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13 November 2015
Cape Coral Woman Sentenced for Making False Workers’ Compensation ClaimRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell sentenced Theresa A. Aley (52, Cape Coral) on October 30, 2015, to three years of probation, including a 60-day period of house arrest, for making a false statement regarding federal workers’ compensation benefits. The court also ordered her to pay $83,465 in restitution to the federal government, which amount was paid in full on November 10, 2015. Aley pleaded guilty on June 16, 2015.
According to court documents, in April 1998, Aley, while employed as a Customer Survey Program Manager at Bolling Air Force Base in Maryland, reported that she had fallen in the ladies’ restroom and had injured her lower spine. As a result, she was listed as completely disabled by July 1999. Following that alleged injury, Aley made application for and was approved to receive federal employee’s compensation benefits.
Each year, Aley was required to submit a form to the Department of Labor indicating that she was not self-employed or involved in any business enterprise, and that she did not perform any volunteer work. Following her submission of this form in April 2014, an investigation revealed that her statement was false. Specifically, videotaped surveillance, interviews, and business records amassed during the investigation revealed that Aley, along with her husband, was involved in and worked for Aley Enterprises, a magazine distribution business in Cape Coral. Aley presented herself as the owner of Aley Enterprises. She was listed on the business checking account and endorsed most of the checks deposited into that account. She also handled most of the business operations, including routinely interacting with customers and managing customer accounts. Records show that money was transferred from the business checking account to Aley’s personal savings account. In addition, on multiple occasions, Aley was observed at the business climbing into the bed of a pickup truck; removing plastic wrapping from pallets of boxes; lifting, carrying, and loading boxes into the back of vehicles; moving pallets around the warehouse; and delivering magazines to several businesses in the Cape Coral area.
This case was investigated by the Air Force Office of Special Investigations. It was prosecuted by Assistant United States Attorney Josie Thomas.
Buffalo Man Pleads Guilty to Tax Fraud SchemeRead 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 James Chatmon, 36, of Buffalo, NY, who was convicted of conspiracy to defraud the Internal Revenue Service by making false claims for income tax refunds, was sentenced to 18 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $102,149.00 in restitution to the Internal Revenue Service and $2,939 to the NYS Department of Finance.Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that Chatmon gathered biographical information from more than a dozen individuals which he then used to generate false W-2 forms. The individuals then used the forms to file false Federal and New York State income tax returns. Claims for refunds and credits were made on 17 tax returns, even though the persons filing the returns were not entitled to any refunds.
Proceeds totaling $105,088 were divided between Chatmon and the tax-return filers during the scheme, which took place between January 2010 and April 2013. The total attempted loss figure exceeds $120,000, as some of the false returns did not result in refunds.
The sentencing is the culmination of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.
Belleville Man Charged for Armed Robbery of Domino’sRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Sterling D. Gould, thirty-seven years old, from Belleville, Illinois, was charged by complaint on November 10, 2015, in federal court in East St. Louis, Illinois, for one count of Interference with Commerce by Robbery, which is a violation of the Hobbs Act; one count of Brandishing a Firearm During a Crime of Violence, and one count of Unlawful Possession of a Firearm by a Previously Convicted Felon, in connection with the armed robbery of the Belleville, Illinois, Domino’s Pizza that occurred on July 12, 2015.
The case is being investigated by the Federal Bureau of Investigation as part of the Metro East Armed Robbery Initiative announced by United States Attorney Wigginton. Assistant U.S. Attorney Daniel T. Kapsak is prosecuting the case.
Baltimore Man Sentenced to 11 Years in Prison for Bank RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Kurtis Kelvin McGill, age 55, of Baltimore today to 11 years in prison followed by three years of supervised release for bank robbery.
The sentence 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 Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, on August 27, 2014, McGill told a teller at the Wells Fargo Bank on Fort Avenue in Baltimore City that he had a weapon and demanded “two straps of 50s and two straps of 100s.” McGill took approximately $8,000 from the teller and drove away. McGill was subsequently identified as the robber from the bank’s surveillance video, a surveillance video at a nearby store and by a bank employee.
At the time of the robbery, McGill was on supervised release for a previous federal bank robbery conviction.
United States Attorney Rod J. Rosenstein praised FBI and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.
Attorney General Loretta E. Lynch Statement on the Attacks in ParisRead the Press Release
Attorney General Loretta E. Lynch released the following statement on today’s attacks in Paris:
“We stand in solidarity with France, as it has stood with us so often in the past. This is a devastating attack on our shared values and we at the Department of Justice will do everything within our power to assist and work in partnership with our French law enforcement colleagues.”
Ashburn Man Sentenced for Identity Theft and Filing False Tax ReturnsRead the Press Release
ALEXANDRIA, Va. – Kouame Innocent Tanoh, 53, of Ashburn, was sentenced today to 54 months in prison for wire fraud and aggravated identity theft, followed by three years of supervised release. The defendant also was ordered to pay $671,760 in restitution and $651,769 in a forfeiture money judgment.
Tanoh pleaded guilty on April 24, 2015. According to court documents, from around April 2008 through February 2015, Tanoh obtained individuals’ names and personal identifying information, including their Social Security numbers and dates of birth. Tanoh acquired some of this information by holding himself out as being a legitimate tax return preparer, through a Virginia company called Alpha and Omega Financial Services. Some of the individuals who provided their personal information to Tanoh were clients of this business. Tanoh would then use their names and personal identifying information for several different purposes, including the preparation and filing of fraudulent federal and state tax returns that made false claims for tax refunds. To increase the amount of the refund requested by the fraudulent returns, Tanoh would add items to the returns, including false dependents, false businesses on the taxpayer’s Schedule C, false education expenses, and false moving expenses. The actual loss to the IRS and state departments of revenue as a result of the returns prepared and filed by Tanoh was over $650,000.
In addition to filing false tax returns, Tanoh also used other people’s identities, in part because he had no legal status to work or remain in the United States. From at least 2009 through 2015, Tanoh used the names and personal identifying information of at least eight individuals to seek and obtain employment, housing, and other items of value, such as bank accounts. To facilitate his use of these stolen identities, Tanoh would obtain false means of identification in the victims’ names, including driver’s licenses and Social Security cards.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; David G. Bowers, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; John Phillips, Assistant Inspector General for Investigations, Department of the Treasury, Office of the Inspector General; and Michael McGill, Special Agent in Charge, Philadelphia Field Division of the Inspector General’s Office of the Social Security Administration, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Katherine L. Wong is 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. 1:15-cr-99.
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Arizona Woman Pleads Guilty to Federal Heroin Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Fabiola Soriano-Tlapanco, 26, of Phoenix, Ariz., pleaded guilty today to heroin trafficking charges in federal court in Albuquerque, N.M., under a plea agreement with the U.S. Attorney’s Office.
Soriano Tlapanco and co-defendant Annais Moreno, 34, also of Phoenix, were arrested in May 2015, on a criminal complaint charging them with conspiracy and possession of heroin with intent to distribute after DEA agents allegedly found almost four kilograms of heroin concealed in their baggage during an interdiction investigation at the Greyhound Bus Station in Albuquerque, on May 16, 2015. The duo were indicted on the same charges on June 9, 2015.
During today’s proceedings, Soriano-Tlapanco pled guilty to a felony information charging her with possession of heroin with intent to distribute. Soriano-Tlapanco admitted that on May 16, 2015, she and Moreno were to be paid to transport approximately 3.95 kilograms of heroin from Glendale, Ariz. to Denver, Colo., when they were stopped by law enforcement officers while traveling through Albuquerque on the Greyhound Bus.
On Oct. 26, 2015, Moreno pled guilty to a felony information charging her with possession of heroin with intent to distribute. Moreno admitted that on May 16, 2015, she and Soriano-Tlapanco transported 3.95 kilograms of heroin while traveling through Albuquerque on the Greyhound Bus. Moreno further admitted that she was transporting the heroin from Glendale, Ariz. to Denver, Colo.
At sentencing, Soriano-Tlapanco and Moreno each face a statutory maximum of 20 years in federal prison. Both women remain in custody pending sentencing hearings which have yet to be scheduled.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
This case is being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Antiques Dealer Sentenced in Manhattan to Two Years in Prison for Smuggling Cups Made from Rhinoceros HornsRead the Press Release
Linxun Liao, 35, a citizen of Canada, was sentenced yesterday in Manhattan federal court to two years in prison for his role in a wildlife trafficking scheme in which he purchased and smuggled 16 “libation cups” carved from rhinoceros horns and worth more than $1 million from the United States to China, announced Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division of the Department of Justice, U.S. Attorney Preet Bharara of the Southern District of New York and Director Dan Ashe of the U.S. Fish and Wildlife Service. Liao pleaded guilty on June 30, 2015, to a two-count information, admitting to illegally smuggling rhinoceros horn objects from the United States.
“This prosecution is the result of a vigorous and ongoing investigation into traffickers profiting from endangered and precious wildlife species,” said Assistant Attorney General Cruden. “We must ensure that the market for antiques and alleged antiques does not also contribute to the extinction of these iconic animals, which could disappear in our lifetimes if we do not act now to stop this illegal trade.”
“This defendant flouted the laws established to protect endangered wildlife,” said U.S. Attorney Bharara. “Willfully failing to declare the nature of the shipments or obtain required permits, Liao broke laws that protect rhinoceros and other magnificent species threatened with extinction. He has learned the cost of his illegal conduct.”
“Each of the ceremonial cups that Liao trafficked represents one step closer to extinction for the rhinoceros, which are steadily being wiped out by poachers for the illegal rhino horn market,” said Director Ashe. “The seriousness of this crime and others like it and their consequences for the world’s most imperiled species are what drives our efforts to root out and shut down illegal operators like Mr. Liao. This sentence will serve as a strong warning that we are going to find, arrest and prosecute anyone engaged in this sort of activity and make sure they are no longer able to deprive our children and grandchildren of their wildlife inheritance.”
According to the information, other documents filed in federal court in Manhattan and statements made at various proceedings in this case, including today’s sentencing:
Liao was arrested in February 2015 as part of “Operation Crash,” a nationwide crackdown on illegal trafficking in rhinoceros horns. Liao was a partner in an Asian art and antiques business located in China. Liao’s role was to purchase items, including wildlife items, in the United States and arrange for their export to China. Between in or about March 2012 and May 2013, Liao made online purchases of 16 rhinoceros horn products, more specifically libation cups, from auction houses in the United States, including in Manhattan, which he then smuggled to China without the required declarations and permits. In order to make these purchases, Liao used an address of his family members in New Jersey, the New Jersey location, because he knew that absent a domestic address, the auction houses would not ship him the rhinoceros horn as well as ivory that Liao had acquired. Liao then utilized a Manhattan-based courier service to illegally export the merchandise to China. Liao did not declare the rhinoceros exports to the U.S. Fish and Wildlife Service or obtain the required permits despite his knowledge of the need to do so. Liao closely coordinated his efforts with co-conspirators who sold the items for a profit at their antique business in China. The market value of the rhinoceros libation cups in this case is more than $1 million.
