Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
3 December 2015
Anaconda Attorney Sentenced to 42 Months in Prison for FraudRead the Press Release
MISSOULA – David Michael McLean, 75, of Anaconda, MT, was sentenced today in Missoula federal court. In August, McLean pleaded guilty before U.S. Magistrate Jeremiah Lynch to two counts of wire fraud and one count of aggravated identity theft. Senior U.S. District Court Judge Robert H. Whaley, of the Eastern District of Washington, Sentenced McLean to 18 months on the wire fraud counts—to run concurrently—and an additional 24 months on the aggravated identity theft charge for a total of 42 months. McLean will also have to serve three years of supervised release and pay an as yet undetermined amount of restitution. McLean was charged by indictment in July with five counts of wire fraud and five counts of aggravated identity theft.
Assistant United States Attorney Timothy Racicot stated in court documents that if called upon to prove its case at trial, the United States would have been prepared to demonstrate that McLean embezzled money from his clients and from the Montana Chapter of the American Board of Trial Advocates (ABOTA) from 2009 until 2014. During that time, McLean stole approximately $465,614 from his clients and $62,325 from ABOTA. He later incrementally repaid $29,611 of the ABOTA funds. McLean served as ABOTA’s secretary/treasurer during this period.
McLean wrote checks from ABOTA’s account to himself or his law firm, signing his own name as treasurer and forging another ABOTA officer’s signature, and deposited the checks in his own firm’s operating account. McLean stole money from his clients by settling cases without the client’s knowledge or consent, retaining the proceeds in accounts he controlled, and lying to his clients about the status of their cases. He also forged his clients’ names on settlement documents. This fraudulent behavior was ultimately discovered in July of 2014. McLean subsequently admitted his fraud and reported himself to the State Bar’s Office of Disciplinary Counsel (“ODC”). As a result of the ODC investigation, McLean was ultimately disbarred by the Montana Supreme Court in March of 2015.
In its his sentencing memo on behalf of the United States, Assistant U.S. Attorney Racicot emphasized the significance of McLean’s breach of trust both to the organization of which he was an officer and more particularly to his clients. The memo stressed the importance of the sentence in sending a deterrent message to other attorneys who might be tempted to misappropriate client funds.
“The duty of loyalty an attorney holds on behalf of his clients is a sacred one, and McLean breached that duty,” said United States Attorney Mike Cotter. “Because we belong to a largely self-policing profession—one moreover in which we are entrusted with the most sensitive personal and financial information of our clients—It is vital that a breach of this severity be punished appropriately. Pure and simple, Attorney McLean broke the law. The court’s sentence reflects the gravity of McLean’s offense and sends a message to the broader legal community that this type of behavior will not be tolerated.”
This case was prosecuted by Assistant U.S. Attorney Timothy Racicot and investigated by the FBI.
Albuquerque Man Sentenced to Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Andres Salinas, 21, of Albuquerque, N.M., was sentenced today in federal court to 72 months in prison followed by 25 years of supervised release for possessing child pornography. Salinas will be required to register as a sex offender after completing his term of imprisonment.
Salinas was arrested by Homeland Security Investigations (HSI) on Sept. 4, 2014, and charged in a criminal complaint with receipt and possession of visual depictions of minors engaged in sexually explicit conduct. Salinas subsequently was indicted on Sept. 23, 2014, on the same charges.
Court filings reflect that HSI initiated an investigation into Salinas in July 2014, after receiving a referral from the Internet Crimes Against Children (ICAC) Unit of the New Mexico Office of the Attorney General. In July 2014, investigators identified an IP address that was being used to download and share child pornography. Subsequent investigation revealed that the IP address was subscribed to the residence in which Salinas lived. In Sept. 2014, investigators interviewed Salinas at his residence and he admitted that he had used the file sharing network to download images and videos consistent with child pornography and child erotica. Investigators seized computers, a video recorder, a cellular phone and computer-related media that contained child pornography after learning that Salinas regularly used the computer while he lived in the residence.
On May 5, 2015, Salinas pled guilty to possessing child pornography and admitted that from July 20, 2014 through Aug. 9, 2014, he possessed visual depictions of minors engaged in sexually explicit conduct.
This case was investigated by the Albuquerque office of HSI, the New Mexico Office of the Attorney General and was prosecuted by Assistant U.S. Attorney Jacob Wishard; all members of the New Mexico Internet Crimes Against Children (ICAC) Task Force
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alaska Resident Sentenced to 7 Years in Prison for Drug Dealing and Money LaunderingRead the Press Release
SACRAMENTO, Calif. — Today, United States District Judge Troy L. Nunley sentenced DuWayne LeDoux, 55, of Kodiak, Alaska, to seven years in prison for possession with intent to distribute methamphetamine and conspiracy to structure cash deposits, United States Attorney Benjamin B. Wagner announced.
According to court documents, LeDoux enlisted Sacramento resident Jennifer MacDougal, 45, to obtain and ship methamphetamine and crack cocaine to LeDoux at various addresses in Kodiak and under various names, so that LeDoux could sell the drugs. LeDoux paid for the drugs by depositing cash into a Wells Fargo account held by MacDougal in amounts designed to avoid bank reporting requirements.
Kodiak, Alaska is on Kodiak Island off the southern coast of Alaska. The island has a total of approximately 14,000 residents, with approximately 6,000 of them in Kodiak.
Co-defendant MacDougal pleaded guilty in November 2012, and was sentenced to five years in prison.
This case is the product of an investigation by the Drug Enforcement Administration and the Internal Revenue Service’s Financial Crimes Task Force. Assistant United States Attorneys Jason Hitt and Jean M. Hobler are prosecuting the case.
***media Advisory***Read the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin, joined by FBI Special Agent James Lafferty, U.S. Department of Labor Office of Inspector General (DOL OIG) Special Agent Jeffrey Carter, and Assistant United States Attorneys Steve Ruby, Greg McVey, and Gabriele Wohl, will address the jury verdict in the trial of former Massey Energy Chief Executive Officer Don Blankenship today at a press conference at 1:00 p.m. in the U.S. Marshal’s Office – Suite 3600 - located in the Robert C. Byrd United States Courthouse in Charleston, West Virginia.
WHO:
- United States Attorney Booth Goodwin
- FBI Special Agent James Lafferty
- DOL OIG Special Agent Jeffrey Carter
- Assistant United States Attorney Steve Ruby
- Assistant United States Attorney Greg McVey
- Assistant United States Attorney Gabriele Wohl
WHAT:
- Press conference to address the jury verdict in the trial of former Massey CEO Don Blankenship
WHERE:
- Robert C. Byrd United States Courthouse
- U.S. Marshal’s Office – Suite 3600
- 300 Virginia Street, East
- Charleston, WV 25301
WHEN:
- Today at 1:00 p.m.
Follow us on Twitter: SDWVNews
2 December 2015
Wheeling, WV woman sentenced for heroin, cocaine, and painkiller traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Amanda Caretti, 24, of Wheeling, was sentenced today to twelve months and one day in prison for her role in a drug trafficking scheme involving heroin, cocaine, and oxycodone, United States Attorney William J. Ihlenfeld, II, announced.
Throughout 2014, Caretti conspired with other individuals to possess and distribute heroin, cocaine, and oxycodone in Marshall and Ohio Counties in West Virginia. She pled guilty in September 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Schedule I and Schedule II Controlled Substances.”
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Wayne County men indicted for distributing Adderall, other prescription drugsRead the Press Release
A federal grand jury returned a two-count indictment charging Ryan L. Peltan, 30, of Doylestown, and Derik W. Snell, 39, of Wooster, with possession with intent to distribute controlled substances, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Count 1 of the indictment alleges that on October 26, 2015, Peltan and Snell possessed with the intent to distribute approximately 2,952 dose units of Adderall and approximately 90 dose units of Adderall patches, Schedule II controlled substances.
Count 2 of the indictment alleges that on the same date, Peltan and Snell possessed with the intent to distribute approximately 999 dose units of Alprazolam (Xanax), approximately 592 dose units of Conazepam, approximately 1,494 dose units of Lorazepam, and approximately 1,052 dose units of Tramadol, Schedule IV controlled substances.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Akron Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Warren County Man Charged on Federal Child Exploitation ChargesRead the Press Release
St. Louis, MO – CHRISTOPHER DAVID SCHROEDER, Marthasville, Missouri, was charged in a criminal complaint alleging that he transported a minor from Ohio back to Missouri to engage in criminal sexual activity. He appeared for his initial appearance in federal court Wednesday afternoon.
If convicted, these charges carry penalties ranging from 15 years to life in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Union County, New Jersey, Man Admits Role in $6 Million Mortgage Fraud SchemeRead the Press Release
NEWARK N.J. – An Elizabeth, New Jersey, man today admitted recruiting straw buyers and submitting bogus loan applications as part of large-scale mortgage fraud scheme involving properties in northern New Jersey, U.S. Attorney Paul J. Fishman announced.
Miguel LaRosa, 48, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court of an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
LaRosa admitted that, from March 2011 through November 2012, he conspired with others to fraudulently obtain mortgages using falsified loan applications, supporting documents and closing documents. In addition to recruiting straw buyers to purchase properties, LaRosa and others created misleading certifications that bank accounts contained a specific amount of money when they actually contained less, prepared false appraisal reports, back-dated deeds and used unlicensed title agents to close transactions and disburse the mortgage proceeds.
Overall, the conspiracy in which LaRosa was involved resulted in more than $6 million in fraudulent loans and exposed lenders and the Federal Housing Administration to more than $2 million in potential losses.
The conspiracy to commit wire fraud charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for March 10, 2016.
U .S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for their roles in the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Acting Chief Barbara Ward of the Asset Forfeiture Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Defense Counsel: Dennis S. Cleary Esq., Newark
U.S. Secret Service Officer Indicted for Attempting to Send Obscene Images to a MinorRead the Press Release
WILMINGTON, Del. – A federal grand jury in Wilmington, Delaware, indicted a resident of Church Hill, Maryland, today on one count of attempting to transfer obscene materials to a minor, U.S. Attorney Charles M. Oberly III of the District of Delaware announced today.
