions were designed to conceal the fact that the transactions were drug transactions.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Saeed was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Saeed faces a possible maximum sentence of 40 years’ imprisonment, a $1,500,000 in fines, $200 in special assessments, and a lifetime of supervised release following any imprisonment.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; the Tri-County Drug Enforcement Task Force; the Federal Bureau of Investigation; the Department of Homeland Security; and the Iowa Division of Criminal Investigation, Intelligence Division, and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR15-2005-LRR.
Follow us on Twitter @USAO_NDIA.
Oklahoma City Man Sentenced to 87 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JONATHAN MIRANDA, age 19, of Oklahoma City, Oklahoma, was sentenced to 87 months imprisonment, followed by 3 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(l) and 841(b)(1)(A).
The charge is a result of an investigation by the Drug Enforcement Administration. The defendant was indicted in April, 2015.
The Superseding Indictment alleged that beginning in or about July 2014, the exact date being unknown to the Grand Jury, and continuing until on or about the date of the Indictment, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally conspire, confederate and agree together and with others, known and unknown to the Grand Jury, to possess with intent to distribute and to distribute 50 grams or more of methamphetamine (actual) and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Oklahoma City Man Sentenced to 151 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that GILBERT ESPINOZA a/k/a "Snow", age 32, of Oklahoma City, Oklahoma, was sentenced to 151 months imprisonment, followed by 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(l) and 841(b)(1)(A).
The charge is a result of an investigation by the Drug Enforcement Administration. The defendant was indicted in April, 2015.
The Superseding Indictment alleged that beginning in or about July 2014, the exact date being unknown to the Grand Jury, and continuing until on or about the date of the Indictment, within the Eastern District of Oklahoma and elsewhere, the defendant, did knowingly and intentionally conspire, confederate and agree together and with others, known and unknown to the Grand Jury, to possess with intent to distribute and to distribute 50 grams or more of methamphetamine (actual) and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Ohio man sentenced to nearly 11 years for traveling to engage in unlawful sexual conduct with minor victimRead the Press Release
CLARKSBURG, WEST VIRGINIA – Patrick W. Ganim, 30, of, Chagrin Falls, Ohio, was sentenced today to 130 months in prison for traveling across state lines to engage in illicit sexual conduct with a minor female, United States Attorney William J. Ihlenfeld, II, announced.
Ganim communicated with a minor female residing in the Northern District of West Virginia utilizing a variety of internet resources and online messaging tools. In October 2014, Ganim traveled across state lines from Ohio into West Virginia. He then engaged in illicit sexual conduct with the victim. Following their initial meeting, Ganim continued to utilize online messaging services to communicate with the minor victim, planning a subsequent meeting and sending explicit material to the victim. He pled guilty in June 2015 to one count of “Travel with Intent to Engage in Illicit Sexual Conduct.”
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The Preston County Sheriff’s Office, the Bainbridge Township, Ohio Police Department, and the Federal Bureau of Investigation led the inquiry.
U.S. District Judge Irene M. Keeley presided.
OCDETF Training for Law Enforcement Sponsored by the U.S. Attorney’s OfficeRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands (NMI), announced that the Regional Organized Crime Drug Enforcement Task Force (OCDETF) coordinators from the Pacific Region made their annual visit to Guam and the NMI and provided OCDETF training to law enforcement partners. The training was conducted by Thomas Colthurst, OCDETF Regional Director, Steve Jensen, OCDETF Regional Coordinator from the Internal Revenue Service-Criminal Investigation (IRS-CI), and Deborah Wee, OCDETF Regional Coordinator from the Federal Bureau of Investigation (FBI). The training was held at the U.S. Attorney’s Office in Guam on March 11, 2015, from 2:00 p.m. to 5:00 p.m. and was attended by approximately 30 local and federal law enforcement officers.
The training topics included Money Laundering and Financial Analysis, OCDETF Airport Security Initiative, and Searches and Seizure.
The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises.
OCDETF investigations involve a focused multi-agency, multi-jurisdictional task force that investigates and prosecutes the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
An OCDETF investigation involves federal agents and local law enforcement officers of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA), the FBI, the IRS-CI, the U.S. Coast Guard Criminal Investigative Service (CGIS), the U.S. Department of Homeland Security Investigations (HSI), the U.S. National Oceanic Atmosphere Administration (NOAA), the U.S. Marshal’s Service, the U.S. Postal Inspection Service (USPIS), the Guam Police Department (GPD) and Guam Customs and Quarantine Agency (GCQA), and other law enforcement partners.
New Haven-Area Men Charged with Distributing Heroin and CrackRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on October 20, 2015, a federal grand jury in New Haven returned a superseding indictment charging the following individuals with federal narcotics offenses:
SHAWN MILLER, aka “White Boy Shawn,” 31, of Hamden
PAUL COLON, aka “Paul Cane,” 27, of West Haven
ROBBIE SMITH, aka “Lil Rob,” 27, of New Haven
SEAN LONDON, 22, of New Haven
ROBERT OATHOUT, 35, of Branford
JASON LANGLEY, 40, of East Haven
HARRY ANASTASIO, 54, of East Haven
ANTONIO DELUCIA, 27, of WallingfordThis investigation is being conducted by the FBI’s New Haven Safe Streets Task Force, in cooperation with the Drug Enforcement Administration and the New Haven, West Haven, Milford, Hamden and other local police departments, and the Connecticut Department of Correction. As alleged in court documents and statements made in court, the investigation focused on a heroin and crack distribution ring operating in the greater New Haven area, and headed by MILLER and COLON. The investigation revealed that members of the ring took orders over a cellular telephone from drug customers in several shoreline communities for quantities of heroin and crack cocaine, and then delivered the drugs by car. During the course of the investigation, agents and officers of the Task Force employed a variety of techniques, including debriefings of informants, physical surveillance, supervised purchases of heroin and crack, a court-authorized wiretap and the execution of federal search warrants.
On June 24, 2015, a grand jury returned an indictment charging SMITH and LONDON with conspiring to distribute and to possess with intent to distribute heroin and cocaine base (“crack”), and LONDON with possession with intent to distribute and distribution of controlled substances. The indictment also charged DELUCIA, ANASTASIO, LANGLEY, and OATHOUT, all of whom are alleged to be drug customers of the conspiracy, each with two counts of using a telephone to facilitate a narcotics trafficking felony. The 11-count superseding indictment adds charges against MILLER and COLON, and alleges that between November 2014 and May 2015, MILLER, COLON, SMITH, and LONDON conspired to distribute heroin and crack cocaine. The superseding indictment also charges MILLER with possession with intent to distribute and distribution of crack cocaine.
If convicted, MILLER and COLON face a mandatory minimum term of imprisonment of 10 years of imprisonment and a maximum term of life imprisonment on the conspiracy charge. MILLER also faces up to 20 years in prison on the distribution charge. LONDON faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years on the conspiracy charge, and a maximum term of imprisonment of 20 years on the distribution charge. SMITH faces a maximum term of imprisonment of 20 years on the conspiracy charge. OATHOUT, ANASTASIO, LANGLEY, and DELUCIA each face a maximum term of imprisonment of four years on each count of using a telephone to facilitate a narcotics trafficking felony.
MILLER was arrested yesterday and is released on bond. COLON is in state custody on an unrelated charge.
The original indictment also charged Jeffrey Smith, aka “J-Money,” 21, of New Haven, with various offenses. On September 21, 2015, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute heroin and cocaine base, and is awaiting sentencing.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Jennifer R. Laraia.
Nevada Man Sentenced to over 12 Years in Federal Prison for Running Ponzi Scheme involving E-mini S&P FuturesRead the Press Release
LOS ANGELES – The architect of a fraudulent investment scheme that caused scores of victims to suffer losses of nearly $10 million was sentenced today to 151 months in federal prison for running a Ponzi scheme and lying to the Securities and Exchange Commission.
Gordon Driver, 58, of Henderson, Nevada, was sentenced today by United States District Judge John A. Kronstadt.
In addition to the prison term, Judge Kronstadt ordered Driver to pay $9,681,289 in restitution to victims of his scheme.
Driver pleaded guilty in April to two felony counts – wire fraud and making a false statement to SEC, which was investigating his fraudulent operation.
In his plea agreement filed earlier this year, Driver admitted that he falsely told victims that he was producing profits of 1 percent to 5 percent a week through a commodity futures trading program involving E-mini S&P 500 futures contracts. Driver also told victims that he had never sustained a monthly net loss as a result of his trading.
In reality, Driver’s trading activity over the course of his three-year scheme was overwhelmingly unprofitable, causing him to lose nearly almost all the money that he used to trade commodities.
Investigators have calculated that Driver took in nearly $17.4 million from approximately 150 victims, including several in Ventura, Orange and Los Angeles counties. Prosecutors successfully argued in court today that 88 victims collectively lost nearly $10 million as a result of the scheme. Some of the investors were made whole or actually made “profits” during the course of the Ponzi scheme when Driver used money from other investors – and not from profits – to pay off some people. For example, in court papers, prosecutors wrote that “for 8 solid months between June 2008 and mid-March 2009, Driver engaged in no futures trading whatsoever, yet took in $4.5 million over 55 separate deposits from his investors, and paid out $4.4 million in fictitious profits.”
During the course of the scheme, Driver “was the largest ‘winner’ by far: he spent $2.1 million on himself and his family, including buying three brand new cars and taking out $471,000 in cash,” according to a sentencing memo filed with the court.
“Investment fraud schemes like this one rob individuals and families of their livelihood and their retirements, and the significant sentence imposed today accounts for the harm caused by the defendant’s scheme,” said United States Attorney Eileen M. Decker. “This case is a reminder that investors should be wary of lofty promises from investments.”
Driver solicited investments through Nevada-based companies with names like Axcess Automation LLC, which was under investigation by the Securities and Exchange Commission in 2009 when Driver testified under oath. During this testimony, which was given under penalty of perjury, Driver said that he did not have a monthly negative return during the second half of 2007 – a statement which was false and which forms the basis of the second charge to which he pleaded guilty.
In the sentencing memo, prosecutors called Driver “a liar and a continuing economic danger to the community, who must be incarcerated for a lengthy period of time to keep him away from the investing public.”
Investigators said in court documents that Driver is currently “deceptively” marketing a $25,000 commodities trading software package for E-mini S&P 500 futures contracts through a company called Avenge LLC that uses a website (www.avengesoftware.com), radio podcasts and social media. According to investigators, the website and other internet marketing materials for the current venture do not disclose that Driver runs the company.
Furthermore, prosecutors said Driver failed to disclose to Avenge customers that he was facing a lengthy prison term and, by his own admission in court papers, that his “business will cease to exist if he is sentenced to a custodial sentence.”
The criminal case against Driver is the result of a joint investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service, both of which received assistance from the Commodities Futures Trading Commission, the SEC, the Attorney General of Ontario (Canada), and the Ontario Securities Commission.
Midland Man Pleads Guilty to Role in Methamphetamine Intoxication DeathRead the Press Release
In Midland, 22–year-old Zane Paul O’Neal faces an agreed sentence of 23 years in federal prison after pleading guilty this afternoon to his role in the death of Sandy Brooke Franklin earlier this year announced United States Attorney Richard L. Durbin, Jr., and Drug Enforcement Administration (DEA) Special Agent in Charge Will Glaspy, El Paso Division.
According to court records, on July 29, 2015, Sandy Brooke Franklin began exhibiting signs of illness while being held in the Midland County Jail. She informed the jail staff that she had previously concealed a quantity of methamphetamine prior to arriving at the facility and had subsequently swallowed the methamphetamine. Franklin was taken by jail staff to Midland Memorial Hospital where she later died.
