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Thursday 15 October 2015
Deported Jamaican Re-entered United States without Homeland Security PermissionRead the Press Release
JOHNSTOWN, Pa. - A citizen of Jamaica pleaded guilty in federal court to a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
Hubert E. Minott, 31, of North Miami Beach, Fla., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Feb. 6, 2014, Minott, an alien who had been deported from the United States on June 12, 2008, was found in Somerset County, Pa. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
Judge Gibson scheduled sentencing for Feb. 19, 2016, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation that led to the prosecution of Minott.
Deming Woman Pleads Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Norma Patricia Rivera, 40, of Deming, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges. Under the terms of her plea agreement, Rivera will be sentenced to 120 months in federal prison followed by a term of supervised release to be determined by the court.
Rivera was arrested in May 2015, on a criminal complaint alleging that she possessed methamphetamine with intent to distribute in Luna County, N.M., on May 20, 2015. According to the complaint, Homeland Security Investigations (HSI) agents executed a search warrant at a residence in Luna County where they seized approximately 722.9 grams of a methamphetamine mixture in liquid and crystal form.
Rivera was subsequently charged in a two-count indictment on Aug. 19, 2015, with distribution of methamphetamine on July 17, 2014, in Doña Ana County, N.M., and possession of methamphetamine with intent to distribute on May 20, 2015, in Luna County.
During today’s proceedings, Rivera pled guilty to the indictment and admitted that on July 17, 2014, in Las Cruces, she sold 162.18 grams of methamphetamine to an individual working with law enforcement. Rivera further admitted that on May 20, 2015, in Deming, she possessed liquid and crystal methamphetamine which she intended to sell to other individuals. Rivera remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by HSI, the Las Cruces office of the FBI, the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and the Deming Police Department. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Dauphin County Man Sentenced to 10 Years Imprisonment in Federal Child Sex Trafficking CaseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Coy C. Klinger, age 38, of Lower Paxton Township, Pennsylvania was sentenced yesterday to 10 years in federal prison by United States District Court Judge John E. Jones, III, in Harrisburg for sex trafficking of children.
According to U.S. Attorney Peter Smith, Klinger pleaded guilty in February 2015 to operating a prostitution business out of his home in Lower Paxton Township. Klinger trolled the internet to find young women to engage in sexual activity for money with customers in his home in Lower Paxton Township. Klinger retained a portion of the money paid for the sex acts. After examining Klinger’s Iphone and laptop computer, the FBI found evidence that he was taking nude photographs of the girls and posting the photographs online in advertisements for prostitution services.
After Klinger serves his 10 year prison term, Judge Jones ordered him to remain on supervised release for an additional 5 years.
This case was investigated by the Federal Bureau of Investigation, the Lower Paxton Township Police Department and the Dauphin County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s 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.
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Couple Guilty of Smuggling Heroin Aboard USS Bush That Led to OverdoseRead the Press Release
NORFOLK, Va. – Donald G. McManus, 22, and Breanna L. McManus, 23, of Wallingford, Connecticut, pleaded guilty today to charges related to the distribution of heroin aboard the USS George H.W. Bush aircraft carrier that ultimately led to the overdose of an active duty sailor.
Donald McManus and his wife, Breanna, were indicted by a federal grand jury on Sept. 2, 2015. According to the statement of facts filed with the plea agreements, Donald McManus was an active duty sailor in the United States Navy assigned to the USS George H.W. Bush aircraft carrier in February 2015. While in a restricted status on-board the USS Bush, Donald McManus had his wife smuggle heroin and syringes aboard the aircraft carrier. The McManus couple sold heroin to another sailor who was later found unresponsive on the floor in the ship’s berthing area. The USS Bush’s medical personnel immediately responded and worked with emergency medical technicians in an attempt to save the sailor’s life. The overdose victim was without a detectable pulse until medical personnel were able to resuscitate the sailor.
Donald and Breanna McManus were charged by criminal complaint on Aug. 13, 2015. Daonald McManus will be sentenced on Jan. 21, 2016, and Breanna McManus will be sentenced on Jan. 27, 2016. Each faces a maximum penalty of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Tim Quick, Special Agent in Charge of NCIS’s Norfolk Field Office, made the announcement after the pleas were accepted by U.S. District Judge Raymond A. Jackson.
This case was investigated by NCIS’s Norfolk Field Office. Special Assistant U.S. Attorney Alyssa Nichol, Virginia Assistant Attorney General and Special Assistant U.S. Attorney John F. Butler, and Assistant U.S. Attorney Andrew C. Bosse are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-109.
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Comprehensive Enforcement Action, Federal Court Filings Require Rhode Island State Government to Reduce Pollution and Resolve Longstanding Clean Water Act ViolationsRead the Press Release
The United States has taken comprehensive enforcement action to resolve several years of significant noncompliance by the Rhode Island Department of Transportation (RIDOT) with its obligations under the federal Clean Water Act and the permit that governs day-to-day operations of its stormwater drainage systems, announced Assistant Attorney General John C. Cruden of the Department of Justice’s Environmental and Natural Resources Division, U.S. Attorney Peter F. Neronha for the District of Rhode Island and the Environmental Protection Agency (EPA) Region 1 Administrator H. Curtis Spalding. The resolution is being carried out through the filing of a civil complaint in federal court in Providence, Rhode Island, and the lodging of a consent decree that requires RIDOT to immediately begin comprehensive efforts to repair, restore and improve its systems to comply with the law.
As detailed in the complaint filed today, it is alleged that RIDOT failed to comply with its obligations under the permit in four major areas: (1) taking appropriate steps to evaluate and address the impact of its systems on impaired waters in the state of Rhode Island, (2) detecting and eliminating illicit connections and discharges of pollutants, including sewage, from illicit connections, (3) inspecting, cleaning and repairing its drainage systems, including catch basins and other components and (4) conducting adequate street sweeping to reduce the flow of contaminants, such as sediment and other physical debris on roadways into waterways.
As part of its system of roads, bridges and other infrastructure, RIDOT’s roadways are accompanied by storm drains, pipes, catch basins, manholes, outfalls and other drainage system components that carry stormwater runoff to approximately 235 impaired water body segments in Rhode Island: this includes waters that ultimately discharge into Narragansett and Mount Hope Bays. The RIDOT drainage system includes approximately 25,000 catch basins and 3,800 outfalls that extend over 3,300 lane miles of roadway.
The consent decree filed with the court represents the result of more than 14 months of detailed and comprehensive discussions initiated by the Environment and Natural Resources Division and the U.S. Attorney’s Office with the state of Rhode Island, culminating in a comprehensive agreement that requires RIDOT to address each of its areas of violation.
“This agreement is good news for communities and the environment of Rhode Island,” said Assistant Attorney General Cruden. “This judicially enforceable settlement will require RIDOT to implement best management practices, including structural controls, to reduce stormwater pollution from its roads to impaired waters of Rhode Island. RIDOT will also be required to implement long-overdue repairs to its storm water drainage systems, which will also lead to improved water quality in area waterways, including the historic Narragansett Bay.”
“For nearly a decade, the Rhode Island Department of Transportation has ignored its obligation to the people of Rhode Island to protect the waterways of this state,” said U.S. Attorney Neronha. “Instead, through its neglect and indifference - through its failure to inspect and maintain its storm water run-off system – RIDOT has contributed to the pollution of those waters. Today, with the filing of a complaint against RIDOT in federal court in Providence and the entry of a consent decree between the United States and RIDOT, this will change. Under the terms of the consent decree, RIDOT’s obligations are clear – it must change the way it does business. It must do what it has repeatedly failed to do for years. It must comply with the law – specifically, the Clean Water Act. It must operate a storm water run-off system that protects, rather than harms, the environment. This Office, and our partners at EPA and ENRD, will hold RIDOT accountable should it fail to live up to its obligations.”
“EPA is pleased that we have now entered into a comprehensive legal agreement to ensure that RIDOT takes the necessary steps to comply with requirements that ensure a cleaner and healthier environment,” said Regional Administrator Curt Spalding for EPA’s New England office. “This settlement is designed to produce environmental improvements on a timeline that is aggressive, but not unrealistic for RIDOT. This is good news for everyone who enjoys the natural beauty and recreational abundance of Rhode Island.”
Under the decree, if approved by the court, RIDOT will pay a civil penalty of $315,000 and will undertake two Supplemental Environmental Projects (SEPs). These SEPs will result in the preservation, through conservation easements and permanent protection from development, of two parcels of land in Johnston and Lincoln, Rhode Island. These lands abut current state park or environmental preserves and lie within the watersheds of impaired waterways subject to the consent decree. Their designation as SEPs will ensure that they remain in their natural state for future generations of Rhode Islanders to enjoy.
To correct the identified deficiencies and meet its obligations under the Clean Water Act, RIDOT is required to develop stormwater control plans for groups of impaired water bodies (generally speaking, water bodies with high levels of pollution) that are near each other. These plans will identify the extent to which RIDOT’s roads and structures contribute to runoff to those water bodies, assess best practices to reduce pollution and then implement measures (in some cases including structural controls such as infiltration trenches, basins, ponds, grass swales, and others) to meet pollution reduction targets, taking into account various specified formulas that assess the impact of RIDOT’s roads and paved areas on the amount of discharge to waterways. Once created, the plans will be subject to EPA review and approval and must then be implemented by RIDOT.
Additionally, RIDOT will undertake a comprehensive program of sampling at locations where its systems drain into the environment to look for situations where third parties may have illicit connections to RIDOT storm sewers, potentially draining sewage or other non-stormwater pollutants through the system. When these tests identify designated pollutants, including high levels of bacteria accompanied by certain chemicals or biological indicators, RIDOT must investigate, determine the source of the connection, and take appropriate steps to eliminate it.
In addition, many elements of RIDOT’s physical systems, including catch basins, culverts and other components of its stormwater drainage network, are in poor repair and have not been adequately maintained. In some cases, this prevents the system from working as it should to control pollutant discharge. Under the decree, RIDOT will submit an inventory of its physical systems by March of next year. It will then have to implement a comprehensive inspection, cleaning and repair program, followed by continuing periodic inspection and maintenance.
Finally, RIDOT must undertake an inventory of its roads and parking lots and will then implement a street sweeping and tracking system to ensure that its network is fully and regularly swept.
RIDOT is required to file annual reports with EPA regarding its progress with all of the requirements of the decree and the decree provides for stipulated penalties for future instances of noncompliance.
The investigation and resolution of this matter are the result of a coordinated enforcement effort among the U.S. Attorney’s Office for the District of Rhode Island, the Department of Justice’s Environment and Natural Resources Division and EPA.
The case is being handled by Assistant U.S. Attorneys Zachary A. Cunha and Richard B. Myrus, Senior Counsel Elizabeth Yu of the Environment and Natural Resources Division of the Department of Justice and Enforcement Counsel Kevin Pechulis, of the EPA.
For a copy of the consent decree, visit www.justice.gov/enrd/consent-decrees.
Comprehensive Enforcement Action, Federal Court Filings Require R.I. State Government to Reduce Pollution and Resolve Longstanding Clean Water Act ViolationsRead the Press Release
PROVIDENCE, R.I. - United States Attorney Peter F. Neronha, Assistant Attorney General for the Environmental and Natural Resources Division (ENRD) of the Department of Justice John C. Cruden, and EPA Region 1 Administrator H. Curtis Spalding announced today that the United States has taken comprehensive enforcement action to resolve several years of significant noncompliance by the Rhode Island Department of Transportation (“RIDOT”) with its obligations under the federal Clean Water Act and the permit that governs day-to-day operations of its stormwater drainage systems. The resolution is being carried out through the filing of a civil complaint in federal court in Providence, and the lodging of a consent decree that requires RIDOT to immediately begin comprehensive efforts to repair, restore, and improve its systems to comply with the law.
As detailed in the complaint filed today, it is alleged that RIDOT failed to comply with its obligations under the permit in four major areas: (1) taking appropriate steps to evaluate and address the impact of its systems on impaired waters in the State of Rhode Island, (2) detecting and eliminating illicit connections and discharges of pollutants, including sewage, from illicit connections, (3) inspecting, cleaning, and repairing its drainage systems, including catch basins and other components, and (4) conducting adequate street sweeping to reduce the flow of contaminants, such as sediment and other physical debris on roadways into waterways.
As part of its system of roads, bridges and other infrastructure, RIDOT’s roadways are accompanied by storm drains, pipes, catch basins, manholes, outfalls, and other drainage system components that carry stormwater runoff to approximately 235 impaired water body segments in Rhode Island: this includes waters that ultimately discharge into Narragansett and Mount Hope Bays. The RIDOT drainage system includes approximately 25,000 catch basins and 3,800 outfalls that extend over 3,300 lane miles of roadway.
The consent decree filed with the court represents the result of more than14 months of detailed and comprehensive discussions initiated by the United States Attorney’s Office and ENRD with the State of Rhode Island, culminating in a comprehensive agreement that requires RIDOT to address each of its areas of violation.