Lee Robert Moore, 37, was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest. Moore was arrested on Nov. 9, 2015, and has remained in custody since that time.
According to the indictment and court documents filed in the case, Moore allegedly maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore allegedly engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats allegedly between Moore and the supposed female minor were sexual in nature and, on several occasions, Moore allegedly sent pictures of himself, including one depicting his penis.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force conducted the investigation. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
U.S. Secret Service Officer Indicted for Attempting to Send Obscene Images to a MinorRead the Press Release
A federal grand jury in Wilmington, Delaware, indicted a resident of Church Hill, Maryland, today on one count of attempting to transfer obscene materials to a minor, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Charles M. Oberly III of the District of Delaware announced today.
Lee Robert Moore, 37, was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest. Moore was arrested on Nov. 9, 2015, and has remained in custody since that time.
According to the indictment and court documents filed in the case, Moore allegedly maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore allegedly engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats allegedly between Moore and the supposed female minor were sexual in nature and, on several occasions, Moore allegedly sent pictures of himself, including one depicting his penis.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force conducted the investigation. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Two more defendants sentenced for role in counterfeiting schemeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that two women were sentenced in federal court today in Charleston, West Virginia, for passing counterfeit $100 bills. Nyteria Green, 36, of Columbus, Ohio, was sentenced to three years in federal prison. O’wynn Rogers, 27, of Beckley, was sentenced to one year in federal prison.
Green and Rogers previously pleaded guilty on August 18, 2015, and admitted to passing counterfeit $100 bills at locations around Beckley, West Virginia, in April 2014. Both women admitted to passing the counterfeit money at several businesses, including at multiple locations in the Crossroads Mall in Mt. Hope and at the IHOP on Harper Road in Beckley.
In a related case, Paula Green, of Columbus, Ohio, pleaded guilty to three counts of passing counterfeit $100 bills in Beckley and Charleston, and faces up to 60 years in prison when she is sentenced on February 24, 2016, at the federal courthouse in Beckley. In another related case, Kenyata Smith, of Beckley, was sentenced on October 21, 2015, to two years of probation for her involvement in the passing of counterfeit money.
The investigation of this case was conducted by the United States Secret Service. Assistant United States Attorneys Eric Bacaj handled the prosecution.
-
Follow us on Twitter: SDWVNews
-
Two West Virginia men charged with wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging Jeffery L. Burdine, 38, of Hundred, West Virginia, and Devin K. Wright, 25, of Fairmont, West Virginia, with wire fraud, United States Attorney William J. Ihlenfeld, II, announced.
Burdine owned and operated Express Towing, a towing company in Hundred, West Virginia, through which he would assist customers to rent trucks from national rental companies, such as Penske, the Avis Budget Group, and U-Haul. Burdine allegedly conspired with various customers to stage false motor vehicle accidents involving the rented trucks. Instead of calling the national rental companies and arranging for their preferred and approved towing companies to tow the damaged vehicles, Burdine allegedly towed the trucks himself or had the customers return the trucks to his business. He would then allegedly make interstate telephone calls to the national rental companies in which he would demand payment of his towing fees before he would return the truck to the rental companies.
Burdine and Wright are each charged with one count of “Conspiracy to Commit Wire Fraud” and two counts of “Wire Fraud.” They each face up to 20 years in prison and a fine of up to $250,000 on each of the three counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government. The Federal Bureau of Investigation is leading the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Associates of Decavalcante Crime Family Admit Distributing CocaineRead the Press Release
NEWARK, N.J. – Two associates of the DeCavalcante organized crime family of La Cosa Nostra today admitted their roles in distributing more than 500 grams of cocaine, U.S. Attorney Paul J. Fishman announced.
John Capozzi, 34, of Union, New Jersey, and Mario Galli, 23, of Toms River, New Jersey, each pleaded guilty before U.S. District Judge William H. Walls to an information charging them with one count of distribution of more than 500 grams of cocaine.
According to documents filed in this case and statements made in court:
Capozzi and Galli were arrested and charged by complaint in March 2015, along with eight members of the DeCavalcante crime family. They both admitted that between Dec. 12, 2014, and March 2015, in conjunction with other family associates, they sold more than one-half a kilo of cocaine to an undercover FBI agent for at least $78,000.
The drug distribution count to which Capozzi and Galli each pleaded guilty carries a mandatory minimum of five years, a maximum of 40 years in prison and a $5 million fine. Sentencing for both defendants is scheduled for March 21, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Defense counsel:
Capozzi: Neil G. Duffy III Esq., Union, New Jersey
Galli: James N. Butler Jr. Esq., Asbury Park, New Jersey
Tennessee Businessman Pleads Guilty to Stock Fraud SchemeRead the Press Release
BOSTON – A Tennessee businessman pleaded guilty today in U.S. District Court in Boston to defrauding investors in connection with the fraudulent sale of millions of dollars of stock in a medical technology company.
Shane Gunn, 40, of Medina, Tenn., pleaded guilty to one count of wire fraud. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 2, 2016.
From 2010 to 2013, Gunn, an information technology expert, sold stock in CareXGen, whose principal asset was a patent for a system, he claimed to have designed, that would facilitate the electronic exchange of health information. To lure investors, Gunn repeatedly misrepresented CareXGen’s profitability and how investors’ money would be used. He also represented to investors that CareXGen had large contracts lined up worth millions of dollars. In fact, CareXGen did not have any major contracts and Gunn spent over $1 million of victim investors’ money on himself, his wife and his former girlfriend.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stephen Heymann of Ortiz’s Economic Crimes Unit.
Tax Preparers Plead Guilty to Federal Offenses in Separate CasesRead the Press Release
DALLAS — Two tax preparers who operated tax preparation businesses in Irving, Texas, and Duncanville, Texas, recently pleaded guilty to federal offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
In one case, Hector Gerardo Nunez pleaded guilty to one count of aiding and assisting in the preparation of a false tax return. According to the factual resume filed in his case, from at least 2007 through 2010, Nunez did business under the name of Speedy Tax Service, located on W. Airport Freeway in Irving. During this period, Nunez knowingly and willfully prepared, and caused to be filed with the Internal Revenue Service (IRS), income tax returns that were materially false. Nunez would include false or inflated deductions and credits that were intended to produce a fraudulently inflated refund to be paid by the IRS. He would then collect a fee that was deducted from the refund generated by each return he prepared. Nunez faces a maximum statutory penalty of three years in federal prison as well as a fine and restitution. Sentencing is set for March 10, 2016, before U.S. District Judge Jane J. Boyle.
In the other case, Sherene Warren pleaded guilty to the same offense as well as to one count of theft of government money. According to the factual resume filed in her case, Warren was the owner and manager of the tax preparation business Fast Tax Services that was located on N. Cedar Ridge Drive in Duncanville and then later on W. Wheatland Road in Duncanville. Warren falsified, according to the factual resume, line items on clients’ tax returns to obtain larger refunds. She also admitted receiving approximately $121,701 in 2010, $218,517 in 2011 and $360,491 in 2012 in fees/bonuses for preparing the tax returns. Warren further admitted that she did not disclose any Fast Tax Services’ income on her 2010 tax returns, and that she did not file a tax return in 2011 or 2012.
Warren also submitted false and fraudulent information about her income and employment to the Dallas Housing Authority in connection with receipt of Section 8 housing benefits, admitting that she stole approximately $28,786 in housing assistance to which she was not entitled. Each year, the factual resume goes on to state, Warren submitted false and fraudulent documents to the Dallas Housing Authority showing she had no income, when, as she well knew, she received substantial income from the operation of Fast Tax Service.
Warren faces a maximum statutory penalty of three years in federal prison on the tax conviction and five years on the theft of government money conviction, as well as fines and restitution. Warren was also charged with stealing disability benefits and, according to the plea agreement filed, while she did not plead to that offense, she has agreed to pay restitution of an amount proven at sentencing to the IRS, the U.S. Department of Housing and Urban Development (HUD) and the Social Security Administration (SSA). Sentencing is set for March 17, 2016, before U.S. District Judge Reed C. O’Connor.
IRS Criminal Investigation is investigating both cases. HUD Office of Inspector General and the SSA Office of Inspector General are also investigating the Warren case.
Assistant U.S. Attorney Christopher Stokes is prosecuting the Nunez case, and Assistant U.S. Attorney Nicholas Bunch is prosecuting the Warren case.
# # #
Tax Preparer Admits Filing Thousands of False Returns in Multi-Million Dollar Tax Return ScamRead the Press Release
Assistant U.S. Attorneys Joseph J.M. Orabona (619) 546-7951 or Alexandra Foster (619) 546-6735
NEWS RELEASE SUMMARY – December 2, 2015
SAN DIEGO – The owner of a tax preparation business pleaded guilty today in federal court, admitting that she filed more than 4,000 false income tax returns with the Internal Revenue Service in order to obtain more than $7 million in bogus refunds.
Melissa Ann Vega, also known as Lisa Vega, was a local tax preparer and owner of L&T Works, a tax return preparation business on Miramar Road. She entered her plea to charges of conspiracy to file false, fictitious, and fraudulent claims for federal tax refunds, tax evasion and aggravated identity theft before U.S. Magistrate Judge Bernard G. Skomal.
According to her plea agreement, Vega, conspired with others from at least December 2009 through April 2015 to submit thousands of false income tax returns to the IRS in order to fraudulently obtain tax refunds to which Vega, her co-conspirators, and her clients were not entitled. In carrying out her scheme, Vega falsified her clients’ tax returns without their knowledge or consent. As part of the conspiracy, Vega claimed thousands of dollars in false education expenses and tax credits for which her clients were not qualified.
Vega told her co-conspirators and employees that they should maximize clients’ refunds by filing for a $4,000 education credit, even though the client did not attend school for that tax year. To conceal her role in the fraud, Vega intentionally omitted her name and tax return preparer identification number on the false tax returns she prepared for her clients. In total, Vega’s fraud caused the IRS to pay more than $7 million in artificially-inflated tax refunds based solely on the false education credits. Moreover, Vega admitted that she and her co-conspirators stole the identities of other persons, including minors, and used them on the false tax returns in order to further inflate the amount of the tax refund paid by the IRS.