On July 27, 2015, Franklin, who had an outstanding warrant for her arrest, was taken into custody following a traffic stop on a vehicle being driven by the defendant, O’Neal. Further investigation revealed that O’Neal was a methamphetamine supplier in the Midland area. By pleading guilty, O’Neal admitted to providing approximately three grams of methamphetamine to Franklin so she could hide it from law enforcement during the traffic stop. O’Neal further admitted that several hours after Franklin’s arrest, she called him and told him that she had “eaten” the methamphetamine. A recorded jail phone call from Franklin to O’Neal confirmed that O’Neal provided the methamphetamine to Franklin and directed her to ingest it. O’Neal, admittedly, did not notify anyone of Franklin’s condition.
O’Neal remains in federal custody awaiting sentencing. A sentencing date has yet to be scheduled.
This case was investigated by the DEA, the Midland Police Department and the Midland County Sheriff’s Office. Assistant U.S. Attorney Brandi Young is prosecuting this case on behalf of the Government.
Mexican Man Sentenced to 30 Years in Federal Drug Case in Kansas City, Kan.Read the Press Release
TOPEKA, KAN. - A Mexican citizen who entered the United States illegally was sentenced Wednesday to 30 years in federal prison for drug trafficking in Kansas City, Kan., U.S. Attorney Barry Grissom said.
Mario Saucedo-Avalos, 40, pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, he admitted that beginning in January 2014 he was part of an organization trafficking methamphetamine in the Kansas City metro area.
On March 21, 2014, investigators watched as Saucedo-Avalos arrived at a meeting with an undercover buyer. Saucedo-Avalos was driving a white Cadillac Escalade and the meeting took place in the parking lot at a Lowe’s store in Roeland Park. Saucedo-Avalos sold the buyer methamphetamine from a cardboard box containing several pounds of methamphetamine. Four months later, on July 22, 2014, Saucedo-Avalos sold an undercover buyer half a pound of methamphetamine during a meeting in a parking lot at a Lowe’s store in Kansas City, Kansas. On August 14, 2014, Saucedo-Avalos’s drug trafficking organization delivered thirteen pounds of methamphetamine to a Kansas City, Kansas barber shop. The methamphetamine was seized by law enforcement. Investigators also seized money transfer receipts from two of Saucedo-Avalos’s drug residences which proved that Saucedo-Avalos had transferred thousands of dollars to Mexico to pay for drug shipments sent to the United States in furtherance of the drug trafficking conspiracy.
Grissom commended the Federal Bureau of Investigation, Assistant U.S. Attorney Sheri McCracken, and Special Assistant U.S. Attorney James Ward for their work on the case.
Men from Colorado Springs and Nevada Indicted for Multi-Million Dollar Investment Fraud SchemeRead the Press Release
DENVER – Two men, one from Colorado Springs, and the other from Nevada, have been indicted by a federal grand jury in Denver on investment fraud related charges, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. The two men, Daniel Coddington, age 59, of Colorado Springs, and Jesse Erwin, age 48, of Nevada, appeared before a U.S. Magistrate Judge earlier this week, where they were read their rights and advised of the charges pending against them.
According to the indictment, from at least early 2010 through late 2011, Coddington held himself out to investors and intermediaries to be the principal and owner of a company called Golden Summit Investors Group Ltd. (“Golden Summit”). He operated Golden Summit from Colorado Springs, Colorado. From at least early 2010 through late 2011, Erwin held himself out to investors and intermediaries to be the attorney and general counsel for Golden Summit.
From at least early 2010 through at least late 2011, the defendants described to investors and intermediaries a program through which investor money would be used to purchase collateralized mortgage obligations or CMOs -- an investment consisting of a pool of mortgages organized by maturity and risk. They told investors that the CMOs had face values exponentially larger than their purchase price and market value. According to defendants, the CMOs would then be “hypothecated” to obtain loans in the amount of a percentage of the face value of the CMO. The amount of these loans would still be exponentially larger than the purchase price and market value of the CMOs (known as the “CMO Trade Program”).
Coddington and Erwin told most of the investors that, from the proceeds of the loans, the investors would receive pre-trade distributions and that the remainder of the loan proceeds would be placed into an investment program that would yield high returns. From at least 2010 through late 2011, both defendants described to investors and intermediaries that investors who owned CMOs could transfer their CMOs to Golden Summit for the purpose of participating in the CMO Trade Program.
In approximately April 2011, the defendants told an investor, who ultimately invested $9,000,000 dollars with Golden Summit that $60,000,000 of the loan proceeds obtained from “monetizing” the CMOs purchased with the investor’s money would be provided to the investor in the form of two non-recourse loans in the amount of $30,000,000 each (known as the “CMO Loan Program”).
From at least 2010 through late 2011, defendant Coddington falsely represented to investors and intermediaries that he had the experience and contacts necessary to successfully conduct and complete the CMO Trade Program and the CMO Loan Program. Further, from at least 2010 through at least mid-2011, Coddington and Erwin falsely told investors and intermediaries that all of the money provided by investors would be used to purchase CMOs that would be used in the CMO Trade Program and the CMO Loan Program. They also falsely told investors and intermediaries that any fees, commissions, compensation, and payments to Golden Summit and its affiliates would be taken only from the profits of the CMO Trade Program and CMO Loan Program and not from investor money placed into the CMO Trade Program and CMO Loan Program.
During that same time, the defendants falsely represented that, once investor money was received into an account controlled by defendants, all of the stages of the CMO Trade Program would be accomplished quickly and investors would receive their pre-trade distribution within weeks of their investment followed shortly thereafter by the returns on their investments. In or about April 2011, Coddington and Erwin falsely represented to the investor in the CMO Loan Program that, once the that investor’s money was received into an account controlled by defendants, the purchase of the CMOs would occur in approximately one banking day. Defendants further falsely represented to that investor that the funding process for the loan on the CMOs would take approximately three banking days from the time the CMOs were obtained.
From at least November of 2010 through at least June of 2011, the defendants diverted substantial amounts of investor money placed into the CMO Trade Program and the CMO Loan Program for their own personal use and for purposes other than for purchasing CMOs. Further, the defendants did not successfully “hypothecate” or “monetize” any CMOs to obtain loans for either the CMO Trade Program or the CMO Loan Program.
From at least October 2010 through April of 2011, Coddington and Erwin obtained from investors more than $17,000,000 for the CMO Trade Program and the CMO Loan Program. Despite their failure to successfully complete either the CMO Trade Program or the CMO Loan Program, the defendants did not return most of the investors’ money or any CMO purchased with the investors’ money.
From at least early 2010 through late 2011, the defendants also received CMOs from several investors for purposes of participating in the CMO Trade Program. Coddington kept most of the monthly interest that was paid out on those CMOs while the CMOs were in his and Golden Summit’s possession. For purposes of executing the Scheme, the defendants used, and caused to be used, a number of interstate wires, including emails and money transfers.
Coddington and Erwin both face 13 counts of wire fraud and 2 counts of security fraud. Each wire fraud count charged carries a penalty of not more than 20 years in federal prison, and up to a $250,000 fine. Each securities fraud count charged carries a penalty of not more than 20 years in federal prison, and up to a $5,000,000 fine. The court could also order both defendants to pay restitution to the investment fraud victims.
“These defendants stole millions of dollars from investors,” said U.S. Attorney John Walsh. “Thanks to the hard work of the prosecution and the FBI team that unraveled this scheme, these defendants will now face harsh consequences for that greed.”
“The FBI is committed to investigating complex financial crimes to include investment fraud, especially when someone misuses a position of trust to exploit innocent investors.” said FBI Denver Division Special Agent in Charge Thomas Ravenelle. “The defendants abused their positions, preyed on unknowing victims, and will now face the consequences of their actions.”
This case was investigated by the Federal Bureau of Investigation (FBI).
The defendants are being prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
The charges contained in the Indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
McAlester Man Sentenced to 269 Months for Irish Mob Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DAVID DEAN CAGLE, age 33, of McAlester, Oklahoma was sentenced to 269 months imprisonment, followed by 5 years of supervised release for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(l) and 841(b)(1)(A).
The charge is a result of an investigation by the Drug Enforcement Administration and coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the United States Attorney’s Office.
The Investigation revealed that while incarcerated from May 29, 2008, until the date of his indictment, in April, 2015, CAGLE, a member of a criminal gang known as the Irish Mob, was the head of a Drug Trafficking Organization operating from within the Oklahoma State Penitentiary in McAlester, Oklahoma. While incarcerated, the defendant used his connections within the Irish Mob to obtain cell phones, and would then coordinate the acquisition of approximately 14.5 kilograms of methamphetamine which was ultimately distributed to others outside of the prison system.
The Superseding Indictment alleged that beginning in or about July 2014, the exact date being unknown to the Grand Jury, and continuing until on or about the date of the Indictment, within the Eastern District of Oklahoma and elsewhere, the defendants did knowingly and intentionally conspire, confederate and agree together and with others, known and unknown to the Grand Jury, to possess with intent to distribute and to distribute 50 grams or more of methamphetamine (actual) and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Mark Douglas Helton Pleads Guilty Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn. – On Oct. 20, 2015, Mark Douglas Helton, 61, of Maryville, Tenn., pleaded guilty in U.S. District Court for the Eastern District of Tennessee, to knowingly distributing and receiving child pornography. Sentencing has been set for 2:00 p.m., March 9, 2016.
Helton faces a maximum of up to 40 years in prison, as well as supervised release following incarceration, restitution, and fines. Pursuant to his plea agreement, Helton admitted to distributing and receiving child pornography via the Internet with peer-to-peer computer software. Helton also admitted to possessing in excess of 600 images of child pornography, including images of sadistic or masochistic conduct or other depictions of violence involving minors.
This investigation was conducted by the Knoxville Police Department’s Internet Crimes Against Children Task Force, with assistance from the Federal Bureau of Investigation and the U.S. Homeland Security Investigations. Assistant U.S. Attorney Matthew Morris represented the United States.
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.
###
Lumber Liquidators Inc. Pleads Guilty to Environmental Crimes and Agrees to Pay More Than $13 Million in Fines, Forfeiture and Community Service PaymentsRead the Press Release
Virginia-based hardwood flooring retailer Lumber Liquidators Inc. pleaded guilty today in federal court in Norfolk, Virginia, to environmental crimes related to its illegal importation of hardwood flooring, much of which was manufactured in China from timber that had been illegally logged in far eastern Russia, in the habitat of the last remaining Siberian tigers and Amur leopards in the world, announced the Department of Justice.
Lumber Liquidators was charged earlier this month in the Eastern District of Virginia with one felony count of importing goods through false statements and four misdemeanor violations of the Lacey Act, which makes it a crime to import timber that was taken in violation of the laws of a foreign country and to transport falsely-labeled timber across international borders into the United States. The charges describe Lumber Liquidators’ use of timber that was illegally logged in Far East Russia, as well as false statements on Lacey Act declarations which obfuscated the true species and source of the timber. This is the first felony conviction related to the import or use of illegal timber and the largest criminal fine ever under the Lacey Act.
“Lumber Liquidators’ race to profit resulted in the plundering of forests and wildlife habitat that, if continued, could spell the end of the Siberian tiger,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Lumber Liquidators knew it had a duty to follow the law, and instead it flouted the letter and spirit of the Lacey Act, ignoring its own red flags that its products likely came from illegally harvested timber, all at the expense of law abiding competitors. Under this plea agreement, Lumber Liquidators will pay a multi-million dollar penalty, forfeit millions in assets, and must adhere to a rigorous compliance program. We hope this sends a strong message that we will not tolerate such abuses of U.S. laws that protect and preserve the world’s endangered plant and animal species.”
“This prosecution has been the result of hard work of federal agents and prosecutors who have been dedicated to protecting our natural habitats in the United States and around the world,” said U.S. Attorney Dana Boente of the Eastern District of Virginia.
“Companies knowingly accepting illegally sourced materials need to recognize there are far-reaching consequences to their actions,” said Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C. “In this case, in addition to violating U.S. customs law, Lumber Liquidators contributed to the potential eradication of an endangered species simply to increase profit margins.”