“For nearly a decade, the Rhode Island Department of Transportation has ignored its obligation to the people of Rhode Island to protect the waterways of this state. Instead, through its neglect and indifference - through its failure to inspect and maintain its storm water run-off system – RIDOT has contributed to the pollution of those waters,” said United States Attorney Peter F. Neronha.
U.S. Attorney Neronha added, “Today, with the filing of a complaint against RIDOT in federal court here in Providence and the entry of a consent decree between the United States and RIDOT, this will change. Under the terms of the consent decree, RIDOT’s obligations are clear – it must change the way it does business. It must do what it has repeatedly failed to do for years. It must comply with the law – specifically, the Clean Water Act. It must operate a storm water run-off system that protects, rather than harms, the environment. This Office, and our partners at EPA and ENRD, will hold RIDOT accountable should it fail to live up to its obligations.”
“This agreement is good news for communities and the environment of Rhode Island,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This judicially enforceable settlement will require RIDOT to implement best management practices, including structural controls, to reduce stormwater pollution from its roads to impaired waters of Rhode Island. RIDOT will also be required to implement long-overdue repairs to its storm water drainage systems, which will also lead to improved water quality in area waterways, including the historic Narragansett Bay.”
“EPA is pleased that we have now entered into a comprehensive legal agreement to ensure that RIDOT takes the necessary steps to comply with requirements that ensure a cleaner and healthier environment. This settlement is designed to produce environmental improvements on a timeline that is aggressive, but not unrealistic for RIDOT. This is good news for everyone who enjoys the natural beauty and recreational abundance of Rhode Island,” said Curt Spalding, Regional Administrator of the US Environmental Protection Agency’s New England office.
Under the decree, if approved by the Court, RIDOT will pay a civil penalty of $315,000, and will undertake two Supplemental Environmental Projects (“SEPs”). These SEPs will result in the preservation, through conservation easements and permanent protection from development, of two parcels of land in Johnston and Lincoln, Rhode Island. These lands abut current state park or environmental preserves and lie within the watersheds of impaired waterways subject to the consent decree. Their designation as SEPs will ensure that they remain in their natural state for future generations of Rhode Islanders to enjoy.
To correct the identified deficiencies and meet its obligations under the Clean Water Act, RIDOT is required to develop stormwater control plans for groups of impaired water bodies (generally speaking, water bodies with high levels of pollution) that are near each other. These plans will identify the extent to which RIDOT’s roads and structures contribute to runoff to those water bodies, assess best practices to reduce pollution, and then implement measures (in some cases including structural controls such as infiltration trenches, basins, ponds, grass swales, and others) to meet pollution reduction targets, taking into account various specified formulas that assess the impact of RIDOT’s roads and paved areas on the amount of discharge to waterways. Once created, the plans will be subject to EPA review and approval, and must then be implemented by RIDOT.
Additionally, RIDOT will undertake a comprehensive program of sampling at locations where its systems drain into the environment to look for situations where third parties may have illicit connections to RIDOT storm sewers, potentially draining sewage or other non-stormwater pollutants through the system. When these tests identify designated pollutants, including high levels of bacteria accompanied by certain chemicals or biological indicators, RIDOT must investigate, determine the source of the connection, and take appropriate steps to eliminate it.
In addition, many elements of RIDOT’s physical systems, including catch basins, culverts, and other components of its stormwater drainage network, are in poor repair and have not been adequately maintained. In some cases, this prevents the system from working as it should to control pollutant discharge. Under the decree, RIDOT will submit an inventory of its physical systems by March of next year. It will then have to implement a comprehensive inspection, cleaning and repair program, followed by continuing periodic inspection and maintenance.
Finally, RIDOT must undertake an inventory of its roads and parking lots, and will then implement a street sweeping and tracking system to ensure that its network is fully and regularly swept.
RIDOT is required to file annual reports with EPA regarding its progress with all of the requirements of the decree, and the decree provides for stipulated penalties for future instances of noncompliance.
The investigation and resolution of this matter are the result of a coordinated enforcement effort among the U.S. Attorney’s Office for the District of Rhode Island, the Department of Justice’s Environmental and Natural Resources Division and EPA.
The case is being handled by Assistant U.S. Attorneys Zachary A. Cunha and Richard B. Myrus, Senior Counsel Elizabeth Yu of the Environmental and Natural Resources Division of the Department of Justice, and Enforcement Counsel Kevin Pechulis, of the EPA.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Columbus man sentenced to 18 months for being a felon in possession of firearmsRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that Randall Walker, 39, of Columbus, Ohio, was sentenced to 18 months in federal prison for being a felon in possession of firearms. In June of 2014, officers with the Charleston Police Department were called to the Greyhound bus station to respond to a complaint about an individual with two firearms. At the bus station, officers made contact with Walker, who admitted that he had two guns in his bag. A search of the bag revealed a Taurus, model Ultra-Light, .38 caliber revolver, and a Glock, model 30, .45 caliber pistol. Walker had previously been convicted in Horry County, South Carolina of Second Degree Burglary, Possession of Crack Cocaine, and Possession of Cocaine, all felony offenses punishable by terms of imprisonment of more than one year. These convictions preclude Walker from possession of any firearm.
The investigation was handled by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Monica D. Coleman was in charge of the prosecution.
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Columbus Lobbyist Pleads Guilty to ExtortionRead the Press Release
COLUMBUS, Ohio – An Ohio lobbyist pleaded guilty to extortion in connection with conduit contributions, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.
John P. Raphael, 60, of Columbus, pleaded guilty today to a one-count information charging him with interference with commerce by threats.
According to the information, Raphael was a consultant and lobbyist based in Columbus, Ohio, who was hired and paid by companies that sought to do business with municipalities and counties in Ohio. From March 2005 to February 2013, a red light camera enforcement company hired and paid Raphael to seek and obtain lucrative contracts to provide red light photo enforcement systems in the City of Columbus.
During the time the red light camera enforcement company was seeking to retain contracts in Columbus, Raphael repeatedly pressured and induced the company to make campaign contributions to the campaigns of various elected officials. He communicated to the company that it would lose its contracts and suffer an economic loss if it did not make the payments. Thus, Raphael obtained and attempted to obtain the funds by the wrongful use of fear of economic harm.
The former chief executive officer of the red light camera vendor, Karen L. Finley, previously pleaded guilty to conspiracy to commit federal programs bribery and honest services wire and mail fraud.
Interference with commerce by threats is a crime punishable by up to 20 years in prison and a fine of $250,000 or a fine of twice the pecuniary gain or loss. A sentencing hearing is yet to be scheduled.
The case was investigated by the FBI’s Cincinnati Field Office, Columbus Resident Agency, with the assistance of IRS-Criminal Investigations and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio.
This information only contains a charge against John Raphael and should not be construed as a reflection on the guilt or innocence of any other individual.
Cleveland man indicted for money launderingRead the Press Release
A Cleveland man was indicted on three counts of money laundering for accepting $20,000 in drug proceeds, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
Matthew J. King, 44, accepted $20,000 in cash and then wrote two checks totaling $4,000 in early 2014. The funds were provided for the purpose of money laundering that had been represented to King were the proceeds of the distribution of controlled substances, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Michelle Baeppler following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Carjacking/Rapist Found Guilty by A JuryRead the Press Release
SAN JUAN, P.R. – Today, Carlos Cruz-Rivera, aka “Cano Llorens,” was found guilty on all counts of carrying a firearm during and in relation to a crime of violence (carjacking) and possession of a firearm by a convicted felon, announced United States Attorney Rosa Emilia Rodríguez-Vélez. United States District Judge José A. Fusté presided over the trial. The convict had pled guilty to three counts of carjacking in the same accusation on October 6, 2015.
On September 9, 2015, a federal grand jury returned a seven-count superseding indictment charging a Cruz-Rivera with three counts of carjacking, three counts of using and carrying a firearm during and in relation to a crime of violence, and one count possession of a firearm by a convicted felon.
During the three day trial, the government presented pictures and witness’ testimonies that narrated the criminal incidents of rape, kidnapping, carjacking, and robbery that that the defendant perpetrated against the innocent victims.
“I commend the victims who came forward in order to seek justice and hope that this conviction will help them to start the healing process,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “My office will continue to work diligently with our partners in law enforcement to track down and prosecute violent criminals to the fullest extent of the law.”
The case was prosecuted by Assistant United States Attorney Jenifer Hernández-Vega, Supervisor of the Violent Crimes Unit and Special Assistant United States Attorney Kelly Zenon. The defendant faces a maximum penalty of up life in prison. The sentence was scheduled for January 14, 2016.
Brighton Woman Pleads Guilty to Healthcare Fraud OffenseRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Jessica A. Teets, 27, of Brighton, Illinois, pled guilty in the U.S. District Court on October 13, 2015, to the charge that she engaged in a scheme to defraud a health care program. Sentencing has been set for February 9, 2016, in U.S. District Court in East Saint Louis. Teets will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During her plea hearing, Teets admitted that she had submitted false and fraudulent bills in relation to her alleged performance of personal assistant services in the Illinois Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Teets admitted to falsely billing the program between December 7, 2012, and June 30, 2014, claiming that she had rendered personal assistant services to a customer when, in fact, she had not. As a result, Teets improperly billed 111 hours of services and obtained $1,312.05 in payments for services not performed.
Teets further admitted that her customer was found on July 1, 2014 in an incoherent state and partially covered in dried excrement by a friend checking on her welfare. Emergency responders transported the customer to a hospital and she was hospitalized for multiple days. Teets had not performed personal assistant services for the customer for more than a week prior to July 1, 2014.
This prosecution is part of the fourth wave of the "Operation Home Alone" initiative announced on June 5, 2014, by United States Attorney Stephen R. Wigginton.
The investigation was conducted by the U.S. Department of Health and Human Services - Office of Inspector General, the Federal Bureau of Investigation, the Illinois State Police - Medicaid Fraud Control Bureau, and the Wood River, Illinois Police Department. The case is being prosecuted by Assistant United States Attorney Adam E. Hanna.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Bowie Man Sentenced to over 11 Years in Prison for Fraud Schemes Using Stolen IdentitiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Kenneth Wayne Watford, age 55, of Bowie, Maryland, today to 135 months in prison followed by five years of supervised release for two identity theft schemes. Judge Messitte also ordered Watford to pay restitution of $14,254.54.
On April 16, 2015, a federal jury convicted Watford of conspiracy, wire fraud, credit card fraud and attempted credit card fraud, and aggravated identity theft in connection with fraud schemes using the stolen identities of others to purchase expensive cars and obtain credit cards in Watford’s business’ names backed by other people’s credit. After being charged with the first scheme, and while on federal pre-trial supervision, Watford also used another victim’s stolen identity to obtain and use a credit card to make purchases exceeding $14,300.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge James M. Murray of the United States Secret Service - Washington Field Office; Postal Inspector in Charge David G. Bowers of the U.S. Postal Inspection Service - Washington Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Chief John Nesky of the Bowie Police Department.
According to evidence presented at his six day trial, Watford, Flinton Newton and Juan Carlos Willis obtained the identity information of credit-worthy individuals, created false identity documents in the names of those individuals, and then posed as those individuals at automotive dealerships in order to apply for vehicle financing. Watford and his coconspirators filled out credit applications with dealers in Maryland and Virginia, and then used the extended credit to purchase, or attempt to purchase, expensive cars without any intention of making payments on the loans.
On June 23, 2012, Watford, Willis and a coconspirator posing as an identity theft victim used the victim’s identity to submit a credit application for $77,450 to finance the purchase of a 2011 BMW 750 at BMW of Silver Spring, Maryland.
On June 29, Watford used the victim’s identity to apply for an American Express business credit card account in the name of Annie M’s Groceries, a business entity Watford had registered the previous year. Evidence presented at trial also revealed that Watford, Willis and the unidentified co-conspirator also attempted to purchase two Cadillac Escalades from Capitol Cadillac in Greenbelt using the same victim’s credit.
On July 19, 2012, Newton and Willis returned to Capitol Cadillac, where Newton posed as a second victim whose identity he had fraudulently obtained and applied for $80,663 in financing to purchase a 2013 Cadillac Escalade in the second victim’s name. Watford had provided Willis with access to a business auto insurance policy he had established in the name of Annie M’s Groceries, and Willis used this online access to Watford’s insurance policy to obtain proof of insurance for the purchase of the vehicle.
Later that evening, Newton and Willis drove to Mercedes-Benz of Silver Spring where Newton again posed as the second victim. The men attempted to purchase a 2012 Mercedes-Benz CL550 and a 2009 Mercedez-Benz S550 for a total of $120,056. They filled out credit applications to finance the entire purchase price, again using the victim’s identity and credit, and an insurance policy under the name of Annie M’s Groceries. The dealership manager, however, saw that the victim’s credit had just been used to purchase the Cadillac Escalade, so he notified Montgomery County Police, who responded and arrested Newton and Willis.