Vega did not shy away from personally profiting from her fraudulent scheme. In addition to charging her clients between $150 and $200 per return, Vega also admitted that she stole more than $300,000 in false tax refunds from her clients by directing their refunds into bank accounts that she controlled. Vega spent this money for her own personal benefit. Vega also admitted that she evaded her own income taxes and filed false personal tax returns in which she fraudulently claimed withholding credits, education credits, and tax credits for minor dependents that she did not support and were not related to her. According to court documents, Vega evaded more than $156,000 in taxes due to the IRS for tax years 2009 through 2013.
The plea agreement also sets forth a forfeiture provision whereby Vega, a previously convicted felon, agreed to the surrender of several firearms seized from her residence during the execution of a search warrant in April 2014, including a sawed-off shotgun, shotgun shells, a 9mm handgun, and 9mm ammunition. Vega’s husband, Jamie Lang, pleaded guilty to possessing the unregistered sawed-off shotgun and is scheduled to be sentenced in this case before U.S. District Judge Jeffrey T. Miller on December 18, 2015 at 9:00 a.m. In addition, Vega consented in her plea agreement to the forfeiture of approximately $18,600 in cash, also seized during the search warrant, which represented proceeds of her tax fraud.
Furthermore, as part of her plea agreement, Vega agreed to be permanently enjoined from preparing or filing federal income tax returns for anyone other than herself. A civil complaint will be filed against Vega, and a permanent injunction will be entered to prevent Vega from acting as a tax preparer in the future.
Vega was released on bond in this case on January 28, 2015. Although the court informed her not to commit another federal crime, Vega once again began filing false tax returns with the IRS within days of her release. Without the clients’ knowledge, Vega fraudulently inflated or created credits and deductions to maximize her clients’ false returns. The IRS uncovered her fraud, and Vega was arrested on February 25, 2015. In furtherance of her conspiracy, Vega agreed with Deanna Dave (charged in Criminal Case No. 15CR2715-JM) to misrepresent to the grand jury that Dave was the owner and paid-return preparer for the tax returns filed in February 2015. In truth, Vega continued as the owner of her tax preparation business and prepared the false tax returns which she filed for her clients. On November 17, 2015, Dave pleaded guilty to making a false declaration before the grand jury, and her sentencing is scheduled for February 5, 2016 before Judge Miller.
“Tax return preparers owe a duty to their clients to prepare tax returns that are accurate and comply with the law,” said U.S. Attorney Laura Duffy. “Tax return preparers who defraud the IRS out of millions of dollars, intentionally falsify tax returns, and steal the identities of minor dependents breach the public’s trust and undermine confidence in the tax system. This Office and our law enforcement partners will vigilantly pursue allegations of such misconduct in order to protect the community and the public.”
With a new tax return filing season right around the corner, U.S. Attorney Duffy reminded the public to always review a copy of any tax return prepared and filed on their behalf and to be skeptical of tax preparers that offer to obtain substantial tax refunds.
Erick Martinez, Special Agent in Charge for IRS Criminal Investigation commented: “As we approach tax filing season, those who might consider committing refund fraud and identity theft should be aware of the extremely negative consequences of doing so,” said IRS Criminal Investigation's Special Agent in Charge Erick Martinez. “IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false income tax returns.”
“The Secret Service remains committed to vigorously investigating and seeking prosecution of those individuals who commit identity theft. We are grateful for the efforts of the U.S. Attorney’s Office and our federal partners at the Internal Revenue Service in this investigation,” said David Murray, Special Agent in Charge, United States Secret Service, San Diego Field Office.
Separately, three other defendants have entered guilty pleas admitting their roles in the tax fraud conspiracy. Earlier this year, co-conspirators Tammie Cowles, Stephen Elliott, and Justin Vega entered guilty pleas to conspiracy to file false claims for tax refunds. Co-conspirator Justin Vega is scheduled to be sentenced before U.S. District Judge Jeffrey T. Miller on January 22, 2016, and co-conspirators Tammie Cowles and Stephen Elliott are scheduled for sentencing before Judge Miller on March 4, 2016.
Vega is scheduled to be sentenced for her crimes before U.S. District Judge Jeffrey T. Miller on March 4, 2016 at 9:00 a.m.
DEFENDANT Criminal Case No. 14CR3658-JM
Melissa Ann Vega Age: 44 San Diego, CA
SUMMARY OF CHARGES THAT DEFENDANT VEGA PLEADED GUILTY TO:
Count 1 – Title 18, United States Code, Section 286 B Conspiracy to File False Claims
Maximum penalties: 10 years in prison, $250,000 fine, 3 years of supervised release.
Count 2 – Title 26, United States Code, Section 7201 – Tax Evasion
Maximum penalties: 5 years in prison, $250,000 fine, 1 year of supervised release.
Count 3 – Title 18, United States Code, Section 1028A – Aggravated Identity Theft
Maximum penalties: 2 years in prison to be served consecutive to any other term of imprisonment, $250,000 fine, 3 years of supervised release
OTHER CO-CONSPIRATORS AND CHARGES:
Tammie Cowles Age: 41 San Diego, CA Criminal Case No. 15CR1591-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Stephen Elliott Age: 28 San Diego, CA Criminal Case No. 15CR1003-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Justin Vega Age: 26 San Diego, CA Criminal Case No. 15CR2198-JM
Pleaded Guilty to: Title 18, United States Code, Section 286 – Conspiracy to File False Claims
Deanna Dave Age: 49 San Diego, CA Criminal Case No. 15CR2715-JM
Pleaded Guilty to: Title 18, United States Code, Section 1623 – False Declaration before Grand Jury
Jamie Lang Age: 27 San Diego, CA Criminal Case No. 14CR3658-JM
Pleaded Guilty to: Title 26, United States Code, Section 5861(d) – Possession of Saw-Off Shotgun
INVESTIGATING AGENCIES
Internal Revenue Service-Criminal Investigation
United States Secret Service
Bureau of Alcohol, Tobacco, and Firearms
Store Owner Sentenced to Three Years for Defrauding Government Assistance ProgramRead the Press Release
PHILADELPHIA - Saud Saleh, 30, of Philadelphia, PA, was sentenced today to three years in prison for defrauding the United States Department of Agriculture (USDA)’s Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamp program. The defendant had pleaded guilty to charges of trafficking in SNAP benefits and committing wire fraud.
The defendant owned and operated Twinz Meat Market, a retail grocery store, now defunct, that was located at 3083 Kensington Avenue in Philadelphia. At his guilty plea hearing, the defendant admitted that he knowingly trafficked in SNAP benefits, and directed his employees to traffic in SNAP benefits, by purchasing those benefits from customers of Twinz Meats, which is illegal. The defendant admitted that within a 12-month period, he was responsible for a program loss of $1,125,586.
In addition to the prison term, United States District Court Judge Gerald J. Pappert ordered restitution of $1,125,586 to USDA and three years of supervised release.
The case was investigated by the United States Department of Agriculture Office of Inspector General, and U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Floyd J. Miller.
Stockton Woman Sentenced to over 4 Years in Prison for Participation in Bank Fraud and Identity Theft Scheme Using Mail Stolen from Sutter County and Sacramento County Post OfficesRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Breneth L. Chase, 44, of Stockton, today to four years and 10 months in prison for bank fraud, aggravated I.D. theft, and possession of counterfeit I.D. documents, United States Attorney Benjamin B. Wagner announced.
According to court documents, Chase and others obtained U.S. mail and postal keys stolen during burglaries of post offices in Sutter County and Sacramento County. She used the stolen mail to manufacture checks and identification documents to cash phony checks, apply for lines of credit, and make purchases at local department stores. According to court documents, Chase possessed over five different manufactured identifications including U.S. Military identifications and badges. Chase admitted that she possessed personal and financial information for numerous Sutter and Sacramento County residents.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “Postal Inspectors work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail, postal property and complex financial crimes committed against the public and the Post Office.”
This case was the product of an investigation of the United States Postal Inspection Service, Sutter County Sheriff's Office, Stockton Police Department, and Sutter Creek Police Department, with the assistance from the Sacramento County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez prosecuted the case.
Stark County duo charged with counterfeitingRead the Press Release
A pair from Stark County were indicted for allegedly counterfeiting $20 bills, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Keith Bloomfield, 20, of Canton, and Jordan R. Custer, 20, of Canal Fulton, were charged wtih with aiding and abetting one another in making counterfeit obligations of the United States. The indictment alleges that Bloomfield and Custer, aiding and abetting one another, falsely made, forged, and counterfeited approximately 20 falsely made, forged and counterfeited twenty-dollar Federal Reserve notes, obligations of the United States, in violation of Title 18, United States Code, Sections 471 and 2.
If convicted, the defendants’ sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Carmen E. Henderson, and was investigated by the United States Secret Service.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Spirit Lake Man Pleads Guilty and is Sentenced for Aggravated Sexual AssaultRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Dec. 2, 2015, Alonzo Chico, 48, St. Michael, ND, pleaded guilty to two counts of abusive sexual contact of a minor and was sentenced before U. S. District Judge Ralph R. Erickson to serve 20 years in prison. Judge Erickson also sentenced Chico to serve 10 years supervised release and to pay a $200 special assessment to the Crime Victims’ Fund.
Chico lived in the home of the child-victim’s grandmother on the Spirit Lake Reservation. Sometime between the fall of 2010 and the spring of 2011, Chico touched the child in private areas while the child lay sleeping and was startled awake. On another occasion during this same time frame, Chico grabbed the child by the arm and attempted to have the child touch him in his private area.
This case was investigated by the Federal Bureau of Investigation (FBI).
Assistant U. S. Attorney Janice Morley prosecuted this case.