The rhinoceros is an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under CITES, a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Rhinoceros are also protected under the U.S. Endangered Species Act, which further regulates trade and transport.
In addition to his prison term, Liao was also ordered two years of supervised release, to forfeit $1 million and 304 pieces of carved ivory found during a search of the New Jersey location. Liao was also banned from future involvement in the wildlife trade.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
Assistant Attorney General Cruden and U.S. Attorney Bharara thanked the U.S. Fish and Wildlife Service for its outstanding work in this investigation. This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jennifer Gachiri and Senior Litigation Counsel Richard A. Udell with the Environmental Crimes Section of the Department of Justice are in charge of the prosecution.
In addition to his prison term, Liao was also ordered two years of supervised release, to forfeit $1 million and 304 pieces of carved ivory found during a search of the New Jersey location. Liao was also banned from future involvement in the wildlife trade.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
Assistant Attorney General Cruden and U.S. Attorney Bharara thanked the U.S. Fish and Wildlife Service for its outstanding work in this investigation. This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jennifer Gachiri and Senior Litigation Counsel Richard A. Udell with the Environmental Crimes Section of the Department of Justice are in charge of the prosecution.
Antiques Dealer Sentenced in Manhattan Federal Court to Two Years in Prison for Smuggling Cups Made from Rhinoceros Horns to ChinaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John C. Cruden, the Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Dan Ashe, the U.S. Fish and Wildlife Service Director, announced that LINXUN LIAO was sentenced yesterday in Manhattan federal court to two years in prison for his role in a wildlife trafficking scheme in which he purchased and smuggled 16 “libation cups” carved from rhinoceros horns and worth more than $1 million from the United States to China. LIAO previously pled guilty to two counts of illegally smuggling rhinoceros horn objects from the United States. U.S. District Judge Lorna G. Schofield imposed yesterday’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “This defendant flouted the laws established to protect endangered wildlife. Willfully failing to declare the nature of the shipments or obtain required permits, Liao broke laws that protect rhinoceros and other magnificent species threatened with extinction. He has learned the cost of his illegal conduct.”
Assistant Attorney General John C. Cruden said: “This prosecution is the result of a vigorous and ongoing investigation into traffickers profiting from endangered and precious wildlife species. We must ensure that the market for antiques and alleged antiques does not also contribute to the extinction of these iconic animals, which could disappear in our lifetimes if we do not act now to stop this illegal trade.”
U.S. Fish and Wildlife Service Director Dan Ashe said: “Each of the ceremonial cups that Liao trafficked represents one step closer to extinction for the rhinoceros, which are steadily being wiped out by poachers for the illegal rhino horn market. The seriousness of this crime and others like it and their consequences for the world’s most imperiled species are what drives our efforts to root out and shut down illegal operators like Mr. Liao. This sentence will serve as a strong warning that we are going to find, arrest and prosecute anyone engaged in this sort of activity and make sure they are no longer able to deprive our children and grandchildren of their wildlife inheritance.”
According to the Information, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
LIAO was arrested in February 2015 as part of “Operation Crash,” a nationwide crackdown on illegal trafficking in rhinoceros horns. LIAO, a Canadian citizen, was a partner in an Asian art and antiques business located in China. LIAO’s role was to purchase items, including wildlife items, in the United States and arrange for their export to China. Between in or about March 2012 and May 2013, LIAO made online purchases of 16 rhinoceros horn products, more specifically libation cups, from auction houses in the United States, including in Manhattan, which he then smuggled to China without the required declarations and permits. In order to make these purchases, LIAO used an address of his family members in New Jersey (the “New Jersey Location”) because he knew that absent a domestic address, the auction houses would not ship him rhinoceros horn or ivory products that LIAO had purchased. Liao then used a Manhattan-based courier service to illegally export the merchandise to China. LIAO did not declare the rhinoceros exports to the U.S. Fish and Wildlife Service or obtain the required permits despite his knowledge of the need to do so. LIAO closely coordinated his efforts with co-conspirators who sold the items for a profit at their antique business in China. The market value of the rhinoceros libation cups in this case is more than $1,000,000.
The rhinoceros is an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under CITES, a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. Rhinoceros are also protected under the U.S. Endangered Species Act, which further regulates trade and transport.
* * *
In addition to his prison term, LIAO, 35, a Chinese citizen who resides in Canada, was sentenced to two years of supervised release and ordered to forfeit $1 million and 304 pieces of carved ivory found during a search of the New Jersey Location.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
U.S. Attorney Preet Bharara thanked the U.S. Fish and Wildlife Service for its outstanding work in this investigation. This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Jennifer Gachiri and Senior Litigation Counsel Richard A. Udell with the Environmental Crimes Section of the Department of Justice are in charge of the prosecution.
Alstom Sentenced to Pay $772 Million Criminal Fine to Resolve Foreign Bribery ChargesRead the Press Release
Represents Largest-Ever Criminal Foreign Bribery Fine
Alstom S.A., a French power and transportation company, was sentenced today to pay a $772,290,000 fine to resolve criminal charges related to a widespread corruption scheme involving at least $75 million in secret bribes paid to government officials in countries around the world, including Indonesia, Saudi Arabia, Egypt, the Bahamas and Taiwan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Michael J. Gustafson the District of Connecticut and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Alstom was sentenced by U.S. District Judge Janet Bond Arterton of the District of Connecticut. Alstom pleaded guilty on Dec. 22, 2014, to a two-count criminal information charging the company with violating the Foreign Corrupt Practices Act (FCPA) by falsifying its books and records and failing to implement adequate internal controls.
In addition, Alstom Network Schweiz AG, formerly Alstom Prom AG (Alstom Prom), Alstom’s Swiss subsidiary, which pleaded guilty on Dec. 22, 2014, to a criminal information charging the company with conspiracy to violate the anti-bribery provisions of the FCPA, was also sentenced today pursuant to its plea agreement. Alstom Power Inc. and Alstom Grid Inc., formerly Alstom T&D Inc., two U.S. subsidiaries, both entered into deferred prosecution agreements on Dec. 22, 2014, admitting that they conspired to violate the anti-bribery provisions of the FCPA.
According to the companies’ admissions, Alstom, Alstom Prom, Alstom Power and Alstom T&D, through various executives and employees, paid bribes to government officials and falsified books and records in connection with power, grid and transportation projects for state-owned entities around the world, including in Indonesia, Egypt, Saudi Arabia, the Bahamas and Taiwan. In Indonesia, for example, Alstom, Alstom Prom and Alstom Power paid bribes to government officials—including a high-ranking member of the Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara, the state-owned electricity company in Indonesia—in exchange for assistance in securing several contracts to provide power-related services valued at approximately $375 million. In total, Alstom paid more than $75 million to secure more than $4 billion in projects around the world, with a profit to the company of approximately $300 million.
Alstom and its subsidiaries also attempted to conceal the bribery scheme by retaining consultants who purportedly provided consulting services on behalf of the companies, but who actually served as conduits for corrupt payments to the government officials. Internal Alstom documents refer to some of the consultants in code, including “Mr. Geneva,” “Mr. Paris,” “London,” “Quiet Man” and “Old Friend.”
The sentence, which is the largest criminal fine ever imposed in an FCPA case, reflects a number of factors, including: Alstom’s failure to voluntarily disclose the misconduct, even though it was aware of related misconduct at a U.S. subsidiary that previously resolved corruption charges with the department in connection with a power project in Italy; Alstom’s refusal to fully cooperate with the department’s investigation for several years; the breadth of the companies’ misconduct, which spanned many years, occurred in countries around the globe and in several business lines, and involved sophisticated schemes to bribe high-level government officials; Alstom’s lack of an effective compliance and ethics program at the time of the conduct; and Alstom’s prior criminal misconduct, including conduct that led to resolutions with various other governments and the World Bank.
After the department publicly charged several Alstom executives, however, Alstom began providing thorough cooperation, including assisting the department’s prosecution of other companies and individuals.
To date, the department has announced charges against five corporate executives for alleged corrupt conduct involving Alstom. Frederic Pierucci, Alstom’s former vice president of global boiler sales, pleaded guilty on July 29, 2013, to conspiring to violate the FCPA and a charge of violating the FCPA for his role in the Indonesia bribery scheme. David Rothschild, Alstom Power’s former vice president of regional sales, pleaded guilty on Nov. 2, 2012, to conspiracy to violate the FCPA. William Pomponi, Alstom Power’s former vice president of regional sales, pleaded guilty on July 17, 2014, to conspiracy to violate the FCPA. Lawrence Hoskins, Alstom’s former senior vice president for the Asia region, was charged in an indictment in connection with the Indonesia bribery scheme, and is pending trial in the District of Connecticut in April 2016. The charges against Hoskins are merely allegations, and he is presumed innocent unless and until proven guilty. The high-ranking member of Indonesian Parliament was also convicted in Indonesia of accepting bribes from Alstom, and is currently serving a three-year prison term. In addition, Marubeni Corporation, which partnered with Alstom on the Indonesia project, pleaded guilty on March 19, 2014 to a criminal information charging conspiracy to violate the FCPA and seven counts of violating the FCPA, and was sentenced on May 15, 2014, to pay an $88 million criminal fine.
In connection with a corrupt scheme in Egypt, Asem Elgawhary, the general manager of an entity working on behalf of the Egyptian Electricity Holding Company, a state-owned electricity company, was the fifth individual charge and pleaded guilty on Dec. 4, 2014, in the District of Maryland to mail fraud, conspiring to launder money and tax fraud for accepting kickbacks from Alstom and other companies, and was sentenced on March 23, 2015, to serve 42 months in prison and forfeit approximately $5.2 million in proceeds.
This case is being investigated by the FBI’s Washington Field Office, with assistance from the FBI’s Meriden, Connecticut, Resident Agency. The department appreciates the significant cooperation provided by its law enforcement colleagues in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission), the Switzerland Office of the Attorney General and the United Kingdom’s Serious Fraud Office, as well as authorities in France, Germany, Italy, Singapore and Taiwan.
The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut, together with Assistant U.S. Attorney Zach Intrater of the District of New Jersey on the investigation of Alstom T&D, and Assistant U.S. Attorney David I. Salem of the District of Maryland on the investigation of Asem Elgawhary. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Albuquerque Man Arrested for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Grant Hykes, 34, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with being a felon in possession of a firearm. Hykes remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled on Nov. 16, 2015.
The criminal complaint, filed earlier today by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), charges Hykes with unlawfully possessing a firearm and ammunition in Bernalillo County, N.M., on Nov. 12, 2015. Hykes was prohibited from possessing firearms or ammunition because he previously has been convicted of aggravated assault with a deadly weapon, receiving stolen property, and possession of a controlled substance.