“This multi-agency investigation highlights the importance the U.S. Government places on protecting tree species around the world from unlawful import, export and trade, and the effectiveness of the Lacey Act in implementing those protections,” said Deputy Assistant Director Ed Grace of the U.S. Fish and Wildlife Service’s (USFWS) Office of Law Enforcement. “Thanks to this intergovernmental team, the habitat of the last remaining Siberian tigers and Amur leopards will no longer be threatened by the activities of this company. This case and today’s plea deal demonstrate that those engaged in the commercialization of illegal timber imported into the United States will be caught and held accountable.”
According to a joint statement of facts filed with the court, from 2010 to 2013, Lumber Liquidators repeatedly failed to follow its own internal procedures and failed to take action on self-identified “red flags.” Those red flags included imports from high risk countries, imports of high risk species, imports from suppliers who were unable to provide documentation of legal harvest and imports from suppliers who provided false information about their products. Despite internal warnings of risk and non-compliance, very little changed at Lumber Liquidators.
For example, Lumber Liquidators employees were aware that timber from the Russian Far East was considered, within the flooring industry and within Lumber Liquidators, to carry a high risk of being illegally sourced due to corruption and illegal harvesting in that remote region. Despite the risk of illegality, Lumber Liquidators increased its purchases from Chinese manufacturers using timber sourced in the Russian Far East. In 2013, the defendant imported Russian timber logged under a concession permit that had been utilized so many times that the defendants’ imports alone exceeded the legal harvest allowance of Mongolian oak, Quercus mongolica, by more than 800 percent. The investigation revealed a prevalent practice in timber smuggling enterprises, where a company uses a seemingly legitimate government permit to log trees. Corruption and criminal activity along the supply chain results in the same permit being used multiple times and in areas outside of the designated logging area, sometimes vastly exceeding its legal limits.
On other occasions, Lumber Liquidators falsely reported the species or harvest country of timber when it was imported into the United States. In 2013, Lumber Liquidators imported Mongolian oak from Far East Russia which it declared to be Welsh oak and imported merpauh from Myanmar which it declared to be mahogany from Indonesia.
The illegal cutting of Mongolian oak in far eastern Russia is of particular concern because those forests are home to the last 450 wild Siberian tigers, Panthera tigris altaica. Illegal logging is considered the primary risk to the tigers’ survival, because they are dependent on intact forests for hunting and because Mongolian oak acorns are a chief food source for the tigers’ prey species. Mongolian oak forests are also home to the highly endangered Amur leopard Panthera pardus orientalis, of which fewer than 50 remain in the wild. In June 2014, in response to illegal logging and the decline in tiger populations, Mongolian oak was added to the Convention on the International Trade in Endangered Species (CITES) Appendix III.
Under the plea agreement, Lumber Liquidators will pay $13.15 million, including $7.8 million in criminal fines, $969,175 in criminal forfeiture and more than $1.23 million in community service payments. Lumber Liquidators has also agreed to a five year term of organizational probation and mandatory implementation of a government-approved environmental compliance plan and independent audits. In addition, the company will pay more than $3.15 million in cash through a related civil forfeiture. The more than $13.15 million dollar penalty is the largest financial penalty for timber trafficking under the Lacey Act and one of the largest Lacey Act penalties ever. The company is scheduled to be sentenced on Feb. 1, 2016.
The $1,230,825 in community service payments is being provided to two Congressionally-chartered recipients, the National Fish and Wildlife Foundation (NWFW) and the USFWS Rhinoceros and Tiger Conservation Fund. One project that will be funded is the development of a wood identification device that if successful, could fill a critical gap in enforcement when it comes to identifying the species of timber at a border or in an enforcement scenario. The device would be able to identify timber species that are listed on the CITES Appendices, including the species that were at issue in this case. If U.S. border officials would have had access to such a device in 2011, then perhaps Lumber Liquidators could have been flagged for violation years ago, thus averting the flow of money back to China and Far East Russia in support of illegal logging. Other projects would involve protecting, researching and preserving the Siberian tiger, Amur leopard and their habitat.
The case was jointly investigated by agents of the USFWS and HSI as part of Operation Oakenshield. The case is being prosecuted by Patrick M. Duggan and Christopher L. Hale of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division, and Stephen Haynie and Kevin P. Hudson of the U.S. Attorney’s Office in Norfolk.
Local Chiropractor & Billing Assistant Plead Guilty to Health Care Fraud ChargesRead the Press Release
St. Louis, MO – DR. DONALD HAVEY and SUSAN RENO pled guilty to charges involving a scheme to bill Medicare for expensive ankle-foot orthotics that were never provided to the patients.
According to court documents, Havey owned and operated companies that sold orthotic devices through Spinal Decompression of Chesterfield; Senior Care, Inc.; Advanced Custom Orthotics, Inc.; and Missouri Custom Orthotics. Susan Reno and her company, Pinnacle Billings and Collections, provided billing services for Havey and each of his companies.
Beginning in 2009 and continuing to 2014, Dr. Havey defrauded Medicare, Medicaid, other public and private health insurance companies and patients by submitting false reimbursement claims for custom orthotic boots. The boots actually provided to the patients did not contain the custom features described in the reimbursement claims. Dr. Havey employed chiropractors to market his “Fall Prevention Program” to nursing homes and to sell the orthotic boots in Missouri and other states, including Texas, Alabama, California, Georgia, Illinois, Kentucky, Massachusetts, Mississippi, Oklahoma, Rhode Island and Tennessee. Dr. Havey and the chiropractors employed by him told the nursing homes that the Program would reduce falls by almost 20% and would improve the patients’ quality of life, but deliberately concealed from the nursing homes that the real purpose of the Program was to sell orthotic boots to nursing home patients. Dr. Havey also told the nursing homes that there would be little or no cost to the patients, when he knew that a Medicare patient could be charged as much as $500 if the patient did not have supplemental insurance.
Dr. Havey knew Medicare would scrutinize any company that submitted claims for a large number of very expensive orthotic boots, so he attempted to conceal from Medicare the number of orthotic boots that he and his companies were selling. To accomplish this, Dr. Havey and Susan Reno submitted false claims under several of the companies. As an example, a chiropractor assessed and ordered orthotics for five Medicare patients residing in the same facility on the same day. Dr. Havey and Susan Reno submitted two of the residents’ claims to Medicare using Advanced Custom Orthotics as the supplier and the other three were billed to Medicare using Senior Care Orthotics as the supplier.
Medicare paid Dr. Havey between $2400 and $2600 for each pair of orthotics boots. The loss to Medicare, Medicaid and the private insurance companies was over $2.2 million.
Havey, St. Louis County, MO, pled guilty to one felony count of health care fraud this morning before United States District Judge John A. Ross. Susan Reno, St. Louis County, MO, pled guilty to one misdemeanor count of submitting false reimbursement claims to Medicare before United States Magistrate Judge John Bodenhausen on October 16, 2015. Sentencing for Dr. Havey has been set for January 26, 2016. Susan Reno’s sentencing is set for January 11, 2016.
Felony healthcare fraud carries a maximum penalty of 10 years in prison and/or fines up to $250,000.
This case was investigated by the U.S. Department of Health and Human Services-Office of Inspector General, the Federal Bureau of Investigation and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney’s Office.
Local Businessmen Charged with Charity Fraud ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Gary R. Tomey II, 46, of Pace, and Eric T. Eakes, 29, of Milton, were arraigned today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging them with conspiracy and mail fraud. The indictment was announced by Christopher P. Canova, Acting United States Attorney for the Northern District of Florida.
The indictment alleges between December 2008 and May 2012, Tomey and Eakes ran Children and Family Services Inc. (later called Children’s Charitable Services Inc.), a telemarketing company that fraudulently solicited charitable donations via telephone calls from an office in Milton. Tomey and Eakes are alleged to have instructed employees to fraudulently tell potential donors living in other states that the employees were volunteers and that all proceeds helped children in the state where the potential donor lived. The indictment further states that Tomey and Eakes intentionally used a charity name that was similar to a state agency and failed to disclose that their organizations had been previously sanctioned in other states for fraudulent solicitations. The indictment alleges that more than $1.2 million raised as charitable donations went to pay the defendants’ and employees’ salaries, business expenses, and Tomey’s personal expenses. The trial is scheduled for December 7, 2015.
This case resulted from an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Alicia H. Kim is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Lake Charles man sentenced to more than 19 years in prison for $5.8 million Ponzi schemeRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a Lake Charles man was sentenced to 235 months in prison for wire fraud in connection with a Ponzi scheme used to defraud investors out of more than $5.8 million.
John Steven Blount, 55, of Lake Charles, was sentenced by U.S. District Judge Patricia Minaldi on one count of wire fraud. He was also sentenced to three years of supervised release and ordered to pay $4.3 million restitution. According to the July 16, 2015 guilty plea, the Financial Industry Regulatory Authority (FINRA) barred Blount from working as an investment adviser in December of 2003. In spite of this prohibition, Blount resumed work illegally as an investment adviser and securities broker from June of 2007 to December of 2014. During that time, he used his company, Professional Consultants LLC, to operate a Ponzi scheme that defrauded at least 73 investors out of approximately $5.8 million. Blount would offer investments in fictitious companies, bonds and IRAs that promised to pay an above-market rate of return. However, instead of investing the money in securities, Blount transferred the payments into his own bank accounts for his personal use and to support his other business interests.
In order to avoid detection and to continue operation of the Ponzi scheme, Blount emailed investors false account statements that purported to show the value of their investments. As necessary, Blount would also provide his victims with monetary payments, which Blount falsely represented to be interest payments or principal withdrawals from the investments. In fact, these “lulling payments” were actually investments Blount received from other victims of the Ponzi scheme. Over the course of the scheme, Blount paid $1,743,198.84 “lulling payments” to investors.
The victims of Blount’s scheme were primarily retirees residing along the Louisiana and Texas Gulf Coast who invested large portions of their retirement savings in Blount’s scheme. Blount recruited his victims through his website, through his own personal and family relationships, and through his involvement in various Lake Charles area charities.
“Through his fraudulent investment operation, Mr. Blount stole the life savings of dozens of retirees,” stated Finley. “Financial crimes are devastating to our citizens, creating lasting effects and hardships. Federal prosecutors along with our federal partners will continue to vigorously prosecute these crimes.”
“John Blount’s sentencing represents a victory for those individuals who were defrauded out of millions of dollars, and in most cases, their life savings,” said Special Agent in Charge Jerome R. McDuffie, IRS – Criminal Investigation. “This victory would not have been possible without the collaboration of law enforcement. Both local and federal law enforcement have represented the citizens of this community well, and IRS - Criminal Investigation is very proud to have been a part of this team of fine investigators. While we realize John Blount’s sentencing and restitution orders will not make the victims in this case whole, we hope that it will aid their peace of mind to know that he will be serving a lengthy prison term for his wrongdoings.”
The FBI and IRS Criminal Investigations investigated the case. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Justice Department Settles Immigration-Related Discrimination Claim Against Miami-Dade County Public SchoolsRead the Press Release
The Justice Department announced today that it reached a settlement with Miami Dade County Public Schools (MDCPS) resolving claims that MDCPS discriminated against employees because of their citizenship status in violation of the Immigration and Nationality Act (INA).
The department’s investigation, conducted by the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), found that MDCPS required non-U.S. citizens, but not similarly-situated U.S. citizens, to present specific documents to prove their employment eligibility. The INA’s anti-discrimination provision prohibits employers from making specific documentary demands based on citizenship or national origin when verifying an employee’s authorization to work.
“Employers must ensure that their human resources staff understand proper hiring practices,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Promoting compliance is especially important to ensure that workers are not excluded due to discriminatory treatment.”
Under the settlement agreement, MDCPS will pay a $90,000 civil penalty to the United States and will establish a $125,000 back pay fund to compensate individuals who lost wages because of the MDCPS’ practices. Among other things, the settlement also requires MDCPS to undergo compliance monitoring for three years, permit OSC to train MDCPS students on worker rights, and train its human resources employees on the anti-discrimination provision of the INA.