South Charleston man pleads guilty to Federal drug chargeRead the Press Release
CHARLESTON, W.Va. – A South Charleston man pleaded guilty today in federal court in Charleston, West Virginia, to distribution of heroin, announced United States Attorney Booth Goodwin. Gavin Edwards, 32, of South Charleston, entered his guilty plea today to the federal drug charge.
Edwards admitted that on December 8, 2014, he sold approximately half a gram of heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT). Edwards completed the drug deal in the parking lot behind his apartment at 4832 Kanawha Turnpike Avenue in South Charleston. Edwards further admitted that on December 10, 2014, he sold the same confidential informant approximately 1.6 grams of heroin.
On December 16, 2014, detectives with MDENT executed a search warrant for the apartment and located over 250 grams of marijuana, over 250 grams of crack, and approximately $5,930 in cash. During the search, officers also recovered an additional $1,569 in cash that Edwards had in his pockets.
Edwards faces up to 20 years in federal prison and a $1 million fine when he is sentenced on March 16, 2016, in federal court in Charleston.
This case was investigated by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
The case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Somerset County, New Jersey, Man Charged with Using Bogus Non-Profit to Deceive Seniors into Unnecessary Genetic TestingRead the Press Release
Paid Healthcare Providers to Falsely Claim Tests Were Necessary, Defrauding Medicare of More than $1 million
NEWARK, N.J. – A Somerset, New Jersey, man was arrested this morning and charged with using the non-profit The Good Samaritans of America to defraud the Medicare program by convincing hundreds of senior citizens to submit to unnecessary genetic testing, U.S. Attorney Paul J. Fishman announced.
Seth Rehfuss, 41, was charged by criminal complaint with one count of healthcare fraud. He is scheduled to appear later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint:
From July 2014 and continuing through the present, Seth Rehfuss and others used The Good Samaritans of America to gain access to low-income senior housing complexes. Rehfuss and other members of the scheme claimed that The Good Samaritans of America was a “trusted non-profit” that assisted senior citizens in navigating federal benefit programs. In reality, The Good Samaritans of America was a front to present information about genetic testing. Rehfuss used advertisements for free ice cream to ensure attendance at the presentations.
In order to convince senior citizens to submit to genetic testing, Rehfuss used fear-based tactics during the presentations, including suggesting the senior citizens would be vulnerable to heart attacks, stroke, cancer and suicide if they did not have the genetic testing. In addition, Rehfuss claimed that the genetic testing allowed for “personalized medicine.”
As part of the scheme, defendant Rehfuss and others frequently took DNA swabs in the community rooms where the presentations took place or made arrangements to visit the senior citizen’s apartment on another day to take the DNA swab. Regardless of the timing or location of the swabbing, the DNA swab was collected without the involvement of any healthcare provider and without any determination by a healthcare provider that such testing was medically necessary or appropriate.
In order to get the tests authorized, Rehfuss used advertisements on Craigslist to recruit healthcare providers for the scheme. After entering into contractual relationships with The Good Samaritans of America, the healthcare providers received requisition forms that often included a patient’s personal information, Medicare information, medication lists and diagnosis codes. The healthcare providers were paid thousands of dollars per month to sign their names to requisition forms authorizing testing for patients they never examined and were in no way involved in the patients’ care or treatment. As a result, Rehfuss caused the Medicare program to pay more than $1 million to two clinical laboratories, from which defendant Rehfuss obtained commissions of tens of thousands of dollars.
The investigation revealed that Rehfuss and others were actively working towards expanding the scheme outside of New Jersey into other states, including: Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.
The healthcare fraud charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, along with investigators from the United States Attorney’s Office for the District of New Jersey and the U.S. Marshals Service Asset Forfeiture Program, with the investigation leading to the charges.
The pending charges against Rehfuss are merely allegations, and he is considered innocent unless and until proven guilty.The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
Defense counsel: TBD
Siloam Springs Man Sentenced to over 9 Years in Prison for Distribution of Methamphetamine with a FirearmRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Manuel Patrick Camarillo, aka “Sick”, age 25, of Siloam Springs, Arkansas was sentenced yesterday to 52 months in federal prison for two counts of Distribution of Methamphetamine, and to 60 months in federal prison for one count of Carrying a Firearm during a Drug Trafficking Crime, followed by three years of supervised release. The sentences will run consecutively. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
In his plea agreement, Camarillo admitted that in April 2015 he twice distributed methamphetamine in exchange for money, and during one transaction produced a .40 caliber Ruger P94 handgun.
This case was investigated by the Fourth Judicial Drug Task Force, the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Denis Dean prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Second Texas Fugitive Sentenced for Aggravated Identity Theft and Manufacturing Counterfeit CurrencyRead the Press Release
Jacksonville, Florida – Senior United States District Judge Henry Lee Adams has sentenced Joe Eugene Loving (47, Texas) to five years and five months in federal prison for manufacturing counterfeit Federal Reserve notes, false representation of a Social Security number, and aggravated identity theft. As part of the sentence, the Court also ordered Loving to pay restitution to the businesses he had defrauded.
According to court documents, on February 2, 2015, the Green Cove Springs Police Department received information that two individuals, later identified as Loving and John Thomas Humphreys (46, Texas), were manufacturing counterfeit Federal Reserve notes in their room at the Astoria Hotel in Clay County. The two men had active arrest warrants for parole violations in Texas and were subsequently arrested at the hotel by deputies from the Clay County Sheriff’s Office. Loving was in possession of a counterfeit $100 bill at the time of his arrest.
During an interview with law enforcement, Humphreys and Loving stated that they had been involved in a drug deal in Texas in December 2014 and had been on the run ever since. They estimated printing and passing at least $10,000 in counterfeit currency. In addition, they admitted using the identities of others to do so.
During a subsequent search of their hotel room, agents located a box of personal identification information and financial documents belonging to other individuals, a printer/scanner/copier with counterfeit checks lying on top of it, counterfeit currency, and various computer media that had been used to manufacture the counterfeit currency.
On November 10, 2015, Humphreys was sentenced to four years and six months in federal prison for his role in this case. He was also ordered to pay restitution to the businesses he had defrauded.
A third individual, Paul Corbin Pennington, Jr., was also charged in this case for passing counterfeit currency. Pennington, a maintenance worker at the Astoria Hotel, loaned Loving and Humphreys his computer. Loving and Humphreys then used the computer to print counterfeit checks. Pennington confessed to law enforcement that he had passed counterfeit currency in Clay County. On October 13, 2015, Pennington was sentenced to 141 days in federal prison and was ordered to pay restitution to the businesses he had defrauded.
This case was investigated by the Green Cove Springs Police Department, the Clay County Sheriff’s Office, and the U.S. Secret Service, Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Postal employees charged with stealing mailRead the Press Release
Two people from Northeast Ohio were charged wtih mail theft by a postal employee, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Indicted are Joseph W. Dixon, III, 36, of Parma, and Tiffany C. Miller, 26, of Cleveland.
The indictment against Dixon charges that, while he was a Postal Service employee, he stole mail from a Postal Service collection box in Brook Park.
A separate indictment against Miller charges that, while she was a Postal Service employee, she stole mail from Postal Service collection boxes in Cleveland and an envelope addressed to a resident of Euclid.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to each case, including the defendants’ prior criminal record, if any, the defendants' roles in the offenses and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
These cases are being prosecuted by Assistant United States Attorney Justin Seabury Gould. The cases were investigated by the United States Postal Service, Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Philadelphia Check Cashing Agency and One Owner Charged with Money LaunderingRead the Press Release
PHILADELPHIA – Cottman Check Cashing, LP, located in Philadelphia, PA, and Steven Kessler, 50, of Cherry Hill, NJ, one of Cottman’s owners, were charged by indictment, unsealed today, with eight counts of aiding and abetting aggravated structuring of financial transactions, announced United States Attorney Zane David Memeger. Kessler was also charged with conspiring to structure financial transactions.
According to the indictment, between 2009 and 2011, Kessler conspired with a sports bookmaker, Jerold Cohen, charged elsewhere, to help the bookmaker cash 76 checks from one of his bettors, totaling approximately $670,000, without triggering a report that would have to be provided to the U.S. government. Kessler allegedly helped Cohen cash those checks at Cottman Check Cashing.
According to the indictment, Cohen obtained the 76 checks from a single bettor to settle the bettor’s losses. Cohen allegedly knew that a report would have to be filed with the government if he cashed any check over $10,000. To conceal the nature of his business and the total amount of his income, Cohen allegedly directed the bettor to write the checks in amounts just under $10,000. The bettor did as he was instructed and, because he was often in debt in an amount that far exceeded $10,000, the bettor would provide Cohen with several checks at one time, each for an amount just under $10,000. Cohen then took those checks to Cottman Check Cashing to be cashed because of his longtime friendship with Kessler. It is alleged that Cohen knew Kessler would help him by cashing the checks so as to avoid triggering a report that must be filed with the government when a cash transaction is over $10,000. Kessler’s alleged assistance included cashing the checks himself, failing to keep business records of most of the transactions, and making Cottman Check Cashing available to perform the money laundering. The indictment charges that the structured transactions were part of a pattern of illegal activity involving transactions of more than $100,000 in a 12-month period.
If convicted, Kessler faces up to 85 years in prison, three years of supervised release, a fine, a $900 special assessment, and criminal forfeiture of up to $670,175. Cottman Check Cashing faces supervised release, a fine, an $800 special assessment, and criminal forfeiture of up to $670,175.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvanian Man Pleads Guilty to Conspiracy to Smuggle Turtles out of the United States and to Using a Fictitious Name and AddressRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN TOKOSH, age 54, of Pennsylvania, pled guilty today to an indictment charging him with conspiring to smuggle turtles out of the United States, violating the Lacey Act, and using a fictitious name and address in a mailing.
According to court records, from late 2011 to the fall of 2014, TOKOSH and five other named individuals conspired to smuggle turtles from the United States and to have used false labels on packages of turtles being shipped in foreign and interstate commerce. TOKOSH is also alleged to have violated the Lacey Act, which prohibits trafficking in illegally taken wildlife, and to have used a fictitious name and address in mailings that were sent in furtherance of the scheme.