A subsequent search of Willis’ cell phone revealed text messages between Willis and Watford concerning the purchase and use of the BMW, as well as the victim’s personal information. On July 26, 2012, Watford was arrested while driving the BMW in Bowie. Inside the car were the victim's credit reports from three credit bureaus, and a social security card and driver’s license in the name of Watford’s alias, “Abdul Abrams.” Law enforcement executed a search warrant at Watford’s residence and seized credit reports and financial documents in the names of other victims.
The total attempted loss as a result of this fraudulent scheme was between $400,000 and $1 million.
In 2013, after Watford was charged for the above scheme and released pending trial, he obtained the personal identifying information of a third victim. Using that identity to guarantee the cards, Watford twice applied for credit cards in the name of a second business entity he controlled, Futranet Coaches of America. Watford’s first attempt, an application to American Express in August 2013, was declined; however, in September 2013 Watford successfully used the third victim’s credit to obtain a $15,000 line of credit with Fleetcor, LLC, a credit-card issuer specializing in fuel cards. During the next month, Watford ran up over $14,300 in purchases on cards issued on that account, including $13,000 paid to a former business associate who was holding several vehicles belonging to Watford as collateral on a large outstanding debt Watford owed him. In addition to being found guilty of two counts of unauthorized credit card use and two counts of aggravated identity theft in conjunction with this post-release conduct, Watford was also found guilty of committing these offenses while on federal pre-trial release, requiring that his sentences for these counts run consecutive to his sentence on the automobile-related fraud charges.
Flinton Newton, age 35, of Bartlett, Tennessee previously pleaded guilty to his participation in the scheme and was sentenced to 42 months in prison for conspiring to commit wire fraud and aggravated identity theft. Juan Carlos Willis, age 42, of Hyattsville, Maryland pleaded guilty to the same offenses on the day before his trial was scheduled to begin, and was subsequently sentenced to 61 months in prison.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the Secret Service, U.S. Postal Inspection Service, Montgomery County Police Department and Bowie Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Adam K. Ake and Special Assistant United States Attorney James I. Pearce, who prosecuted the case.
Boston Man Indicted for Armed Bank RobberyRead the Press Release
BOSTON – A Boston man was charged today in U.S. District Court in Boston in connection with robbing a Citizens Bank in Brighton.
Kenneth E. Denny, 60, was indicted on one count of armed bank robbery.
According to court documents, on July 24, 2015, a man, dressed in a tan hat, gray wig, blue sports coat, shirt and tie, entered a Citizens Bank on Washington Street in Brighton. Once inside the bank, the man allegedly handed the teller a demand note, removed an item which appeared to be a bomb from a newspaper he was carrying, placed it on the teller’s counter, and demanded money. The man was given $4,040, but was confronted by the bank’s manager when he attempted to leave. The man dropped the bag containing the money removed a white cell phone from his pocket and stated “I am going to blow it up.” The individual then exited the bank and was seen heading down Washington Street.
The Boston Police Bomb squad arrived and determined that the bomb was a hoax. Inside the bank, law enforcement officers allegedly found that the robber had left his wallet on the teller’s counter with a picture ID inside in the name of Kenneth E. Denny. Law enforcement officers recalled that they had observed a man who resembled Denny on Washington Street as they were approaching the bank. A few minutes later, officers located the man and confirmed that his name was Kenneth Denny. Denny was asked to produce identification and stated he must have lost his wallet.
Denny was detained and returned to the bank for a live line-up. Court documents allege that bank employees identified Denny as the man who had robbed them earlier in the day.
The charging statute provides for a sentence of no greater than 25 years in prison, five years of supervised release, and a fine of up to $250,000. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Bergen County, New Jersey, Man Sentenced to Six Years in Prison for Defrauding Foreign Nation of More Than $3.5 MillionRead the Press Release
TRENTON, N.J. – A former international legal advisor and New York-licensed attorney was sentenced today to 72 months in prison for using a sham accounting firm to defraud a foreign nation of more than $3.5 million, U.S. Attorney Paul J. Fishman announced.
Bobby Boye, a/k/a “Bobby Ajiboye,” a/k/a “Bobby Aji-Boye,” 52, of Mahwah, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to commit wire fraud. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
As part of his employment as an international legal advisor for the victim nation, which is referred to in the information as “Country A,” Boye served on a committee responsible for reviewing and evaluating bids, solicited in February 2012, for a multimillion-dollar contract to provide legal and tax accounting advice to Country A. In order to secure the lucrative contract for himself, Boye created a sham New York law and accounting firm called Opus & Best Law Services LLC (Opus & Best) that, unbeknownst to Country A, was secretly controlled by Boye.
In March 2012, Boye caused Opus & Best to submit by email a bid for the contract with Country A. The bid documents contained multiple, material misrepresentations and omissions, including: (1) a false claim that Opus & Best was founded in 1985 and was registered as a legal and accounting services provider in Europe, the Middle East and Africa; (2) a fraudulent listing of several purported employees of Opus & Best; and (3) a reference to prior consulting work purportedly performed by Opus & Best for another foreign country. In reality, Boye created Opus & Best for the purpose of submitting the fraudulent bid documents. Opus & Best employed no one other than Boye, let alone the professionals identified in the bid, and had never provided consulting services to the foreign country listed as a reference. The bid documents failed to disclose that Boye’s affiliation with Opus & Best created a conflict of interest and rendered him a third-party beneficiary of the proposed contract.
Unaware that Opus & Best was a sham firm secretly controlled by Boye, and relying on the recommendation of Boye, Country A awarded the contract to Opus & Best in June 2012. Under the terms of the consulting contract, Boye was one of the two project coordinators acting on behalf of Country A and had authority to receive and approve invoices for payment.
Between June 2012 and December 2012, Country A wired more than $3.5 million to Opus & Best’s New York business checking account, which was controlled by Boye. He used a substantial part of the money to purchase four properties in New Jersey for more than $1.5 million in cash, three luxury vehicles (a 2012 Bentley for $172,000, a 2012 Range Rover for $100,983, and a 2011 Rolls Royce for $215,000), and two designer watches for almost $20,000.
In addition to the prison term, Judge Wolfson ordered Boye to serve three years of supervised release and pay $3,510,000 in restitution.
U.S. Attorney Fishman credited special agents of the FBI’s Garret Mountain Resident Office in Woodland Park, New Jersey, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark and Assistant U.S. Attorney Barbara Ward of the U.S. Attorney’s Office’s Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov
Defense counsel: K. Anthony Thomas, Assistant Federal Public Defender, Newark
Baltimore City Police Officer Pleads Guilty to TheftRead the Press Release
Baltimore, Maryland – Baltimore City Police officer Maurice Lamar Jeffers, age 47, of Savage, Maryland, pleaded guilty today to theft of government property and stealing property as a federal officer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Interim Commissioner Kevin Davis of the Baltimore Police Department.
“The agents carried out an undercover operation and obtained a video recording of the defendant stealing cash while he believed he was executing a search warrant,” said U.S. Attorney Rod J. Rosenstein. “I want to thank the officers of the Baltimore Police Department and other agencies that assisted in this investigation.”
Jeffers has been a sworn member of the Baltimore Police Department for the last 12 years, and was assigned as a Task Force Officer (TFO) to the U.S. Marshals’ Capital Area Regional Fugitive Task Force (CARFTF). As a TFO, Jeffers received special deputation to execute arrest and search warrants supporting the federal task force. Jeffers was responsible for locating and arresting offenders who had active local and federal arrest warrants and assisting in locating individuals for other jurisdictions and agencies upon request.
According to information provided to the court at his plea hearing, acting on information provided by a confidential source, law enforcement conducted a covert operation in which agents rented a hotel room and set up audio and video recording devices. Law enforcement also hid approximately $3,000 in pre-recorded cash in a pocket of a jacket and inside a pair of shoes in a duffle bag. The cash belonged to the FBI.
Jeffers and his colleagues were told that a local law enforcement agency was conducting a narcotics investigation and that the target of the investigation was staying at the hotel room. Jeffers and his partner were told to secure the room so that the local law enforcement agency could later execute a search warrant. Jeffers and his partner entered the hotel room and conducted a brief protective sweep. Jeffrers then told his partner to go to the lobby of the hotel to tell other CARFTF members that no one was located inside the room.
After his partner left the room, Jeffers searched the hotel room and located the hidden cash, which he placed into his pants pockets. Jeffers kept the money for his own personal gain. On May 7, 2015, Jeffers was arrested and searched incident to the arrest. Law enforcement located $220 (eleven $20 bills) on Jeffers that he stole from the hotel room on March 10, 2015.
Jeffers faces a maximum sentence of 10 years in prison for each of the two theft counts. U.S. District Judge J. Frederick Motz has scheduled sentencing for February 11, 2015, at 10:00 a.m.
United States Attorney Rod J. Rosenstein praised the Baltimore FBI Public Corruption Task Force, which includes Agents and law enforcement officers from the IRS, the Baltimore Police Department, the Prince George’s County Police Department and the Baltimore FBI, for their work in the investigation. Mr. Rosenstein expressed his appreciation to the U.S. Marshals Service for its assistance and thanked Assistant United States Attorney Rachel M. Yasser, who is prosecuting the case.
Albuquerque Woman Transferred from Texas to New Mexico to Face Federal Sex Trafficking ChargeRead the Press Release
ALBUQUERQUE – Angela Santillanes, 30, of Albuquerque, N.M., appeared in federal court this morning on an indictment charging her with a sex trafficking charge. Santillanes remains in federal custody pending an arraignment on the indictment and a detention hearing, both of which are set for tomorrow.
Santillanes was arrested in Aug. 2015, in Dallas, Texas, on an indictment charging her and co-defendant Shane Roach, 26, also of Albuquerque, with commercial sex trafficking. She was recently transferred to New Mexico to face the charge in the indictment.
The indictment alleges that Roach and Santillanes used force, threats of force and coercion to cause the victim to engage in a commercial sex act between May and June 2015. It alleges that the defendants committed this crime in Bernalillo County, N.M.
According to the criminal complaint filed in July 2015, the victim who allegedly was sex trafficked by Santillanes and Roach contacted the Albuquerque Police Department (APD) with a request for help on June 10, 2015. During subsequent interviews, the victim alleged that she had been trafficked for sex by Roach for approximately a month and a half. During that time, the victim allegedly was forced to engage in sex with men four or five times a day earning between $400.00 and $500.00, and Roach allegedly kept all the money. During that time, Roach allegedly beat the victim on a number of occasions, and threatened to harm her family if she left him.
Roach was arrested in July 2015. Trial for Roach is currently set for Dec. 2015, in Albuquerque.
If convicted of the offenses charged in the federal indictment, Santillanes and Roach each face a mandatory minimum of 15 years and a maximum of life in prison. Charges in indictments and criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of Homeland Security Investigations and APD’s Vice Unit. Assistant U.S. Attorney Norman Cairns is prosecuting the case.
Alabama Woman Sentenced for Involvement in $2.5 Million Stolen Identity Refund Fraud RingRead the Press Release
A Phenix City, Alabama, woman was sentenced to serve five years in prison today in U.S. District Court for the Middle District of Alabama for her involvement in a stolen identity tax fraud (SIRF) scheme, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama announced today.
Teresa Floyd, 53, was sentenced by Chief U.S. District Judge W. Keith Watkins of the Middle District of Alabama to serve 50 months in prison to be followed by three years of supervised release and was ordered to pay $734,565 in restitution to the Internal Revenue Service (IRS).
Floyd pleaded guilty earlier this year to one count of conspiracy to defraud the United States with respect to claims and one count of aggravated identity theft. Floyd’s daughter, Lasondra Miles Davis, 37, pleaded guilty earlier this year to one count of aggravated identity theft. On Sept. 1, Davis was sentenced to serve two years in prison to be followed by one year of supervised release and was ordered to pay $1,941 in restitution to the IRS.
According to court documents, between March 2011 and May 2014, Floyd and Davis operated several tax preparation businesses in the Phenix City area, including T & L Tax Service. Floyd obtained stolen identities which, according to allegations in the superseding indictment, she and her co-conspirators then used to file more than 900 false federal income tax returns that claimed more than $2.5 million in tax refunds. Floyd, Davis and others caused the fraudulently obtained refund checks to be cashed at several businesses in Alabama and Georgia.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Michael P. Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Acusada una Organización a la Que se le Relaciona con la Metanfetamina en el Condado de FresnoRead the Press Release
FRESNO, California – Hoy un gran jurado federal dictó un auto de procesamiento de 13 cargos contra 14 individuos acusados de conspirar para distribuir metanfetamina, cocaína y heroína, anunció el Procurador de los Estados Unidos Benjamín B. Wagner.
Imputados en el auto de procesamiento figuran Olegario Trujillo, 29, de Fresno; Arnoldo Martínez Valencia, 39, de Woodlake; Edgar Valencia-Farías, de Tulare; Caesar Alejandro Gómez, 33, de Fresno; Gladys Ramos, 30, de Woodlake; Carlos Tafoya-Ramos, 22, de Woodlake; Marcos Díaz, 23, de Madera; Ramiro Salas Muñoz, 37, de Lindsay; Arthur Allen Walker, 32, de Poplar; Francisca Torres-Guisar, 51, de Visalia; Pedro Delgado-Montenegro, 36, de Porterville; José Roberto Arreola-Serrato, 31, de Tulare, Gary Passmore, 65, del estado de Washington y Jorge Martínez Jr., 23, de Tulare.