According to the criminal complaint, the investigation leading to Hykes’ arrest began yesterday afternoon when the Bernalillo County Sheriff’s Office (BCSO) received a report that Hykes was allegedly threatening a BCSO detective. The complaint alleges that, when BCSO officers located Hykes in a parking lot in northeast Albuquerque, they observed him reach into his waistband and put his hands into the bed of a truck. When the officers approached Hykes and the truck, they allegedly observed a semi-automatic pistol in the truck’s bed; the pistol was loaded with 14-rounds of ammunition. Knowing that Hykes was a convicted felon, the BCSO officers arrested him for being a felon in possession of a firearm. While searching Hykes incident to arrest, the officers allegedly found a holster containing a magazine with 14-rounds inside Hykes’ waistband. The pistol found in the truck’s bed allegedly fit into the holster.
If convicted on the charge alleged in the criminal complaint, Hykes faces a statutory maximum sentence of ten years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the ATF office in Albuquerque and the BCSO. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Abington Man Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – An Abington man pleaded guilty today in U.S. District Court in Boston to stealing $65,311 in Social Security benefits.
Mark Gardner, 57, pleaded guilty to theft of public money. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Feb. 5, 2016.
Gardner’s mother died in 2009, but her monthly Social Security benefits continued to be directly deposited into a bank account held jointly in her name and Gardner’s name. Although Gardner was not entitled to this money, he routinely withdrew the Social Security money for his own use. In total, from 2009 to 2014, Gardner took $65,311 in Social Security funds to which he was not entitled.
This case was brought as part of an ongoing effort by the U.S. Attorney’s Office, in partnership with the Social Security Administration, to investigate and prosecute the posthumous fraud of Social Security benefits. In many of these cases, family members, knowing they are not entitled to government benefits, continue to withdraw and spend the funds after a relative has died. Since October 2014, the U.S. Attorney’s Office has prosecuted several similar cases involving a total of more than $1 million in stolen government money:
In November 2015, Brian Sandiford, of Milton, pleaded guilty to stealing $70,811 from Social Security from 2010 to 2014. Sentencing is scheduled for March 3, 2016.
In September 2015, Patricia Kwiatkowski, of Upton, was sentenced for stealing $128,101 from Social Security from 2006 to 2014.
In April 2015, Graeme Griffith, of Andover, was sentenced for stealing $149,285 from Social Security from 2003 to 2014.
Also in April 2015, Frances Kenney Moseley, of Boston, was sentenced for stealing $222,172 from Social Security from 2003 to 2010.
The charging statute provides a sentence of no greater than ten years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Office of Inspector General, Social Security Administration, Office of Investigations, Boston Field Division, made the announcement today. The Gardner case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
22 Individuals Charged with Drug Trafficking in the Municipality of PeñuelasRead the Press Release
SAN JUAN, Puerto Rico – On November 5, 2015, a federal grand jury in the District of Puerto Rico returned two separate indictments against thirteen and nine defendants respectively charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigations and the Puerto Rico Police Department (PRPD), Ponce Strike Force, are in charge of the investigation.
The first indictment alleges that beginning in 2009, the organization distributed cocaine, heroin, crack, and marihuana at the Caracoles III Ward, located in the Municipality of Peñuelas, Puerto Rico, all for financial gain and profit.
The 13 defendants are: Victor A. Serna-González, aka “Bebe;” Victor Daniel Serna-González, aka “Danny;” Rubén Figueroa-Santiago; José L. Ríos-Martínez, aka “Olivo;” Fred Bernard Rodríguez, aka “Gordo;” Victor Ramos-González, aka “Burrin;” Luis M. Ramos-González, aka “Chino;” José Pérez-Santiago, aka “Orejas;” Carlos Ramos-González, aka “Colorao;” Rafael J. Quiros-Morales, aka “Menor;” Erick Tomás García-Ramos, aka “Tito;” Julio Araud-Figueroa, aka “Julito;” and FNU LNU, aka “Wilfred”.
The second indictment alleges that beginning in 2007, the organization distributed cocaine and heroin at the Caracoles II Ward, located in Peñuelas, PR, for significant financial gain and profit. The nine defendants are: Victor Candelario-Santiago, aka “El Loco;” Elliot Lucca-Nieves, aka “Luquita;” Luis Rosario-Tellado, aka “Javier Tellado;” Aixsa L. Morales-Figueroa; Juan Ramos-Rodríguez, aka “Flaco;” Miguel Rivera-Galarza, aka “Valdo;” Ángel L. Alvarado-Pérez, aka “Cacu;” Julio E. Feliciano-Quiñonez, aka “Caballito;” and José Figueroa-Segarra, aka “El Menor”.
The 22 defendants acted in different roles in order to further the goals of their organizations, to wit: leader, drug point owners, runners, drug processors, sellers, and facilitators. Some defendants possessed firearms to protect the members of the drug trafficking organizations, the narcotics, the proceeds derived from the sales, and to further accomplish the goals of the conspiracies.
Assistant U.S. Attorney Myriam Fernández, supervisor of the Narcotics Unit, and Assistant U.S. Attorney John Mathews are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
12 November 2015
Wilkes-Barre Man Indicted for Heroin Trafficking and Firearm OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Wilkes-Barre man was indicted on November 10, 2015 by a federal grand jury in Scranton on heroin trafficking and firearm offenses.
According to United States Attorney Peter Smith, the indictment charges Louis Angel Soto, age 26, with distributing and possessing with intent to distribute heroin in Wilkes-Barre on four occasions between August and November of 2015. The indictment also charges Soto with possessing a firearm in furtherance of his heroin trafficking activities.
The charges stem from an investigation in which the Drug Enforcement Administration (DEA) allegedly made purchases of heroin from Soto on three occasions between August and October of 2015. The DEA then obtained a search warrant for a residence located on Sambourne Street in Wilkes-Barre, where Soto was residing. From the residence, the DEA and the Wilkes-Barre Police Department seized 180 bags of heroin and a .40 caliber Smith and Wesson semi-automatic pistol.
The investigation of these cases was conducted by the Drug Enforcement Administration, working in conjunction with the Wilkes-Barre Police Department. Prosecution is assigned to Assistant United States Attorney Evan Gotlob.
Soto faces a minimum of 5 years and up to a lifetime term of incarceration as well as fines totaling $4,250,000.
Indictments 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 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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Wichita Attorney Sentenced on Federal Tax Evasion ChargeRead the Press Release
WICHITA, KAN. – A Wichita attorney was sentenced Thursday to 30 months in federal prison for evading federal taxes, U.S. Attorney Barry Grissom said.
In July, U.S. District Judge Eric Melgren found Eldon L. Boisseau, 67, Wichita, Kan., guilty on one count of tax evasion.
In a written decision, the court found that during 1998 through 2000, 2002 through 2005 and 2007 through 2008 Boisseau attempted to evade paying federal income taxes, as well as a trust fund recovery penalty from 1999. He interfered with the government’s efforts to collect the taxes he owned by putting his law firm in the name of a nominee, terminating his own pay agreement with the law firm and then having the firm pay for his personal expenses.
Grissom commended the Internal Revenue Service, Assistant U.S. Attorney Alan Metzger and Sean Green, Trial Attorney with Justice Department’s Tax Division, for their work on the case.
Verona Island Man Sentenced to Almost Seven Years on Firearms ChargeRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Oscar Nunez, 28, of Verona Island, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 82 months in prison and three years of supervised release for being a felon in possession of a firearm. Nunez pleaded guilty on January 20, 2015.
Court records reveal that on July 23, 2012, investigators found a High Point .380 caliber semi-automatic handgun during the execution of a search warrant at the defendant’s Verona Island residence. A Maine State Police Crime Lab forensic analyst found the defendant’s DNA on the handgun. The defendant was prohibited from possessing the handgun because of a prior felony conviction in New York for the criminal sale of a controlled substance. Nunez’s sentence was longer because he used the handgun in connection with other crimes and he had a history of drug trafficking and possessing explosive devices.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine State Fire Marshal’s Office; the Maine Drug Enforcement Agency; the Maine State Police; and the Hancock and Penobscot County Sheriffs’ Departments.
Two More Arrests as Result of USDA Feeding Program FraudRead the Press Release
LITTLE ROCK—Two more people have been indicted for their roles in a scheme to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Anthony Waits, age 37, of England, Arkansas, and Dorothy Harper, age 50, of England, Arkansas, were arrested after the filing of an 89-count indictment.
The second superseding indictment, returned by a federal Grand Jury on November 4, 2015, charges Waits and Harper with conspiracy as part of a scheme to fraudulently obtain United States Department of Agriculture (USDA) program funds. Harper is also charged with 16 counts of wire fraud.
According to the indictment, the USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The indictment states that Harper operated as a sponsor for a feeding program through an organization called Kingdom Land Youth Outreach Ministries. She had feeding sites in England, Keo, Allport, Tucker, Toltec, Coy, and Altheimer, Arkansas.
Harper made unauthorized cash payments to Waits, whose wife worked at DHS. In exchange for these payments, Waits’ wife approved Harper’s applications, knowing that inflated claims would be submitted and helping Harper avoid DHS detection of the fraud. The indictment states that Harper falsely represented her average daily attendance and the number of meals provided. This fraud exceeded $1.3 million.
The indictment alleges that Waits recruited additional sponsors who also submitted inflated claims. Those sponsors gave Waits a percentage of the federal money they received in exchange for Waits’ wife, the DHS employee, approving the inflated claims.
Waits and Harper join the three other individuals who were already named as defendants: Gladys King, who was Waits’ wife and DHS employee who approved fraudulent claims; Tonique Hatton, another DHS employee who approved fraudulent claims; and Jacqueline Mills, another feeding program sponsor.
Also named in the indictment is co-conspirator Kattie Jordan, a program sponsor who has already pleaded guilty to conspiring to commit wire fraud. Jordan stole $3.6 million in federal funds. Investigation is ongoing but indicates that Mills stole $2.5 million.
The statutory penalty for conspiring to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is being conducted by the United States Department of Agriculture—Office of the Inspector General, Federal Bureau of Investigation, Internal Revenue Service—Criminal Investigations and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg. If you are aware of any fraudulent activity regarding these feeding programs, please email that information [email protected].
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
Two Miami Residents Plead Guilty Involvement in Stolen Identity Tax Refund Fraud RingRead the Press Release
Two Miami residents pleaded guilty for their role in a stolen identity tax refund fraud conspiracy, U.S. Attorney Wifredo Ferrer of the Southern District of Florida and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Jim Joseph and Roland Alexis pleaded guilty to one count of a multi-object conspiracy to defraud the Internal Revenue Service (IRS), commit wire fraud and commit aggravated identity theft and one count of aggravated identity theft. Joseph pleaded guilty on Nov. 9 and Alexis pleaded guilty Nov. 5. According to court documents, between 2007 and July 2014, Joseph, Alexis and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Joseph and Alexis obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. The stolen personal identification information belonged to prisoners and deceased individuals. Joseph, Alexis and others recruited knowing co-conspirators and unknowing victims to put Electronic Filing Identification Numbers (EFINs) in their names through which fraudulent income tax returns would be filed.