TOKOSH admitted that he was part of a group of individuals involved in capturing North American Wood turtles, which are a threatened species, from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong. TOKOSH’s role in the conspiracy was to capture the North American Wood turtles from their native habitat in Pennsylvania, where it is illegal to hunt them, and then to ship them to a middleman in Covington. TOKOSH also admitted to using the alias “Jay Rockington” in an effort to disguise that he was the source of the turtles.
TOKOSH faces a maximum term of imprisonment of five years, a fine of $250,000, and up to 3 years of supervised release following any term of imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing for February 24, 2016.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Pennsylvanian Man Pleads Guilty to Conspiracy to Smuggle Turtles out of the United States and to Using a Fictitious Name and AddressRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN TOKOSH, age 54, of Pennsylvania, pled guilty today to an indictment charging him with conspiring to smuggle turtles out of the United States, violating the Lacey Act, and using a fictitious name and address in a mailing.
According to court records, from late 2011 to the fall of 2014, TOKOSH and five other named individuals conspired to smuggle turtles from the United States and to have used false labels on packages of turtles being shipped in foreign and interstate commerce. TOKOSH is also alleged to have violated the Lacey Act, which prohibits trafficking in illegally taken wildlife, and to have used a fictitious name and address in mailings that were sent in furtherance of the scheme.
TOKOSH admitted that he was part of a group of individuals involved in capturing North American Wood turtles, which are a threatened species, from the wild in Pennsylvania, shipping the turtles by mail though the United States, and then illegally exporting the turtles to Hong Kong. TOKOSH’s role in the conspiracy was to capture the North American Wood turtles from their native habitat in Pennsylvania, where it is illegal to hunt them, and then to ship them to a middleman in Covington. TOKOSH also admitted to using the alias “Jay Rockington” in an effort to disguise that he was the source of the turtles.
TOKOSH faces a maximum term of imprisonment of five years, a fine of $250,000, and up to 3 years of supervised release following any term of imprisonment. U.S. District Judge Ivan L.R. Lemelle set sentencing for February 24, 2016.
U.S. Attorney Polite praised the work of the U.S. Fish and Wildlife Service, Homeland Security Investigations, and the United States Postal Inspection Service in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Pennsylvania Woman Convicted for Millions of Dollars in Fraudulent Sales of Telecom EquipmentRead the Press Release
NEWARK, N.J. – A Pennsylvania woman was convicted today for her role in a long-running, large-scale scheme involving the fraudulent sale of telecommunications equipment belonging to a company she worked for as a consultant, U.S. Attorney Paul J. Fishman announced.
Following an 11-day trial before U.S. District Judge Peter G. Sheridan in Trenton federal court, Juanita L. Berry, 47, of Phoenixville, Pennsylvania, was convicted of four counts of wire fraud, which caused more than $3.5 million in losses, and two counts of tax evasion for evading taxes in 2010 and 2011. The jury deliberated for 75 minutes before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
From 2008 to 2011, Berry worked as a consultant for an Indiana company that installed and removed telecommunications systems, first as a sales representative and later as the company’s vice president for major accounts. Initially, Berry worked out of the company’s Levittown, Pennsylvania, facility and, later, out of its Dayton, New Jersey, facility. The “brains” of the telecommunications systems the company installed and removed were the electronic circuit boards of varying complexity that range in price between several hundred to tens of thousands of dollars.
Berry owned a company named J. Starr Communications Inc., (J. Starr) through which she arranged her consulting agreement and allegedly operated her fraudulent scheme.
Without the knowledge or authorization of the telecommunications company’s management, Berry sold both used cards and new cards with other telecommunications equipment owned by the company as though such equipment belonged to her or J. Starr. She then pocketed the proceeds from such fraudulent sales. Berry deceived employees at the Levittown and Dayton facilities into thinking that the shipments of used cards were part of the telecommunications company’s normal course of business. Between 2008 and 2011, the Florida company that purchased the cards from Berry or J. Starr wired in excess of $3.5 million in payment to J. Starr’s bank account.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s conviction.
The government is represented by Senior Litigation Counsel Andrew Leven and Assistant U.S. Attorney Lucy Muzzy of the U.S. Attorney’s Office in Newark.
Defense counsel: David E. Schafer Esq., Lawrenceville, New Jersey
Payroll Administrator Pleads Guilty to Tax Evasion for Diverting Employees’ Wage Payments into her Personal Bank Account and Not Reporting the Money to the IRSRead the Press Release
A payroll administrator pled guilty to tax evasion for diverting employees’ wage payments into bank accounts under her control and failing to report the money as gross income to the Internal Revenue Service (IRS).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Rodolfo Llanes, Chief, Miami Police Department (MPD), made the announcement.
Marilyn McDaniel, 67, of Garner, North Carolina, pled guilty to one count of attempting to evade or defeat tax, in violation of Title 26, United States Code, Section 7201.
According to court documents, McDaniel was the payroll administrator for a company and her sole responsibility was to report the employee hours and pay to the company’s payroll service provider. In early 2010, a former employee contacted the company’s accountant regarding a letter from the IRS indicating that the individual worked at the company in 2008 and that the individual failed to pay taxes on that income. The company’s payroll records revealed that in 2008 there were wage payments being made to the employee, but the wage payments were not deposited into the employee’s account. Instead, the wages were deposited into McDaniel’s personal bank account.
In addition, the company’s payroll records also showed that McDaniel had submitted false wage reports on behalf of sixteen other former employees and that approximately $1.7 million in wage payments in the names of those former employees were diverted from the company’s bank accounts into accounts controlled by McDaniel and her daughter. The company’s employees did not give McDaniel permission to have checks issued in their names or have those checks deposited into her personal bank account.
McDaniel did not report or pay taxes on the stolen money that was diverted from the company into her and her daughter’s account, as she failed to file an individual tax return with the IRS for calendar year 2009. In total, McDaniel’s total tax due and owing is $547,792.14.
Sentencing is scheduled for February 8, 2016 at 3:30 p.m. before U.S. District Judge Joan A. Lenard. McDaniel faces a maximum statutory sentence of five years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI, Miami Police Department and Miami-Dade State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Scott County Produce Business Pleads Guilty to Wire FraudRead the Press Release
LEXINGTON — The owner of a local produce business in Scott County, Ky., has admitted to fraudulently obtaining business loans, by falsifying information on the loan applications.
On Monday, William C. Thompson, 52, pleaded guilty, before Senior U.S. District Judge Joseph Hood, to wire fraud and making false statements on loan applications.
Thompson admitted that, in 2013, he submitted loan applications to receive thousands of dollars from federally funded agencies within the U.S. Department of Agriculture. However, in order to conceal his poor credit history, he used his son’s social security number on the applications. Thompson also made the false statements on the application to hide that he had previously filed for bankruptcy. If the agencies had known Smith’s credit history, they would not have issued him the loans.
The investigation was conducted by the U.S. Department of Agriculture, Office of Inspector General; U.S. Department of Agriculture, Farm Services Agency; and the Central Kentucky Agricultural Credit Association. Assistant U.S. Attorney Jim Arehart is prosecuting this case on behalf of the federal government.
Thompson is scheduled to be sentenced on March 7, 2015. He faces a maximum of 30 years in prison. However, the Court must consider the U.S. Sentencing guidelines and the federal statutes before imposing a sentence.
Owner and Employees of Defense Contracting Firm Charged with Conspiracy to Defraud the U.S. Department of Defense and to Violate the Arms Export Control ActRead the Press Release
NEWARK, N.J. – The owner and two employees of a New Jersey defense contracting business were charged today in connection with an alleged scheme to fraudulently acquire lucrative manufacturing contracts with the U.S. Department of Defense (DoD), U.S. Attorney Paul J. Fishman announced.
Ferdi Murat Gul, a/k/a “Fred Gull,” 39, of Turkey, was charged with one count of wire fraud conspiracy, one count of conspiring to violate the Arms Export Control Act and five counts of violating the act. Fatih Civi, a/k/a “Frank Civi,” 44, of Paterson, New Jersey, and Serap Basci, a/k/a “Sarah Basci,” 29, of Clifton, New Jersey, both naturalized U.S. citizens born in Turkey, were arrested today and each charged in a separate complaint with one count of wire fraud conspiracy and one count of conspiring to violate the Arms Export Control Act for their roles in conspiring with Gul to defraud the DoD and to export military technical drawings to Turkey without prior approval from the U.S. Department of State. Civi and Basci made their initial court appearance earlier today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. Gul remains at large.
According to the documents filed in this case and statements made in court:
Gul is the principal owner, chief executive officer, and general manager of two companies: Bright Machinery Manufacturing Group Inc. (BMM), a defense contracting company in Paterson, New Jersey; and FMG Machinery Group (FMG), a purported manufacturing company with addresses in Paterson, New Jersey, and Long Island City, New York. Gul also has an ownership interest in HFMG Insaat (HFMG), a manufacturing company located in Turkey. Civi is BMM’s production manager; Basci is BMM’s sales and purchasing manager, and is responsible for handling the company’s government sales, commercial sales, and purchasing activities.
Over the past five years, BMM allegedly obtained hundreds of contracts with the DoD by falsely claiming that the military parts it contracted to produce would be manufactured in the United States. From October 2010 through June 2015, the total value of the contracts awarded to BMM under this scheme was $7.3 million.
The complaint alleges that Gul routinely submitted to DoD electronic bids that contained false representations about BMM’s purported domestic manufacturing operations. He submitted quotes to the DoD claiming that BMM would provide military goods manufactured in the United States, when in fact the company relied almost exclusively on Gul’s Turkish-based production facilities at HFMG. Gul routinely and unlawfully exported drawings and technical data, some of which was subject to U.S. export control laws, in order to secretly manufacture military parts in Turkey. Gul, Civi, and Basci then supplied those foreign-made parts to unwitting DoD customers in the United States.