Según documentos del tribunal, Olegario Trujillo fue el jefe de una organización traficante de droga a gran escala y responsable de distribuir metanfetamina, cocaína y heroína en California y Washington. Pedro Delgado-Montenegro y José Arreola-Serrato le suministraban la metanfetamina. Trujillo dirigía a varios de los otros individuos imputados en la entrega de las drogas y les daba instrucciones sobre la disposición de las ganancias. Arnoldo Martínez Valencia trabajaba con Trujillo en la administración de la distribución de la droga a Shelton, Washington. Como resultado de la investigación, agentes de la policía incautaron una gran cantidad de sustancias controladas incluyendo 14 kilos de metanfetamina, dos kilos de cocaína y un kilo de heroína.
Este caso fue el producto de una investigación para las Áreas de Tráfico de Droga de Alta Intensidad del Valle Central (Central Valley High Intensity Drug Trafficking Area o HIDTA) gestionada por el Equipo de Investigación de la Marihuana del Valle Central (Central Valley Marihuana Investigation Team o CVMIT). El CVMIT está compuesto por las Investigaciones de la Seguridad de la Patria (Homeland Security Investigations o HSI) de las Aplicaciones de Ley de Aduanas e Inmigración de los Estados Unidos (U.S. Immigration and Customs Enforcement o ICE), la Oficina de Investigación del Departamento de Justicia de California, Pesca y Vida Silvestre de California, la Oficina del Sheriff del Condado de Tulare, la Oficina del Sheriff del Condado de Kings y la Oficina del Sheriff del Condado de Fresno. La Procuradora Auxiliar de los Estados Unidos Kathleen Servatius está procesando el caso.
Si es condenado, Trujillo se enfrenta a una pena máxima establecida por la ley de condena perpetua y una multa de $10 millones. El resto de los demandados se enfrentan a penas máximas establecidas por la ley de 20 años en prisión y multas de $1 millón. El tribunal, no obstante, se reserva la decisión sobre cualquier sentencia y al ser considerado cualquier factor aplicable establecido por la ley y las Directrices Federales para Dictar Sentencia, las cuales toman en cuenta un número determinado de variables. Las imputaciones sólo son alegaciones; los demandados son presuntos inocentes hasta y a menos que sean comprobados culpables más allá de toda duda razonable.
61 Latin Kings Gang Members and Associates Arrested and Charged in Connection with a Racketeering and Drug Distribution SchemeRead the Press Release
Pete Perez, the Texas-Central Region “Inca,” or leader, of the Almighty Latin King and Queen Nation (Latin Kings), and 60 of his fellow members and associates are in custody facing federal and/or state charges for their roles in a racketeering and drug distribution scheme in the Austin, San Antonio and Uvalde areas.
As a result of this investigation, federal grand juries sitting in Del Rio and San Antonio have indicted 37 individuals. A state grand jury sitting in Uvalde County has indicted 28 individuals. Of those charged, 46 were arrested yesterday, 15 were arrested prior to yesterday, and four individuals remain fugitives.
That announcement was made today by United States Attorney Richard L. Durbin, Jr.; Uvalde County/38th Judicial District Attorney Daniel J. Kindred; Acting Special Agent in Charge Mark Dawson, Homeland Security Investigations in San Antonio; Christopher Combs, Federal Bureau of Investigation in San Antonio; Special Agent in Charge Joseph M. Arabit, Drug Enforcement Administration in Houston; Director Steven McCraw, Texas Department of Public Safety; and, Uvalde Police Chief Eric Herrera.
According to the federal grand jury indictments, the defendants have operated a criminal enterprise in Central Texas since 2005. Under the leadership of Texas-Central Region “Inca” Pete Perez in Austin, San Antonio Chapter “Inca” Joe Pierce and Uvalde Chapter “Incas” James Long and Jacob Mariscal, they have conspired to carry out unlawful acts including attempted murder, assault with a dangerous weapon, extortion, robbery, various firearms offenses and drug distribution involving marijuana, cocaine and methamphetamine. The Racketeering Influenced Corrupt Organization (RICO) indictment alleges that ten attempted murders, approximately ten assaults and various other acts of violence were committed as a result of a prospect initiation, leaking of sensitive information to a non-Latin King member, breaking an organizational rule, retaliation against rival gang members, and for unpaid drug distribution debts.
A complete list of those charged by federal indictment is attached.
Upon conviction, the defendants facing federal charges are subject to imprisonment of up to life.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Texas Department of Public Safety (DPS), and the Uvalde Police Department. Agencies assisting with today’s arrests include the United States Marshals Service, Lonestar Fugitive Task Force, U.S. Border Patrol, U.S. Customs and Border Protection Air & Marine Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Uvalde County Sheriff’s Office, Sabinal Police Department, Austin Police Department and San Antonio Police Department.
Wednesday 14 October 2015
Worcester Man Sentenced to Prison for Marijuana Trafficking and Money LaunderingRead the Press Release
BOSTON – A Worcester man was sentenced today in U.S. District Court in Worcester for participating in a four-year narcotics trafficking and money laundering scheme.
Huy Anh “Henry” Lam, 38, of Worcester, was sentenced by U.S. District Court Judge Timothy S. Hillman to seven years in prison and four years of supervised release. Judge Hillman also forfeited Lam’s interest in a house on Whisper Drive in Worcester, three cars, a boat, bank accounts, and other property, and ordered Lam to pay a money judgment of $500,000. In February 2015, Lam pleaded guilty to a conspiracy to possess with intent to distribute 100 kilograms or more of marijuana, a money laundering conspiracy, a structuring conspiracy, structuring transactions to evade reporting requirements, money laundering, and unlawful monetary transactions.
From 2010 to 2014, Lam trafficked at least 1,000 kilograms of marijuana, which generated millions of dollars in proceeds. He then used the laundered drug proceeds to purchase two pieces of property in Worcester and luxury vehicles, including a 2012 Range Rover Sport SUV, a 2013 Cadillac Escalade, and a 2013 Nissan GT-R custom-built sports car.
Judge Hillman previously sentenced co-defendants Nhi Ai Thi Lam to 18 months in prison and three years of supervised release, and Diemphuc Thi Lam to one year and one day in prison and three years of supervised release.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; James V. Buthorn, Inspector in Charge of the U.S. Postal Inspection Service; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Timothy E. Moran of Ortiz’s Organized Crime and Gang Unit, Rachel Hemani of Ortiz’s Major Crimes Unit, and Doreen Rachal of Ortiz’s Asset Forfeiture Unit.
West Virginia man sentenced in Federal court for filing fraudulent tax returnsRead the Press Release
CHARLESTON, W.Va. – A West Virginia man who filed numerous false federal tax returns was sentenced today to 19 months in federal prison, announced United States Attorney Booth Goodwin. Michael Jarrell, 40, of Hurricane, West Virginia, previously pleaded guilty on July 8, 2015, to one count of filing a false tax return in the name of a family member without authorization. At the plea hearing, Jarrell also admitted that he had filed false tax returns from 2007 through 2011 in the names of 11 other relatives, neighbors and friends without their authorization. In total, Jarrell filed 12 false tax returns, seeking tax refunds of nearly $120,000. Jarrell was paid $67,968 in tax refunds to which he was not entitled. In addition to the prison term, Jarrell was ordered to pay restitution to the Internal Revenue Service for the full amount of the fraudulent tax refunds he received.
The Internal Revenue Service conducted the investigation as part of its Stolen Identity Refund Fraud initiative. Assistant United States Attorney Eumi Choi handled the prosecution.
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Watertown Man Sentenced to 9 Years in Prison for Possessing Sawed-Off FirearmsRead the Press Release
SYRACUSE, NEW YORK –ROBERT MONO, 29, of Watertown, New York was sentenced yesterday in federal court to serve 112 months imprisonment to be followed by 3 year term of supervised release as the result of his convictions for possession of sawed-off firearms and ammunition by a convicted felon, and possession of unregistered firearms, announced United States Attorney Richard S. Hartunian.
"Keeping firearms and ammunition from felons and sawed-off shotguns off the streets are critically important to the safety of our communities. We are committed to the inter-agency cooperation that affords the best protection against tragedy," said U.S. Attorney Hartunian.
ROBERT MONO’s sentence resulted from his possession of four sawed-off shotguns, a rifle, and various types of ammunition at a residence in Watertown on July 23, 2013. MONO stole the five firearms and ammunition during a residential burglary and then used a hacksaw to shorten the barrels and stocks of the four shotguns. MONO also sold at least one of the four sawed-off shotguns to another person. MONO was previously convicted in Jefferson County Court of Burglary in the Third Degree, a felony.
The case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, (Syracuse, New York Office), the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds.
Two Tampa Men Indicted on Credit Card Fraud and Identity Theft ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of a 31-count indictment charging Tampa residents Yannier Arias (29) and Jose Ojeda Vera (25) with conspiracy to commit credit card fraud and identity theft. If convicted, each faces a maximum penalty of 5 years in federal prison for each conspiracy charge and up to 10 years’ imprisonment for each credit card fraud charge, to be followed by two years in federal prison for the identity theft charges. They were indicted on August 27, 2015.
According to the indictment, Arias and Vera obtained and used counterfeit and unauthorized credit cards that had been encoded with stolen credit card account information. In many cases, the stolen information had been obtained by “skimming” victims’ credit cards at local gas stations. The fraudulent credit cards were embossed and encoded with names and account numbers belonging to individuals who were often unaware that they had been victimized. Many learned that their information had been stolen when they were notified by law enforcement. Arias and Vera allegedly used these stolen identities and credit cards to purchase merchandise from local stores.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Financial Crimes Task Force, which includes the United States Secret Service, the Florida Department of Law Enforcement, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Two Drug Suppliers Plead Guilty in Nationwide Prescription Drug Diversion SchemeRead the Press Release
The Department of Justice announced that a California man and a New Jersey man pleaded guilty today in U.S. District Court in Cincinnati in connection with the prosecution of a nationwide prescription drug diversion scheme.
Fernando Galan, 50, of Simi Valley, California, pleaded guilty before U.S. District Court Judge Timothy S. Black to one count of conspiracy to distribute prescription drugs without a wholesale license. The department also unsealed the case against David Konigsberg, 58, of East Hanover, New Jersey, who pleaded guilty on June 22 to one count of conspiracy to commit mail and wire fraud for his participation in the drug diversion scheme.
Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Antoinette V. Henry of the U.S. Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) Metro Washington, D.C., Field Office and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service’s (USPIS) Cincinnati Field Office announced the two guilty pleas.
“Prescription drug diversion compromises the integrity of America’s drug supply chain,” said Principal Deputy Assistant Attorney General Mizer. “This extensive investigation demonstrates that the Department of Justice will protect American consumers by prosecuting those who violate federal law by selling diverted drugs.”
“The sale of illegally diverted prescription drugs creates unacceptable public health risks,” said U.S. Attorney Stewart. “Patients purchased what they believed were FDA-approved prescription drugs that had remained in regulated distribution channels intended to protect against misbranded, adulterated, sub-potent, improperly handled, counterfeit and stolen products. Instead, these customers received drugs of unknown quality and origin.”
Galan and Konigsberg participated in the sale of illegally diverted prescription drugs to David Miller and his company, Minnesota Independent Cooperative (MIC). On May 6, David Miller and MIC, along with Artur Stepanyan and Mihran Stepanyan, were indicted in the Southern District of Ohio and charged with one count of conspiracy to commit mail and wire fraud, 10 counts of mail fraud and one count of conspiracy to make false statements and to distribute prescription drugs without a wholesale license. Those charges are still pending. Galan and Konigsberg are the sixth and seventh co-conspirators to plead guilty for their participation in the drug diversion scheme involving Miller and MIC.
Miller and MIC sold the prescription drugs obtained through Galan and Konigsberg – along with multiple other illegal sources – to wholesale and retail customers throughout the United States, including in the Southern District of Ohio. Miller and MIC are alleged to have created fraudulent pedigree documents falsely stating that they had purchased the drugs from B&Y Wholesale, a company in Puerto Rico. These false pedigrees covered up the illegitimate sources of the drugs – various illicit suppliers, including Konigsberg and Ricardo Jurado, a Miami supplier – and falsely stated that B&Y was an authorized distributor of the prescription drugs.
Galan
According to court documents, from July 2007 through October 2012, Galan facilitated the sale of millions of dollars of illegally diverted prescription drugs. Galan, who owned a restaurant in Rosemead, California, acted as a middleman in the sale of diverted prescription drugs from Ricardo Jurado, a drug supplier in Miami, to Miller and MIC. Neither Jurado nor Galan was licensed to engage in the wholesale distribution of prescription drugs. Jurado has also been charged for his role in this conspiracy.