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. Trial Attorney Liza Zamd of the Civil Rights Division handled this matter.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing, or recruitment or referral for a fee should contact OSC’s worker hotline for assistance.
Miami-Dade County Public Schools Settlement Agreement
Justice Department Seeks to Shut Down Southeast Florida Tax Return Preparers and Owners of “Tax Mon$Ter” and “Tax Pros” Tax Preparation BusinessesRead the Press Release
Businesses Allegedly Prepare Fraudulent Tax Returns While Charging Customers Undisclosed, Unconscionable Fees
The United States filed a civil injunction suit seeking to bar Christopher Lawrence and Kenneth Aikens from owning, operating or franchising a tax return preparation business and from preparing tax returns for others, the Justice Department announced today.
The complaint also asks the court to order Lawrence and Aikens to disgorge the fees that they obtained through the alleged fraudulent tax return preparation. According to the complaint, Lawrence owns and operates Tax Mon$ter and Aikens owns and operates Tax Pros, each of which is a tax return preparation business with locations in Southeast Florida. Lawrence was previously a franchisee of LBS Tax Services, the complaint alleges. This lawsuit is one of nine filed against LBS Tax Services-related individuals, including Walner Gachette, Douglas Mesadieu, Jean Demesmin, Kerny Pierre-Louis, Demetrius Scott, Jason Stinson, Wilfrid Antoine, Tonya Chambers, Jehoakim Victor, Lauri Rodriguez and Milot Odne.
According to the complaint, Lawrence and Aikens target primarily low-income customers with deceptive and misleading advertisements, prepare and file fraudulent tax returns to fraudulently increase their customers’ refunds and profit through unconscionable, exorbitant and often undisclosed fees—all at the expense of their customers and the U.S. Treasury.
According to the complaint, Lawrence’s and Aikens’ tax return preparation businesses expressly promote and encourage the preparation of false and fraudulent federal tax returns in order to maximize corporate and individual profits. The complaint alleges that Lawrence’s and Aikens’ stores engage in fraudulent activity, including:
• Falsely claiming the Earned Income Tax Credit
• Claiming improper filing status (i.e. head of household for married individuals)
• Fabricating businesses and related business income and expenses
• Fabricating Schedule A deductions, particularly for unreimbursed employee business expenses
• Charging deceptive and unconscionable fees
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Joplin Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Frank Edwin Ness, 45, of Joplin, was sentenced by U.S. District Judge M. Douglas Harpool to 10 years in federal prison without parole. The court also sentenced Ness to a lifetime of supervised release following incarceration, and ordered him to pay $5,000 in restitution to one of his victims.
On May 28, 2015, Ness pleaded guilty to receiving and distributing child pornography over the Internet between Jan. 1, 2004, and July 16, 2014.
According to court documents, law enforcement officers executed a search warrant at Ness’s residence on July 16, 2014, and seized his desktop computer. Investigators found hundreds of videos and thousands of images of child pornography on the computer. Ness told investigators that he had been looking at child pornography for approximately 10 years. He admitted that he had sent child pornography to other individuals, and that he received child pornography from other individuals, using e-mail addresses he created using “made up” females names.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crimes Task Force and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Hollister Man Charged with Armed Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Hollister, Mo., man has been charged in federal court with the armed robbery of Central Bank in Branson, Mo.
Joseph E. Cyrus, 76, of Hollister, was charged in a criminal complaint filed in the U.S. District Court in Springfield, Mo., on Wednesday, Oct. 21, 2015. Cyrus, who turned himself in to police yesterday, had his initial court appearance this morning.
Cyrus was charged with stealing $30,946 from Central Bank, 1115 James Epps Road in Branson on Oct. 16, 2015.
According to an affidavit filed in support of the federal criminal complaint, Cyrus entered the bank at approximately 9 a.m. and was wearing a blue ski mask and rubber gloves. He allegedly was carrying a black semi-automatic pistol. Cyrus approached the teller counter, the affidavit says, pointed the pistol at the tellers, and said, “This is a robbery.”
Cyrus allegedly 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, the affidavit says, 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. According to the affidavit, 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, the affidavit says, 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.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 James J. Kelleher. It was investigated by the FBI, the Branson, Mo., Police Department and the Hollister, Mo., Police Department.
Holdenville Man Sentenced to 18 Months for Bomb Threat to Hughes County CourthouseRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CALEB TRENT HODGINS, age 20, of Holdenville, Oklahoma, was sentenced to 18 months imprisonment for USE OF TELEPHONE TO COMMUNICATE BOMB THREAT, in violation of Title 18, United States Code, Sections 844(e) and 2.
The charge arose from an investigation by the Federal Bureau of Investigation and the Hughes County Sheriff’s Department.
The Information alleged that on or about May 21, 2014, in the Eastern District of Oklahoma, the defendant, through use of a telephone, maliciously conveyed false information knowing the same to be false concerning an attempt and alleged attempt being made to unlawfully damage and destroy a building, to-wit: the Hughes County Courthouse in Holdenville, Oklahoma, by means of an explosive, in and affecting interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Chris Wilson represented the United States.
Hartville Woman Sentenced to 20 Years in Prison for Producing, Distributing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Hartville, Mo., woman was sentenced in federal court today for using a minor to produce child pornography.
Chelese Penn, 25, of Hartville, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole. The court also sentenced Penn to a lifetime term of supervised release following incarceration.
On June 11, 2015, Penn pleaded guilty to both counts contained in a Jan. 20, 2015, federal indictment. Penn admitted that she used a child, identified as Jane Doe #1, to produce child pornography between July 1, 2012, and Oct. 3, 2014. Penn also pleaded guilty to distributing child pornography over the Internet during that time.
The investigation began when undercover agents identified David Albert, 51, of Springfield, distributing pornographic images of an 11-year-old female over the Internet. Albert and Penn exchanged child pornography over the Internet. In a separate but related case, Albert was sentenced on Sept. 9, 2015, to 17 years and six months in federal prison without parole after pleading guilty to the sexual exploitation of a child.
Penn will be required under the federal Sex Offender Registration and Notification Act (SORNA) to register as a sex offender and keep the registration current in each of the jurisdictions where she resides, is employed and is a student.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Hartford Man Sentenced to 10 Years in Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on October 20, 2015, GREGORY THOMAS, also known as “Quanny” and “Jim,” 24, of Hartford, was sentenced by U.S. District Judge Jeffrey Alker Meyer in New Haven to 120 months of imprisonment, followed by five years of supervised release, for trafficking crack cocaine.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of West Hell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” 24, as the leader of the West Hell street gang who, along with his associates, including THOMAS, distributed crack cocaine in the Westland Street area of Hartford.
THOMAS was intercepted over wiretaps numerous times engaging in drug-related conversations and, between May 2013 and November 2013, investigators made 17 controlled purchases of crack directly from THOMAS.
THOMAS’ criminal history includes a state conviction in 2009 for assault in the second degree and carrying a pistol without a permit. This conviction stemmed from THOMAS shooting two people in February 2009 in Hartford. THOMAS has been in state custody since February 11, 2014, serving a state sentence related to his possession and distribution of crack and PCP.
On May 4, 2015, THOMAS pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”).
Twenty-five individuals were charged as a result of the investigation. Scott and 22 other defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending.
Scott awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Harrison County, WV man convicted of heroin trafficking, unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Adam Bradford Linch, 35, of Anmoore, West Virginia, was convicted of heroin trafficking and unlawful possession of a firearm today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Linch sold heroin in August 2014 in Harrison County, West Virginia. He pled guilty today to one count of “Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. The West Virginia State Police and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
In a separate matter, Linch was discovered in unlawful possession of a firearm and ammunition. Linch was previously convicted of the misdemeanor offense of “Domestic Battery” in February 2010 in the Magistrate Court of Harrison County, West Virginia. As a result of that conviction, he is prohibited from possessing firearms. He was discovered in unlawful possession of a .45 caliber pistol and ammunition in March 2015 in Harrison County, West Virginia. He pled guilty today to “Possession of a Firearm by a Person Convicted of a Misdemeanor Crime of Domestic Violence.” He faces up to 10 years in prison and a fine of up to $250,000. The Clarksburg, West Virginia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew Cogar prosecuted the heroin trafficking offense and Assistant U.S. Attorney Shawn Adkins prosecuted the firearms offense on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided in both proceedings.
Grand Prairie, Texas, Man Sentenced to Statutory Maximum of 20 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Vasni Molina, 30, of Grand Prairie, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to the statutory maximum sentence of 20 years in federal prison following his guilty plea to an information charging one count of receipt of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Molina has been in federal custody since he entered his guilty plea in June 2015.
According to documents filed in the case, an investigation by the FBI to identify individuals who used the Internet to distribute child pornography led to the identification of an IP address that was eventually linked to Molina. In February, an investigator downloaded 11 files from that IP address; nine of those files contained child pornography.
A federal search warrant was executed at Molina’s residence on March 30, 2015, and special agents with the FBI seized a laptop computer and computer media. Molina admitted he had used a file-sharing network to view and download images and videos of child pornography. He stated he had been viewing child pornography for more than three years and that approximately 75% of the 100 videos he had on his laptop would be child pornography. He admitted downloading hundreds of files of child pornography over the past three years.
A forensic analysis, however, located more than 800 videos of child pornography on Molina’s computer and other media. Molina admitted he received and possessed videos that included bondage and sadistic acts involving minors and that the majority of his child pornography collection was videos of prepubescent children.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Plano Police Department investigated, and Assistant U.S. Attorney Camille Sparks prosecuted.
# # #
Gloversville Accountant Admits to Preparing False Tax ReturnsRead the Press Release
ALBANY, NEW YORK – Carmen Gentile, Jr., age 53, of Amsterdam, New York, pleaded guilty yesterday to conspiracy to defraud the United States and file fraudulent tax returns, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
Gentile faces a maximum penalty of five years of imprisonment, a fine of $250,000, and a maximum term of supervised release of three years when he is sentenced on February 17, 2016 by United States District Judge Gary L. Sharpe. Gentile may also be ordered to reimburse the government for any tax loss resulting from his conduct.
As part of his guilty plea, Gentile, the owner and operator of Complete Financial Accounting Services in Gloversville, New York, admitted that from March 2006 through April 2008, he and co-conspirators Angela Witzke and Michele Lennon worked together to prepare, and submit to the IRS, dozens of tax returns for clients that omitted income and claimed inflated charitable contributions, expenses, and losses. Gentile and his co-conspirators filed these returns despite knowing they contained false statements concerning their clients’ income, expenses, and losses.
Both Witzke and Lennon have also pleaded guilty to conspiracy to defraud the United States and file fraudulent tax returns; both are scheduled to be sentenced on January 14 by Judge Sharpe.
This case was investigated by IRS-Criminal Investigation’s New York Field Office and is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Former Vidalia, Georgia Attorney Sentenced to 8 Years in Prison for Defrauding His Clients and OthersRead the Press Release
SAVANNAH, GA – Wilson R. Smith, 63, a former attorney from Vidalia, Georgia, was sentenced earlier this week by Chief United States District Court Judge Lisa Godbey Wood to serve 8 years in federal prison for a scheme to settle his clients’ cases without their knowledge and to steal the settlement proceeds. Smith pled guilty in May to mail fraud and aggravated identity theft charges.
According to evidence presented during the sentencing hearing, Smith settled two separate personal injury cases from 2013 to 2014, without his clients’ knowledge or authority, and then kept the $1.25 million in settlement proceeds for himself. Smith delayed detection of his scheme by providing his clients with phony case updates, including fictitious trial dates. One of Smith’s clients became concerned about supposed trial delays and contacted a court clerk. The client was told that the lawsuit had been settled and dismissed for over a year. Shortly thereafter, on January 14, 2015, Smith was arrested by the Georgia Bureau of Investigation (GBI). Later, Smith was indicted on federal fraud charges in February of 2015. Additional investigation determined that Smith schemed at least 10 victims out of settlement proceeds and other monies held in his attorney trust account.