The conspirators allegedly took substantial measures to conceal their illicit manufacturing activities and ongoing fraud. Gul and Basci routinely submitted forged certifications and fabricated information by e-mail to DoD representatives in New Jersey, which falsely represented that BMM and its U.S.-based subcontractors performed necessary quality control procedures in their purported domestic manufacture of military parts. Civi routinely met with DoD representatives at BMM’s Paterson facility to review and confirm the same false information that had been electronically submitted by Gul and Basci. DoD personnel were deceived into authorizing payment to BMM for military parts that were not, in fact, manufactured in the United States, in direct violation of DoD protocol and, in some instances, U.S. export control laws. The conspirators’ shipping and banking transactions were conducted in a manner to eliminate any direct links between the conspirators’ foreign manufacturing process at HFMG and their U.S. based-operations at BMM.
BMM fraudulently acquired 346 contracts from the DoD, purportedly for the domestic manufacture of military parts. Some of these contracts included the manufacture of parts for torpedoes used in U.S. Navy submarines, bomb ejector racks and armament utilized in U.S. Air Force aircraft, and firearms and mine clearance systems used by U.S. military personnel abroad. In several instances, subsequent testing by the DoD revealed that parts supplied by the conspirators had numerous design flaws and non-conformities and were unusable.
The count of wire fraud conspiracy carries a maximum penalty of 20 years in prison and a fine of $250,000. The count of conspiracy to violate the Arms Control Export Act carries a maximum penalty of five years in prison and a fine of $250,000. The counts of violating the Arms Control Export Act carry a maximum penalty of 20 years in prison and a $1 million fine.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit, and Sarah Devlin of the office’s Asset Forfeiture Unit, in Newark, along with the assistance of Trial Attorney David Recker of the Justice Department’s National Security Division.
The charges and allegations contained in the federal criminal complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Operator of ‘Revenge Porn’ Website Sentenced to 2½ Years in Federal Prison in Email Hacking Scheme to Obtain Nude PhotosRead the Press Release
LOS ANGELES – A Northern California man who operated the Internet’s best-known “revenge porn” website was sentenced late this afternoon to 30 months in federal prison for hiring another man to hack into e-mail accounts to steal nude photos that were later posted on his website.
Hunter Moore, 29, of Woodland, California, who operated the now-defunct isanyoneup.com, was sentenced by United States District Judge Dolly M. Gee.
In addition to the prison term, which Moore was ordered to begin serving by January 22, Judge Gee ordered the defendant to pay a $2,000 fine.
In sentencing Moore, Judge Gee called the conduct “particularly reprehensible.”
Moore pleaded guilty in February to one count of unauthorized access to a protected computer to obtain information for purposes of private financial gain and one count of aggravated identity theft.
The alleged hacker – Charles Evens, 26, of Studio City, California – was sentenced last month to 25 months in federal prison after he pleaded guilty to the same two felony counts.
Moore operated the website http://isanyoneup.com, where he posted, among other things, nude or sexually explicit photos of victims. The pictures were submitted by individuals, without the victim’s permission, for purposes of revenge, Moore admitted in court.
However, to obtain more photos for the website, Moore instructed Evens to gain unauthorized access to – in other words, to hack into – Google e-mail accounts, according to Moore’s plea agreement. Moore sent payments to Evens in exchange for nude photos unlawfully obtained from the victims’ accounts. Moore then posted the illegally obtained photos on his website, without the victims’ consent, he admitted in the plea agreement.
The plea agreement discusses one specific incident in late 2011 when Moore sent an email to Evens that stated Moore would like as many nude pictures from hacked emails accounts as possible. In response, Evens accessed a victim’s e-mail account without authorization and obtained pictures, Evens provided the pictures to Moore, and Moore paid $145.70 to defendant Evens using Paypal. One of the nude photos was posted on isnayoneup.com on December 29, 2011, according to the plea agreement.
Evens admitted that he hacked into email accounts belonging to hundreds of victims.
The investigation in this case was conducted by the Federal Bureau of Investigation.
Ohio couple charged with marijuana traffickingRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury has returned an indictment charging Robert Bamberger, 53, and Tammy Bamberger, 46, both of Martins Ferry, Ohio, with marijuana trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Robert and Tammy Bamberger were allegedly discovered in November 2015 in possession of marijuana in Ohio County, West Virginia. They are each charged with one count of “Possession with Intent to Distribute Marijuana.” They each face up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, the West Virginia State Police, and the United States Postal Inspection Service are leading the inquiry.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Nine Methamphetamine Traffickers Sentenced to Federal PrisonRead the Press Release
STATESVILLE, N.C. – Nine methamphetamine traffickers have been sentenced over a two-day period to prison terms ranging from one to 17.5 years, as a result of two related Organized Crime Drug Enforcement Task Force (OCDETF) investigations, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Caldwell County Sheriff Alan C. Jones; Lenoir Police Chief Scott Brown; Catawba County Sheriff Coy Reid; and Hickory Police Chief Tom R. Adkins.
The following defendants were sentenced on Monday, November 30, 2015:
-
Justo Manuel Gonzalez, 29, of Newton, N.C. was sentenced to 210 months in prison, followed by five years of supervised release (5:14-cr-59).
-
Christopher Waylon Joyner, 31, of Sparta, N.C., was sentenced to 131 months in prison, followed by five years of supervised release (5:15-cr-69).
-
Christopher Everett Triplett, 35, of Hudson, N.C. was sentenced to 75 months in prison, followed by four years of supervised release (5:14-cr-50).
-
Marixa Dawn Hart, 27, of Warrensville, N.C., was sentenced to 31 months in prison, followed by three years of supervised release (5:15-cr-7).
-
Paul Lewis King, Jr., 71, of North Wilkesboro, N.C. was sentenced to nine months in prison, followed by two years of supervised release, nine of which in home detention (5:15-cr-34)
The following defendants were sentenced on Tuesday, December 1, 2015:
-
Anthony Lee Day, 40, of Crumpler, N.C., was sentenced to 130 months in prison, followed by five years of supervised release (5:15-cr-5).
-
Brian Len Ledford, 39, of Newton, N.C. was sentenced to 78 months in prison, followed by three years of supervised release (5:15-cr-14).
-
Miguel Angel Cerda-Rodriguez, 29, of Conover, N.C. was sentenced to 46 months in prison, followed by five years of supervised release (5:14-cr-77)
-
Rene Antonio Garcia, 54, of Hickory, N.C. was sentenced to time served (approximately one year) followed by four years of supervised release (5:14-cr-82).\
The two OCDETF investigations, codenamed “Dixie Crystal” and “Lay Low,” are being led by HSI and DEA, respectively, with the assistance of the Caldwell County Sheriff’s Office, Lenoir Police Department, Catawba County Sheriff’s Office, and Hickory Police Department, and law enforcement agencies throughout North Carolina and Texas, Georgia, and Tennessee.
According to court documents, to date, more than 80 individuals have been convicted as a result of the two related investigations. Court records show that the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized more than 10 kilograms of crystal methamphetamine, $100,000 in U.S. currency and other assets, and numerous firearms.
OCDETF 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 drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
-
New York Woman Pleads Guilty to Credit Card Fraud ConspiracyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Xiu Fang Zhang, 21, of New York, New York, pled guilty today in U.S. District Court to conspiring to commit credit card fraud.
According to evidence introduced at the plea hearing, between January 3 and January 6, 2015, Zhang and others used counterfeit credit cards to make purchases at retail stores and pharmacies in Maine. Zhang used counterfeit credit cards to purchase over $7,500 worth of items from Lowes, Home Depot, Bon-Ton, Rite Aid and Sears. She was paid by a co-conspirator for each fraudulent purchase.
Zhang faces up to five years in prison and a $250,000 fine. She will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Secret Service and the Auburn and South Portland Police Departments.
Nebraska Therapist Sentenced in Health Care Fraud CaseRead the Press Release
U.S. Attorney Deb Gilg and Nebraska Attorney General Doug Peterson announced that a Lincoln-area woman must repay more than $192,000 to the state of Nebraska and serve 12 weekends in jail over the next year after pleading guilty to committing health care fraud. Melissa Prentice-Erickson must also serve six months under house arrest and a 5 year term of probation, under a sentence handed down this afternoon by U.S. District Judge John Gerrard.
Prentice-Erickson formerly was a mental health therapist who ran her practice in Aurora, NE. An investigation by the Attorney General’s Medicaid Fraud and Patient Abuse Unit, Magellan Behavioral Health, and the program integrity unit of the Nebraska Department of Health and Human Services found that Prentice-Erickson submitted 2614 false claims for payment to Nebraska Medicaid between November 2009 and July 2014. She was paid $192,761.98 for services she never rendered. A federal grand jury indicted her on 26 counts of health care fraud as a result of her actions.
The case was prosecuted by Mark Collins of the Attorney General’s Office and Alan Everett of the U.S. Attorney’s Office.
Navajo Man Sentenced to 74 Months in Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Farrell Bowman, 29, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 74 months in prison for his involuntary manslaughter conviction. Bowman will be on supervised release for three years after completing his prison sentence.
Bowman was arrested in Jan. 2015, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Bowman killed two Native American men with his vehicle when he crashed into their vehicle while he was driving under the influence of alcohol. The crash occurred on July 3, 2014, in a location within the Navajo Indian Reservation in San Juan County, N.M. Bowman was subsequently indicted on the same charges on Jan. 21, 2015.
On Aug. 12, 2015, Bowman pled guilty to the indictment and admitted killing the two victims by driving recklessly while under the influence of alcohol which rendered him incapable of exercising clear judgment and a steady hand in operating a vehicle. He also acknowledged that he operated the vehicle without using due caution and with a reckless disregard that imperiled the lives of others.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety, the Farmington office of the FBI and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Raquel Ruiz-Velez prosecuted the case.
Ms-13 Gang Member Admits Role in Witness Retaliation Murder ConspiracyRead the Press Release
NEWARK, N.J. – A MS-13 gang member from Somerset County, New Jersey, today admitted relaying instructions to murder government witnesses from incarcerated gang members, New Jersey U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.
Jose Romero-Aguirre, a/k/a “Conejo,” 29, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler to Count 26 of an indictment charging him with conspiracy to commit murder in furtherance of a racketeering enterprise known as La Mara Salvatrucha, or MS-13.