In connection with facilitating the sale of the diverted drugs, Galan forwarded wiring instructions from Jurado directing Miller to send payments to at least 13 different bank accounts at banks in Mexico, Nicaragua, Canada, Florida and other locations. During the course of the conspiracy, Miller and MIC wired more than $30 million to the bank accounts specified by Galan. From June 2009 through July 2012, Galan received between $550,000 and $1 million in commission payments on the drug sales.
Konigsberg
According to court documents, from 2008 through February 2104, Konigsberg sold illegally diverted prescription drugs to Miller and MIC. Doing business as Preferred Inc., Konigsberg received prescription drugs from another supplier, who obtained the drugs from illicit street sources in New York and New Jersey at substantial discounts off of the wholesale price. Konigsberg then offered the drugs to Miller and MIC for a profit.
At Miller’s direction, Konigsberg included false notations on the invoices he provided to Miller indicating that Konigsberg had purchased the drugs from a large wholesale distributor. As Konigberg and Miller both knew, Konigsberg had obtained the drugs from illegal sources, not from the large distributor.
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This matter is being investigated by FDA-OCI and the USPIS. Assistant U.S. Attorneys Anne L. Porter and Christy Muncy of the Southern District of Ohio and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch are representing the United States in these cases.
Two Drug Suppliers Plead Guilty in Nationwide Prescription Drug Diversion SchemeRead the Press Release
WASHINGTON – The Department of Justice announced that a California man and a New Jersey man pleaded guilty today in U.S. District Court in Cincinnati in connection with the prosecution of a nationwide prescription drug diversion scheme.
Fernando Galan, 50, of Simi Valley, California, pleaded guilty before U.S. District Court Judge Timothy S. Black to one count of conspiracy to distribute prescription drugs without a wholesale license. The department also unsealed the case against David Konigsberg, 58, of East Hanover, New Jersey, who pleaded guilty on June 22 to one count of conspiracy to commit mail and wire fraud for his participation in the drug diversion scheme.
Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Antoinette V. Henry of the U.S. Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) Metro Washington, D.C., Field Office and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service’s (USPIS) Cincinnati Field Office announced the two guilty pleas.
“Prescription drug diversion compromises the integrity of America’s drug supply chain,” said Principal Deputy Assistant Attorney General Mizer. “This extensive investigation demonstrates that the Department of Justice will protect American consumers by prosecuting those who violate federal law by selling diverted drugs.”
“The sale of illegally diverted prescription drugs creates unacceptable public health risks,” said U.S. Attorney Stewart. “Patients purchased what they believed were FDA-approved prescription drugs that had remained in regulated distribution channels intended to protect against misbranded, adulterated, sub-potent, improperly handled, counterfeit and stolen products. Instead, these customers received drugs of unknown quality and origin.”
Galan and Konigsberg participated in the sale of illegally diverted prescription drugs to David Miller and his company, Minnesota Independent Cooperative (MIC). On May 6, David Miller and MIC, along with Artur Stepanyan and Mihran Stepanyan, were indicted in the Southern District of Ohio and charged with one count of conspiracy to commit mail and wire fraud, 10 counts of mail fraud and one count of conspiracy to make false statements and to distribute prescription drugs without a wholesale license. Those charges are still pending. Galan and Konigsberg are the sixth and seventh co-conspirators to plead guilty for their participation in the drug diversion scheme involving Miller and MIC.
Miller and MIC sold the prescription drugs obtained through Galan and Konigsberg – along with multiple other illegal sources – to wholesale and retail customers throughout the United States, including in the Southern District of Ohio. Miller and MIC are alleged to have created fraudulent pedigree documents falsely stating that they had purchased the drugs from B&Y Wholesale, a company in Puerto Rico. These false pedigrees covered up the illegitimate sources of the drugs – various illicit suppliers, including Konigsberg and Ricardo Jurado, a Miami supplier – and falsely stated that B&Y was an authorized distributor of the prescription drugs.
Galan
According to court documents, from July 2007 through October 2012, Galan facilitated the sale of millions of dollars of illegally diverted prescription drugs. Galan, who owned a restaurant in Rosemead, California, acted as a middleman in the sale of diverted prescription drugs from Ricardo Jurado, a drug supplier in Miami, to Miller and MIC. Neither Jurado nor Galan was licensed to engage in the wholesale distribution of prescription drugs. Jurado has also been charged for his role in this conspiracy.
In connection with facilitating the sale of the diverted drugs, Galan forwarded wiring instructions from Jurado directing Miller to send payments to at least 13 different bank accounts at banks in Mexico, Nicaragua, Canada, Florida and other locations. During the course of the conspiracy, Miller and MIC wired more than $30 million to the bank accounts specified by Galan. From June 2009 through July 2012, Galan received between $550,000 and $1 million in commission payments on the drug sales.
Konigsberg
According to court documents, from 2008 through February 2104, Konigsberg sold illegally diverted prescription drugs to Miller and MIC. Doing business as Preferred Inc., Konigsberg received prescription drugs from another supplier, who obtained the drugs from illicit street sources in New York and New Jersey at substantial discounts off of the wholesale price. Konigsberg then offered the drugs to Miller and MIC for a profit.
At Miller’s direction, Konigsberg included false notations on the invoices he provided to Miller indicating that Konigsberg had purchased the drugs from a large wholesale distributor. As Konigberg and Miller both knew, Konigsberg had obtained the drugs from illegal sources, not from the large distributor.
This matter is being investigated by FDA-OCI and the USPIS. Assistant U.S. Attorneys Anne L. Porter and Christy Muncy of the Southern District of Ohio and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch are representing the United States in these cases.
Tulsa Convenience Store Owner Sentenced for Stealing Nearly $300,000 from Supplemental Nutrition Assistance ProgramRead the Press Release
TULSA, Okla.– Milton Islam, 47, of Broken Arrow, and owner of Apache Food Mart in Tulsa, was sentenced to 18 months in prison for stealing $282,912 from the United States Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. In addition to the prison sentence, United States District Court Chief Judge Gregory K. Frizzell ordered Islam to pay $282,912 in restitution to the United States Department of Agriculture. Islam was indicted by a grand jury in March 2015 and pleaded guilty on May 12, 2015.
At the change of plea hearing, Islam admitted that from May 26, 2011 to July 31, 2014, he stole from SNAP using a scheme in which customers used their SNAP benefits to receive cash, rather than nutritional assistance. The cash customers received was only half the amount that Islam received from SNAP.
The case was investigated by the United States Department of Agriculture-Office of the Inspector General. Assistant United States Attorneys Clinton J. Johnson, Shannon Cozzoni, and Catherine Depew prosecuted the case.
SNAP offers nutrition assistance to eligible, low-income individuals and families. To report suspicious Nutrition Assistance fraud, call the Oklahoma Fraud Hotline at (405) 521-3444 or email [email protected], or contact the United States Department of Agriculture Office of the Inspector General at (800) 424-9121. For information on SNAP, visit www.fns.usda.gov/snap.
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Todd County, Kentucky Resident Guilty of Possession and Distribution of Methamphetamine and Possession of A Firearm During A Drug Trafficking CrimeRead the Press Release
Defendant admitted to receiving 67 pounds of crystal meth (with an estimated street value of $3 million) in California and shipping the drug to his Todd County home
BOWLING GREEN, Ky. – A Todd County, Kentucky resident pleaded guilty this week in U.S. District Court before District Judge Greg Stivers to multiple charges associated with possession and distribution of methamphetamine announced U.S. Attorney John E. Kuhn, Jr.
Scott Windell Harris, age 45, living in Allensville, admitted to purchasing 67 pounds of crystal meth during approximately nine trips to California, then shipping the schedule II controlled substance to a residence off Russellville Road in Todd County. Further, Harris admitted to carrying a firearm during and in relation to a drug trafficking crime and possession of a firearm and ammunition by an unlawful user of and an addict of a controlled substance.
According to the plea agreement, law enforcement officials became aware of Harris’ criminal conduct in February 2015, when a package was intercepted at the Louisville hub of UPS. A search warrant executed on the package revealed a large quantity of suspected methamphetamine being shipped from California to Todd County. State and federal law enforcement officials conducted a controlled delivery of the package, that contained approximately 18 pounds of crystal methamphetamine, and observed Harris taking possession of the package and placing it inside a black van.
Further, Harris admitted to making five trips to California, where he received a total of 67 pounds of crystal methamphetamine, with an estimated street value of approximately $3 million, and shipped the meth to his residence in Allensville, Kentucky.
Harris admitted to possession of a loaded Kel-Tec CNC Industries, Model P3AT, .380 caliber pistol with seven rounds of .380 ammunition, that was found in the van’s glove box. Harris further admitted to being an unlawful user of, and addicted to, methamphetamine.
Harris faces a minimum sentence of 15 years in prison, a maximum potential sentence of life in prison, a combined maximum fine of $20,5000,000 and a period of supervised release of at least five years and up to any number of years, including life.
Sentencing is scheduled before Judge Stivers, in Bowling Green, on February 2, 2016.
This case is being prosecuted by Assistant United States Attorney Jo E. Lawless and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Kentucky State Police Drug Enforcement/Special Investigations West.
Three Individuals Indicted for Role in Bribing DeKalb and Georgia World Congress Center OfficialRead the Press Release
ATLANTA – Anthony Lepore, John Rife, and Brian Domalik, all former employees of a janitorial services company, have been indicted on charges that they conspired to bribe Patrick Jackson, a public official employed by DeKalb County and the Georgia World Congress Center, in exchange for favorable treatment by Jackson on contracts between their company and the two government entities.
“These defendants are charged with circumventing the government contracting process by bribing a corrupt public official who was willing to put his own interests above those of the taxpayers he served,” said U.S. Attorney John Horn. “This indictment reaches to the very top suites of the company, charging complicity in the bribery at the highest levels.”
“These three defendants found out the hard way that those who bribe or otherwise entice public officials to engage in criminal acts of public corruption can themselves become subjects of federal criminal investigations. Because public corruption investigations are the FBI’s number one criminal program priority, the FBI continues to provide significant resources in ensuring that those engaged in this type of activity will be held accountable,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This indictment illustrates that alleged corruption involving public officials will not be tolerated in the state of Georgia. It is essential that violators of these types of crimes be held accountable. The GBI is fully committed to working with the FBI’s Public Corruption Task Force to investigate public corruption cases,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Horn, the charges and other information presented in court: Anthony Lepore was the President and CEO of Rite Way Services, Inc., an Alabama based company that sought to do business with both the DeKalb County Government and the Georgia World Congress Center (GWCC). Rife was the Regional Vice President, and Domalik, who came to work for the company in 2010, was the Division Manager, both working out of the Norcross, Georgia, facility. The indictment alleges that the three defendants, through Rite Way, conspired to bribe Patrick Jackson by facilitating payments to provide Jackson a furnished luxury apartment in Atlanta, Georgia.
Patrick Jackson was simultaneously employed by both DeKalb County and the GWCC as the manager of janitorial services from approximately 2006-2012. Jackson did not disclose to either employer that Rite Way, which obtained contracts with both DeKalb County and GWCC during his employment, was paying for an apartment where he resided. In exchange for the apartment, Jackson used his position as a public official to help the company secure contracts with DeKalb and GWCC and to benefit the interests of the company throughout the course of those contracts with DeKalb County and the GWCC.
Both Patrick Jackson, 55, of Loganville, Georgia, and another former employee of Rite Way, Cecil K. Clark, 55, of Jonesboro, Georgia, who participated in the scheme have previously pleaded guilty and been sentenced:
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Jackson was sentenced on August 12, 2015, by U.S. District Judge William S. Duffey Jr. to four years, three months in federal prison, and ordered to pay restitution to both DeKalb County and GWCC.
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Clark was sentenced on September 30, 2015, by U.S. District Judge William S. Duffey Jr., to one year, five months in federal prison, ordered to pay restitution to DeKalb County and GWCC, and fined $20,000.
Lepore, 63, of Birmingham, Alabama; Rife, 65, of Cumming, Georgia; and Domalik, 47, of Kennesaw, Georgia were named in a ten-count indictment charging them with conspiracy to commit honest services mail fraud. They were arraigned before U.S. Magistrate Judge Linda T. Walker. John Rife will be arraigned at a later date.
This case is being investigated by the Federal Bureau of Investigation and Georgia Bureau of Investigation.
Assistant U.S. Attorneys Jamie L. Mickelson and Kamal Ghali are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
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Springfield Businessman Sentenced for Fraud SchemesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., businessman was sentenced in federal court today for engaging in fraud schemes, even after he was under indictment and while incarcerated, that totaled more than $3 million in losses.
Richard Thomas Gregg, 59, of Springfield, was sentenced by U.S. District Court Judge Brian C. Wimes to 78 months in federal prison without parole and ordered to pay $3,098,896 in restitution to the victims of his fraud schemes. “This is a significant sentence which was warranted based on this defendant’s crimes that had a devastating effect on the financial institutions who are the victims in this matter,” said U.S. Attorney Dickinson of the Western District of Missouri.
On April 3, 2015, Gregg pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of bank fraud and one count of bankruptcy fraud.
Gregg was the principal shareholder and a director of Southwest Community Bank in Springfield, which failed in May 2010. In the factual basis to his plea agreement, Gregg admitted that the United States could prove he substantially jeopardized the soundness of that financial institution and directly contributed to the failure of the bank. Southwest Community Bank lost $679,399 on Gregg’s personal line of credit and $871,125 on a commercial real estate fraud scheme perpetrated by Gregg, for a total loss of $1,550,524.
Gregg and his wife also were majority shareholders in Glasgow Savings Bank in Glasgow, Mo., which failed in 2012. Prior to Glasgow Savings Bank’s failure, it was one of the oldest operating banks west of the Mississippi River. Gregg was also a real estate developer, an investor and a licensed insurance agent for the Shelter Mutual Insurance Company. Gregg had ownership interest in and controlled a number of business entities.
Bank Fraud
During his guilty plea, Gregg admitted he defrauded Great Southern Bank by selling the collateral securing a $2 million loan, and keeping the proceeds. In February 2009, Gregg borrowed $2 million from Great Southern Bank in Springfield, using 160,000 shares of stock for First Bancshares, Inc. (FBSI), the holding company for First Homes Savings Bank, as collateral. Gregg physically deposited the stock certificate with Great Southern Bank. Between May 6, 2009 and June 6, 2009, Gregg devised and executed a scheme to defraud Great Southern Bank, and to obtain securities under the custody and control of Great Southern Bank by means of false and fraudulent pretenses, representations and promises.
As a part of this scheme, on May 6, 2009, Gregg checked out the original FBSI stock certificate from Great Southern Bank, using as a pretext the stated purpose of separating the large certificate into multiple smaller certificates. At that time, the loan from Great Southern Bank had a balance of $1,511,194. Gregg signed a trust receipt promising to return the stock certificates to the bank within 30 days. Gregg, however, chose not to return the stock certificates to Great Southern Bank and instead used the funds for other purposes. On May 7, 2009, Gregg deposited the collateralized FBSI shares into his account at Scottrade (a privately-owned retail brokerage firm). On May 28, 2009, Gregg borrowed $440,000 from Scottrade, from the margin account on which he used the FBSI stock as collateral.
As a result of Gregg’s fraud, Great Southern Bank consolidated several of his outstanding loans in order to cover the missing collateral. In the end, Great Southern Bank “charged off” $2,316,264 on this consolidated loan. However, the actual value of the FBSI shares, $1,350,400, is the loss directly attributable to the fraud.
Bankruptcy Fraud
While Gregg was already under indictment for bankruptcy fraud relating to the bankruptcy petition of his corporation, 1717 Market Place, LLC, he filed a personal bankruptcy petition that contained numerous false declarations and concealed fraudulent transfers of property.
On March 19, 2013, Gregg filed a voluntary bankruptcy petition. Between Feb. 20, 2013, and Sept. 1, 2014, Gregg devised a scheme to defraud the Bankruptcy Court, the United States Trustee and his creditors. By pleading guilty, Gregg admitted that his bankruptcy petition contained materially false statements and knowingly omitted material facts. Gregg also admitted that he transferred his property to place that property beyond the reach of the Bankruptcy Court, the United States Trustee and his creditors.
Gregg transferred his interest in two parcels of real estate, a 97.2-acre tract and a 6.4-acre tract in Nixa, Mo. Gregg also filed $250 million in bogus liens on his real and personal property in order to keep them out of the hands of his creditors. Gregg admits that the United States could prove he reported $45,773,834 in unsecured debts to others, which he fraudulently attempted to have discharged in his personal bankruptcy case.
Other Crimes
In addition to the two counts to which he pleaded guilty, Gregg previously admitted the United States could prove by a preponderance of the evidence all of the other conduct alleged in the indictment against him, including two other bank fraud schemes, wire fraud schemes targeting two casinos, and money laundering.
In one bank fraud scheme, in 2008 Gregg defrauded Southwest Community Bank by selling the bank a piece of commercial real estate at 2814 S. Fremont in Springfield for $1,551,9440, when it was worth less than half that amount. Gregg did not disclose to the other bank directors that he had purchased that property for $775,000 a few months earlier, nor did he disclose that two appraisals had been conducted on the property in recent months. One appraisal valued the property at $762,000. The second appraisal was cancelled when Gregg disagreed with the preliminary work. After Gregg cancelled the appraisal, he had the bank order an appraisal of the Fremont property by another appraiser, who valued the property at $1,580,000. Gregg did not disclose to the bank that this appraisal was not an independent valuation of the property, but rather was something Gregg had, in essence, directed.
In another bank fraud scheme, Gregg used collectible automobiles as collateral to obtain loans, then sold the cars without paying back the loans. Gregg admitted that the United States could prove that in January and February 2010 he executed separate but related schemes to defraud Great Southern Bank, Metropolitan National Bank and People’s Bank of the Ozarks. As a part of these schemes, Gregg sold seven collectible automobiles at the Barrett-Jackson Auto Auction in Scottsdale, Ariz., five of the automobiles were encumbered at the three banks.
Gregg borrowed $400,000 from Great Southern Bank in October 2007, which he secured with four collectible automobiles, including a 2006 Ford GT. Gregg consigned the 2006 Ford GT with the Barrett-Jackson Auto Auction in Scottsdale, Ariz., where on Jan. 23, 2010, the vehicle was sold at auction for approximately $150,000. Gregg chose to not return the proceeds of the sale of the Ford GT ($138,000 after deducting the auctioneer’s fee) to Great Southern Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Great Southern Bank realized a $129,644 loss.
Also, Gregg borrowed $400,000 from Metropolitan National Bank in 2005. He secured this loan with a “floor plan” financing, meaning the loan was a revolving line of credit made against specific pieces of collateral, in this case automobiles. When each vehicle on the floor plan was sold, the loan advanced against that piece of collateral was to be repaid. This loan was renewed in December 2009. In January 2010, the collateral included a 1971 Chevy Cheyenne Pickup. The portion of the loan’s balance collateralized by the 1971 Chevy Cheyenne Pickup was $17,221. Gregg also consigned the 1971 Chevy Cheyenne Pickup with the Barrett-Jackson Auto Auction, and it was sold for approximately $29,000. Gregg admits the United States could prove he chose to not return the proceeds of the sale ($26,680 after deducting the auctioneer’s fees) to Metropolitan National Bank and instead used the funds for other purposes. When Gregg defaulted on the loan, Metropolitan National Bank realized a $17,221 loss.
Gregg also admitted the United States could prove he committed wire fraud related to bounced checks at two Oklahoma casinos. On Jan. 3, 2012 Gregg presented five checks, payable to Buffalo Run Casino in Miami, Okla., each in the amount of $10,000, knowing his credit union account contained insufficient funds to cover those checks. Between Feb. 16 and March 1, 2012, Gregg presented five checks payable to Downstream Casino and Resort in Quapaw, Okla., in the total amount of $60,000, knowing his bank account contained insufficient funds to cover those checks.
Gregg also admitted the United States could prove that on Aug. 14, 2012, he filed a substantially fraudulent corporate bankruptcy petition for his company, 1717 Marketplace, LLC that misrepresented the company’s financial situation to the material detriment of creditors, and concealed more than $9 million in debt owed to the company by insiders, payments he had directed.
Ongoing Criminal Conduct
Some of Gregg’s criminal conduct occurred while he was on bond and while he was incarcerated.
Following his indictment by a federal grand jury on Feb. 28, 2013, Gregg was released on a personal recognizance bond. While he was on bond, Gregg committed substantial, additional criminal offenses, for which the grand jury issued the first superseding indictment on July 23, 2014. The court found that Gregg had violated his conditions of bond by committing federal crimes while on release. The court found that Gregg posed a danger to the community in the form of potential economic harm, and that Gregg was unlikely to abide by any condition or combination of conditions of release. For those reasons, the court ordered Gregg’s bond revoked and he was incarcerated.
Gregg, through counsel, filed a motion asking the court to reconsider its order. Prior to the hearing, the government obtained and reviewed recordings of Gregg’s telephone conversations and prison visits, preserved on the Greene County Jail’s recording equipment. The recordings revealed that Gregg had conspired with others to commit new crimes from jail. On Nov. 3, 2014, the court issued an order denying the motion to reconsider bond.
On Nov. 4, 2014, the grand jury returned a second superseding indictment, which charged Gregg with additional acts of bankruptcy fraud.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FDIC Office of Inspector General and IRS-Criminal Investigation.
Schuele Boys Gang Associate Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Schuele Boys Gang associate Shawntorrian Travis, 36, who was convicted of conspiracy to distribute marijuana, was sentenced to two years probation by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that between June 2013 and July 2014, Travis sold marijuana to co-defendant Damario James for redistribution.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine and marijuana.
Travis is one of 28 Schuele Boys Gang members and associates arrested in this case. To date, 13 of the defendants have been convicted. Travis is the second defendant to be sentenced.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of the FBI's Safe Streets Task Force which includes representatives of the Amherst Police Department; the Buffalo Police Department; U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Cheektowaga Police Department; the Erie County Sheriff’s Department; the Hamburg Police Department; the Lancaster Police Department; the Niagara Frontier Transportation Authority Police; the New York State Department of Correctional Services; the New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Additional assistance was provided by the Drug Enforcement Administration; U.S. Customs and Border Protection, the United States Marshal Service, the Lackawanna Police Department, and the Niagara County Sheriff’s Department.
San Antonio Man Sentenced to 12 Years in Federal Prison for String of Bank Robberies Along I-35Read the Press Release
In Austin today, 34-year-old Willie James Cleveland was sentenced to 12 years in federal prison for committing nine bank robberies earlier this year along the Interstate 35 corridor between Austin and San Antonio announced United States Attorney Richard L. Durbin, Jr. and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division.
In addition to the prison term, United States District Judge Lee Yeakel ordered that Cleveland pay a total of $39,702 restitution to the financial institutions and be placed on supervised release for a period of five years after completing his prison term.
On July 2, 2015, Cleveland pleaded guilty to two counts of bank robbery with a dangerous weapon. By pleading guilty, Cleveland admitted he robbed nine banks between February 2015 and the end of April 2015. According to court records, Cleveland is responsible for the following bank robberies:
- February 12, 2015 – Woodforest National Bank – 1500 block of N. Loop 1604 East in San Antonio;
- February 18, 2015 – Woodforest National Bank – 9300 block of IH-35 South in Austin;
- February 26, 2015 – Wells Fargo Bank – 1000 block of Texas Highway 80 in San Marcos;
- March 14, 2015 – Wells Fargo Bank – 1200 block IH-35 South in New Braunfels;
- March 16, 2015 – Chase Bank – 5400 block of IH-35 North in Austin;
- March 26, 2015 and April 7, 2015 – Air Force Credit Union – 3100 block of Wurzbach in San Antonio;
- April 16, 2015 – BBVA Compass Bank – 7500 block of Wurzbach in San Antonio; and,
- April 18, 2015 – BBVA Compass Bank – 5700 block of Cameron Road in Austin.
Cleveland has remained in federal custody since his arrest by San Antonio Police Department Robbery detectives on April 20, 2015.
The case resulted from a joint investigation by the FBI, San Antonio Police Department, Austin Police Department, San Marcos Police Department and the New Braunfels Police Department. This case was prosecuted by Assistant United States Attorneys Michael Galdo and Grant Sparks.
Sabattus Man Pleads Guilty to Receiving Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jody G. Moczara, 34, of Sabattus, Maine pled guilty today in U.S. District Court to receiving child pornography.
According to court records, in June 2015, Moczara used the internet and a file-sharing program to download several child pornography videos to his computer. Information obtained from his computer showed that he used the file-sharing program to search for child pornography. Many child pornography video files and still images were found on the computer.
He faces between five and 20 years in prison, between five years and life on supervised release, and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine State Police Computer Crimes Unit and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.Rochester Man Pleads Guilty to Sex Trafficking A MinorRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Matthew DiFlorio, 28, of Rochester, NY, pleaded guilty to enticement of a minor using a means and facility of interstate commerce before U.S. District Judge Elizabeth A. Wolford. The charge carries a minimum penalty of 10 years in prison, a maximum of life in prison and a $250,000 fine.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in June 2015, the mother of a thirteen year old minor advised the Rochester Police Department that her child had been communicating with two men. According to the mother, one of the two men, DiFlorio, was working as a Lifetouch school photographer and the mother had, at one point, attempted to contact DiFlorio to tell him to stay away from her child. According to the minor, the minor had communicated with the defendant using the application “Kik” and ended up meeting him in February 2015.
After taking over the minor’s phone, law enforcement officers received a text message from DiFlorio on June 22, 2015. An officer, assumed the minor’s identity and engaged in texts with DiFlorio. The two arranged a meeting for June 23, 2015 at a local fast food restaurant. The defendant arrived at the meeting and was confronted by law enforcement officers. DiFlorio admitted to having had sex with the minor and admitted to engaging in communications with the minor through text messages in order to meet.
The plea is the result of an investigation by the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes members of the FBI, the Rochester Police Department, the Monroe County Sheriff’s Office, Immigration and Customs Enforcement, Homeland Security Investigations, and the Monroe County District Attorney’s Office.Sentencing is scheduled for January 19, 2015, before Judge Wolford.
Rochester Man Pleads Guilty to Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Matthew DiFlorio, 28, of Rochester, NY, pleaded guilty to enticement of a minor using a means and facility of interstate commerce before U.S. District Judge Elizabeth A. Wolford. The charge carries a minimum penalty of 10 years in prison, a maximum of life in prison and a $250,000 fine.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in June 2015, the mother of a thirteen year old minor advised the Rochester Police Department that her child had been communicating with two men. According to the mother, one of the two men, DiFlorio, was working as a Lifetouch school photographer and the mother had, at one point, attempted to contact DiFlorio to tell him to stay away from her child. According to the minor, the minor had communicated with the defendant using the application “Kik” and ended up meeting him in February 2015.
After taking over the minor’s phone, law enforcement officers received a text message from DiFlorio on June 22, 2015. An officer, assumed the minor’s identity and engaged in texts with DiFlorio. The two arranged a meeting for June 23, 2015 at a local fast food restaurant. The defendant arrived at the meeting and was confronted by law enforcement officers. DiFlorio admitted to having had sex with the minor and admitted to engaging in communications with the minor through text messages in order to meet.
The plea is the result of an investigation by the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes members of the FBI, the Rochester Police Department, the Monroe County Sheriff’s Office and the Gates Police Department and the Monroe County District Attorney’s Office.Sentencing is scheduled for January 19, 2015, before Judge Wolford.
Rochester Man Pleads Guilty to Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Ricky Knox, 28, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to bank robbery. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that on April 10, 2015, Knox robbed the Chase Bank Branch located at 1 Rochester Street in Scottsville, NY. The defendant, who was wearing dark pants, a baseball hat, and a black hooded sweatshirt with the hood up, approached the teller window and stated that he wanted to make a withdrawal. The teller asked Knox to use his debit card to initiate the transaction. Knox responded no and placed his right hand up on the counter. At that time the teller noted that Knox was wearing clear latex gloves. The defendant then demanded the teller “put 50’s and 100’s up on the counter” and to hurry. The teller placed money on the counter which Knox used his gloved hand to pick up and then fled from the bank on foot.On April 15, 2015, Knox was arrested in Louisiana and brought to the Western District of New York to face the robbery charges.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen and the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn.
Sentencing is scheduled for January 19, 2016, at 4:00 PM before the Honorable Elizabeth A. Wolford.
Richard Borden Sentenced to 18 Months After Conviction for Failure to Register as A Sex OffenderRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Richard Borden, 37, was sentenced today in U.S. District Court in Burlington after his conviction for traveling across state lines and failing to register or update his registration as a sex offender. U.S. District Judge William K. Sessions III sentenced Borden to an 18-month term of imprisonment to be followed by a 5-year period of supervised release.
Borden was convicted of sexual assault in 2000 in Bennington County, a crime for which he received a sentence of 4-20 years’ imprisonment. Borden served 14 years in custody in that case. Approximately three weeks after his release from state custody in summer 2014, Borden was arrested for failure to comply with Vermont’s sex offender registry law. In November 2014, Borden was charged federally with a violation of the Sex Offender Registration and Notification Act (SORNA), after it was learned that Borden had been residing for several weeks in Hoosick Falls, New York, without notifying Vermont or New York authorities as required by law. Under federal law, an individual required to register under SORNA generally must register or update his registration as a sex offender whenever he travels interstate.
This matter was investigated by the United States Marshals Service, with the assistance of the Bennington Police Department, the Vermont State Police, the Vermont Department of Corrections, and the Hoosick Falls, New York Police Department. The United States was represented by Assistant U.S. Attorney Kevin J. Doyle. Borden was represented by Elizabeth Quinn, Esq. and Steven Barth, Esq. of the Federal Defender’s Office.
Reinbeck Man Pleads Guilty to Child Pornography OffensesRead the Press Release
A man who received and possessed child pornography pled guilty on October 13, 2015, in federal court in Cedar Rapids.
Michael Cottrell, age 43, from Reinbeck, Iowa, was convicted of one count of receipt of child pornography and one count of possession of child pornography. At the plea hearing, Cottrell admitted that, between 2012 and 2014, he knowingly received child pornography and possessed it on his computer.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Cottrell remains in custody of the United States Marshal pending sentencing. Cottrell faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $500,000 fine, a $200 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Grundy County Sheriff’s Office, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-82.
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Reality TV Performer Charged with Defrauding Bankruptcy Court by Hiding Assets and Lying about IncomeRead the Press Release
PITTSBURGH - A reality television performer has been indicted by a federal grand jury in Pittsburgh on charges of bankruptcy fraud, concealment of bankruptcy assets, and false bankruptcy declarations, United States Attorney David J. Hickton announced today.
The 20-count indictment, returned on Oct. 13, named Abigale Lee Miller, 50, as the sole defendant.
“Criminal prosecution is appropriate when debtors corrupt the bankruptcy process through deceit and lies before the court,” said U.S. Attorney Hickton.
“Federal bankruptcy proceedings can be a lifesaver for honest individuals overwhelmed by debt resulting from any number of legitimate reasons, but allegations of fraud and abuse threaten the integrity of the bankruptcy process and the public’s trust in it. We take our responsibility to pursue allegations of bankruptcy fraud seriously,” said Special Agent in Charge Scott S. Smith of the Federal Bureau of Investigation’s Pittsburgh Division.
“Fraud and dishonesty in bankruptcy proceedings undermines the integrity of these important proceedings and especially hurts the creditors and American Taxpayers,” added Internal Revenue Service Criminal Investigation Special Agent in Charge Akeia Conner. “Concealing assets from the Court and not paying taxes is a gross violation of civic duty and IRS Criminal Investigation will work diligently with our law enforcement partners to pursue those who do so.”
“The investigation of Abigale Lee Miller demonstrates our commitment to identify and prosecute those who commit bankruptcy fraud,” stated Acting Inspector in Charge, David McGinnis, of the U.S. Postal Inspection Service - Pittsburgh Division.
According to the indictment, after filing a Petition to Reorganize her dance studio in December, 2010, Miller then schemed to defraud the bankruptcy court by concealing income she earned between 2012 and 2013 from her performances on the reality TV show “Dance Moms” and related spinoff TV shows, as well as from Masterclass dance sessions and merchandise and apparel sales. The indictment alleges that Miller created bank accounts to hide the income, and instructed others to conceal certain income from the bankruptcy court and Trustee. It is also alleged that Miller made numerous false declarations in monthly operating reports which did not report certain income or underreported certain other business income. The indictment further alleges Miller concealed income totaling approximately $755,492.85 from the Trustee and creditors, and gained favorable terms to restructure debt from her fraudulent acts.
The law provides for a total sentence of five years in prison, and a fine of $250,000 or both for each count of the indictment. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Trustee, the Federal Bureau of Investigation, the United States Postal Inspection Service and the Internal Revenue Service-Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
AttachmentsIndictment
Princeton man sentenced to 27 months in Federal prison on drug chargeRead the Press Release
Bluefield, W.Va. – United States Attorney Booth Goodwin announced that Scotty Edward Blankenship was sentenced in federal court in Bluefield yesterday to 27 months in federal prison for using a telephone to facilitate the sale of hydromorphone. Blankenship, 54, of Princeton, pled guilty in June of 2015, admitting that on October 17, 2014, he used a telephone to set up a drug deal, and that shortly after that conversation he sold two hydromorphone pills to an informant. Blankenship also admitted that he distributed ten additional pills during the course of the investigation.
The case was investigated by the Southern Regional Drug and Violent Crime Task Force under the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Postal Employee Charged with Obstruction of the MailRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a United States Post Office Employee has been charged with obstruction of the mail.
According to United States Attorney Peter Smith, Bruce J. Kizer, age 37, of Taylor, Pennsylvania, is charged in a Criminal Information filed on October 9, 2015 in the United States District Court in Scranton with Obstruction of Mail. The charge is based upon Kizer’s alleged conduct involving theft of United States currency contained in greeting cards entrusted to him for delivery to customers on his mail route in Scranton. The amount of loss is approximately $500. The thefts are alleged to have occurred from May through June 2014.
Kizer has resigned from his employment with the United States Post Office.
Kizer is scheduled for his initial appearance before U.S. Magistrate Judge Joseph F. Saporito, Jr. on October 29, 2015 in Wilkes-Barre.
The case was investigated by the United States Postal Service, Office of Inspector General. The defendant is being prosecuted by Assistant United States Attorney Michelle Olshefski.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing guidelines.
In this case, the maximum penalty under federal law is 6 months imprisonment and a $5,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Portsmouth Man Sentenced to 40 Years in Prison for Drug and Gun CrimesRead the Press Release
NORFOLK, Va. – Jason Marvin Saunders, 33, of Portsmouth, was sentenced today to 480 months in prison for drug conspiracy and gun crimes, including conspiracy to distribute heroin, cocaine, and cocaine base, and possession of firearms in furtherance multiple drug trafficking crimes. Saunders’ twin brother and co-conspirator, Jeremy Lynn Saunders, pleaded guilty to drug conspiracy and firearms charges, and was sentenced to 25 years in prison on June 25, 2015.
Saunders was convicted by a federal jury on July 2, 2015. According to court records and evidence at trial, from January 2012 to about August 2014, the Saunders brothers jointly distributed over 1,000 grams of heroin, over 5,000 grams of cocaine, and over 280 grams of cocaine base through an organization that they managed and used firearms to protect. On Aug. 23, 2014, Saunders and his brother were involved in an exchange of gunfire with a rival drug organization outside a location they operated on Appomattox Avenue in Portsmouth. In response to that incident, Saunders possessed a Taurus PT 145 Millennium Pro .45 Caliber pistol with 8 cartridges and a Ruger P85 9MM pistol. During the execution of a search warrant on Feb. 6, 2014, at a different location, Saunders was found with approximately 125 grams of cocaine powder, 50 grams of heroin, 16 grams of crack cocaine, scales, packaging materials, cutting agents, a Makarov Special Edition .380 Caliber semi-automatic pistol with 8 cartridges, a Rohm RG10 .22 Caliber revolver, and thousands of dollars in cash.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for DEA’s Washington Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Joseph DePadilla and Andrew Bosse prosecuted the case.
The case was investigated by the DEA’s Norfolk Office with the assistance of the Portsmouth Police Department as part of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. 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.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr2.
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Pike County Man Charged with Bankruptcy FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Pike County man has been indicted by a grand jury in Harrisburg on multiple bankruptcy fraud and false statement charges.
According to United States Attorney Peter Smith, the Indictment alleges that Daniel Wise, age 55, filed three successive Chapter 13 bankruptcy petitions in the U.S. Bankruptcy Court in Middle District of Pennsylvania between August 2012 and November 2012 and that Wise failed to disclose his ownership of a $2.4 million promissory note in all three petitions. The Indictment also alleges that Wise failed to disclose the fact he was actively engaged in litigation over the $2.4 promissory note in the State of New York at the time he filed his petitions. All three bankruptcy petitions were eventually dismissed by the Bankruptcy court by March 2013.
If convicted, WISE could be sentenced to a maximum of five years imprisonment and a fined $100,000 on each count.
The case was investigated by the Scranton Office of the FBI and is being prosecuted by Assistant US Attorney Kim Douglas Daniel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Philadelphia Man Charged with Theft of Government FundsRead the Press Release
William Young, Jr., 71, of Philadelphia, Pennsylvania, was charged by information with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant received retirement benefits intended for his father, after his father’s death in May 2008 until April 2014. The defendant’s alleged actions resulted in a loss to the government of approximately $36,189.
If convicted, the defendant faces a term of in prison, a three‑year period of supervised release, restitution to the government of $36,189, a fine of up to $250,000, and a $100 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peruvian Man Pleads Guilty to Threatening and Defrauding Spanish-Speaking Consumers through Call CentersRead the Press Release
A resident of Lima, Peru, who was charged with operating call centers that lied to and threatened Spanish-speaking victims in the United States, pleaded guilty today to conspiracy to commit mail fraud, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced.
Cesar Luis Kou Reyna, 40, pleaded guilty in U.S. District Court for the Southern District of Florida in Miami to charges that he controlled call centers in Peru that falsely told Spanish-speaking victims across the United States that they owed debts and threatened legal consequences for failure to pay the alleged debts.
The announcement was made by Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Inspector in Charge Ronald J. Verrochio of the USPIS Miami Division.
“The threats made by the defendant’s call centers harassed and intimidated Spanish-speaking victims across the United States,” said Principal Deputy Assistant Attorney General Mizer. “As this case and other recent examples show, we will track down those responsible for defrauding and threatening American consumers, no matter where the fraudster resides, what language the fraudster speaks or which population he or she targets.”
“The U.S. Postal Inspection Service’s investigations have no borders when it comes to investigating crimes committed in the United States or on American victims,” said U.S. Postal Inspector in Charge Verrochio. “Postal Inspectors will track down criminals, anywhere in the world, and bring them to justice.”
Kou Reyna owned and controlled a corporation, Fonomundo FC, which operated call centers in Peru and payment and fulfilment operations in Miami. Fonomundo FC and its affiliated call centers used Internet-based telephone calling services to place cold calls to Spanish-speaking residents in the United States. The callers falsely claimed to be attorneys and said that victims had failed to pay for or receive a delivery of products, although the victims had not ordered these products.
The callers claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment or deportation. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these threats.
Kou Reyna was originally charged by criminal complaint and was arrested by USPIS at a Houston airport on July 30 while he was traveling in the United States. He has remained incarcerated since his arrest and was indicted on Aug. 27.
Principal Deputy Assistant Attorney General Mizer commended USPIS for its investigative efforts and thanked the U.S. Attorney’s Office of the Southern District of Florida for its contributions to the case. The case is being prosecuted by Trial Attorneys Phil Toomajian and Stephen T. Descano of the Civil Division’s Consumer Protection Branch.
Palm Beach County Man Pleads Guilty to Wire Fraud and Criminal Contempt ChargesRead the Press Release
A Palm Beach County man pled guilty today to wire fraud and criminal contempt charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.
David Lee Ortiz, 39, pled guilty today to charges of telemarketing wire fraud, in violation of Title 18, United States Code, Section 1343; and contempt of court, in violation of Title 18, United States Code, Section 401(3).
Sentencing for Ortiz is scheduled for December 2, 2015, before United States District Judge Robin L. Rosenberg in Fort Pierce. At sentencing, Ortiz faces a maximum statutory sentence of twenty years in prison on the wire fraud count, and, a maximum sentence of life in prison on the contempt of court count.
According to statements made in court and documents filed in the case, Ortiz committed online and telemarketing fraud in the form of fraudulent foreign exchange (forex) investment scams, via internet and email, among other means. Ortiz collected from his victims approximately $420,000 through fraudulent websites and advertisements offering 10% per month returns on forex contracts and currency trades. Ortiz represented that investor funds would be kept in individual investor accounts for his clients, but they were in fact aggregated and commingled. He invested some of the money with losing forex positions at two licensed Futures Commission Merchants. The remainder of the money he diverted to his own personal uses. To attract investors, Ortiz established Internet websites. In July 2008, he set up “forexisgreatfor.me,” on which he falsely claimed to have over thirty years in forex trading experience, as well as that he was registered with the Securities and Exchange Commission. In October 2009, he also established the website “forexfuturestrader.com,” again falsely claiming to provide daily updates accessible online for individualized investor accounts, as well as promising 100% returns within 12 months.
Ortiz misappropriated at least $232,000 by, for example, using the funds for personal shopping at retail department stores, travel, resort hotels, restaurants, utility bills, personal credit cards and car payments, and by sending, or having some customers send their funds directly, to Ortiz’s wife and her business, who also did not use those funds for forex trading. Over the period of 2008-2011, Ortiz solicited and took investment from clients, variously placing the monies in accounts he personally controlled, investing some of it in losing forex trades, and mostly spending the remainder on himself. Ortiz concocted false account statements purporting to show the clients that they were making profits on imaginary forex contracts placed for them by Ortiz. When customers tried to recover all or part of their monies, usually in accordance with withdrawal provisions of a written contract which Ortiz had them sign, they regularly met evasion or delay from Ortiz.
The Commodity Futures Trading Commission (CFTC) investigated Ortiz, and filed a civil enforcement action against him in the Southern District of Florida in February 2011. The CFTC sought Court orders directing rescission of the investment contracts and return to the investors of all their monies. Chief United States District Judge K. Michael Moore signed a permanent injunction against Ortiz on June 30, 2011, directing Ortiz to return the investors’ money and rescind all the investment contracts. The injunction also forbade Ortiz from soliciting or accepting funds from any future investors.
During July and August 2011, Ortiz nonetheless continued to solicit and accept funds from investors. In particular, he met with and took $2,800 from a retired Air Force employee living in Odessa, Texas. Twice in September 2011, Ortiz emailed to that investor false account statements purporting to show gains and profits from forex trades. The CFTC filed a motion for civil contempt against Ortiz for his failure to abide by the permanent injunction entered by Chief Judge Moore in the civil case. On June 4, 2012, Chief Judge Moore held an evidentiary hearing on the civil contempt motion, at which Ortiz appeared pro se. Following the hearing, the CFTC filed a joint proposed agreed order (which the Court approved and entered on June 6, 2012) setting forth a timetable for Ortiz to submit a sworn accounting and repayment of monies, no later than August 6, 2012. On August 6, 2012, Ortiz filed a document with the Court, stating that he had received the $2800 from the Texas investor, but that Ortiz was unable to comply and pay any monies to the aggrieved investors.
A federal grand jury sitting in Fort Pierce, Florida, indicted Ortiz on February 19, 2015, charging him with three counts of wire fraud and one count of criminal contempt of court for his actions.
Mr. Ferrer commended the investigative efforts of the CFTC, FDLE, FBI, and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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 and Operator of Miami-Based Mental Health Centers Pleads Guilty in $70 Million Health Care Fraud SchemeRead the Press Release
Clinical Director and Therapist Also Plead Guilty
An owner, a clinical director, and a therapist pleaded guilty today for their roles in a health care fraud scheme involving three Miami-based mental health centers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Santiago Borges, 51, Erik Alonso, 45, and Cristina Alonso, 43, all of Miami, pleaded guilty before U.S. District Judge Ursula Ungaro of the Southern District of Florida. Borges pleaded guilty to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks. Erik Alonso pleaded guilty to conspiracy to commit health care fraud and conspiracy to make false statements relating to health care matters. Cristina Alonso pleaded guilty to conspiracy to commit health care fraud and conspiracy to make false statements relating to health care matters.
Borges owned the now-defunct mental health centers R&S Community Mental Health Inc. (R&S) and St. Theresa Community Mental Health Center Inc. (St. Theresa), and was an investor in New Day Community Mental Health Center LLC (New Day). Erik Alonso was the clinical director of all three centers. Cristina Alonso was a therapist at R&S.
R&S, St. Theresa and New Day were community mental health clinics that purported to provide intensive mental health services to Medicare beneficiaries in Miami. In connection with their guilty pleas, the defendants admitted that, from 2008 through 2010, the clinics billed Medicare for costly partial hospitalization program (PHP) services that were not medically necessary or not provided to patients. Borges admitted that he paid kickbacks to patient recruiters who, in exchange, referred beneficiaries to the centers. Erik Alonso admitted that he oversaw the preparation of false patient records. Cristina Alonso admitted that she fabricated patient records, including group therapy session notes that were used to support claims for reimbursement from Medicare.
According Borges’ plea agreement, between January 2008 and December 2010, the centers submitted more than $70 million in false and fraudulent claims to Medicare. Medicare paid approximately $28 million on those claims.
The case is being investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Borges Plea Agreement
Borges Factual Basis
Cristina Alonso Indictment
Cristina Alonso Factual Basis
Niagara Falls Man Sentenced on Child Pornography Charge and Violating Supervised ReleaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Michael Weaver, 40, of Niagara Falls, NY, who was convicted of possession of child pornography and violation of supervised release, was sentenced to 123 months in prison by U.S. District Judge Richard J. Arcara.
Special Assistant U.S. Attorney Carol G. Bridge, who handled the case, stated that Weaver was previously convicted in October 2007 of possession of child pornography for being in possession of approximately 16,000 images and 153 videos of child pornography. The defendant was sentenced to 78 months and five years supervised release. Weaver was released and placed on supervised release on August 30, 2013.One condition of his supervised release prevented the defendant from possessing cellular telephones without the authorization of the U.S. Probation Department. On December 16, 2014, during a routine visit, probation officers found Weaver had two unauthorized cellular telephones. The defendant admitted that he got the phones in order to download images of child pornography. A forensic examination found that the phones contained 1500 images and 20 videos of child pornography. Many of the images were of prepubescent children under the age of 12 that depicted violence between adults and the children.
The sentencing is the result of an investigation by United States Probation Department, under the direction of Anthony SanGiacomo and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
New York Jeweler Guilty of Laundering Money from Richmond Jewelry HeistsRead the Press Release
NEWPORT NEWS, Va. – Slavik Hayimov, aka Steve Hayimov, 44, of Queens, New York, pleaded guilty today to charges related to laundering the proceeds of a sophisticated jewelry theft ring.
In a statement of facts filed with the plea agreement, Hayimov conspired with a jewelry theft ring that was based in Richmond. The thieves regularly conducted lengthy surveillance on jewelry stores to identify vulnerable individuals and then followed their targets to their hotels or homes. In most of the robberies, several men would suddenly appear as the victims approached or entered their car, punch out the car’s windows, threatened the victims at knife-point and would steal the victims’ merchandise. In addition, the robbers would puncture the victims’ car tires and steal their cell phone to reduce the chance of pursuit or apprehension. The theft ring ultimately stole more than $5 million in jewelry from victims in Virginia and at least six other states.
According to court documents, after a successful robbery members of the ring would travel to New York to sell the merchandise to Hayimov. Knowing that the merchandise was stolen, Hayimov paid far less than fair market value for the jewelry. To conceal his and the theft ring’s activities, he paid for the stolen merchandise in cash and by making anonymous bank deposits. Members of the group used the funds provided by Hayimov to purchase investment properties and pay for expenses they incurred while committing crimes.
Hayimov was indicted by a federal grand jury on Nov. 18, 2014. He faces a maximum penalty of 20 years in prison when sentenced on Feb. 26, 2016. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Charles E. Smith, Special Agent in Charge of the Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Adam L. Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division are prosecuting the case.
The case was investigated by the ATF and FBI-Norfolk, with assistance from Virginia police departments in Williamsburg, Virginia Beach, Henrico County, Chesterfield, Prince William County, Fairfax County, and the Virginia State Police. Additional assistance was provided by police departments in Baltimore County, Maryland; Port Authority of New York and New Jersey; New York City Police Department; Rutherford Police Department, New Jersey; and Gwinnett County Police Department, Georgia. Also assisting was the Morris County, New Jersey, Prosecutor’s Office.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:12-cr-00039.
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New Orleans Man Sentenced to 12 Years in Prison for Heroin DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that COYE DOTEY, age 26, a resident of Amite, was sentenced today after pleading guilty to three counts of distributing heroin.
U.S. District Judge Martin L.C. Feldman sentenced DOTEY to a term of imprisonment of 151 months, citing the defendant’s criminal history and prior parole violations. The sentence also included a term of supervised release of three years following imprisonment and a special assessment of three hundred dollars.
According to court documents, DOTEY sold heroin in Hammond on three occasions during an undercover Drug Enforcement Administration (“DEA”) operation in June and July 2014.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.
New Hartford Woman Pleads Guilty to Tax Fraud and Structuring OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ANDREA M. DOBROZENSKY, 62, of New Harford, pleaded guilty yesterday in New Haven federal court to tax and structuring offenses.
According to court documents and statements made in court, between 2007 and 2009, while working as an office manager for a medical practice in Hartford, DOBROZENSKY made numerous transfers and deposits from the medical practice business bank account into her personal bank account as compensation for her services to the medical practice and untaken vacation time. During those three years, DOBROZENSKY willfully failed to provide her tax return preparer with information concerning her receipt of approximately $247,000 in additional taxable income. Each year, DOBROZENSKY signed her completed federal tax return and it was filed with the IRS. As a result, $247,000 in taxable income was not reported on DOBROZENKY’s federal tax returns for the 2007, 2008 and 2009 tax years, and she failed to pay a total of $76,750 in additional taxes owed.
DOBROZENSKY also unlawfully structured financial transactions. On November 27, 2012, DOBROZENSKY was at a branch of Farmington Bank in Avon with another person who told her to write checks in amounts below $10,000. DOBROZENSKY wrote two checks, one to herself for $9,900 and one to the person with her for $9,900. She then cashed the check payable to her and received $9,900 in cash. The person with her cashed the check payable to him and received $9,900 in cash. He later handed the $9,900 to DOBROZENSKY.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
On December 19, 2013, IRS Special Agents interviewed DOBROZENSKY at her residence. On that date, DOBROZENSKY admitted that she should have reported the additional income on her federal tax returns. She specifically stated that, on November 16, 2007, she wrote a check in the amount of $100,000 on the medical business account payable to herself, received the funds and did not report those funds on her federal tax return. DOBROZENSKY also admitted that, as to the structuring violation, the other person with her at the bank who cashed one of the $9,900 checks had advised her to keep any payments under $10,000 to avoid filling out a form.
DOBROZENSKY pleaded guilty to one count of filing a false tax return and one count of unlawfully structuring financial transactions. She is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on January 6, 2016, at which time she faces a maximum term of imprisonment of eight years and a fine of up to $500,000. DOBROZENSKY also has agreed to pay the IRS $76,750 in taxes, plus penalties and interest, and to forfeit $9,900 related to her structuring activity
DOBROZENSKY is released on bond pending sentencing.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, Federal Bureau of Investigation and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.