United States Attorney Edward Tarver stated, “This former attorney chose greed over the interests of his clients. He caused great harm to the clients he swore to protect and to the entire legal system. Attorneys who lie, cheat and steal can expect that their lawyering days will soon be over and that they’ll find themselves in a federal prison cell.”
In addition to an 8-year prison sentence, Smith was ordered to pay $1,285,000 in restitution. After his released from prison, Smith will serve 3 years on supervised release.
The investigation of the Smith case was conducted by the GBI, the District Attorney’s Office of the Middle Judicial Circuit, and the FBI. First Assistant United States Attorney James D. Durham prosecuted the federal case on behalf of the United States.
Former Police Officer Pleads Guilty to Child Pornography and Sexual Abuse ChargesRead the Press Release
WASHINGTON - Darrell Best, 46, a former member of the Metropolitan Police Department (MPD), pled guilty today to one count of production of child pornography, one count of first-degree sexual abuse of a minor, and one count of second-degree sexual abuse of a minor, announced U.S. Attorney Channing D. Phillips and Cathy L. Lanier, Chief of the Metropolitan Police Department.
Best pled guilty in the U.S. District Court for the District of Columbia. The plea agreement, which is contingent upon the Court’s approval, calls for Best to be sentenced to 18 years in prison. Pursuant to the plea agreement, the Court will determine at Best’s sentencing the period of supervised release that Best will serve following the completion of his prison term. Best will also be required by law to register as a sex offender for the remainder of his life. If he approves the plea, the Honorable Reggie B. Walton is to sentence Best on Feb. 26, 2016.
In addition to working as a police officer, Best was the head pastor of a church in Southeast Washington. The sexual abuse charges stem from incidents involving two minor females who knew and trusted him through the church. Best pled guilty to second-degree sexual abuse of a minor based on his sexual abuse of one of the girls on Dec. 3, 2014 at MPD Headquarters. He pled guilty to first-degree sexual abuse of a minor based on his sexual abuse of the other girl on Feb. 14, 2015 while inside the church.
On March 14, 2015, after one of the girls told her parents about the abuse, the Metropolitan Police Department’s Youth Division began investigating the case. Best was arrested two days later and has been in custody ever since.
Following Best’s arrest, investigators obtained a search and seizure warrant from the Superior Court of the District of Columbia for Best’s cellular phone. A forensic examination of the phone revealed seven images depicting child pornography, which Best had produced using one of the victims.
In announcing the plea, U.S. Attorney Phillips and Chief Lanier commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI’s Washington Field Office. In addition, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator John Marsh; Paralegal Specialist Donhue Troy Griffith, and Victim/Witness Advocate Lezlie Richardson. Finally, they commended the work of Assistant U.S. Attorneys Sarah D. McClellan and Lindsay Suttenberg, who investigated and prosecuted the case.
Former Office Manager of Henderson, Kentucky, Law Firm Guilty of Embezzling $264,867.84Read the Press Release
Money was used to pay personal expenses and make wire transfers to individuals in South Africa
OWENSBORO, Ky. – The former office manager of a Henderson, Kentucky law firm pleaded guilty to wire fraud in U.S. District Court yesterday before Chief Judge Joseph H. McKinley, Jr. for embezzling $264,867.84 during a 30-month period, announced U.S. Attorney John E. Kuhn, Jr.
According to the plea agreement, Krista Kaye Graupner, age 45, of Evansville, Indiana, committed wire fraud while employed at the law firm of King, Deep & Branaman (KDB) between June of 2012 and December of 2014.
As office manager, Graupner had access to KDB’s bank accounts and was authorized to write checks and initiate ACH payments out of these accounts. During her guilty plea, Graupner admitted to paying her own personal bills using KDB’s funds.
In October of 2014, Graupner also began wiring money from Henderson to various individuals in South Africa who were part of the scheme. Graupner admitted that she would write checks, either for cash or to herself, drawn upon KDB accounts and then use the cash from the KDB checks to wire the money via Western Union to individuals in South Africa. In perpetuating this crime, Graupner made approximately 200 wire transfers from October 2014 through December 2014.
Graupner is scheduled to be sentenced by Chief Judge McKinley in Owensboro on January 13, 2016 and could receive a combined maximum term of 60 years in prison, a maximum fine of $750,000, and a 3-year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Nute A. Bonner and is being investigated by the Federal Bureau of Investigation and the Henderson Police Department.
Former Government Employee and Government Contractor Indicted in $53 Million Procurement Fraud and Illegal Gratuities SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has returned separate indictments charging John Wilkerson, age 51, of Moultrie, Georgia, and James T. Shank, age 68, of Perry, Georgia, with a wire fraud conspiracy and offering and accepting illegal gratuities, in connection with the award of more than $53 million in federal government contracts. The indictment was returned on October 8, 2015, and unsealed on October 21, 2015.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Brigadier General Keith M. Givens, Commander Air Force Office of Special Investigations (OSI); and U.S. Small Business Administration Inspector General Peggy E. Gustafson.
According to Shank’s indictment, from August 28, 2006 until he retired on June 30, 2011, he was employed as a Program Manager at the United States Navy’s Space and Naval Warfare (SPAWAR) Systems Center. Shank worked with agencies within the Department of Defense to procure telecommunications equipment, software, and related services.
According to Wilkerson’s indictment, he was a Department of Defense Account Manager for Iron Bow Technologies, LLC (Iron Bow), which provided IT consulting and other services to government and industry customers. Wilkerson was also part owner and operated an information technology company, Superior Communications Solutions, Inc. (SCSI).
Co-Conspirator 2 was a program manager for an information technology company, Advanced C4 Solutions, or AC4S, from 2005 until 2011. In 2011, Co-Conspirator 2 left AC4S and went to work for Wilkerson at SCSI.
The indictments allege that from September 2009 through August 2012 Shank conspired with Wilkerson and Co-Conspirator 2, to give them and the companies they worked for and/or owned an unfair competitive advantage in obtaining government contracts. In exchange, the indictments allege that Wilkerson offered, and Shank accepted, employment with SCSI while Shank was still a government employee and while he was taking official actions that benefited Wilkerson. In addition, Wilkerson allegedly paid Shank $86,000 in the year after Shank retired from government service, funneling the payment through two other companies in order to conceal the source of the funds.
According to the indictments, Shank improperly shared information with Wilkerson and Co-Conspirator 2, and worked with them to structure the government contracts so as to give their companies an unfair advantage over other potential bidders.
For example, according to the indictment, Shank, Wilkerson, and Co-Conspirator 2 developed a request for proposal (RFP) for DO27, a contract to supply labor services for an Air Force technology project, including for overall project management services, so that AC4S would win the contract. On June 10, 2010, DO27 was awarded to AC4S in the amount of $18,332,738.10. Wilkerson provided Co-Conspirator 2 with a quote for labor on behalf of SCSI that was less than the quote he had previously submitted on behalf of Iron Bow as their sales representative. After SCSI was selected as a subcontractor on DO27, it subcontracted with Iron Bow to provide most of the labor SCSI was supposed to provide under DO27. Wilkerson was able to earn income from the work Iron Bow employees were doing by having SCSI act as a middleman and charging a mark-up on Iron Bow’s work. Wilkerson and Co-Conspirator 2 then directed an SCSI employee to create false invoices supposedly documenting the hours SCSI employees spent working on DO27, which were submitted to AC4S and paid by the United States government. SCSI received $6,794,432.98 on DO27 out of the $18 million AC4S received for providing labor for the project.
Shank also initiated the procurement process on more than 11 delivery orders that purchased telecommunications equipment and furniture as part of the Air Force project. Those delivery orders were issued to Iron Bow in 2010 and 2011. Shank made sure that the delivery orders included telecommunications equipment and/or furniture that were assigned SCSI-specific part numbers, thereby guaranteeing that SCSI would receive revenue from the delivery orders. The indictment alleges that SCSI received approximately $33 million of the $35 million paid to Iron Bow under the various furniture and equipment delivery orders.
In late 2010 or early 2011, Wilkerson offered Shank employment. Shank did not disclose that fact to anyone at SPAWAR and did not recuse himself from any of the contracts that benefited Wilkerson. In February 2011, Co-Conspirator 2 left AC4S and went to work for Wilkerson at SCSI. According to the indictment, Co-Conspirator 2 received a $500,000 bonus when he joined SCSI, which was paid for by profit Wilkerson had earned on the furniture contracts.
By March 2011, the Air Force project was not complete and there were a number of contract disputes related to the project. Shank was directed not to take any other action related to the project without the approval of a senior manager. Nevertheless, the indictment alleges that in April 2011, Shank accepted more than $3.7 million worth of invoices that benefited SCSI without informing the senior manager. After Shank accepted employment with SCSI in May 2011, but was still working for SPAWAR, he allegedly approved more than $1.1 million worth of invoices that benefitted SCSI and Wilkerson.
Shank and Wilkerson face a maximum sentence of 20 years in prison for a wire fraud conspiracy; and two years in prison for offering and accepting illegal gratuities. Shank also faces a maximum sentence of 5 years for criminal conflict of interest. Wilkerson and Shank had initial appearances in the Northern District of Georgia on October 13 and 14, 2015, respectively, and have an initial appearance scheduled in U.S. District Court in Baltimore on October 23, 2015, at 11:00 a.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked Air Force OSI and the U.S. Small Business Administration Office of Inspector General for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Leo J. Wise AND Philip A. Selden, who are prosecuting the case.
Former Executive Director of Alaska Inter-Tribal Council Sentenced to 21 Months in Federal Prison for Theft of FundsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that the former Executive Director of the Alaska Inter-Tribal Council (“AITC”), a non-profit organization that advocates in support of tribal governments throughout Alaska, was sentenced in federal court in Anchorage to 21 months in prison for his theft of funds belonging to the organization. Steven D. Osborne, 44, of Fairbanks, Alaska, who served as the Executive Director of AITC from December 2007 until February 2008, admitted to stealing approximately $145,000 in AITC funds while he served in that capacity.
According to Assistant U.S. Attorney Joseph Bottini, AITC received substantial federal funding in 2008 and 2009 – including a federal grant from the United States Environmental Protection Agency of in excess of a million dollars. As the Executive Director, Osborne had access to AITC bank accounts and credit and debit cards issued to him by the organization. The investigation established that Osborne was able to steal the funds through a number of different ways, including cash withdrawals, checks written to himself, credit and debit card transactions, and the submission of false time cards.
Osborne was indicted by a federal grand jury in August 2013, and pled guilty in April 2015 to one count of Theft from an Organization Receiving Federal Funds. Several individuals associated with AITC addressed the court at sentencing and noted that as a result of Osborne’s thefts, AITC became ineligible for further federal funding because the organization was considered “high risk”. Without federal funding, AITC was basically rendered a defunct organization, and it remains so today.
In imposing the 21 month sentence, United States District Judge Sharon L. Gleason noted the catastrophic results which Osborne’s actions caused to AITC. In addition to the prison sentence, Osborne was directed to pay $145,000 in restitution to AITC, and was further directed to forfeit the same amount of money.
Ms. Loeffler commends the U.S. Environmental Protection Agency, Office of Inspector General and the Federal Bureau of Investigation for the investigation of this case.
Former Executive Director of Jersey City Child Development Centers in Jersey City Charged with Stealing at Least $200,000Read the Press Release
NEWARK, N.J. - The former executive director of the Jersey City Child Development Centers Inc. (JCCDC) in Jersey City, New Jersey, was charged today with stealing more than $200,000 from the organization, U.S. Attorney Paul J. Fishman announced.