In late 2009, Alexis formed Worldwide Income Tax Multi-Services LLC and North Miami Income Tax Services. The companies were created with the intended purpose of filing fraudulent tax returns using stolen identities. Worldwide Income Tax Multi-Services was located in Miramar, Florida, and listed Alexis as President and Joseph as Vice-President. North Miami Income Tax Services was set up in Miami and listed Alexis as Registered Agent. Joseph, Alexis and others then used the stolen identities and EFINs to electronically file more than 860 fraudulent tax returns. Alexis’s conduct resulted in a tax loss of $1.8 million and Joseph’s conduct resulted in a tax loss of $1.2 million.
Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge and a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge. Joseph and Alexis must serve the two-year sentence for aggravated identity theft in addition to any sentence the court imposes on the conspiracy charge. Both charges carry a statutory maximum fine of $250,000.
U.S. Attorney Ferrer and Acting Assistant Attorney General Ciraolo commended special agents of the IRS-Criminal Investigation and Homeland Security Investigations, who investigated the case, and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Gregory E. Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Columbia, Three California Residents Charged in Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Columbia, Mo., residents and three Compton, Calif., men were charged in federal court today in separate but related cases for their roles in a conspiracy to distribute methamphetamine following their arrests earlier this week, which resulted in a manhunt and the lockdown of a nearby elementary school.
Zachary T. Fennell, 37, and Melissa Guerra, 33, both of Columbia, and Favbion D. Holmes, 38, Kameron T. Howard, 25, and Dijon R. Brown, 23, all of Compton, were charged in separate complaints filed in the U.S. District Court in Jefferson City, Mo., for participating in a conspiracy to distribute methamphetamine and for possessing methamphetamine with the intent to distribute. The defendants were arrested on Tuesday, Nov. 10, 2015 and will have their initial court appearances today. Fennell, Holmes, Howard and Brown remain in federal custody pending their detention hearings.
According to an affidavit filed in support of the federal criminal complaints, St. Louis, Mo., postal inspectors identified a suspicious parcel on Nov. 6, 2015, that was mailed from California to an address in the 4000 block of E. Santa Barbara Drive in Columbia, Mo., and suspected to contain a controlled substance. Federal agents recovered 456 grams of methamphetamine, valued at more than $11,000, from the parcel inside a hollowed-out book.
Federal agents executed a controlled delivery of the parcel to the Columbia residence on Tuesday, Nov. 10, 2015. Officers conducting surveillance of the residence saw two men leave the house at approximately 9:55 a.m. in a white Chevrolet Suburban. The parcel was delivered at 10:04 a.m. and placed next to the front door. A man inside the residence was observed opening and closing the front door of the residence several times, the affidavit says, and viewing the package through the screen of the storm door.
According to the affidavit, the white Chevrolet Suburban, which had previously left the residence, was observed driving past the residence at approximately 10:31 a.m., conducting what appeared to be counter-surveillance. After passing the residence one time, the vehicle returned and parked in the driveway of the residence at approximately 10:33 a.m. Brown and the driver got out of the vehicle; Brown took the parcel off the front porch, the affidavit says, and brought it inside the residence. At approximately 10:36 a.m., Fennell was observed bringing the parcel back outside the residence and placing it next to the front door. Several occupants of the residence were observed sitting near the front porch.
Shortly thereafter federal agents, assisted by the Boone County Sheriff’s Department Special Weapons and Tactics (SWAT) team, approached the residence to execute the search warrant. SWAT members were unable to breach the door as it had been reinforced. SWAT members made entry in a secondary location and agents saw Howard, Brown and Holmes running out the back door of the residence attempting to evade law enforcement. They hopped the backyard fence and continued running into an area of overgrown vegetation. Holmes was apprehended a short distance on the other side of the fence. Howard and Brown were apprehended hiding in a pool shed approximately one-quarter to a half-mile away, after a brief manhunt which resulted in the lockdown of a nearby elementary school. Fennell was apprehended in the front yard of the residence. Guerra, the leaseholder of the residence, was apprehended inside the residence.
Law enforcement officers also located three loaded firearms inside the residence, a small amount of methamphetamine in the freezer and in an upstairs bedroom dresser, and various documents that appeared to be ledgers for narcotics transactions.
Dickinson cautioned that the charges contained in these complaints are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the U.S. Postal Inspection Service, the FBI, the Columbia, Mo., Police Department and the Boone County, Mo., Sheriff’s Department.
Trophy Hunter Admits Illegally Killing Black Bear in New Jersey and Staging Fake Kill Site in New York to Conceal CrimeRead the Press Release
NEWARK, N.J. – A Ringwood, New Jersey, man today admitted transporting an American black bear he illegally killed in New Jersey across state lines to New York, and covering up the crime by creating false records and staging a fake kill site, U.S. Attorney Paul J. Fishman announced.
Martin Kaszycki, 36, pleaded guilty before U.S. Magistrate Judge Leda D. Wettre in Newark federal court to an information charging him with two counts of violating the Lacey Act by transporting a bear he had illegally killed in Newfoundland, New Jersey, to Sterling State Forest in New York, and covering up the crime by making false statements and staging a fake kill site.
According to documents filed in this case and statements made in court:
On Oct. 5, 2012, Kaszycki killed a 450-pound, male, America black bear from an elevated tree stand, with a bow and arrow, out of hunting season, after setting out bait for the bear within 300 feet of the stand near his place of business in Newfoundland, all in violation of New Jersey state laws. He then drove the bear across state lines to New York, where he falsely told a New York weigh station employee that he had killed the bear in New York’s Sterling State Forest, causing the employee to record the false information on a New York state Bear Data Form.
On Oct. 8, 2012, Kaszycki drove the hide and skull of the bear to a taxidermy shop in Pennsylvania to arrange for the parts to be mounted for a trophy display and falsely represented to a taxidermist that he had hunted the bear in New York, causing the taxidermist to record that information on a New York State Department of Environmental Conservation Taxidermist Bear Report.
When N.J. Division of Fish and Wildlife Officers confronted Kaszycki about the bear on Oct. 10, 2012, at his place of business, Kaszycki told them he had killed the bear in New York. Later that night, Kaszycki drove the guts of the bear to Sterling State Forest in New York, where he placed them in the woods to stage a fake kill site. When confronted again the next day by state officials about the bear, he led those officials to the staged kill site and told them it was the location where he had killed the bear.
The Lacey Act prohibits the interstate transport of wildlife taken or possessed in violation of any state law or regulation as well as the making of a false record for wildlife that has been or is intended to be transported in interstate commerce. New Jersey state laws prohibit the hunting of an American black bear out of season. New Jersey laws also prohibit the hunting of these bears while elevated in a standing tree within 300 feet of a baited area or with a bow and arrow.
As part of his plea agreement, Kaszycki must pay a fine of $5,000 to the U.S. Fish and Wildlife Service Lacey Act Reward Fund. He must also forfeit the skull and hide of the bear and pay $1,250 to the Woodlands Wildlife Refuge for the care and release of orphaned and injured American black bears in New Jersey.
The charge to which Kaszycki pleaded guilty carries a maximum penalty of one year in prison and a $100,000 fine. He was released on unsecured $10,000 bond with the condition that he surrender his hunting license and refrain from hunting pending his sentencing hearing, which is currently scheduled for Feb 17, 2016.
U.S. Attorney Fishman credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction Resident Agent in Charge Preston Fant, as well as the N.J. Division of Fish and Wildlife, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
Defense counsel: Peter L. Festa Esq., Paterson, New Jersey
Toledo, Ohio, Felon Charged with 2005 Murder at Fort Knox Military BaseRead the Press Release
LOUISVILLE, Ky – A Toledo, Ohio, felon who is currently in prison for an aggravated murder conviction, was charged today by federal Information with one count of murder, which occurred in 2005, on the grounds of Fort Knox Military Base, announced U. S. Attorney John E. Kuhn, Jr.
According to the Information, on or about January 7, 2005, in the Western District of Kentucky, Meade County, Kentucky, the defendant, Ernest Otto Smith, age 49, murdered Cathy M. Barnett willfully, deliberately, maliciously, and with premeditation, on the grounds of Fort Knox, within the special territorial jurisdiction of the United States.
If convicted at trial, Smith could be sentenced to no less than life in prison and fined $250,000.Smith is currently in the custody of the Ohio Department of Prisons, and is an inmate at the Ely, Nevada, State Prison. A date for his initial appearance has not been scheduled.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Federal Bureau of Investigation.
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The charge of a person by an Information is an accusation only and that person is presumed innocent until and unless proven guilty.
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Three Sentenced in Heroin and Money Laundering ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JERMAINE REYNOLDS, age 39, of Long Beach, Mississippi; DAVID HUMPHRIES, age 46, of Baltimore, Maryland; and MARLON BARNES, age 39, of New Orleans; were sentenced today for conspiring to distribute one kilogram or more of heroin. REYNOLDS had also pled guilty to one count of conspiring to launder money.
U.S. District Judge Carl J. Barbier sentenced REYNOLDS to a term of imprisonment of 120 months, with 12 months to run consecutive to another federal sentence that REYNOLDS is serving. HUMPRHIES was sentenced to 60 months imprisonment, and BARNES to 140 months imprisonment. Judge Barbier also sentenced each defendant to a 5-year term of supervised release following imprisonment and a special assessment of $100 per count of conviction.
According to court documents, a series of court-authorized wiretaps on the cell phones of New Orleans area heroin dealers led Drug Enforcement Administration agents to identify co-defendant Fredrick Douglas Brooks III as a Houston-based heroin trafficker who was distributing kilogram quantities of heroin in the New Orleans area. Brooks delivered heroin to the New Orleans market by using REYNOLDS and HUMPHRIES as his drug and bulk cash couriers. BARNES was one of the drug dealers who purchased wholesale quantities of heroin from Brooks’ network for distribution in New Orleans.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
Three Sentenced in Heroin and Money Laundering ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JERMAINE REYNOLDS, age 39, of Long Beach, Mississippi; DAVID HUMPHRIES, age 46, of Baltimore, Maryland; and MARLON BARNES, age 39, of New Orleans; were sentenced today for conspiring to distribute one kilogram or more of heroin. REYNOLDS had also pled guilty to one count of conspiring to launder money.
U.S. District Judge Carl J. Barbier sentenced REYNOLDS to a term of imprisonment of 120 months, with 12 months to run consecutive to another federal sentence that REYNOLDS is serving. HUMPRHIES was sentenced to 60 months imprisonment, and BARNES to 140 months imprisonment. Judge Barbier also sentenced each defendant to a 5-year term of supervised release following imprisonment and a special assessment of $100 per count of conviction.