According to the documents filed and statements made in court:
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador. Branches, or “cliques,” of MS-13 operate throughout the United States, including Plainfield, New Jersey. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang.
According to statements made by Romero-Aguirre in court, he was a member of the Plainfield Locos Salvatrucha (PLS) clique of MS-13 from at least August 2011. Romero-Aguirre admitted that he conspired with other members of MS-13 to engage in racketeering activity, including acts of murder, robbery, extortion and drug trafficking.
Romero-Aguirre admitted that one of the central rules of MS-13 forbids any member from ever providing information about the gang’s criminal activity to the police. According to Romero-Aguirre, MS-13 members began investigating the arrest of several members of his clique in or around July 2011. Romero-Aguirre participated in phone calls with other incarcerated MS-13 members and discussed the need to find and kill the witnesses responsible for these arrests. Romero-Aguirre agreed to relay the murder instructions from the incarcerated members to the other MS-13 members at large, including a message that the MS-13 members had 24 days to eliminate one of the government witnesses. Romero-Aguirre also admitted that he agreed to pass these murder instructions because he believed it would preserve his own position within MS-13.
The conspiracy charge to which Romero-Aguirre pleaded guilty carries a maximum potential penalty of ten years in prison and a $250,000 fine. He remains detained pending his sentencing, which is currently scheduled for March 16, 2016.
Twelve additional members and associates of the PLS clique of MS-13 are scheduled for trial in front of U.S. District Judge Stanley R. Chesler on February 9, 2016. The charges include several counts of murder, attempted murder, robbery, extortion, witness retaliation and sexual assault.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, and the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s plea. They also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, and the Plainfield Police Department, for their work on the case.
The government is represented by Assistant United States Attorneys James Donnelly and Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark as well as Trial Attorney Kevin L. Rosenberg with the Justice Department Criminal Division’s Organized Crime and Gang Section.
Defense counsel: Christopher L. Patella Esq., Bayonne, New Jersey
Missouri Man Sentenced for Possession of Child PornographyRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on Nov. 30, 2015, Billy Wynn Jr., 32, was sentenced before U. S. District Judge Ralph R. Erickson to serve 14 years in prison for receipt of child pornography. Judge Erickson also sentenced Wynn to serve 20 years supervised release and to pay a $200 special assessment to the Crime Victims’ Fund.
In September 2013, Wynn moved to North Dakota after which it was discovered that he was involved in a child pornography ring which was sharing child pornography via web-based email accounts. Wynn created various email accounts in alias names to access the child pornography and communicate directly with members of the child pornography ring. As part of this investigation, which originated in North Dakota, other individuals, including the administrator of one such web-based account, have been arrested.
This case was investigated by the North Dakota Bureau of Criminal Investigation and Homeland Security Investigations.
Assistant U. S. Attorney Jennifer Puhl prosecuted this case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood, in conjunction with the Internet Crimes Against Children (ICAC) Task Force help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, and/or computer technology to sexually exploit children. The ICAC program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Miami-Dade, Florida, Police Officer Sentenced to 10 Years in Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A former lieutenant with the Miami-Dade Police Department, Internal Affairs, was sentenced today to 120 months in prison for his role in a narcotics conspiracy, including purchasing six firearms for a drug trafficking organization and smuggling those weapons through security checkpoints at the Miami International Airport, U.S. Attorney Paul J. Fishman announced.
Ralph Mata, 46, a/k/a “the Milk Man,” of Broward County, Florida, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton to an information charging him with one count of aiding and abetting a narcotics conspiracy, one count of conspiring to distribute cocaine and one count of engaging in monetary transactions in property derived from unlawful activity. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From June 2012 through November 2012, Mata purchased at least six firearms from a gun store in Florida, which ultimately were provided to members of the Juan Arias Drug Trafficking Organization. Using his prior experience as a lieutenant assigned to the Miami International Airport, as well as his law enforcement contacts at the airport, Mata and others smuggled the six firearms through airport security checkpoints and onto a commercial airliner destined for the Dominican Republic.
Mata also provided advice, guidance and counsel to Juan Arias regarding the means and methods the drug trafficking organization should use to import and distribute cocaine. Mata transported narcotics proceeds for the organization.
He also engaged in monetary transactions in property derived from the sale of narcotics. On March 28, 2013, Mata traveled from Miami to New Jersey and received approximately $60,000 in narcotics proceeds from Juan Arias and others. Using a portion of that $60,000, Mata made separate $10,000 cash deposits at two different bank locations in Fort Lee, New Jersey. As payment for his assistance to the drug trafficking organization, Mata accepted a total of approximately $100,000 in cash and gifts from the Juan Arias drug trafficking organization.
In addition to the prison term, Judge Wigenton sentenced Mata to five years of supervised release and fined $15,000. As part of his plea, Mata must forfeit the $75,405 seized on April 9, 2014.
U.S. Attorney Fishman credited special agents of the FBI’s Garret Mountain Resident Office, under the direction of Special Agent in Charge Richard M. Frankel in Newark; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing. He also thanked the Miami FBI, the Miami-Dade Police Department, the Miami-Area Corruption Task Force and the U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, New York, for their assistance with the investigation.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Mary E. Toscano, Deputy Chief of the General Crimes Unit, Criminal Division, and José R. Almonte of the Special Prosecutions Division in Newark and Barbara Ward, Acting Chief, Asset Forfeiture and Money Laundering Unit.
Defense counsel: Jay V. Surgent Esq., Parsippany, New Jersey, and Bruce H. Fleisher Esq., Miami
Metro Denver Bank Senior Vice President Sentenced for EmbezzlementRead the Press Release
DENVER – Candice L. White, age 43, of Centennial, Colorado, was sentenced today by U.S. District Court Judge Raymond P. Moore to serve 3 months in prison, followed by 5 years supervised release with a condition of 200 hours of community service, for the crime of embezzlement by a bank officer or employee, U.S. Attorney’s Office announced with the Special Inspector General for Troubled Asset Relief Program (SIGTARP). White was also ordered to pay restitution totaling $92,780.27 to Front Range Bank. On August 12, 2015, White pled guilty to two counts of embezzlement by a bank officer. White was first indicted by a federal grand jury in Denver on March 24, 2015.
According to the stipulated facts contained in the plea agreement, from at least July 2009 through March 2011, White, a Senior Vice President of Front Range Bank, knowingly and intentionally embezzled $92,930.27 from client accounts at the Bank. The plea agreement calls for White to pay restitution in this amount back to the Bank, which has already reimbursed its clients for their losses. The defendant accomplished her embezzlement by requesting cashier’s checks and withdrawing cash from escrow accounts and other accounts that were not closely monitored by the victim account holders. She would then use the embezzled money for her own personal use.
White was familiar with the victim accounts because she was the bank representative assigned to the accounts. To carry out her embezzlement, the defendant approached a teller at the bank with a type of withdrawal slip and falsely informed the teller that she needed the cashier’s check or cash for the client or to pay a bill on the client’s behalf. Due to her status as a Senior Vice President at the Bank, the tellers trusted that White was telling the truth and had the required supporting documentation for the transactions.
“As this case demonstrates, the Department of Justice and the U.S. Attorney’s Office takes seriously holding bank officials accountable for violations of federal law,” said U.S. Attorney John Walsh. “The defendant admitted to embezzlement, and will not only experience prison, but will also do substantial community service and pay significant restitution.”
"White took advantage of unsuspecting bank customers who trusted her to keep their money safe. Instead, she deceived everyone by embezzling their money for her own personal use," said FBI Denver Special Agent in Charge Thomas Ravenelle. "The FBI will continue to work with our law enforcement partners to protect people's bank accounts from embezzlers and other fraudulent schemes."
“While she was a senior vice president at a TARP bank, Candice White embezzled from the bank, a crime for which she will now serve time in prison,” said Christy Goldsmith Romero, Special Inspector General for TARP (SIGTARP). “Ripping off a TARP bank is akin to ripping off taxpayers who funded the bailout. White embezzled from bank customers, abused the trust of the American taxpayer, and used her position of authority to deceive her co-workers. The TARP bailout was not created to bailout bank executives. SIGTARP will work tirelessly to bring justice to all those committing crime inside TARP banks.”
Because Front Range Bank received TARP funds, the Special Inspector General (SIGTARP) assisted the FBI in the investigation.
White was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.
Massachusetts Man Pleads Guilty to Transporting an Individual for ProstitutionRead the Press Release
CONCORD, NEW HAMPSHIRE - Rafael Reyes, 33, of Boston, Massachusetts, appeared in United States District Court on Thursday and pled guilty to crimes involving the transportation of a minor in interstate commerce for prostitution, announced Acting U.S. Attorney Donald Feith.
In February of 2014, Homeland Security Investigations, Manchester, New Hampshire, and the Salem, New Hampshire Police Department, with the assistance of the Boston Police Department, rescued a minor female who was engaging in prostitution from a Salem hotel room. Upon further investigation, authorities identified multiple individuals who were involved in the scheme to transport the female from Boston, Massachusetts to Salem, New Hampshire for prostitution, including Reyes.
Reyes is scheduled to be sentenced in March 2016.
The case was investigated by the Manchester, New Hampshire Homeland Security Investigations and the Salem Police Department, in conjunction with the police departments of Boston, Massachusetts and Manchester, New Hampshire, as well as the New Hampshire Internet Crimes Against Children Task Force (NH ICAC). This case is being prosecuted by Assistant United States Attorneys Nick Abramson and Helen Fitzgibbon.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Massachusetts Man Pleads Guilty to Drug ChargesRead the Press Release
CONCORD, N.H. – Luis Nieves, 33, of Haverhill, Massachusetts pleaded guilty in the United States District Court for the District of New Hampshire to one count of possessing fentanyl with the intent to distribute it, announced Acting United States Attorney Donald Feith.