Robert E. Mays, 38, of Jersey City, New Jersey, was arrested this morning by federal agents and charged by complaint with one count of embezzlement and theft from JCCDC, an organization which provided early childhood development services and education to under-privileged children in Jersey City. Mays appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to documents filed in this case and statements made in court:
Mays was the executive director of JCCDC from Sept. 10, 2013, to May 21, 2014. JCCDC received $8,020,919 in funds from the Administration for Children and Families (ACF), a division of the U.S. Department of Health and Human Services (HHS), for the benefit of the children who attended the child development programs that were managed by JCCDC. Mays was not authorized to expend JCCDC funds solely for his personal benefit. He allegedly engaged in a scheme to steal and take by fraud more than $200,000 from JCCDC principally by: (1) unilaterally increasing his annual salary from $96,500 to $155,000 without authorization from JCCDC, after two months of his employment with JCCDC; and (2) withdrawing funds from JCCDC bank accounts for his personal benefit without authorization from JCCDC. Mays allegedly took JCCDC funds intended to benefit children to purchase, among other things, a 2007 Maserati Quattroporte and a fur coat worth thousands of dollars.
The embezzlement count with which Mays is charged carries a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss resulting from the scheme, as well as mandatory restitution in the full amount of the loss to JCCDC.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of the Office of the Inspector General, U.S. Department of Health and Human Services, under the direction of Scott J. Lampert, with the investigation leading to today’s arrest. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys José R. Almonte and Mala Ahuja Harker of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Alexander W. Booth Jr., Union City, New Jersey
Former Amarillo Resident Indicted on Sex Trafficking and Obscenity ChargesRead the Press Release
AMARILLO, Texas — Xzavion Dayshaun Ragsdale, a/k/a “Yung Billy,” 19, was charged in a federal indictment that was just unsealed with two counts of attempted sex trafficking of a child and one count of attempted transfer of obscene material to a child. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Ragsdale, formerly of Amarillo, Texas, and most recently Dallas, made his initial appearance in federal court late yesterday before U.S. Magistrate Judge Clinton E. Averitte, who ordered Ragsdale to remain in federal custody, pending a detention hearing set for Monday.
Count one of the indictment alleges that on December 31, 2014, Ragsdale attempted to recruit an individual, “J.B.,” knowing that “J.B.” was under 18 years of age and would be caused to engage in a commercial sex act.
Count two of the indictment alleges that on March 30, 2015, Ragsdale attempted to recruit another individual, “A.M.,” knowing that “A.M.” was under 18 years of age and would be caused to engage in a commercial sex act.
Count three of the indictment alleges that on March 30, 2015, Ragsdale used a cell phone and the Internet to transfer obscene matter to another individual who was under 16 years of age.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the statutory penalty, per count, for attempted sex trafficking of a child is not less than 10 years or life in federal prison and a $250,000 fine. The maximum statutory penalty for attempted transfer of obscene material to a minor is 10 years in federal prison and a $250,000 fine.
The Amarillo Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Joshua Frausto is in charge of the prosecution.
###
Florida Residents Sentenced to Prison in Drug Conspiracy CaseRead the Press Release
Gulfport, Miss – Herman McGee, Jr., 27, and Michael Lamar Ricks, 27, cousins from Jacksonville, Florida, were sentenced on October 20, 2015 by U.S. District Judge Sul Ozerden, in a case involving conspiracy to possess with intent to distribute over 500 grams of cocaine and conspiracy to possess a firearm in furtherance of drug trafficking, U.S. Attorney Gregory K. Davis announced.
McGee was sentenced to 168 months in federal prison followed by five years of post-release supervision and an $8,000 fine, for conspiracy to possess with intent to distribute cocaine and conspiracy to possess firearms in furtherance of drug trafficking.
Ricks was sentenced to 112 months in federal prison followed by five years of post-release supervision and an $8,000 fine for conspiracy to possess with intent to distribute cocaine.
This case was investigated by the Harrison County Sheriff’s Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Annette Williams.
Five Assistant U.S. Attorneys from Los Angeles Receive Attorney General Awards for Work on Two Massive Fraud CasesRead the Press Release
LOS ANGELES – Five assistant United States attorneys have received Attorney General Awards for their extraordinary work on cases involving historic settlements with a credit ratings agency and one of the nation’s largest banks.
The five prosecutors were honored yesterday at a ceremony in Washington, D.C. attended by the honorees, their families and United States Attorney Eileen M. Decker.
Assistant U. S. Attorney George S. Cardona and former Assistant U.S. Attorney Anoiel Khorshid were among 11 attorneys and investigators who received the Attorney General’s Award for Distinguished Service for their work on the investigation into Standard & Poor’s Ratings Services, which earlier this year paid a $1.375 billion settlement, the largest penalty of its type ever paid by a credit rating agency.
AUSAs Cardona and Khorshid played key roles in the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) investigation and litigation against S&P for its issuance of fraudulently inflated ratings of Residential Mortgage Backed Securities (RMBS) and Collateralized Debt Obligations in the run-up to the 2007 through 2008 financial crisis (see: http://go.usa.gov/3SJCJ).
As part of the federal investigation and litigation with S&P, which was coordinated with related civil actions by 19 states and the District of Columbia, S&P admitted it ignored senior analysts within the company who complained it had given top ratings to financial products that were failing to perform as expected and it had declined to downgrade underperforming assets because it was worried that doing so would hurt the company’s business. While this strategy helped S&P avoid disappointing its clients, it did major harm to investors, including federally insured financial institutions that suffered losses exceeding $20 billion and to the larger economy, contributing to the worst financial crisis since the Great Depression.
Assistant U.S. Attorneys Evan J. Davis, Leon W. Weidman and Brent A. Whittlesey received the Attorney General’s Award for Distinguished Service for being part of the team that obtained an historic $16.65 billion settlement with Bank of America for fraud in the origination and securitization of residential mortgages.
AUSAs Davis, Weidman and Whittlesey were among 13 attorneys and auditors recognized for their important roles on one team that investigated the entire platform of RMBS offered for sale in 2006 through 2008 by Merrill Lynch, Bank of America and Countrywide. The teams pursued extensive and detailed fact investigations, developed and adapted innovative legal theories under FIRREA and prepared comprehensive civil complaints seeking billions of dollars in penalties.
The exhaustive efforts and perseverance of these teams advanced the core mission of the department by holding Bank of America accountable for its fraudulent conduct that contributed to the financial crisis, as well as providing substantial compensation for entities supported by American taxpayers and critical assistance to homeowners and neighborhoods impacted by the mortgage meltdown (see: http://go.usa.gov/3SJyj).
“These outstanding prosecutors represent the very best qualities of our office –ethics, integrity and professionalism – and they displayed incredible dedication in tackling two of the most complicated and largest cases ever handled by the Department of Justice,” said United States Attorney Eileen M. Decker. “I am extremely proud of the work done by these attorneys, who are a testament to fine work done by everyone in the Department.”
Attorney General Loretta Lynch recognized 279 Justice Department employees and 33 individuals with Attorney General Awards at a ceremony in Washington. These annual awards recognize department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.
“The individuals being honored today stand out within a department that holds all of its employees and partners to an extremely high standard of excellence,” said Attorney General Lynch. “They have put in long hours, made immense sacrifices, and, in some cases, placed themselves in harm’s way. They have taken on issues that once seemed intractable, and made progress on problems that once seemed impossible. And their outstanding work is an inspiration to public servants everywhere.”
Final Two Defendants Convicted in "Operation Yeti Ice"Read the Press Release
Jackson, Miss – On Wednesday October 21, 2015, after a three day jury trial, Christopher Raynard Kidd, 27, of San Bernardino, California, was found guilty of conspiracy to distribute 50 grams of more of actual methamphetamine and distribution of 50 grams or more of actual methamphetamine, announced U.S. Attorney Gregory K. Davis and DEA Special Agent in Charge Keith Brown. He will be sentenced by Judge Daniel P. Jordan III on January 19, 2015 at 10:00 a.m. and faces a maximum sentence of life in prison and a $10 million fine on each count.
Another defendant in this case, Rodney Gerald Henderson, 70, of California and Mississippi, pled guilty on October 19, 2015, to conspiracy to distribute 50 grams or more of actual methamphetamine. He will be sentenced by U.S. District Judge Jordan on January 7, 2016 at 9:00 a.m. He faces a maximum sentence of life in prison and a $10 million fine.
Kidd and Henderson were indicted on August 19, 2014. On that day three separate indictments were unsealed charging twenty (20) defendants. The indictments were the result of “Operation Yeti Ice”, an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation, which began as an operation targeting illegal narcotics distribution in central Mississippi. The drug network involved the distribution of over 100 Kilograms of Methamphetamine and encompassed the states of California and Mississippi.
Operation Yeti Ice was an OCDETF operation led by the Drug Enforcement Administration and the Mississippi Bureau of Narcotics with assistance from the U.S. Marshal Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Postal Service, Internal Revenue Service Criminal Investigation, Scott County Sheriff’s Office, Leake County Sherriff’s Office, Madison County Sherriff’s Office, Carthage Police Department, Forest Police Department, Newton County Sherriff’s Office, Lauderdale County Sherriff’s Office, Decatur Police Department, Richland Police Department, Pearl Police Department, Ridgeland Police Department, and the Jackson Police Department. Assistant U.S. Attorney Erin Chalk prosecuted the case.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.Fifteen Individuals Indicted in Stolen Property Fraud RingRead the Press Release
On Tuesday, October 20, 2015, a federal grand jury in East St. Louis, IL, returned a 17 count indictment charging 15 individuals, including a Madison, IL, business owner, with numerous charges arising from a stolen property fraud ring, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced.
The indictment alleges that the leader of this fraud ring, Jason J. Parmeley, 42, formerly of O’Fallon, MO, conducted this fraud scheme from Mexico. According to the indictment, Parmeley used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowes, Menards, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names of, and under the credit accounts of, the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, expensive tools, and construction equipment. The indictment charges that, after he placed the orders, Parmeley dispatched drivers to go to the stores and pick up the items. The items were then sold at prices substantially below retail. The profits were then wire transferred to Parmeley in Mexico.
"Essentially, we allege that Parmeley and his gang committed identity theft, not only stealing the electronic identity of individuals, but also stealing the electronic identity of businesses. I urge anyone who thinks that they might have been affected by this scheme to report their case to my office." said United States Attorney Wigginton.
The retail and rental stores victimized by this scheme were located in various parts of the United States, including Arizona, California, Colorado, Connecticut, Georgia, Illinois, Indiana, Iowa, Michigan, Missouri, Oklahoma, and Virginia. Some of the victimized stores were located within the Southern District of Illinois, including stores in Collinsville, Granite City, and O’Fallon, IL.
The indictment also charges that James D. Litchfield, 58, owner of Big Jim’s Autorama in Madison, IL, purchased many items which he knew had been obtained by fraud. These items were delivered to Litchfield at Big Jim’s Autorama. The indictment further alleges that Litchfield provided two trucks that were used by his co-conspirators to pick up fraudulently ordered items.
The other defendants charged in the indictment are: Angel Speed, 25, formerly of O’Fallon, MO, Sean A. Shields, 47, of Ozark, MO, Shannan Flora, 41, of Vienna, IL, Alice J. Hembree, 43, of O’Fallon, MO, Tony G. Robertson, 43, of O’Fallon, MO, Steven J. Belcher, 44, of Wentzville, MO, Jesse S. Urias, 36, of Los Angeles, CA, Ryan P. Litchfield, 37, of O’Fallon, MO, Rigoberto Gutierrez, 26, of Compton, CA, Russell J. Witt, 33, of New Baltimore, MI, Bryce E. Atkinson, 21, of Lake Saint Louis, MO, Nicholas A. Brockman, 20, of Wentzville, MO, and Benedict G. Pellerito, 55, of Troy, MO.
Both James D. Litchfield and Ryan P. Litchfield were arrested yesterday. Their trial date has been set for December 21, 2015.
In late August of this year, Mexican Immigration Authorities deported Parmeley from Mexico. Parmeley is currently in federal custody in Alabama on an unrelated bank fraud charge. The remaining defendants are expected to appear for arraignment within the next two weeks.
The charges contained in the indictment include conspiracy to commit wire fraud, conspiracy to transport property obtained by fraud in interstate commerce, wire fraud, interstate transportation of property obtained by fraud, possession of property obtained by fraud, money laundering, and aggravated identity theft. The indictment also seeks forfeiture of the proceeds of the fraud scheme.