According to court documents, a series of court-authorized wiretaps on the cell phones of New Orleans area heroin dealers led Drug Enforcement Administration agents to identify co-defendant Fredrick Douglas Brooks III as a Houston-based heroin trafficker who was distributing kilogram quantities of heroin in the New Orleans area. Brooks delivered heroin to the New Orleans market by using REYNOLDS and HUMPHRIES as his drug and bulk cash couriers. BARNES was one of the drug dealers who purchased wholesale quantities of heroin from Brooks’ network for distribution in New Orleans.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael B. Redmann is in charge of the prosecution.
Third Man Pleads Guilty to Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Phoenix, Ariz., man pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine after law enforcement officers seized several pounds of methamphetamine from his hotel room in Columbia, Mo.
Todd Michael Zazilenski, 40, of Phoenix, pleaded guilty today before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a June 15, 2015, federal indictment.
Zazilenski pleaded guilty to participating in a conspiracy to distribute methamphetamine in Boone County and elsewhere from April 2015 to May 14, 2015. Co-defendants Ryan Roger Ellingboe, 41, and Shane Alan Callahan, 30, both of Columbia, have pleaded guilty to the same charge.
A deputy with the St. Charles County, Mo., Sheriff’s Department stopped a Cadillac Escalade driven by Ellingboe for a traffic violation on May 14, 2015. Callahan was a passenger in the vehicle. The deputy smelled burnt marijuana upon approaching the vehicle and conducted a search of the vehicle. The deputy found a vacuum-sealed bag that contained approximately one pound of methamphetamine behind the glove box.
Ellingboe and Callahan told law enforcement officers they had traveled from Columbia that morning to meet a customer in St. Charles, Mo., who wanted to purchase the methamphetamine. Callahan stated that he was brokering the methamphetamine transaction between Ellingboe and another individual. Ellingboe explained to Callahan that he had access to a pound of methamphetamine and asked Callahan if he knew of a customer. Callahan located a customer in St. Charles who wanted to purchase one pound of methamphetamine. When Ellingboe picked up Callahan in Columbia that morning, he was already in possession of the one pound of methamphetamine. Ellingboe and Callahan then began driving to St. Charles to complete the transaction.
Zazilenski admitted that he provided the methamphetamine to Ellingboe to sell in St. Charles. Ellingboe was supposed to pay Zazilenski $8,000 for the methamphetamine. Law enforcement officers searched Zazilenski’s room at the Howard Johnson Inn in Columbia and found three bags, each containing approximately one pound of methamphetamine, for a total weight of 1.369 kilograms.
Zazilenski also admitted that he provided an additional 1.5 pounds of methamphetamine to Ellingboe during a visit to Columbia on April 17-19, 2015.
Under federal statutes, Zazilenski, Ellingboe and Callahan are each subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10 million. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Larry Miller. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the St. Charles, Mo., Police Department and the St. Charles County, Mo., Sheriff’s Department.
Tax Preparers Charged with Defrauding Clients and IRSRead the Press Release
ATLANTA - Frazier Todd, Jr., Roberta Sheffield, and Cozzie Walker, have been arraigned on federal charges of conspiring to defraud their clients and the IRS by intentionally misrepresenting to the IRS that those clients incurred qualified education-related expenses and were entitled to receive a refundable tax credit.
“One of the ways the federal government encourages people to enroll in and complete their college education is by offering a refundable tax credit for certain expenses students incur, such as for tuition and books,” said U.S. Attorney John Horn. “These defendants allegedly exploited that tax credit by convincing thousands of clients—who were often elderly, disabled, unemployed, and low-income—that the refund was a “stimulus” program they were entitled to receive. The defendants knew that their clients had no qualified education expenses and were not eligible for the refund.”
“IRS Special Agents work year round to investigate and root out dishonest return preparers,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “These defendants clearly took advantage of the people in their community as well as other unsuspecting Americans. The indictment of these individuals helps reassure our communities that return preparers who lack integrity and engage in illegal activities will be held accountable for their actions.”
According to U.S. Attorney Horn, the indictment, and other information presented in court: Walker, Sheffield, and Todd, Jr. were principals of Diverse Resources Business and Tax Firm, a Union City tax preparer business, and People Helping the Community, Inc., a fraudulent non-profit organization. Acting through these entities, the defendants operated a scheme to exploit the American Opportunity Tax Credit (“AOTC”), a refundable tax credit for qualified postsecondary education expenses such as tuition and related costs. Students for whom the AOTC is claimed must be enrolled at least part-time in a degree- or certificate-seeking program at an eligible institution, and they must incur actual education-related expenses. Students can qualify for up to a $1,000 refund, even if they are not otherwise required to file taxes.
The defendants marketed the AOTC as a “stimulus” available to almost anyone, regardless of whether that person incurred education expenses or was even enrolled in school. Some clients did not even know the defendants were filing a tax return on their behalf. To make the scheme appear legitimate, the defendants manufactured a phony curriculum of short videos on topics such as healthy eating, exercise for seniors, and street safety, which they sent to clients after already claiming the AOTC. Even if the clients had paid tuition for these so-called “life enrichment courses,”—which they did not—the defendants knew these courses would not qualify their clients for the AOTC.
The defendants filed tax returns claiming the maximum AOTC refund for every client, representing to the IRS that each client had incurred several thousand dollars in qualified education expenses. Many of the tax returns were fraudulent in other ways too, such as claiming bogus income and business losses. The government estimates that the defendants’ conduct generated over $3.5 million in fraudulent refunds, some of which went to the clients and some of which the defendants retained for themselves. The majority of the defendants’ clients lived in the Atlanta, Georgia and Charlotte, North Carolina areas.
Frazier Todd, Jr., 57, Roberta Sheffield, 42, and Cozzie Walker, 41, all of Atlanta, Ga., are charged with conspiracy to commit wire and mail fraud and fourteen counts of aiding and abetting each other in presenting false and fraudulent claims for payment to the federal government. They were arraigned today before United States Magistrate Judge Russell G. Vineyard, after they were indicted by a federal grand jury on November 9, 2015.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
Anyone who has information concerning the allegations described in the indictment is encouraged to contact IRS-Criminal Investigation at 404-338-7519.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Lynsey M. Barron is 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 U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tax Preparer Who Filed False Tax Returns for Veterans Pleads GuiltyRead the Press Release
Assistant U.S. Attorney Joseph J.M. Orabona (619) 546-7951
NEWS RELEASE SUMMARY – November 12, 2015
SAN DIEGO – On the day after Veteran’s Day 2015, former U.S. Navy sailor Leonard Damon Washington pleaded guilty to tax evasion and filing false tax returns for a scam that resulted in more than $1 million in inflated tax refunds for fellow Navy service members, and over $140,000 in fraudulent tax preparation fees for Washington. Washington entered his guilty plea before U.S. Magistrate Judge Barbara L. Major, and remains in custody pending a sentencing hearing on February 5, 2016.
According to admissions in court and in his plea agreement, Washington was an active-duty sailor aboard the USS Higgins in San Diego in 2010 when he marketed himself to more than 140 Navy service members as someone who could assist in preparing and filing income tax returns. Washington convinced his fellow Navy service members to hire him as their tax preparer, and to pay him the exorbitant fee of $1,000 per return, by using a variety of false and misleading representations, including that he could obtain “special military tax” deductions and other special tax preparation services because of their military status.
Washington then prepared and filed false income tax returns on behalf of clients, including returns that claimed falsified gambling winnings and phantom tax withholdings, and thereby generated fraudulent tax refunds for his clients. Although he received over $140,000 in preparation fees from clients, Washington concealed his role as their paid tax preparer from the Internal Revenue Service (IRS). Washington directed his fraudulently-acquired fees into various bank accounts (including nominee accounts) in order to frustrate and impede the IRS’s efforts at determining his true income. Ultimately, Washington spent a substantial portion of his fraud proceeds on hotels, flights, restaurants, luxury items, jewelry and other personal expenses, and evaded more than $49,000 in personal federal income taxes he owed for 2010.
“This service member used his position in the U.S. Navy to recruit clients and cheat the system,” said U.S. Attorney Laura Duffy. “On the day after Veteran’s Day, when we are reminded of the amazing character and sacrifice of our best and brightest, this defendant stands in sharp contrast.” She reminded the public to always review a copy of any tax return prepared and filed on their behalf.
“Leonard Washington perpetrated a scheme that systematically defrauded the government, his fellow service members, and the taxpaying public,” said IRS Criminal Investigation’s Special Agent in Charge Erik Martinez. “IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves by preparing false income tax returns.”
DEFENDANT Criminal Case No. 15CR0951-JM
Leonard D. Washington Age: 43 Springdale, Arkansas
SUMMARY OF CHARGES AGAINST DEFENDANT:
Count 1: Title 26, United States Code, Section 7201 B Tax Evasion. Maximum penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, 3 years of supervised release
Count 2: Title 26, United States Code, Section 7206(2) – Aiding and Assisting Preparation of False Tax Returns. Maximum penalties per count: 3 years’ imprisonment, $100,000 fine, $100 special assessment, 1 year of supervised release
INVESTIGATING AGENCIES
Internal Revenue Service-Criminal Investigation
Suspended APS Kindergarten Teacher Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Joshua Weitz, 39, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with distribution, receipt and possession of visual depictions of minors engaged in sexually explicit conduct. Weitz remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for November 13, 2015.
Weitz was arrested last night on the criminal complaint which alleges that he distributed, received and possessed child pornography between Oct. 11, 2015 and Oct. 22, 2015, in Bernalillo County, N.M. At the time, Weitz allegedly committed these offenses he was employed as a kindergarten teacher by the Albuquerque Pubic Schools (APS). APS suspended Weitz’s employment following his arrest earlier this month on related state charges.
According to the criminal complaint, the investigation into Weitz began on Oct. 11, 2015, when an agent of the New Mexico Internet Crimes Against Children (ICAC) Task Force identified a computer with a specific IP address that was being used to share child pornography files. The criminal complaint alleges that between Oc. 11, 2015 and 22, 2015, the investigators were able to download a number of child pornography files from the computer at the IP address.
The criminal complaint alleges that further investigation revealed that the aforementioned IP address was subscribed to Weitz. On Nov. 4, 2015, a state court search warrant was executed at Weitz’ residence, and ICAC Task Force agents found Weitz allegedly in possession of a computer containing 40 files of child pornography. Weitz was arrested that day on related state charges which currently remain pending.