On June 24, 2015, Nieves was arrested while attempting to deliver over two kilograms of the narcotic controlled drug fentanyl to a purchaser in Manchester, New Hampshire. According to the plea agreement, Nieves is responsible for at least 4 kilograms but less than 12 kilograms of fentanyl. Nieves is scheduled for sentencing on March 7, 2016. He is facing a maximum statutory sentence of twenty years in prison and criminal fines of up to $1,000,000.
This prosecution arose from an investigation conducted by the Drug Enforcement Administration, the Manchester Police Department and the Massachusetts State Police. The case is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
Mansfield Man Sentenced for Armed Bank Robbery and Possession of Child PornographyRead the Press Release
BOSTON – George Englehart, 51, was sentenced today by U.S. District Court Judge F. Dennis Saylor to 151 months in prison and five years of supervised release. In September 2015, Englehart pleaded guilty to armed bank robbery and possession of child pornography.
In April 2014, Englehart, who was dressed in dark clothes with a scarf hiding his face, entered a Bank of America in Mansfield, Mass. He approached a teller, brandished what appeared to be a black semi-automatic handgun, and demanded that the teller give him money. The teller complied with and gave Englehart $878. Englehart fled and was located and arrested a short time later in possession of $878 and what appeared to be a black semi-automatic handgun. The weapon was later determined to be a BB gun. During Englehart’s booking, his cell phone was found to contain numerous images of children engaged in sexually explicit conduct.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; and Mansfield Police Chief Ronald A. Sellon, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Mandeville Postal Worker Pleads Guilty to Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANGELA MITCHELL, age 40, of Mandeville, pled guilty to Theft of Mail.
According to court records, as a result of a complaint from the Postmaster of the Mandeville Post Office, the Office of Inspector General for the United States Postal Service (“Postal OIG”) initiated an investigation into MITCHELL, an employee of the Postal Service assigned to the Mandeville Post Office. It was determined that MITCHELL had stolen a credit card from a post office box and used the stolen card on three occasions without authorization, resulting in approximately $460 in fraudulent charges.
MITCHELL faces a maximum penalty of five years of imprisonment, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Susie Morgan set sentencing for March 23, 2016.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service, Office of Inspector General. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Man Sentenced for Unlawful Possession of A FirearmRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Jose Galvan-Lopez, 44, a Mexican national who most recently resided in Granite City, was sentenced on December 1, 2015, to one year and one day in federal prison for the offense of Unlawful Possession of a Firearm by an Illegal Alien.
Galvan-Lopez pled guilty to the federal charge on August 10, 2015. He has been continually confined since his arrest in Granite City, Illinois on May 8, 2015. At his change of plea hearing in August, Galvan-Lopez admitted that he is an illegal alien who has been previously deported from the United States to Mexico, and that he had purchased a stolen 9mm assault rifle and ammunition for $50.00 in cash in St. Louis, Missouri, in 2013.
Upon release from federal custody, Galvan-Lopez acknowledged that he will be deported again.
The investigation which resulted in Galvan-Lopez’ arrest and conviction was conducted by the Granite City, Illinois Police Department and by the Immigration and Customs Enforcement (ICE) Agency.
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Man Pleads Guilty to Facilitating Computer Hacking of Vermont CompanyRead the Press Release
Nima Golestaneh, 30, an Iranian national, pleaded guilty to charges of wire fraud and unauthorized access to computers related to his involvement in the October 2012 hacking of a Vermont-based engineering consulting and software company.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eric S. Miller of the District of Vermont and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division.
According to the plea agreement, Golestaneh conspired with others to hack the network and computers at Arrow Tech Associates Inc. (Arrow Tech) in order to steal valuable company software and business information. Golestaneh’s role in the conspiracy was to acquire servers in other countries for his co-conspirators to use remotely in order to launch computer intrusions into victim companies, including Arrow Tech, thereby masking their true location and identity.
As part of the conspiracy, in October 2012, a co-conspirator used servers in third-party countries, which were provided by Golestaneh, during a successful unauthorized cyber intrusion into Arrow Tech’s computer network. As part of this intrusion, the co-conspirator stole the company’s sophisticated software product and other proprietary information.
In November 2013, Golestaneh was arrested in Turkey in connection with the indictment. He was extradited to the United States on Feb. 12, 2015 pursuant to a Mutual Legal Assistance Treaty.
“This case proves the power of close cooperation among victims, law enforcement and the international community,” said Assistant Attorney General Carlin. “With continued partnerships like these, cyber crimes will not go unanswered. At the National Security Division, we will continue to follow the facts and evidence wherever they lead to ensure there are no safe havens for hackers.”
“This case illustrates that no part of the United States is immune from cyber intrusions,” said U.S. Attorney Miller. “Further, as the department has shown time and again, cyber criminals are not immune from the law because they hack from faraway countries that they perceive as offering a safe haven. Working with our colleagues at FBI and other law enforcement agencies, we can and will identify them and we will make every effort to arrest and prosecute them.”
“Those who have committed or are committing similar computer intrusions are on notice,” said Special Agent in Charge Vale. “We can identify them and we will pursue their arrest no matter where they reside or how long it takes.”
The case was investigated by the FBI’s Albany Division’s Cyber Squad. The case is being prosecuted by First Assistant U.S. Attorney Eugenia Cowles of the District of Vermont and Deputy Chief Sean M. Newell of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance in this matter.
Golestaneh Plea Agreement
Man Pleads Guilty to Facilitating Computer Hacking of Vermont CompanyRead the Press Release
Nima Golestaneh, 30, an Iranian national, pleaded guilty to charges of wire fraud and unauthorized access to computers related to his involvement in the October 2012 hacking of a Vermont-based engineering consulting and software company.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eric S. Miller of the District of Vermont and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Division.
According to the plea agreement, Golestaneh conspired with others to hack the network and computers at Arrow Tech Associates Inc. (Arrow Tech) in order to steal valuable company software and business information. Golestaneh’s role in the conspiracy was to acquire servers in other countries for his co-conspirators to use remotely in order to launch computer intrusions into victim companies, including Arrow Tech, thereby masking their true location and identity.
As part of the conspiracy, in October 2012, a co-conspirator used servers in third-party countries, which were provided by Golestaneh, during a successful unauthorized cyber intrusion into Arrow Tech’s computer network. As part of this intrusion, the co-conspirator stole the company’s sophisticated software product and other proprietary information.
In November 2013, Golestaneh was arrested in Turkey in connection with the indictment. He was extradited to the United States on Feb. 12, 2015 pursuant to a Mutual Legal Assistance Treaty.
“This case proves the power of close cooperation among victims, law enforcement and the international community,” said Assistant Attorney General Carlin. “With continued partnerships like these, cyber crimes will not go unanswered. At the National Security Division, we will continue to follow the facts and evidence wherever they lead to ensure there are no safe havens for hackers.”
“This case illustrates that no part of the United States is immune from cyber intrusions,” said U.S. Attorney Miller. “Further, as the department has shown time and again, cyber criminals are not immune from the law because they hack from faraway countries that they perceive as offering a safe haven. Working with our colleagues at FBI and other law enforcement agencies, we can and will identify them and we will make every effort to arrest and prosecute them.”
“Those who have committed or are committing similar computer intrusions are on notice,” said Special Agent in Charge Vale. “We can identify them and we will pursue their arrest no matter where they reside or how long it takes.”
The case was investigated by the FBI’s Albany Division’s Cyber Squad. The case is being prosecuted by First Assistant U.S. Attorney Eugenia Cowles of the District of Vermont and Deputy Chief Sean M. Newell of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance in this matter.
# # #
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE CALL DOJ’S OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Las Cruces Man Sentenced to 100 Months in Federal Prison for Methamphetamine Trafficking and Firearms ConvictionRead the Press Release
ALBUQUERQUE – Armando Conrad Gonzales, 34, of Las Cruces, N.M., was sentenced today in federal court for his conviction on drug trafficking and firearms charges. Gonzales was sentenced to 100 months in federal prison followed by four years of supervised release.
Gonzales was charged in July 2014, with two co-defendants who previously had been arrested. Co-defendant Charles Douglas Notbohm, Jr., 51, of Tucson, Ariz., was arrested in Lordsburg, N.M., on Feb. 21, 2014, after officers executed a search warrant on the vehicle in which he was traveling and found more than 116 grams of methamphetamine. On May 21, 2014, Notbohm and co-defendant James Richard Reeves, 46, also of Tucson, were indicted and charged with conspiracy and possession of methamphetamine with intent to distribute. On July 16, 2014, Notbohm, Reeves and Gonzales were charged in a superseding indictment with conspiracy and possession of methamphetamine with intent to distribute. The superseding indictment also charged Gonzales with being a felon in possession of a firearm
Gonzales pled guilty on Nov. 18, 2014, to Counts 1 and 3 of the superseding indictment, charging him with a methamphetamine distribution conspiracy and being a felon in possession of a firearm. In entering his guilty plea, Gonzales admitted making an agreement with Reeves to purchase four ounces of methamphetamine from Reeves which Reeves and Notbohm were to transport from Tucson to Las Cruces. Gonzales further admitted that on April 11, 2014, he possessed a firearm and ammunition even though he was prohibited from doing so based on his status as a convicted felon.
On Sept. 18, 2014, Reeves pled guilty to the two methamphetamine trafficking charges in the superseding indictment without the benefit of a plea agreement. At sentencing, Reeves faces a sentence of not less than five years and not more than 40 years in prison. Reeves remains in custody pending a sentencing hearing which has yet to be scheduled.
Notbohm pled guilty on Oct. 7, 2014, to a felony information charging him with conspiracy and possession of methamphetamine with intent to distribute. In entering his guilty plea, Notbohm admitted that on Feb. 21, 2014, he and Reeves were driving from Tucson to Las Cruces for the purpose of delivering methamphetamine to Gonzales. He further admitted that as the two men were driving through Lordsburg, they were stopped by a police officer who found more than 116 grams of methamphetamine in their vehicle. Notbohm was sentenced on Aug. 20, 2015, to 87 months in prison followed by three years of supervised release.
This case was investigated by Deming office of Homeland Security Investigations and the Lordsburg Police Department, and is being prosecuted by Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office.