The investigation is being conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI has received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Feds Seize Another Super Tunnel; Yields 22 Arrests and 12 Tons of Marijuana so FarRead the Press Release
Assistant U. S. Attorney David Finn (619) 546-7342
NEWS RELEASE SUMMARY – October 22, 2015
SAN DIEGO – Federal officials seized control of a sophisticated cross-border super tunnel last night following a six-month undercover investigation that resulted in the arrests of 22 people in San Diego and Tijuana and the confiscation of 12 tons of marijuana.
The tunnel, approximately eight football fields in length, stretches from a warehouse in Tijuana to the Otay Center Warehouse, located at 2587 Otay Center Drive in San Diego. The passageway is believed to be equipped with lighting, electricity and a rail system and is one of the largest tunnels uncovered along the southern border in recent years.
Isaias Enriquez-Acosta and Isidro Silva-Acosta were arrested and charged in federal complaints this morning with unlawful conspiracy to import a controlled substance and conspiracy to use border tunnels and passages. They are scheduled to make their first court appearances at 2 p.m. today before U.S. Magistrate Judge David Bartick.
Mexican officials reported 16 arrests and the seizure of 10 tons of marijuana at the Tijuana tunnel entrance; San Diego County Sheriff’s officials arrested four people in connection with tunnel activity. Federal authorities here have seized almost 2 tons of marijuana and counting - they were still bringing bundles out of the tunnel today.
The newly-completed tunnel was discovered as a result of a six-month investigation by the Tunnel Task Force, which includes agents from Homeland Security Investigations, the Drug Enforcement Administration and U.S. Border Patrol. The Task Force began the investigation in May of 2015 with the introduction of an undercover agent to Enriquez-Acosta, according to the complaint. The agent offered to help transport and store drugs for the defendants, the complaint said. The undercover agent also helped transport buckets filled with dirt away from the tunnel warehouse, the complaint said.
The enforcement action that led to the shuttering of the tunnel last night was triggered by a meeting at a San Diego restaurant between the undercover agent and the defendants yesterday. At that meeting, the defendants and the undercover agent discussed the logistics for moving loads of marijuana from the tunnel warehouse to another warehouse, the complaint said. This was an indication that a load was about to be moved through the tunnel from Mexico to the U.S. Officials believe this was the first time the tunnel was used to move a significant quantity of drugs.
Silva was taken into custody Wednesday about 5:30 p.m. as about 30 agents from Homeland Security Investigations’ Special Response Team moved to take down the tunnel; Enriquez was arrested at a nearby hotel. In the front room of the Otay Center Warehouse, agents found a hole in the floor about 3-feet in diameter which led to a shaft descending approximately 32 feet down into the ground. The shaft connected to an underground tunnel leading towards the U.S.-Mexico border. Agents saw plastic-wrapped marijuana bundles stacked inside the tunnel.
“We see a super tunnel open for business once every year or so,” said U.S. Attorney Laura Duffy. “Just when traffickers think they’re ready to move, we put them out of business. We continue to make good on our promise to relentlessly pursue and shut down any tunnel as soon as it opens.”
"Federal agents on the San Diego Tunnel Task Force have once again taken down a sophisticated cross border drug smuggling tunnel that was fully operational under the San Diego-Tijuana border,” said Dave Shaw, special agent in charge for ICE Homeland Security Investigations in San Diego. “The success of this investigation is yet another example of our commitment to secure the border while combating the increasingly dangerous underground smuggling activity.”
The marijuana seized in connection with the tunnel has an estimated street value of nearly $6 million. The tunnel dismantled Wednesday is the 10th large-scale drug smuggling tunnel discovered in the San Diego area since 2006. In the last five years, federal authorities have detected more than 75 cross-border smuggling tunnels, most of them in California and Arizona.
DEFENDANT Case Number: 15MJ3133
Isaias Enriquez-Acosta Age: 53 Tijuana, Mexico
Isidro Silva-Acosta Age: 27 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy – Unlawful Importation of a Controlled Substance, in violation of Title 21, United States Code, Sections 952, 960 and 963
Maximum penalty: Life in prison
Conspiracy – Border Tunnels and Passages, in violation of 18 United States Code, Section 555(d)
Maximum Penalty: Life in prison
AGENCIES
Tunnel Task Force, including agents from Homeland Security Investigations, Drug Enforcement Administration and U.S. Border Patrol
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Federal Indictment Charges Two Washington, DC Residents with Sex Trafficking of a MinorRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Charleston Harris, a/k/a “Giovanni,” and “Leon Baye,”, age 36, and Phoebe Omwega, a/k/a “Star,” and “Sparkles,” age 27 both of Washington, D.C. on charges of conspiracy, sex trafficking of a minor, and attempted sex trafficking of a minor. The indictment was returned on October 19, 2015 and unsealed today upon the arrests of the defendants.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the three count indictment, from October 2012 through June 2015, Harris and Omwega conspired to recruit minor females and adult females, to engage in commercial sex acts. Harris and Omwega benefited financially from the proceeds generated by prostitution, including prostitution services provided minor females.
The indictment alleges that Harris and Omwega created and posted advertisements on Internet websites that advertised adult females and minor females, for prostitution using fake names, false ages, and pictures of females different from the actual females being advertised. Harris and Omwega facilitated prostitution by directing and managing multiple adult females and minor females to engage in prostitution and collected prostitution proceeds directly from the females. Harris allegedly used violence and threats of violence to coerce adult females and minor females into complying with Harris’s directions and rules, including that the females could not contact family members or other individuals outside Harris’s organization. The indictment alleges that Harris physically assaulted a minor female victim in December 2012 for violating his rules.
According to the indictment, Harris and Omwega arranged and paid for hotel rooms in which adult females and minor females, engaged in prostitution and transported the females, including minor females, to hotels and other locations in Maryland, Florida, and the District of Columbia to engage in prostitution. Between 2013 and 2014, Harris used email accounts to recruit, direct, and communicate with females working for him. On June 15, 2015, Harris attempted to recruit a minor female to work for him as a prostitute.
Harris and Omwega each face a mandatory minimum sentence of 15 years and up to life in prison for conspiracy to engage in sex trafficking of a minor; and a mandatory minimum of 10 years in prison and up to life in prison for sex trafficking of a minor. Harris also faces a mandatory minimum of 10 years in prison and up to life in prison for attempted sex trafficking of a minor. An initial appearance was held for Harris and Omwega today before U.S. Magistrate Judge Jillyn K. Schulze in U.S. District Court in Greenbelt. Omwega and Harris were detained pending detention hearings scheduled for October 23, 2015 at 3:00 p.m. and October 26, 2015 at 2:00 p.m., respectively.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Daniel C. Gardner, who is prosecuting the case.
Fairfax Man Sentenced to Prison for Possessing Firearms as a FelonRead the Press Release
A man who possessed six firearms after having been convicted of a felony offense was sentenced Tuesday, October 20, 2015, to two years in federal prison.
Dustin Kirkpatrick, age 35, from Fairfax, Iowa, received the prison term after an April 24, 2015, guilty plea to being a felon in possession of firearms.
In a plea agreement, Kirkpatrick admitted that he was convicted in 2010 of the felony offense of Interference With Official Acts Involving a Dangerous Weapon. At sentencing, evidence was presented that this conviction arose when Linn County Deputy Sheriffs attempted to take him into custody for purposes of a mental health commitment. When the deputies told Kirkpatrick what they were doing, he pulled a 9mm handgun from his pocket. Deputies were able to wrestle Kirkpatrick to the ground and disarm him without anyone being shot.
In the plea agreement, Kirkpatrick further admitted that on June 30, 2014, his father turned in to the Linn County Sheriff’s Office three handguns and three shotguns he possessed. Later that same day, Kirkpatrick’s father called the Linn County Sheriff’s Office to report that his son had threatened a neighbor with a knife and when he (father) had intervened, Kirkpatrick then turned on him. Linn County Sheriff deputies responded to the Kirkpatrick’s house with a tactical team and found him locked in a bedroom. Kirkpatrick refused orders to open the door and surrender, so deputies forced the door open. Kirkpatrick faced the deputies with a long-bladed knife in one hand and a hatchet in the other with arms raised above his head. He refused to drop the weapons in response to orders to do so. Deputies were able to take Kirkpatrick into custody only after using a Taser on him.
At the sentencing hearing, Kirkpatrick moved for a reduced sentence, citing his mental health history of schizophrenia and depression. Kirkpatrick argued that he was suffering from delusions at the time he confronted the deputies, and further incarceration would not help him. The Court denied Kirkpatrick’s request, concluding that he posed a serious danger to the community because he was non-compliant in taking his medications, personally did not believe his mental health diagnosis, and had a history of violence and firearms.
Kirkpatrick was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Kirkpatrick was sentenced to 24 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Kirkpatrick is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Linn County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-0084-LRR.
Follow us on Twitter @USAO_NDIA.
Evergreen Business Owner Pleads Guilty to Filing False Income Tax ReturnRead the Press Release
DENVER – John Michael Askins, age 61, of Evergreen, Colorado, pled guilty yesterday before U.S. District Court Judge Christine M. Arguello to filing a false income tax return, United States Attorney John Walsh, IRS Criminal Investigation Acting Special Agent in Charge Steven Osborne announced. Judge Arguello is scheduled to sentence Askins on January 21, 2016. Askins was indicted by a federal grand jury in Denver on July 7, 2015.
According to the indictment and plea agreement, Askins owns three Service Master carpet cleaning franchises in the Denver area. In October 2011, the Internal Revenue Service, Criminal Investigation (IRS-CI) received a referral from the Small Business/Self Employed Section of the IRS regarding Askins. The referral arose as a result of an audit of the defendant’s 2007 through 2009 personal tax returns.
The returns in question were prepared by a CPA based upon profit and loss statements for Service Master businesses, mortgage interest statements, and information about rental property owned by Askins. Askins reviewed the prepared returns and on more than one occasion told the CPA that the return at issue was not correct because he did not make that much net income and the CPA made the changes requested. Askins failed to file an income return for 2010 even after the CPA attempted to contact Askins several times.
An IRS-CI Special Agent employed a bank deposit analysis of the Service Master business bank accounts and determined that Askins underreported his income by $33,762 for 2007, $127,472 for 2008, and $153,577 for 2009 which resulted in a tax loss of $9,453, $35,692, and $43,001, respectively. As for the failure to file for the year 2010, Askins gross receipts for this year amounted to $213,041. However, Askins did not provide any books or records regarding 2010 business transactions, deductions, or expenses; therefore, using the applicable tax rate of 20%, the government asserts that the tax loss for the failure to file for 2010 was $42,608. The total tax loss for all four counts charged in the Indictment is $130,755.
Askins pled to one count of filing a false income tax return, which carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000.
This case was investigated by Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Martha A. Paluch.
El Departamento de Justicia Resuelve Reclamación de Discriminación Relacionada a la Inmigración Contra las Escuelas Públicas del Condado de Miami-DadeRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que llegó a un acuerdo con las Escuelas Públicas del Condado de Miami-Dade (MDCPS por sus siglas en inglés) resolviendo unas reclamaciones que MDCPS discriminó a sus empleados debido a su ciudadanía en violación de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento, realizada por la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC por sus siglas en inglés) de la División de Derechos Civiles, encontró que MDCPS obligó a inmigrantes, pero no a ciudadanos estadounidenses similarmente situados, a presentar documentos específicos para comprobar su elegibilidad para trabajar. La disposición antidiscriminatoria de la INA prohíbe a los empleadores hacer exigencias documentales específicas basadas en la ciudadanía u origen nacional cuando verifican la autorización de trabajar de un empleado.
“Los empleadores tienen que asegurarse de que su personal de recursos humanos entienda las prácticas propias de contratación,” dijo Vanita Gupta, la Subprocuradora Prinicpal General y Directora de la División de Derechos Civiles del Departamento de Justicia. “Promoviendo el cumplimiento con la ley es importante para asegurar que los trabajadores no sean excluidos debido a tratamiento discriminatorio.”