If convicted of the federal distribution or receipt of child pornography charges, Weitz faces a mandatory minimum of five years and a maximum of 20 years in prison. If convicted of the federal possession of child pornography, he faces a maximum of 20 years in prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the New Mexico ICAC Task Force, the Bernalillo County Sheriff’s Office, the Albuquerque office of the FBI and the New Mexico Regional Computer Forensics Laboratory with assistance from the New Mexico Office of the Attorney General. Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 80 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the New Mexico Office of the Attorney General. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
St. Croix Man Sentenced to 18 Months for Possession of Prison ContrabandRead the Press Release
St. Croix, USVI – District Court Chief Judge Wilma A. Lewis on November 10, 2015 sentenced Andelson Santiago, 24, of St. Croix, to 18 months’ imprisonment, three years of supervised release, and a $500 fine for possession of prison contraband, United States Attorney Ronald W. Sharpe announced.
On May 27, 2015, Santiago pleaded guilty to one count of Possession of Prison Contraband. As part of his plea, Santiago admitted that he was carrying a knife on December 25, 2013 while he was an inmate at the Golden Grove Adult Correctional Facility on St. Croix.
This case was investigated by the U.S. Drug Enforcement Administration and the Virgin Islands Bureau of Corrections. It was prosecuted by Assistant U.S. Attorney Rami S. Badawy.
St. Croix Man Arraigned on Charges of Murder for HireRead the Press Release
St. Croix, USVI – Delroy A. Thomas, 25, was arraigned today in District Court on St. Croix after being charged in a three-count information with use of interstate commerce facilities in the commission of murder for hire and related offenses, United States Attorney Ronald W. Sharpe announced. Thomas was detained pending trial.
The information is the result of months of investigative work by the U.S. Drug Enforcement Administration (DEA), Virgin Islands Police Department (VIPD), Federal Bureau of Investigation (FBI), Alcohol, Tobacco and Firearms (ATF), and the Department of Homeland Security Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI). The joint investigation was initiated based on information that an inmate at Golden Grove Adult Correctional Facility on St. Croix was planning to murder two witnesses in his upcoming case in the Virgin Islands Superior Court.
The information charges Thomas with use of interstate commerce facility in commission of murder for hire, attempted murder, and attempted retaliation against a witness.
If convicted on count one, Thomas faces a maximum sentence of 10 years in prison and a $250,000 fine. On count two, he faces a maximum sentence of 25 years in prison, and on count three, he faces a maximum sentence of 10 years in prison and a $2,000 fine.
United States Attorney Sharpe reminds the public that an information is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Springfield Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Jarod “Bull” Michel, 33, of Springfield, was sentenced by U.S. District Judge Stephen R. Bough to six years in federal prison without parole. The court also ordered Michel to pay a $5,000 fine and forfeit to the government a laptop computer that was used to commit the offense.
On June 5, 2015, Michel pleaded guilty to receiving and distributing child pornography over the Internet between July 18, 2013, and May 20, 2014.
According to court documents, Michel’s computer was identified by two separate law enforcement agencies conducting independent undercover investigations concerning the distribution of child pornography using peer-to-peer file-sharing software. Investigators downloaded several videos of child pornography that were being shared over the Internet by Michel’s computer. Law enforcement officers executed a search warrant at Michel’s residence and seized his laptop computer, which contained 21 videos of child pornography that depicted children as young as two years of age engaged in a variety of sexual acts with adults.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Springfield Man Pleads Guilty to Child Pornography ChargeRead the Press Release
BOSTON – Daniel Lorenz, 45, pleaded guilty today to one count of possession of material involving the sexual exploitation of minors. U.S. District Judge William G. Young scheduled sentencing for Feb. 9, 2016.
On March 13, 2014, federal agents executed a search warrant at Lorenz’s Springfield residence. At that time, Lorenz waived his Miranda rights and told agents that he possessed on his computer a large quantity of child pornography, including both image and video files, and that most of the files depicted girls between the ages of eight and fourteen. Lorenz admitted that he had collected child pornography for at least three or four years and he distributed or received child pornography approximately three times per week using e-mail accounts. Lorenz created and utilized multiple social media accounts, including various Facebook and Google+ profiles in the name and image of a minor female, in order to make contact with minor females for the purposes of obtaining child pornography and to engage in sexually explicit conversations with girls, which he found “sexually and emotionally exciting.”
Pursuant to the search warrant, agents seized Lorenz’s personal computer and located approximately 800 video files of child pornography, including many files depicting the rape, bondage, and sexual torture of girls as young as three years old.
The charging statute provides a sentence of no greater than 20 years in prison, five years of supervised release, a fine of $250,000. According to the plea agreement, Lorenz has agreed to serve between 48 and 121 months in prison and ten years of supervised release. However, the agreement is subject to review and approval by the Court. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was also provided by the Springfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.
Seymour Resident Pleads Guilty to Producing Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On Nov. 12, 2015, Naomi Jean Justice, 23, of Seymour, Tenn., pleaded guilty in U.S. District Court for the Eastern District of Tennessee, Knoxville, to using a pre-pubescent minor to produce child pornography. Sentencing has been set for 1:00 p.m., Mar. 31, 2016.
Justice faces a minimum of 15 years in prison and a maximum of up to 30 years prison, as well as supervised release following incarceration, restitution, and fines. She will also be required to register as a sex offender in any state in which she resides, works, or attends school.
In the plea agreement on file with the U.S. District Court Clerk, Justice admitted that in July 2014 she used a pre-pubescent minor to engage in sexually explicit conduct for the purpose of producing a picture of the conduct with her cellular telephone. She then sent the picture to someone in North Carolina.
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Seymour Resident Pleads Guilty to Producing Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On Nov. 12, 2015, Naomi Jean Justice, 23, of Seymour, Tenn., pleaded guilty in U.S. District Court for the Eastern District of Tennessee, Knoxville, to using a pre-pubescent minor to produce child pornography. Sentencing has been set for 1:00 p.m., Mar. 31, 2016.
Justice faces a minimum of 15 years in prison and a maximum of up to 30 years prison, as well as supervised release following incarceration, restitution, and fines. She will also be required to register as a sex offender in any state in which she resides, works, or attends school.
In the plea agreement on file with the U.S. District Court Clerk, Justice admitted that in July 2014 she used a pre-pubescent minor to engage in sexually explicit conduct for the purpose of producing a picture of the conduct with her cellular telephone. She then sent the picture to someone in North Carolina.
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Sentencings for November 10 - November 12, 2015Read the Press Release
Antonio Moncada, Jr., 44, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 12, 2015, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and for possession of a firearm in furtherance of a drug trafficking crime. Moncada, Jr., was arrested in Casper, Wyoming. He received 240 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $1,000.00 fine and a $200.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. 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.
John Goodman, 21, of Ethete, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 10, 2015, for assault with a dangerous weapon with intent to cause bodily harm. Goodman was arrested in Riverton, Wyoming. He received 45 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. Restitution in this case will be determined at a later time. This case was investigated by the Federal Bureau of Investigation.
Victor Vidal Rodriguez-Erazo, 38, of Honduras, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 10, 2015, for illegal re-entry of a previously deported alien into the United States. Rodriguez-Erazo was arrested in Rock Springs, Wyoming. He received 57 months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Second Seminole Man Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that SHAWN ASHLEY DEATHERAGE, a/k/a Shawn Ashley Thomas, age 39, of Seminole, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than life imprisonment, up to a $10,000,000.00 fine or both.
The Indictment alleged that beginning in or about April 2015, the exact date being unknown to the Grand Jury, and continuing until on or about September 2015, within the Eastern District of Oklahoma and elsewhere, the defendant did knowingly and intentionally combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to commit offenses against the United States, to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the McAlester Police Department, District 18 District Attorney’s Drug Task Force, Seminole Nation Lighthorse Police, Oklahoma Highway Patrol, Seminole County Sheriff’s Office, Seminole Police Department, Oklahoma Bureau of Narcotics, United States Marshal Service and the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Ride or Die Gang Members Sentenced on Firearm and Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERVIN SPOONER, a/k/a “Nerky,” age 27; TRE CLEMENTS, age 24; and ROMALIS PARKER, a/k/a “Ro Ro,” age 22, all residents of New Orleans, were sentenced today after having previously pled guilty to federal firearm and drug violations. U.S. District Judge Susie Morgan sentenced SPOONER to 108 months of incarceration, to be followed by 4 years of supervised release. CLEMENTS was 96 sentenced to months of incarceration, to be followed by 4 years of supervised release. PARKER was sentenced to 70 months of incarceration, to be followed by 4 years of supervised release.
SPOONER, CLEMENTS, and PARKER were three of twelve defendants charged with conspiring to distribute cocaine base in the St. Roch neighborhood. In addition, all twelve defendants were charged with conspiring to possess firearms in furtherance of their drug trafficking crimes. Three defendants were also charged with conspiring to violate the Racketeer Influenced Corrupt Organization Act, as well as substantive acts of violence.
To date, eight defendants charged in this case have pled guilty to various charges. Co-defendant ANDREALIE LEWIS was previously sentenced to 48 months incarceration. The following co-defendants are currently pending several sentencing hearings over the next three months: NYSON JONES, a/k/a “Nycie,” age 31, MORRIS SUMMERS, age 25, TYONE BURTON, a/k/a “Peanut,” age 22, TYRONE BURTON, a/k/a “Man Man,” age 21; and PERRY WILSON, a/k/a “Yummy,” age 24. The following defendants were convicted following trial and are pending sentencing as well: DELOYD JONES, a/k/a “Puggy,” age 23; BYRON JONES, a/k/a/ “Big Baby,” age 25; and SIDNEY PATTERSON, a/k/a “Duda Man,” age 24.
According to court documents and evidence presented at trial, the defendants were members and associates of the “Ride or Die” gang, which they also referred to as “R.O.D.” The Ride or Die gang was initially formed in or about 2007 and continued to exist through in or about 2013. During the course of the federal investigation into the gang, agents learned that the defendants used a house, located at 1632 Mandeville Street, among other locations, as a base of operations to package, sell, and store narcotics, as well as store firearms.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the metro area’s Multi-Agency Gang Unit (MAG) in investigating this matter. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Assistant United States Attorneys Nolan D. Paige, Marquest Meeks and Special Assistant United States Attorney Brian Ebarb are in charge of the prosecution.
Richmond Man Sentenced to 15 Years in Prison for Home Invasion and Convenience Store RobberiesRead the Press Release
RICHMOND, Va. – Spencer Harris, 31, of Richmond, was sentenced today to 188 months in prison for two counts of interference with commerce by robbery. Harris was ordered by the court to pay $2,600 in restitution to the victims of the crimes.
Harris pleaded guilty on July 2, 2015. According to court documents, Harris committed two separate robberies over the span of ten days. During the first robbery committed on Nov. 13, 2014, Harris and an accomplice entered the home of a handicapped victim, assaulted him, and stole multiple items, to include $2000, prescription medication, and an antique firearm. Harris and the accomplice targeted the victim because they had prior knowledge he kept controlled substances and illegal drug proceeds at his residence. Before leaving the robbery scene, another victim arrived at the residence and was also assaulted by Harris and his accomplice. This second victim had an additional amount of cash and his car keys taken from his person. Harris and his accomplice fled in the second victim’s vehicle.
On Nov. 23, 2014, Harris and his accomplice committed an armed robbery at the Woods Edge Road Exxon. Upon being dropped off by his accomplice, Harris entered the store armed with an antique firearm and demanded money. After a brief struggle over the weapon, Harris obtained approximately $300 and fled the scene. In leaving the scene, Harris and his accomplice engaged in a high-speed pursuit with police. The robbers were apprehended several weeks later.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Erik S. Siebert is prosecuting the case. The Richmond Police Department and Chesterfield County Police Department assisted in the investigation of this 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. 3:15-cr-84.
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Prison Gang Member Sentenced to over 17 Years in PrisonRead the Press Release
HONOLULU – Florence T. Nakakuni, United States Attorney for Hawaii, announced that Defendant Tineimalo Adkins was sentenced by U.S. District Judge Leslie E. Kobayashi to 210 months (17 ½ years) imprisonment on November 10. On October 10, 2014, following a multiple-week trial, a jury found Adkins guilty of the crime of Violent Crimes in Aid of Racketeering Activity (VICAR).
According to information produced in court, on February 17, 2013, Adkins, along with other USO Family prison gang inmates, beat and assaulted another inmate, resulting in the victim suffering traumatic brain injury and multiple facial fractures and lacerations,. At the time, Adkins was the "shot caller," for the USO Family prison gang which ordered the attack on the inmate at the Halawa Correctional Facility in order to further their power and influence within the facility.
The trial involved extensive testimony about the USO Family’s use of violence and witness intimidation to maintain their status as the most powerful prison gang within the state prison system.
In rendering the sentence, Judge Kobayashi told Adkins that the assault was "shockingly brutal," and that "it was [his] personal status and position in the USO family that allowed [him] to design and lead this assault."
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the State of Hawaii Department of Public Safety, and the Honolulu Police Department. Assistant U.S. Attorneys Jill Otake and Thomas J. Brady prosecuted this case.
Owner of Toms River, New Jersey, Accounting Business Admits Swindling Clients Out of Tax Refunds, Filing False Tax ReturnsRead the Press Release
CAMDEN, N.J. - A Toms River, New Jersey, woman today admitted filing false tax returns and using her accounting business to cheat her clients out of their tax refunds, U.S. Attorney Paul J. Fishman announced.
Doreen Gentile, 61, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count 2 and Count 27 of an indictment, charging her with mail fraud and filing a false income tax return.
According to documents filed in this case and statements made in court:
Gentile owned and operated her accounting business, Doreen A. Gentile & Associates, LLC (“DAG & Associates”), out of her home in Toms River. Gentile admitted that as part of her scheme, she would show her clients a tax return that indicated that they had no tax or refund due, owed a minimal amount of tax, or were due a refund that was far less than the amount to which they were entitled. Gentile then prepared a second set of tax returns, signed without her clients’ permission, that she submitted to the IRS or the State of New Jersey for the full tax refund.
Based on the second set of returns, the IRS or the State of New Jersey issued tax refund checks care of DAG & Associates and mailed them to the DAG & Associates post office box in Toms River. Gentile then deposited the tax refund checks into the DAG & Associates bank account without her clients’ permission. Afterwards, Gentile used the funds to pay for personal expenses.
Gentile also admitted that from 2006 through 2009, she failed to report to the IRS all of her income generated from DAG & Associates, including funds she stole as part of her refund scheme, resulting in tax losses of approximately $188,811.
The mail fraud count to which Gentile pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of filing a false income tax return carries a maximum potential penalty of three years in prison and a $100,000 fine. As part of her plea agreement, Gentile must also forfeit $905,004 representing proceeds of her scheme. Sentencing is scheduled for Feb. 22, 2016.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan Larsen, and special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, the for investigation leading to today’s plea.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel: Christopher O’Malley Esq., Camden
Oregon Man Sentenced to over 14 Years in Prison for Use of a Firearm While Trafficking MethamphetamineRead the Press Release
Fayetteville, Arkansas – Kenneth Elser, Acting United States Attorney for the Western District of Arkansas, announced that Timothy Colhour, age 24, of Otis, Oregon, was sentenced today to 170 months in federal prison followed by three years of supervised release and ordered to pay a $4,800.00 fine on one count of Distribution of Methamphetamine and one count of the Use of a Firearm During and in Relation to a Drug Trafficking Offense. The Honorable Timothy L. Brooks presided over the sentencing in the United States District Court in Fayetteville.
According to court records, in December, 2014, as part of an ongoing investigation, officers with the Rogers Police Department purchased methamphetamine from the defendant, Timothy Colhour. During one arranged transaction with Colhour, officers made their presence known to the defendant and placed him under arrest. At that time Colhour admitted to the officers that he had a gun in his waistband. Officers then located a loaded Beretta 9 mm in Colhour’s waistband and a bag in his front shirt pocket that contained approximately one ounce of methamphetamine. The suspected methamphetamine was properly stored and sent to the Arkansas State Crime Lab for analysis where it tested to be approximately 26 grams of pure methamphetamine hydrochloride.
This case was investigated by the Rogers Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA). Assistant United States Attorney Kimberly Davis prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Orchard Park Man Sentenced for Health Care FraudRead 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 Gary Wannemacher, 50, of Orchard Park, NY, who was convicted of health care fraud, was sentenced to three years probation and 100 hours community by U.S. District Court Judge Elizabeth A. Wolford. In addition, the defendant was ordered to pay $57,373.86 in restitution to Independent Health and BlueCross BlueShield of Western New York.“Fraud such as this hurts policy holders and indeed all taxpayers who in the long run who must absorb increased costs to account for such crime,” said U.S. Attorney Hochul. “Our Office will continue to work hand in hand with our law enforcement to vigorously investigate and prosecute such crimes.”
Assistant U.S. Attorney Elizabeth R. Moellering, who handled the case, stated the defendant is the owner of Spring Creek Athletic Club in Springville, NY. Between January 2009 and December 31, 2012, Wannemacher submitted fraudulent claims to private health insurance companies for reimbursement of health programs offered at the athletic club that were not actually attended by the beneficiaries listed in the claims.
For instance, as part of the Silver Sneakers program, members of certain insurance companies could attend programs at the athletic club for no charge. When members attended, the athletic club was allowed to submit a claim for reimbursement to the insurance companies. The defendant submitted claims for reimbursement for programs not actually attended by members including claims for individuals who were out of town on the date of the claim form or who had recently had major surgery and did not attend the gym following the surgery. Wannemacher also submitted claims for reimbursement for programs supposedly attended by two individuals after the dates of their deaths.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation’s Western New York Health Care Fraud Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The task force includes the New York State Attorney General’s Office–Medicaid Fraud Control Unit, New York State Department of Financial Services, U.S. Department of Health and Human Services–Office of Inspector General–Office of Investigations, U.S. Department of Labor-Office of Inspector General, U.S. Department of Veterans Affairs, and U.S. Food and Drug Administration.
Orange County Attorney Pleads Guilty to Wire Fraud and Tax Evasion Charges in $8 Million Scheme Related to Investments by ClientsRead the Press Release
LOS ANGELES – An attorney who prosecutors believe took at least $8 million in investment capital from clients and used the funds for personal expenses and luxury items pleaded guilty this morning to wire fraud and tax evasion charges.
Stephen Young Kang, 46, of Newport Beach, pleaded guilty before United States District Judge George Wu to two counts of wire fraud and one count of tax evasion.
According to a plea agreement filed last week in United States District Court,
Kang “admits that beginning as early as October 2012, and continuing through in or about at least September 2015, in Los Angeles and Orange Counties, and elsewhere, defendant knowingly and with intent to defraud, devised, participated in, and executed a scheme to defraud clients to whom defendant had agreed to provide legal or investment services.”
Kang admitted in court today that he defrauded a food distribution company, Ottogi America, Inc., that hired the attorney to help the company purchase properties near its distribution center in Gardena. Ottogi wire transferred funds to a trust account in Houston, Texas, to be used for the purchase of the properties. But Kang admitted that he did not use the money to invest in properties. Rather, Kang admitted that he caused the funds to be transferred to other accounts that he controlled. Prosecutors believe that Kang then used a substantial portion of Ottogi’s money to pay for personal expenses and business ventures, as well as to make partial payment to other victims.
Kang also admitted that he defrauded a Texas victim out of $500,000 in 2013 by falsely representing that he would invest the $500,000 in a company called Pegasus Capital Ltd., LLC. When the victim demanded repayment, Kang agreed in September 2015 – which was after he was initially indicted in this fraud case – to provide the victim with a “first priority security interest” in a term life insurance policy. Kang, however, failed to disclose to the victim that the life insurance was worth only $250,000, that Kang’s wife was the sole beneficiary of the policy, and that the policy was first applied for and approved on August 28, 2015. Prosecutors believe that Kang offered, and in some cases provided, the same life insurance policy to other victims.
“Attorneys owe their clients a special duty of loyalty and trust that is fundamental to our legal system,” said United States Attorney Eileen M. Decker. “The Department of Justice will defend this principle by holding responsible those who violate this duty of loyalty for their own personal gain.”
David L. Bowdich, the Assistant Director in Charge of the FBI's Los Angeles Field Office, stated: “Unfortunately, Mr. Kang put his personal financial interest above those of his clients who entrusted him to act on their behalf. By virtue of his profession and the trust afforded to him, his actions are all the more egregious.”
In relation to the tax evasion count, Kang admitted that he received at least $1,516,000 in income in 2013, but willfully attempted to evade the assessment of income tax by failing to file a federal income tax return for calendar year 2013 and using corporate accounts to conceal the income he received.
“Professionals, including attorneys, who create elaborate schemes that have no purpose other than to mislead others and defraud the IRS run the very high risk of prosecution,” said Special Agent in Charge Erick Martinez of IRS Criminal Investigation. “These individuals face severe consequences including imprisonment and substantial fines.”
As a result of today’s guilty pleas, Kang faces a statutory maximum sentence of 45 years in federal prison when he is sentenced by Judge Wu on February 11, 2016.
The case against Kang is the product of an ongoing investigation by the Federal Bureau of Investigation and IRS Criminal Investigation.
Based on the evidence in this case, investigators believe Kang may have victimized others in locations where he practiced law or resided, including California, Texas, and Seoul, Korea. Anyone who believes they may have been victimized by Kang should contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Ohio Man Arrested for Soliciting the Murder of Members of the U.S. MilitaryRead the Press Release
An Akron, Ohio, man was arrested today on federal charges that he solicited the murder of members of the U.S. military.
Terrence J. McNeil, 25, appeared in U.S. District Court in the Northern District of Ohio after being charged with one count of solicitation of a crime of violence.
The charge was announced by Assistant Attorney General John P. Carlin, U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
“According to the allegations in the complaint, Terrence McNeil solicited the murder of members of our military by disseminating ISIL’s violent rhetoric, circulating detailed U.S. military personnel information, and explicitly calling for the killing of American service members in their homes and communities,” said Assistant Attorney General Carlin. “ISIL and its followers continue to use social media in an attempt to incite violence around the world, including in the United States. The National Security Division's highest priority is counterterrorism and we will use all of our tools to disrupt threats and acts of violence against our military members and their families.”
“As this nation honors our veterans, we must make clear that we will not tolerate threats of violence against our service members,” said U.S. Attorney Dettelbach. “This defendant is charged with urging harm to our men and women in uniform and will now answer for those threats.”
“While we aggressively defend First Amendment rights, the individual arrested went far beyond free speech by reposting names and addresses of 100 U.S. service members, all with the intent to have them killed,” said Special Agent in Charge Anthony. “We will remain vigilant in our efforts to stop those who wish to support these despicable acts.”
According to an affidavit filed in the case:
McNeil professed his support on social media on numerous occasions for the Islamic State of Iraq and Levant (ISIL), a designated foreign terrorist organization.
On or about Sept. 24, 2015, using a Tumblr account, McNeil reblogged a file with the banner “Islamic State Hacking Division,” followed by “Target: United States Military” and “Leak: Addresses of 100 U.S. Military Personnel.”
The file type is a .gif file, which allows multiple still images to be looped in one file, with a timed delay between each image. The text of the first file reads “O Brothers in America, know that the jihad against the crusaders is not limited to the lands of the Khilafah, it is a world-wide jihad and their war is not just a war against the Islamic State, it is a war against Islam…Know that it is wajib (translated to “necessary”) for you to kill these kuffar! and now we have made it easy for you by giving you addresses, all you need to do is take the final step, so what are you waiting for? Kill them in their own lands, behead them in their own homes, stab them to death as they walk their streets thinking that they are safe…”
The file then loops several dozen photographs, purportedly of U.S. military personnel, along with their respective name, address and military branch.
The final image looped is a picture of a handgun and a knife with text that reads “…and kill them wherever you find them…”
A charge is not evidence of guilt. It is the government’s burden to prove the case beyond a reasonable doubt, and a defendant is presumed innocent until that time.
The case is being investigated by the FBI’s Joint Terrorism Task Force in Cleveland. This case is being prosecuted by U.S. Attorney’s Office of the Northern District of Ohio and the National Security Division’s Counterterrorism Section.
McNeil Complaint
Northern District of Indiana Grand Jury Returns Superseding IndictmentRead the Press Release
HAMMOND- United States Attorney David Capp announced today that a federal grand jury returned a superseding indictment charging Robert Battle, age 42, of East Chicago, Indiana with knowingly and intentionally killing Reimundo Camarillo, Jr. on October 12, 2015, while engaged in a narcotics conspiracy.
The indictment alleges that beginning in approximately 2006 and continuing to October 12, 2015, Battle, along with unnamed others, conspired to distribute more than 5 kilograms of cocaine. The indictment alleges Battle used a firearm to kill Reimundo Camarillo, Jr., during and in relation to the conspiracy. The indictment also alleges Battle possessed with intent to distribute cocaine and marijuana. Battle had previously been indicted on October 22, 2015 for the marijuana offense after he was stopped on I-94 in Porter County. Approximately 73 grams of marijuana and $100,700 in U.S. currency were seized during that stop. Today’s indictment adds the cocaine and murder charges, and seeks forfeiture of that currency.
U.S. Attorney Capp advised that the decision to charge the case federally was a joint decision between the U.S. Attorney’s Office and the Lake County Prosecutor’s Office. A key factor in the indictment decision was that the alleged events in the drug conspiracy span multiple jurisdictions and cross state lines.
Since the alleged murder of Camarillo is now included in this federal indictment the Lake County Prosecutor’s Office will dismiss a pending murder charge against Battle in Lake County arising out of the same events.
U.S. Attorney Capp stated, “We work regularly with Bernie Carter and his office and make joint decisions on which jurisdiction is best able to handle a particular case. Often we defer to our State colleagues, and they in turn will defer to us on certain prosecutions. We greatly appreciate this cooperative relationship. It enables both offices to most effectively utilize their resources to protect the public.”
Lake County Prosecutor Bernard Carter stated, “I appreciate the continuous working relationship between my office and the U.S. Attorney’s Office. Because of the cooperation between our offices we are able to jointly make charging decisions that best protect and benefit our community.”
Battle will soon be taken into federal custody and will have his initial appearance before a United States Magistrate Judge next week.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; East Chicago Police Department; and Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys David J. Nozick and Thomas M. McGrath.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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North Dakota Woman Acquitted of IncestRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Yates, North Dakota, woman was acquitted of Incest as a result of a federal jury trial in Aberdeen, South Dakota, on November 4, 2015.
Linda McLaughlin, age 40, was indicted by a federal grand jury on July 14, 2015.
The charge stemmed from an alleged incident which occurred in June of 2015, when McLaughlin allegedly had a sexual relationship with her father.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency and the U.S. Attorney's Office prosecuted the case.
North Dakota Man Pleads Guilty to $2 Million Government Contract SchemeRead the Press Release
ALEXANDRIA, Va. – Jonathan Apple, 35, of Williston, North Dakota, pleaded guilty today to one count of conspiracy to commit wire fraud for his role in the receipt of $2 million in micro-dairy contracts from the U.S. government for use in Iraq.
According to the statement of facts filed along with the plea agreement, K.A, a U.S. government employee, helped to steer the sole-sourcing of $2 million in micro-dairy contracts to a company in which his son, Jonathan Apple, owned a 50 percent interest. However, Jonathan Apple and his partner had no technical experience in the industry. Jonathan Apple, his partner, and K.A. conspired to use K.A.’s official position to obtain non-public information in order to fraudulently win and administer government contracts. The conspirators further provided false information to, and concealed material details from, the U.S. government.
According to court records, K.A. provided templates and technical specifications used in the proposal submitted by Jonathan Apple and his partner to the U.S. government. In addition, Jonathan Apple caused false and misleading statements to be made to the U.S. government regarding his experience, ownership interest, and the status of the projects. Jonathan Apple received approximately $230,000 of profit from the fraudulently awarded contracts. When federal law enforcement agents confronted Apple about the scheme, he made false statements about his role, including that his father had no involvement in government contracting.
Apple faces a maximum penalty of five years in prison when he is 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; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Uzo Asonye and Katherine Wong 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. 1:15-cr-313.
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New York Man Sentenced to 10 Years in Prison for Enticing A Minor to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 120 months in prison for soliciting a girl to produce sexually explicit images and using Craigslist to advertise sexual encounters with the girl, U.S. Attorney Paul J. Fishman announced.
Gabriel Toro, 31, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Toro admitted that between December 2011 and August 2014, he used the internet to induce a 14-year-old girl to engage in criminal sexual conduct, including taking pictures of her genitals for him. Toro also admitted to distributing images of the girl to another individual and posting advertisements on Craigslist for individuals to have sex with the girl in exchange for money.
In addition to the prison term, Judge Martini sentenced Toro to a lifetime term of supervised release. Toro must register as a sex offender.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: James Friedman Esq., Newark
Nevada Man Sentenced to Two Years in Prison for Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Glenn Litton, 47, resident of Carson City, Nevada, was sentenced today by United States District Judge Morrison C. England Jr. to two years in prison for aggravated identity theft, United States Attorney Benjamin B. Wagner announced.
According to court documents, on November 19, 2014, Litton submitted an application for a U.S. passport to a passport acceptance officer in Sacramento. In the application, Litton used the identity of another individual, including that individual’s name, birthdate, and Social Security number. Litton also presented supporting documentation such as a birth certificate, a debit card, and employment ID card bearing the name of the individual whose identity he had assumed. As a result of the application, Litton was issued a U.S. passport in a false name.
This case was the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Nevada Department of Motor Vehicles. Assistant United States Attorney Shelley D. Weger prosecuted the case.
Monroe County Tobacco Store Owner Charged with Fraud Conspiracy Involving Stolen and Counterfeit Credit CardsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on November 10, 2015 a federal grand jury in Scranton indicted Rehan A. Merchant, a/k/a Ray Merchant, a/k/a Aslam Ahmed, the former owner and operator of the Cigar and Tobacco Outlet in Tannersville, Pennsylvania, charging him with conspiracy to commit wire fraud.
According to United States Attorney Peter Smith, the indictment charges Merchant with allegedly conspiring with unnamed co-conspirators to use counterfeit and stolen credit and debit cards to make fraudulent purchases at the Cigar and Tobacco Outlet. Merchant and his co-conspirators also allegedly forged the names of cardholders on credit and debit card receipts. The activities took places from September 2014 through September 2015.
Merchant was taken into custody last week in Florida after a Criminal Complaint was issued by the U.S. Attorney’s Office in Scranton.
The continuing investigation is being conducted by Homeland Security Investigations and detectives from the Monroe County District Attorney’s Office. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
Indictments 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.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a 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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Monroe County Man Sentenced to 12 Years in Prison for Making False Claims of Owning Billions of Dollars of Oil and Negotiable Bank InstrumentsRead the Press Release
WILKES-BARRE - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Richard J. Harley, age 71, of Shawnee on the Delaware, Pennsylvania was sentenced in Federal District Court in Wilkes-Barre to serve 12 years in prison by United States District Court Judge A. Richard Caputo. Harley was convicted after a two-week jury trial of 23 counts of wire fraud, bank fraud, bankruptcy fraud, and making false statements on bankruptcy schedules on December 15, 2014. Harley was ordered to pay restitution in the amount of $323,800. Harley was ordered to report to the Bureau of Prisons on November 23, 2015 to commence the sentence.
According to United States Attorney Peter Smith, Harley defrauded investors and attempted to defraud the Federal Reserve Bank of New York and several financial institutions by soliciting money based on false claims that his company, RJH and Co. Inc., owned 10 million barrels of oil in Texas worth over $1 billion and had “unrestricted bond power” over $5 trillion in federal reserve bank instruments supposedly held at the Federal Reserve Bank of New York. As a result of the fraud, investors lost approximately $323,800.
The bank fraud charge relates to Harley’s attempt to deposit two phony $500 million checks purportedly issued by the Federal Reserve Bank of New York into several financial institutions. Harley also filed three fraudulent bankruptcy petitions in 2010, 2011 and 2012 where he attempted to discharge the debt he owed to one of the primary victims of the oil scheme.
Harley was previously convicted of mail and wire fraud and sentenced to five years’ imprisonment in 2001 for a scheme that defrauded AIDS patients and investors relating to a fraudulent ozone-enema treatment he claimed cured AIDS. The jury verdict in the latest case relates to activities that occurred immediately after Harley was released from federal prison.
The case was investigated by the Federal Bureau of Investigations and was prosecuted by Assistant United States Attorney Bruce Brandler, Chief of the Criminal Division.
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