Bajo el acuerdo, MDCPS pagará una penalidad civil de $90,000 a los Estados Unidos y establecerá un fondo de $125,000 para indemnizar a los individuos quienes perdieron sueldos debido a las prácticas de la compañía. Entre otras cosas, el acuerdo también requiere que la compañía realice monitoreo de cumplimiento por tres años, permita a OSC a entrenar a los estudiantes de MDCPS sobre los derechos del trabajador, y entrene sus empleados de recursos humanos sobre la provicíon antidiscriminatoria de la INA.
OSC es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por causa de ciudadanía y origen nacional en la contratación, despido o reclutamiento o referencia por honorario; prácticas documentales injustas, represalias; e intimidación. La Abogada Litigante Liza Zamd de la División de Derechos Civiles trató este asunto.
Para más información sobre las protecciones contra la discriminación en el empleo bajo las leyes de inmigración, llame a la línea directa para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para las personas con deficiencias auditivas); llame a la línea directa para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con deficiencias auditivas); inscríbase a un webinario gratis al www.justice.gov/crt/about/osc/webinars.php, correo electrónico [email protected]; o visite la página web de OSC en www.justice.gov/crt/about/osc.
Los solicitantes o empleados quienes creen que fueron sujetos a diferentes requisitos documentales basados en su ciudadanía, estado migratorio u origen nacional; o discriminación basada en su ciudadanía, estado migratorio u origen nacional en su contratación, despido o reclutamiento o referencia por honorario deben de contactar a la línea directa de OSC para trabajadores para asistencia.
District Man Pleads Guilty to Improper Touching of 16-Year-Old GirlRead the Press Release
WASHINGTON – James Leroy Burney, 32, of Washington, D.C., has pled guilty to one count of sexual abuse of a minor, stemming from his fondling of a 16-year-old girl while she slept at her mother’s home, U.S. Attorney Channing D. Phillips announced today.
Burney pled guilty on Oct. 21, 2015, in the Superior Court of the District of Columbia. He is to be sentenced on Dec. 18, 2015 by the Honorable Rhonda Reid Winston. He faces a statutory maximum sentence of seven-and-a-half years in prison.
According to the government’s evidence, on Aug. 13, 2015, the girl was spending the night with her mother, who she was visiting in Southeast Washington. Twice during the night, Burney slipped into a bedroom and fondled the girl. The Metropolitan Police Department got a warrant for Burney’s arrest, and arrested him on Sept. 16, 2015.
In announcing the plea, U.S. Attorney Phillips praised the work of MPD’s Youth Services Division, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists D’Yvonne Key and Joyce Arthur; Victim/Witness Advocate Veronica Vaughan; and La June Thames and Katina Adams-Washington, both of the Victim Witness Assistance Unit. Finally, U.S. Attorney Phillips commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
Detroit man sentenced for oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Markus Deanthony Franklin, 22, of Detroit, Michigan, was sentenced today to 51 months in prison for prescription painkiller trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Franklin, also known as “Diego,” sold oxycodone in Monongalia County, West Virginia in September 2014. He pled guilty in June 2015 to one count of “Aiding and Abetting Distribution of Oxycodone.”
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Dayton Man Sentenced to 73 Months in Prison for Illegally Possessing FirearmsRead the Press Release
DAYTON – Travis Matthews, 28, of Dayton was sentenced here today to 73 months in prison for possession of a firearm after having been previously been convicted of a felony offense.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) Detroit Field Division, and Dayton Police Chief Richard Biehl, announced the sentenced imposed today by United States District Judge Walter H. Rice.
Matthews pleaded guilty in July 2015 after being charged in a one-count bill of information with possessing a Cobra .380 caliber pistol. Matthews was on parole in 2013 for prior drug convictions, when adult parole authorities searched his home and discovered a total of four weapons, three of which were stolen. With three prior felony convictions, including two for possession of cocaine in 2006 and 2009 and one for trafficking heroin in 2009, Matthews is prohibited from possessing firearms.
Matthews was ordered to serve three years on supervised release following his prison term.
“Matthews poses a risk to the safety of the community because of his continuing criminal conduct,” said U.S. Attorney Carter Stewart. “Such lack of respect for the law requires deterrence in the form of a lengthy prison sentence.”
U.S. Attorney Stewart commended the investigation of this case by DEA agents, Dayton Police investigators, and Ohio Adult Parole Authority officers, and Assistant United States Attorney Andrew Hunt, who prosecuted the case.
Davon Lymon, Alleged Shooter of APD Officer, Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – This morning the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) filed a criminal complaint charging Albuquerque resident Davon Lymon, 34, with a violation of the federal firearms laws. The federal charge against Lymon was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of ATF, Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD), Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, U.S. Marshal Conrad E. Candelaria, New Mexico State Police Chief Pete N. Kassetas, Bernalillo County Sheriff Manuel Gonzales, III, Chief Michael Geier of the Rio Rancho Police Department, and Chief Jimmy Glascock of the New Mexico Transportation Police Division.
The federal charge against Lymon, 34, a resident of Albuquerque, N.M., arises out of a traffic stop by an APD officer on the evening of Oct. 21, 2015, in southeast Albuquerque, during which Lymon allegedly fired six rounds at the APD officer as the officer attempted to handcuff Lymon. Several rounds struck the APD officer, including one that struck the officer in the face near the chin. The APD officer was transported to a local hospital for treatment where he remains in critical condition.
According to the criminal complaint, on Oct. 21, 2015, the APD officer executed a traffic stop on a motorcycle being operated by Lymon which allegedly bore a stolen license plate. As the APD officer approached Lymon and the motorcycle, he spoke to Lymon who allegedly failed to comply with the officer’s orders. The complaint alleges that, when the APD officer attempted to detain and handcuff Lymon, Lymon drew a firearm and shot the officer. Lymon then fled from the scene; he was arrested last night when law enforcement officers and canines found him hiding in a shed with a handcuff still attached to one of his wrists. Lymon was transported to a local hospital where he is being treated for injuries sustained as a result of the canine apprehension. He will be taken into federal custody upon discharge from the hospital.
During last night’s investigation, law enforcement officers recovered six cartridges in the area in which the APD officer was shot. They also recovered a semiautomatic pistol from a vacant lot in the area Lymon allegedly fled towards as he left the scene of the shooting.
Lymon was prohibited from possessing either firearms or ammunition on Oct. 21, 2015, because he previously has been convicted of felony offenses in two state court cases. Lymon’s crimes of conviction include voluntary manslaughter, aggravated battery with a deadly weapon resulting in great bodily harm, fraud and forgery.
If convicted of the crime charged in the criminal complaint, Lymon faces a statutory maximum penalty of ten years in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of ATF, APD, the Albuquerque office of the FBI, the U.S. Marshals Service, the New Mexico State Police, the Bernalillo County Sheriff’s Office, the Rio Rancho Police Department and the New Mexico Transportation Police Division. Assistant U.S. Attorney Jacob A. Wishard is prosecuting the case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
lymon_complaint.pdf (199.69 KB)
Darien Spa Owner Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, announced that NUSRAT RIZVI, 75, of Norwalk, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of filing a false tax return.
According to court documents and statements made in court, from 2008 to 2010, RIZVI failed to report to the Internal Revenue Service approximately $144,776 in income from Lanphier Day Spa, Inc., a spa he operated with his wife in Darien.
In pleading guilty, RIZVI admitted that he took a portion of the cash received by the business, deposited the cash into his personal bank accounts and failed to report the income to his tax return preparer for the 2008 through 2010 tax years.
Judge Meyer scheduled sentencing for January 14, 2016, at which time RIZVI faces a maximum term of imprisonment of three years and a fine of up to $250,000. As part of his guilty plea, RIZVI has agreed to pay $50,485 in back taxes, as well as $37,862 in penalties.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Anchorage Man Sentenced to 108 Months for Role in Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man, Timothy George Alex, has been sentenced by United States District Judge Sharon Gleason to serve 108 months in prison for his role in a conspiracy to sell large quantities of cocaine and heroin. Upon being released from prison, Alex will be on supervised release for five years.
Timothy George Alex, 52, of Anchorage, Alaska, previously pled guilty to conspiring with others to distribute both cocaine and heroin. As part of his plea, Alex admitted that he worked with his co-conspirators to sell both cocaine and heroin for profit.
According to Assistant U.S. Attorney Stephanie C. Courter, who prosecuted the case, Alex and his partner sold cocaine and heroin on behalf of a local Anchorage drug supplier. They routinely acquired the drugs from their supplier “on credit” and then later repaid their source using cash earned from the sale of the drugs. During the course of the conspiracy, Alex was linked to the sale of approximately four kilograms of cocaine and nearly a kilogram of heroin.
Alex was also linked to large amounts of cash earned from the sale of drugs – more than $80,000 in total – that he either paid or attempted to pay back to his drug supplier. During the pendency of the investigation, law enforcement seized these funds, and, as part of his guilty plea, Alex agreed to forfeit them to the United States.
During the sentencing hearing, Judge Gleason noted that Alex’s drug trafficking involved a significant quantity of cocaine as well as a sizeable amount of heroin. She also found it troubling that Alex had engaged in this drug trafficking conspiracy just months after being released from custody for a previous drug trafficking crime. In announcing the sentence, Judge Gleason specifically focused on the need to promote respect for the law and the need to protect the community.
Alex’s sentencing is related to a string of indictments returned in late 2014 and early 2015 as part of ongoing efforts to dismantle and prosecute several large scale drug trafficking rings with ties to Alaska, California, Texas, Arizona, and Mexico. An Anchorage drug distributor, Daniel Harris, was sentenced in July 2015 to serve 135 months in prison for related drug, guns, and money laundering crimes. A Texas man, Jose Ramon Canales, was previously sentenced to serve 70 months in prison for his efforts to launder drug proceeds out of the United States and into Mexico. Canales’ co-defendant, Genaro Gutierrez-Reyes, was sentenced to 18 months for his participation in the international scheme. Several other defendants are set to be sentenced in the coming months for their roles in trafficking heroin, cocaine, and methamphetamine to Alaska and then transporting the cash proceeds of their trafficking activities back to Mexico.
This and the related cases were investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF). In announcing the sentence, U.S. Attorney Loeffler praised the work of the law enforcement agencies involved, including the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS), U.S. Immigration and Customs Enforcement (ICE), which oversees Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Anchorage Police Department (APD), the Alaska State Troopers (AST), and the Anchorage Airport Police Department. Additional assistance was provided by the U.S. Attorney’s Offices for the Western District of Texas, the Eastern and Central Districts of California, and the District of Arizona, as well as federal agents in all three states.
Alabama Man Sentenced for Stolen Identity Refund FraudRead the Press Release
A Montgomery County, Alabama, resident was sentenced to prison today for his involvement in a stolen identity tax refund fraud (SIRF) scheme, Acting Assistant Attorney Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
Jerome Marcel Newton was sentenced to serve 48 months in prison to be followed by three years of supervised release and was ordered to pay $147,102 in restitution to the Internal Revenue Service (IRS).
Newton previously pleaded guilty to one count of mail fraud and one count of aggravated identity theft. According to the superseding indictment and the plea agreement, Newton obtained the personal identifying information of others in various ways, including by using other individuals to collect identities or recruit people to provide their identities. Although Newton resided in Alabama, a number of the identities belonged to people living in Pittsburgh. Newton also obtained the identity information of prison inmates. Newton used the identities he obtained to file fraudulent tax returns, directing the refunds claimed on those returns into bank accounts or onto prepaid debit cards. Some of the prepaid debit cards were then mailed to addresses within the Middle District of Alabama.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of the IRS-Criminal Investigation and officers of the Sheriff’s Office for Douglas County, Georgia, who investigated the case, as well as Trial Attorneys Jason H. Poole and Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Jonathan S. Ross of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax.