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Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 23 September 2015
Former HARC Employee Charged with Making False Statements to the Social Security AdministrationRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the filing of an information and plea agreement charging Sandra K. Shepherd (53, Tampa) with making a false statement to the Social Security Administration. If convicted, she faces a maximum penalty of 5 years in federal prison and a fine of $250,000. In her plea agreement, Shepherd has also agreed to make full restitution to the Social Security Administration program (SSA), or its designee.
According to court documents, the Hillsborough Achievement and Resource Centers (HARC), formerly the Hillsborough Association for Retarded Citizens, was established in 1953 to positively impact the future for all people living with developmental disabilities, such as Alzheimer’s disease and Down syndrome. HARC opened and operated group homes that served its target client population. HARC also spearheaded various community programs for its clients focused on inclusion activities for youths, adults, and seniors with disabilities.
Many of the HARC clients received SSA benefits due to various developmental disabilities. For certain HARC clients who lacked the capacity to manage their own SSA benefits, SSA approved one or more HARC officials to act as a “Representative Payee” to receive a particular client’s benefits and to use them exclusively for that client’s benefit. As a Representative Payee, the HARC official was required to complete and submit to the SSA a “Representative Payee Report” that included certain information about each HARC client’s living situation and the financial benefits received and expended on behalf of that client.
Shepherd began volunteering at HARC in 2010, and she was later hired to work as a HARC client finance manager. As a client finance manager, one of Shepherd’s duties was to annually assist the HARC CFO in completing and submitting to the SSA a Representative Payee Report for each developmentally disabled HARC client for whom HARC had acted as a Representative Payee.
In March 2011, Shepherd learned that certain HARC clients’ SSA funds—purportedly allocated solely for the HARC clients’ personal needs and use—had been wrongfully diverted by HARC executives from the clients for other purposes. Shepherd raised the wrongful diversion of the clients’ funds with the CFO, who acknowledged the conduct and quipped that the HARC CEO was “going to look good in orange.” Shepherd also discussed the diversion of the funds with the prior HARC CFO, who likewise acknowledged the wrongfulness of the diversion.
Notwithstanding her knowledge of the wrongful diversion of HARC client funds, Shepherd continued to complete false and fraudulent Representative Payee Reports relating to developmentally disabled HARC clients that stated, in pertinent part, that SSA benefits had been spent solely for particular HARC clients (for such items and services as clothing, education, medical and dental expenses, recreation, or other personal items), when that was not the case. Shepherd then provided the fraudulent payee reports to the HARC CFO for signature and mailed the reports to the SSA.
In June 2013, the U.S. Attorney’s Office filed a Verified Complaint for Forfeiture In Rem in a related case (Case No. 8:13-Cv-1601-T-17TBM), seeking the forfeiture of $87,000 held in a Synovus Bank account. That complaint raised like allegations—that HARC clients’ SSA benefits had been wrongfully diverted from the clients and used by HARC for other purposes—and was supported by facts contained in the sworn affidavit of a special agent with the U.S. Department of Health and Human Services - Office of Inspector General. On September 30, 2013, the district court entered a Default Judgment of Forfeiture in which the court ordered the forfeiture of the $87,000 to the United States.
"I want to thank United States Attorney Lee Bentley and all the government agencies involved in investigating this important case,” said Florida Attorney General Pam Bondi. “After multiple discussions between our offices, we determined the U.S. Attorney’s Office was best situated to handle this case and we are pleased with today’s announcement."
“Social Security payments are a lifeline for many Americans. The Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public trust of vulnerable beneficiaries,” stated Special Agent-in-Charge Margaret Moore-Jackson, SSA-Office of the Inspector General. “I’m grateful that the U.S. Attorney’s Office shares our determination to ensure the integrity of SSA’s programs.”
"Stealing government checks meant to cover the personal expenses of developmentally delayed clients in your care just to enrich yourself is a serious betrayal of trust," said Special Agent in charge Shimon R. Richmond. "Our agency is dedicated to ensuring the integrity of taxpayer-funded programs and the well-being of the often vulnerable beneficiaries of those programs."
An information is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Social Security Administration - Office of the Inspector General, the U.S. Department of Health and Human Services - Office of the Inspector General, and the Florida Department of Law Enforcement, along with the State of Florida’s Department of Financial Services - Office of Fiscal Integrity. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant.
Former Fayette county teacher sentenced to 15 years in Federal prison for receiving child pornographyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Joshua Mark Taylor, 32, of Weirton, West Virginia was sentenced today in federal court in Charleston to 15 years in federal prison to be followed by 20 years of supervised release. Taylor will also be required to register as a sex offender. Taylor pled guilty in June of 2013, admitting that he received child pornography via his cell phone.
According to court documents and proceedings, Taylor was employed by the Fayette County Board of Education as a school teacher at Collins Middle School from approximately March of 2013 to January of 2014. Taylor admitted that in November of 2013, he exchanged a large volume of text messages with a 12-year-old female who was a student at Collins Middle School. Taylor also admitted that from about November to January of 2014, he persuaded the student to take photographs of her genital area and send them to him on his cell phone. Taylor admitted to distributing or attempting to distribute the sexually explicit images through interstate commerce. Finally, Taylor admitted to receiving a sexually explicit image of the student through interstate commerce.
The investigation was initiated by the West Virginia State Police in January of 2014, after the father of the student reported her missing. Taylor picked the minor up at her family home and returned her to her home uninjured after missing for nearly 22 hours. The investigation led to Taylor’s arrest the next day in St. Mary’s, West Virginia. Prior to being arrested, Taylor sent the minor a text message urging her not to cooperate with the investigation or prosecution.
Taylor also pled guilty in Fayette County Circuit Court to the felony offense of sexual abuse by a parent, guardian, custodian or person in position of trust to a child and faces a sentence of not less 10 years and up to 20 years when he is sentenced on Monday, September 28.
United States Attorney Goodwin credited the West Virginia State Police and the other law enforcement agencies that worked so hard on the investigation. “The collaborative efforts of the West Virginia State Police, West Virginia Internet Crimes Against Children Task Force, Fayette County Sheriff’s Department, and the Federal Bureau of Investigation should be commended. Their cooperation brought yet another child predator to justice, and made all of our children safer,” said Goodwin.
Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case was brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Former Carlisle CEO Pleads Guilty in $30 Million Fraud Involving Ten Low-Income Housing DevelopmentsRead the Press Release
Former Carlisle Chief Executive Officer (CEO) pled guilty to participating in a $30 million fraud scheme involving ten low-income housing developments.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Former Carlisle CEO Matthew Greer, 37, of Miami Beach, pled guilty yesterday before United States District Court Judge Ursula Ungaro to two counts of conspiracy to commit theft of government money, in connection with a scheme to steal government funds intended for the construction of low-income housing.
According to court documents, including the factual proffer in support of the defendant’s plea, Matthew Greer and Lloyd Boggio served, at alternating times, as CEO of Carlisle Development Group (CDG), a low-income housing developer in Miami, Florida. CDG applied for federal tax credits and federal grant monies to build low-income housing developments through a program administered by the Florida Housing Finance Corporation (FHFC). To obtain these federal funds, FHFC required developers to submit proposed development costs, including a construction contract signed by the developer and contractor.
The court records further indicate that Greer and others through CDG, conspired to unjustly enrich themselves by submitting fraudulently inflated low-income housing construction contracts to FHFC’s representatives to obtain excess federal tax credits and grant monies to which they were not entitled, and then to use the proceeds for their personal use and benefit. From 2006 to 2012, Greer, and the other conspirators caused the submission of fraudulently inflated construction contracts on at least eight different low-income housing developments, which resulted in the allocation of at least $26 million in excess federal tax credits and grant monies. Similarly, during the course of the scheme, the conspirators made kickback payments for the benefit of Greer and others totaling at least $26 million.
Greer conspired with representatives of Biscayne Housing Group (BHG) to commit theft of government money and property. BHG employed the same contract inflation scheme of submitting fraudulently inflated contracts to FHFC for the receipt of excess federal tax credits and grant monies. CDG and BHG had a joint venture for two developments. In or around May 2010, Greer and his conspirators agreed to share approximately $3.7 million in excess government funds for these two joint venture developments.
Greer is scheduled to be sentenced on November 13, 2015. The United States has seized $9.3 million from Greer, who has agreed to entry of a forfeiture money judgment in the amount of $16,004,137, the balance of which he is expected to pay prior to sentencing. Greer faces a maximum possible sentence of ten years in prison.
Mr. Ferrer thanked the FBI, HUD-OIG, and IRS-CI for their work on this case. The case is being prosecuted by Assistant United States Attorneys Michael R. Sherwin, Michael N. Berger, Evelyn Sheehan and Eloisa Fernandez.
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.
Former CFO of Vermeer (Tennessee) Sentenced to 44 Months in Prison for Equipment Lease SchemeRead the Press Release
Bart A. Witsman, 40, of Murfreesboro, Tennessee, former Chief Financial Officer of Vermeer (Tennessee), Inc., was sentenced on September 21, 2015, by United States District Court Judge Todd J. Campbell, to 44 months in prison, to be followed by a three year term of supervised release, for operating a fraudulent equipment leasing scheme that defrauded financial lending corporations of more than $1.6 million. Witsman was also ordered to pay restitution of more than $1.6 million.
Witsman pleaded guilty on September 8, 2014, to seven counts of wire fraud and five counts of money laundering.
Vermeer (Tennessee) specialized in the leasing, renting, servicing and selling of heavy construction-type machinery, and operated several stores in Tennessee, with the main store located in Murfreesboro. Between November 2007 and March 31, 2009, Witsman devised a scheme to defraud and to obtain money from Citicapital and Central Leasing by causing Vermeer (Tennessee) to purchase equipment from various manufacturers, and sell the equipment for a profit. Witsman then obtained loans from Citicapital or Central Leasing on behalf of Vermeer (Tennessee) in the amount of the original purchase price of the equipment that had already been sold. Witsman then used the equipment as collateral for the loans and deceived Citicapital and Central Leasing into believing that the equipment was still in the custody and control of Vermeer of Tennessee.
The case was investigated by the Federal Bureau of Investigation and the IRS-Criminal Investigation. The United States was represented by Assistant U.S. Attorney Sandra G. Moses.
Fishers investment broker sentenced in fraud caseRead the Press Release
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today the sentencing of a Fishers man who stole millions of dollars from unsuspecting investors, many who lost their life’s savings. John K. Marcum, 51, was sentenced by U. S. District Judge Jane Magnus-Stinson to 66 months in federal prison and remanded to the Bureau of Prisons to begin his sentence immediately.
“The United States Attorney’s Office is cracking down on white collar fraud,” said Minkler. “In order to protect the financial markets of this country, those who lie, cheat, and steal from unsuspecting investors must go to federal prison. Mr. Marcum stole the life’s savings and retirement accounts of his clients to fund a lavish lifestyle. Judge Magnus–Stinson realized this and sent Mr. Marcum directly to federal prison for five and one half years.”
In 2010, Marcum founded the investment firm Guaranty Reserves Trust, LLC (GRT) operating in the Indianapolis area. He promised investors that he would use their money to achieve significant returns by trading securities, stocks and bonds with no fees being charged. Marcum arranged for investors to deposit money into various accounts and self-directed IRA’s which allowed him to control the investors’ money.
From 2010 through 2013 Marcum solicited millions of dollars from 17 investors. Marcum represented himself and GRT to be worth millions of dollars with celebrity clients and traded very conservatively. He promised to earn high rates of return with no risk to the investors’ principle. In reality he failed to invest the money as promised and converted it for personal gain. Marcum comingled the funds to finance a personal line of credit, highly speculative start-up ventures, luxury cars, rent on a Geist-area home, a vacation at a Playboy Club in Los Angeles, California, and other gifts.
At sentencing, one 70 year-old widow told Judge Magnus-Stinson she gave Marcum $600,000 from a lawsuit related to the accidental death of her husband with nothing to show for it. Judge Magnus-Stinson described Marcum’s use of the victim’s money for “vanity business ventures” as typical of the narcissism the court sees in fraud schemes. Six victims testified they will be working for the rest of their lives because Marcum stole their life’s savings.
This was a joint investigation with the Federal Bureau of Investigations and Internal Revenue Service Criminal Investigation.
W. Jay Abbott, FBI Special Agent in Charge stated, “Investment fraud schemes can take many forms, but ultimately lead to the loss of innocent victims’ hard earned money. There is a persistent need to diligently investigate these types of crimes, and the FBI will continue to work closely with our partner agencies to ensure criminal activity is identified, investigated, and disrupted.”
“IRS Criminal Investigation is committed to protecting the American taxpayers by following the money and holding individuals who violate the public trust accountable for their actions,” said IRS Criminal Investigation, Special Agent in Charge Stephen Boyd. Mr. Marcum’s sentencing sends a loud message that defrauding individuals of their hard earned savings will not be tolerated. IRS Criminal Investigation will continue to follow the money and protect the American public.”
According to Winfield D. Ong, Criminal Chief for the United States Attorney’s Office, who prosecuted the case, Marcum must make restitution of $3.9 million to the victims and serve three years of supervised release after his sentence.
Tips for Consumers:
- Be cautious of unsolicited offers to invest.
- Don’t believe everything you’re told. Take time to do your own research on the investment’s potential—and on the person making the offer.
- Be wary of investment opportunities that offer unusually high yields.
- Check with federal and state securities regulators to find out if there are any complaints against the company or person you are considering doing business with.
- Request written financial information—such as a prospectus, annual reports, or financial statements—then compare the written information to what you were told.
- Check with a trusted financial adviser, broker, or attorney about any investments you are considering.
- And if you think you’ve been scammed, report it to the Securities and Exchange Commission, your state’s securities regulator, or a law enforcement agency.
For more information go to www.FBI.gov
Financial Management Consultant Indicted for Allegedly Embezzling $1MRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence today returned an eleven-count indictment charging John M. Hairabet, Jr., 43, a former business associate and office manager of New England Anesthesiologists, Inc., and president of Anesthesia Management Consultants, LLC, with allegedly embezzling more than $1 million dollars in bank account funds belonging to the medical firm and from employee 401(k) pension fund contributions.
The grand jury returned an indictment charging Hairabet with seven counts of wire fraud, two counts of money laundering, and one count each of pension theft and aggravated identity theft.
The indictment is announced by U.S. Attorney Peter F. Neronha, William P. Offord, Special Agent in Charge of IRS Criminal Investigation; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Susan A. Hensley, Regional Director, U.S. Department of Labor Employee Benefits Security Administration.
It is alleged in the indictment that between November 13, 2007, and January 31, 2013, Hairabet, in his capacity as an independent contractor bookkeeper and office manager of New England Anesthesiologists, and through his management consulting firm, Anesthesia Management Consultants, stole the identity of the owner of New England Anesthesiologists and used that stolen identity while signing bank documents and to convert more than $500,000 of New England Anesthesiologists funds for his own personal use.
It is also alleged in the indictment that between January 1, 2012, and December 31, 2012, that Hairabet collected from employees of New England Anesthesiologists and converted for his own personal use several hundreds of thousands of dollars of 401(K) retirement fund employee contributions.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wire fraud is punishable by up to 30 years imprisonment and a fine of up to $1,000,000; money laundering is punishable by up to 10 years imprisonment and a fine of up to $250,000 or twice the amount of criminally deprived property; pension theft is punishable by up to 5 years imprisonment and a fine of up to $250,000; and aggravated identity theft is punishable by a mandatory sentence of 2 years imprisonment to be served consecutive to any other sentence imposed by the court.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by IRS Criminal Investigation, the U.S. Secret Service and the U.S. Department of Labor, Employee Benefits Security Administration.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Federal Court Permanently Bars Wisconsin Tax Return Preparer from Preparing Tax Returns for OthersRead the Press Release
FEDERAL COURT PERMANENTLY BARS WISCONSIN TAX RETURN PREPARER FROM PREPARING TAX RETURNS FOR OTHERS
Allegedly Concocted Phony Businesses and Made Other False Claims on Customers’ Returns
WASHINGTON – A federal court has permanently barred an Appleton, Wisconsin, tax return preparer from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order prohibits Gerardo Garcia, aka Gerry Garcia, and his firm Garcia Enterprises LLC, from acting as a tax return preparer and from continuing to operate a tax return preparation business. The order was entered by the U.S. District Court for the Eastern District of Wisconsin. Garcia agreed to the entry of the injunction, but did not admit to the allegations in the civil complaint against him.
According to the complaint, Garcia prepared false and improper returns during the 2015 filing season, even though the Internal Revenue Service (IRS) had previously assessed $26,000 in penalties against him. The complaint alleged that Garcia prepared tax returns on which he concocted phony businesses for his customers in order to understate his customers’ tax liabilities or inflate their refunds. In addition, as alleged in the complaint, Garcia fabricated business expenses, understated his customers’ business income and claimed other false or improper deductions, credits and filing statuses. In one case, the complaint alleged that Garcia prepared two tax returns for a customer that reported more than $10,000 in losses over two years from a non-existent “aquaculture” business that Garcia asserted his customer owned. The complaint cited several additional examples, including Garcia improperly claiming child tax credits for children, who live outside of the United States; dependency exemptions without proof the customer supported the children; and incorrect filing statuses, such as head-of-household, that resulted in more favorable tax rates.
The injunction order requires Garcia to provide the United States with a list of his customers since 2010 and to send a copy of the court’s injunction order to all customers for whom he prepared returns. The injunction order also requires Garcia to provide a link to the court’s injunction order on any website he maintains and to post a copy in any physical business location in which he receives customers and potential customers for any bookkeeping, payroll or other financial services.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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East Texas Federal Grand Jury Indicts 12 in Medicare Fraud SchemeRead the Press Release
TYLER, Texas — Law enforcement officers in East Texas have arrested multiple individuals charged in a Medicare fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
On Sep. 16, 2015, a federal grand jury returned an 18-count indictment charging 12 individuals associated with Three Angels Home Health Inc., in a scheme to defraud Medicare by recruiting East Texas Medicare recipients who were not eligible, or did not necessitate the need, for home health care services. Law enforcement officers began arresting the defendants today.
According to the indictment, an investigation revealed that between August 2013 and November 2014, the defendants were involved in a scheme to defraud Medicare of approximately $2.5 million for home health services allegedly provided to about 250 East Texas Medicare patients. These patients were from Tyler, Jacksonville, Marshall, Nacogdoches, Lufkin, and other areas. The indictment alleges the defendants worked as recruiters for Grace Munthali and her company, Three Angels. The defendants were paid approximately $500 for each Medicare beneficiary they signed up to receive home health care services from Three Angels. To encourage the patient’s participation, the defendants offered and paid them from $100 to $200 each. Those charged in the indictment include:
Lizzy Sirls, 33, of Cuney, Texas;
Katrina Watts, 38, of Lufkin, Texas;
Pandra Wade, 55, of Lufkin, Texas;
Victoria Sterns, 40, of Lufkin, Texas;
Tammy Washington, 51, of Nacogdoches, Texas;
Nichelle Fofana, 51, of Nacogdoches, Texas;
Yulanda Nash, 44, of Nacogdoches, Texas;
Ronald Russell, 51, of San Augustine, Texas;
Sheneki McCollister, 39, of Center, Texas;
Meoshe Goodwin, 42, of Tenaha, Texas;
Latosha Gray, 26, of Jacksonville, Texas; and
Marcus Chukwu, Jr., 52, of Sugarland, Texas.
If convicted, the defendants face up to five years in federal prison for the conspiracy to commit health care fraud charge and up to five years for each of the payment of illegal remuneration charges.
Earlier this year, Munthali pleaded guilty to health care fraud charges and was sentenced to 5 years in federal prison on Sep. 22, 2015.
This case is being investigated by the U.S. Health and Human Services Office of Inspector General and the Texas Attorney General’s Medicare Fraud Control Unit with assistance from the Federal Bureau of Investigation. This case is being investigated by Special Assistant U.S. Attorney Kenneth McGurk and Assistant U.S. Attorney Nathaniel C. Kummerfeld.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Disabilities Rights Conference to Be Held October 21 in Sioux FallsRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that the Disabilities Rights Conference will be held on Wednesday, October 21, 2015. The conference will be held at the Sioux Falls Convention Center, located at 1101 N. West Avenue in Sioux Falls, South Dakota. The conference is co-sponsored by Avera Health and LifeScape.
In conjunction with the 25th anniversary of the Americans with Disabilities Act, and October’s designation as National Disability Employment Awareness Month, the conference is designed to raise awareness about the rights of persons with disabilities, and to educate the public about its role in protecting those rights.The conference agenda is geared towards physicians, nurses, health care administrators, social workers, counselors, behavioral health professionals, long term care administrators, attorneys, law enforcement, business owners, state officials, federal officials, local officials, tribal officials, educators, and school administrators. The one-day conference will begin at 8:00 am and conclude at 5:30 pm. Registration opens at 7:30 am.
Among the featured speakers will be Heather Abbott, a Boston Marathon Bombing Survivor, whose presentation will focus on Thriving Instead of Surviving. Also featured will be Jeffrey Cain, MD, FAAFP. Dr. Cain has been practicing and teaching family medicine in Denver, Colorado for over 30 years, where he now serves as an Associate Professor of Family Medicine at the University of Colorado. A past President and Board Chair of the American Academy of Family Physicians, Dr. Cain was honored in 2013 by Modern Healthcare as one of the 100 Most Influential People in Healthcare in the country. The conference will also highlight Mario Arnauz Bonds, a motivational speaker and singer/songwriter. Born with Morning Glory Syndrome, a degenerative condition that gradually took his sight, Bonds will share with the audience a message about his childhood, which depicts triumphs over abuse and abandonment, and his adjustment and acceptance of going totally blind.
The luncheon speaker will be South Dakota State Senator Billie Sutton, who will talk about learning to live with a disability. As the result of a rodeo injury in 2007, Sutton suffered a paralyzing spinal cord injury.
Panel discussions will address substantive areas of disability rights, learning to live with an acquired disability, and respect for people with disabilities. Additionally, Dan Lusk, Division Director for Developmental Disabilities for the South Dakota Department of Human Services, will close the conference with a presentation on Home and Community Based Services: Supporting Community Integration.
The conference is free and open to the public.
For the full conference agenda and to register, please follow this link:
www.avera.org/disabilitiesconferenceDEA 10th National Drug Take Back Day, Saturday, September 26Read the Press Release
Contact Person: Chuvalo Truesdell (404) 893-7124
Event will take place from 10 am-2 pm on Saturday, September 26
COLUMBIA, SC. - The Drug Enforcement Administration’s (DEA) South Carolina District Office is partnering with national, state, local, and tribal law enforcement officials, as well as community coalition groups, to hold its 10thstate-wide Prescription Drug Take-Back Day on Saturday, September 26, 2015 from 10 a.m. to 2 p.m. local time. This one-day event will make it convenient for the public to rid their homes of potentially dangerous prescription drugs. At the event, South Carolinians will be able to drop off their expired, unused, and unwanted pills at sites across the state free of charge, no questions asked. By doing so, they will help prevent prescription drug abuse and theft. South Carolinians participating in DEA’s last take-back, held on September 27, 2014, yielded 4,776 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state. Collection can be found by going to www.dea.gov or calling 800-882-9539. The National Prescription Drug Take-Back Day addresses vital public safety and health issues. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that many abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, many Americans do not know how to properly dispose of their unused medications, often flushing them down the toilet or throwing them away – posing safety and environmental hazards. Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “DEA is committed to making our communities safer by raising public awareness about the dangers of prescription drug abuse. The Prescription Drug Take-Back program will allow Americans to properly and safely dispose of their prescription medication which could otherwise be abused for non-medical purposes. This event is free and anonymous. Simply turn in your unused, unwanted, unneeded medication, no questions asked. This is just one of example of how DEA is working hand-in-hand with its law enforcement and community partners in an effort to stem the tide of prescription drug abuse.” The DEA encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.comand www.dea.gov. #####Court Orders Florida Tax Return Preparation Company and Owner to Stop Assisting in Knowing Understatements of Tax Liability; Requires Monitoring at Company's ExpenseRead the Press Release
A federal district judge in Miami has ordered a tax return preparation business based in Miami and its owner to stop assisting in the preparation of federal income tax returns that knowingly understate federal income tax liability, the Justice Department announced today.
The injunction also requires Miami-based Ebenezer Tax Services Inc. and its owner, Ernice Joseph, to exercise due diligence in preparing returns that claim the Earned Income Tax Credit and bars them from preparing any return that claims the Fuel Excise Tax Credit. In addition, the judge ordered Ebenezer and Joseph to gather documentation to substantiate the deductions and credits claimed on the returns they prepare and to retain the documentation for a period of five years. The defendants are also required to send a copy of the injunction to customers and others. Finally, the injunction requires that a neutral monitor be engaged at Ebenezer’s and Joseph’s expense to review and monitor their compliance with the injunction and provide a report of its findings to the United States.
If the court later finds that Ebenezer or Joseph have violated any of the terms of the injunction, they will be permanently barred from preparing federal tax returns for others. The court previously barred Primo Tax Services Inc., another company partly owned by Joseph, from preparing returns for others.
According to the complaint, Joseph and Ebenezer Tax Services have prepared federal income tax returns that unlawfully understate income tax liabilities and overstate refunds through a variety of schemes. The complaint alleged that Ebenezer Tax Services prepared returns that unlawfully claimed the Earned Income Tax Credit by reporting fictitious Schedule C businesses or business income. The complaint also alleged that Ebenezer and Joseph prepared returns that claimed credits to which the taxpayers were not entitled in order to overstate their clients’ refunds. According to the complaint, the Internal Revenue Service (IRS) estimates that the activities of Ebenezer Tax Services and Joseph may have led to millions of dollars in revenue losses.
In consenting to the injunction, Ebenezer and Joseph admitted that they had engaged in conduct subject to penalty under Section 6701 of the Internal Revenue Code. Section 6701 penalizes the knowing preparation of documents whose use would result in an understatement of tax liability.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax return preparer, and has launched a free directory of federal tax return preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Columbia Prisoner Sentenced for Threatening PresidentRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that ERIC ANTHONY ROME, age 26, formerly of Mauldin, South Carolina, currently incarcerated at the Kirkland Correctional Institution in Columbia, was sentenced in federal court in Columbia, South Carolina, for Making Threats Against the President of the United States, a violation of 18 U.S.C. § 871. United States District Judge Joseph F. Anderson, Jr., of Columbia sentenced Rome to 41 months of incarceration.
Evidence presented at the change of plea hearing established that on May 16, 2014, Eric Anthony Rome left a message with the Inspector General of the South Carolina Department of Corrections stating that he planned to kill President Obama upon his release from prison on August 22, 2015. When interviewed by Agents, Rome admitted to calling the Inspector General’s office and leaving the voicemail. He claimed he had been a member of the Aryan nation since he was seventeen-years-old and that he would obtain money from them. He also claimed he was offered money previously by the Aryan Nation to assassinate President Obama. Further, Rome claimed his plan is to use the money from the Aryan nation to purchase a rifle and for traveling to Washington, D.C., and “lay and wait” for an accurate shot. The case was investigated by the United States Secret Service. Assistant United States Attorney Winston Holliday of the Columbia office prosecuted the case. #####Colorado River Indian Tribes Receive Nearly $500,000 in Federal Grant Funds to Support Juvenile Offenders and At-Risk YouthRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $487,578 in federal grant funds have been awarded to the Colorado River Indian Tribes to reduce juvenile offender recidivism on the Colorado River Indian Reservation. The grant funds were awarded by the Office of Juvenile Justice and Delinquency Prevention (“OJJDP”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
Information on OJJDP can be found at: http://www.ojjdp.gov/about/about.html
RELEASE NUMBER: 2015-092_COLORADO_RIVER_INDIAN_GRANT (2015-TY-FX-0004)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Colombian National Sentenced to 63 Months for Conspiring to Launder Drug Trafficking ProceedsRead the Press Release
A Colombian national was sentenced today to 63 months in prison for conspiring to launder drug trafficking proceeds, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA).
Tito Miller Parra-Isaza, 45, pleaded guilty on May 26, 2015. U.S. District Judge Ed Kinkeade of the Northern District of Texas imposed the sentence.
According to a factual stipulation filed in connection with his guilty plea, Parra-Isaza coordinated the deposit of bulk cash, which he knew to be the proceeds of drug trafficking, into financial institutions in Mexico and elsewhere. The bulk cash was later wire transferred into bank accounts in Dallas and then transported to Panama and elsewhere for distribution to individuals involved in drug trafficking.
Four other defendants previously pleaded guilty. Of the remaining charged defendants, three are fugitives and one is deceased.
This case is being investigated by the DEA. This case is being prosecuted by Senior Trial Attorney Mark Irish and Trial Attorney Nicole Grosnoff of the Criminal Division’s Asset Forfeiture and Money Laundering Section. The Criminal Division’s Office of International Affairs also has provided substantial assistance.
Chief Financial Officer and Co-Founder of Defunct Charter Flight Company Admits Role in Multi-Million Dollar FraudRead the Press Release
NEWARK, N.J. - The former CFO and co-founder of a now-defunct South Carolina public charter operator today admitted using phony documents and inflated revenue figures to defraud a New Jersey bank and other financial institutions out of millions of dollars, U.S. Attorney Paul J. Fishman announced.
Robert Keilman, 70, of Marlboro, New Jersey, pleaded guilty to an information charging him with one count of conspiracy to commit wire fraud affecting a financial institution and to commit bank fraud.
According to documents filed in this case and statements made in court:
Keilman was one of the founding members of Southern Sky Air & Tours d/b/a Myrtle Beach Direct Air & Tours, commonly referred to as Direct Air. From January 2010 through September 2011, Keilman was Direct Air’s chief financial officer. Direct Air offered airline services in a number of cities, including Newark, New Jersey.
Keilman acknowledged that U.S. Department of Transportation regulations required charter operators like Direct Air to protect passengers financially by posting a security or by keeping passenger payments for future flights in a designated depository or escrow account with an approved bank. Pursuant to this regulation, Direct Air set up an escrow account with a bank headquartered in Wayne, New Jersey. According to Keilman, Direct Air and the bank agreed that money in the escrow account for future flights would not be released to Direct Air until after the flights were completed. Additionally, Direct Air would have to submit a request for payment along with summary reports detailing the flights purportedly flown.
Keilman admitted that, from 2010 through September 2011, he conspired with others, including a pair of Direct Air executives identified in court documents as “Executive 1” and “Executive 2,” to engage in a “double-dipping” scheme wherein they submitted release requests for passenger payments designated as “membership fees” prior to the completion of the flights, and then after the flights were completed, submitted release requests for the same funds.
Keilman admitted that he, Executive 1, Executive 2 and others also submitted release requests containing inflated passenger revenue figures, causing the bank to release millions of dollars in revenues for fictitious passengers. In addition, Keilman stated that he, Executive 1, Executive 2 and others concealed the shortfall in Direct Air’s bank account by sending fraudulent financial statements to creditors.
The conspiracy to commit wire and bank fraud charge to which Keilman pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 6, 2015.
Fishman credited Special Agents of the U.S. Department of Transportation, Office of the Inspector General, under the direction of Special Agent in Charge Todd Damiani, for the investigation leading to today’s plea.
The case is being prosecuted by Assistant U.S. Attorney Andrew Kogan and Deputy Chief Scott B. McBride of the U.S. Attorney’s Office’s Economic Crimes Unit, and by Trial Attorneys L. Rush Atkinson and Carol L. Sipperly of the U.S. Department of Justice’s Criminal Division, Fraud Section.
Defense counsel: Gina L. Simms Esq., Washington, D.C.; Michael Baldassare Esq., Newark, N.J.
Chicago Man Charged with Stealing a Handgun from a Cedar Rapids Gun ShopRead the Press Release
Dante Glinn, age 22, from Chicago, Illinois, has been charged with one count of theft of a firearm from a licensed firearms dealer and one count of possession of a stolen firearm. The charges are contained in a Complaint filed on August 28, 2015. Glinn was arrested in Chicago on August 31, 2015, and made his initial appearance yesterday in United States District Court in Cedar Rapids.
The Complaint alleges that, on or about August 25, 2015, Glinn entered the Sports Outfitters, a licensed firearms dealer located in Cedar Rapids, during business hours. As Glinn walked by a display case, he reached over the case, opened the door, removed a Kimber .45 caliber pistol, and then fled from the store with the pistol.
If convicted on all charges, Glinn faces a possible maximum sentence of twenty years’ imprisonment, a $500,000 fine, $200 in special assessments, and six years of supervised release following any imprisonment.
Glinn appeared yesterday in federal court in Cedar Rapids and was held pending a detention hearing on Thursday, September 24, 2015, at 8:00 a.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Cedar Rapids Police Department and the FBI Safe Streets Task Force. Court file informationavailable: https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-mj-00276.
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Chicago Man Charged in Connection with the Murder of Sheila Von Wiese in Bali, IndonesiaRead the Press Release
A Chicago man has been charged for conspiring with his cousin and cousin’s girlfriend to kill a U.S. citizen at a resort in Bali, Indonesia, in August 2014, according to a criminal complaint unsealed in federal court in Chicago today.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zachary T. Fardon for the Northern District of Illinois and Acting Special Agent in Charge John A. Brown of the FBI’s Chicago Division made the announcement.
According to the complaint, Robert Ryan Justin Bibbs, 24, of Chicago, advised his cousin, Tommy Schaefer, and Schaefer’s girlfriend, Heather Mack, on how to kill Mack’s mother, Sheila Von Wiese in August 2014. The complaint alleges that, on or about Aug. 2, 2014, Von Wiese and Mack departed Chicago for a vacation in Bali, Indonesia. On or about Aug. 12, 2014, Schaefer allegedly departed Chicago and arrived in Indonesia at the same resort where Mack and the victim were staying. The complaint alleges that, within hours of Schaefer’s arrival, the victim was bludgeoned to death, and Schaefer and Mack stuffed the body in a suitcase and placed it in a taxi cab, which was later discovered by Indonesian police.
According to the complaint, Bibbs knew of the plot to kill Von Wiese before Schaefer and Mack carried it out, advised them on how to kill the victim, and counseled Schaefer on how to evade detection by law enforcement. According to the complaint, Bibbs did so because he believed that Schaefer would gain access to Von Wiese’s estate through the victim’s daughter, Mack, and that Schaefer would share the inheritance with family members, including Bibbs.
On Aug. 13, 2014, Schaefer and Mack were arrested in Bali. In April 2015, an Indonesian court convicted Schaefer and Mack of charges related to Von Wiese’s murder. Schaefer was sentenced to 18 years in an Indonesian prison, while Mack was sentenced to 10 years.
Bibbs was arrested today by federal authorities. He is scheduled to make an initial court appearance before U.S. Magistrate Judge Maria Valdez today at 3 p.m. CDT.
The charges and allegations contained in a criminal complaint are merely accusations. The defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the FBI’s Chicago Division and being prosecuted by Assistant U.S. Attorneys Bolling Haxall and Julie Porter of the Northern District of Illinois and Trial Attorneys Hope Olds and Christine Duey of the Criminal Division’s Human Rights and Special Prosecutions Section.
Chicago Man Charged with Aiding His Cousin and Heather Mack in the Murder of Sheila Von Wiese in Bali, IndonesiaRead the Press Release
CHICAGO — The cousin of a man convicted with Heather Mack of murdering Mack’s mother at an Indonesian resort was charged with conspiring with the couple to commit the killing, according to a criminal complaint unsealed in federal court in Chicago today.
ROBERT RYAN JUSTIN BIBBS, 24, of Chicago, advised his cousin, Tommy Schaefer, and Schaefer’s girlfriend, Heather Mack, about how to kill Mack’s mother, Sheila Von Wiese, according to the federal complaint and FBI affidavit. Bibbs was aware of the couple’s plot to kill Von Wiese at an Indonesian resort on Aug. 12, 2014, and he counseled Schaefer on how to get away with it, the affidavit states. Bibbs believed Schaefer would gain access to Von Wiese’s estate through Mack, and that Schaefer would share the inheritance with family members, according to the charges.
Federal authorities arrested Bibbs earlier today. The complaint charges him with conspiracy to commit the foreign murder of a U.S. national. He is scheduled to make an initial court appearance at 3:00 p.m. today before U.S. Magistrate Judge Maria Valdez.
“Our commitment to fighting violent crime extends beyond the border,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “We will use whatever tools are necessary to pursue justice both here and abroad.”
Mr. Fardon announced the arrest and complaint along with John A. Brown, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
“Our pursuit of individuals involved in violent crimes carried out overseas could not occur without the assistance of our worldwide network of Legal Attaches and their relationships with our international partners,” said Mr. Brown.
An Indonesian court convicted Schaefer and Mack of charges related to Von Wiese’s murder. Schaefer was sentenced to 18 years in an Indonesian prison, while Mack was sentenced to ten years.
U.S. authorities executed multiple search warrants to acquire information stored in the cellular telephones of Schaefer and Bibbs, and in the Facebook accounts of Bibbs, Schaefer and Mack. The affidavit cites several discussions via text message between Bibbs and Schaefer both before and during Schaefer’s and Mack’s trip to Bali. During a text conversation on July 25, 2014, Schaefer told Bibbs that Von Wiese’s murder would occur in a month, and that it would result in financial gain for both of them, according to the complaint.
Soon after Schaefer checked into the St. Regis Bali resort on the morning of Aug. 12, 2014, he sent a text message to Bibbs, who was in the U.S. The message stated that an attempt to kill Von Wiese by causing an overdose of medicine had failed, according to the complaint. Schaefer’s text messages to Bibbs stated: “Wasn’t enough bro smh” [shaking my head]…“Definitely need that ” [emoji of a handgun]. Bibbs replied, “Damn I told you”; to which Schaefer responded, “I know I already thought about that”…“U was right.”
Later in the morning, Schaefer exchanged text messages with Mack, who was sharing a room with her mother on a different floor of the same hotel. According to the complaint, Mack encouraged Schaefer to come to her room and carry out the murder. This exchange prompted Schaefer to send a series of text messages to Bibbs, stating, “She wants me to right now”… “while she snoozing”… “Go in.” Bibbs replied, “Go sit on her face wit a pillow then.”
Schaefer and Mack then exchanged several text messages in which they referred to each other as the film characters Bonnie and Clyde, according to the affidavit. The affidavit states that Schaefer asked Mack, “Can u wack her in the head with a big ass pole”; to which Mack responded, “Can you”; and Schaefer replied, “Yes.”
Schaefer then traveled to the third floor where Mack and her mother were staying, according to the complaint. He is seen on the hotel’s surveillance camera standing in an elevator with what appears to be an item stuffed under his shirt. At that point, the affidavit states that Schaefer sent a series of text messages to Mack, saying, “Let me just creep up and wak her”… “Once I do it”…”She was drunk slipped and fell”; to which Mack responded, “Okay g”…“Okay just knock her out”…“Itll be so much easier.”
A short time later, Von Wiese was bludgeoned to death. The affidavit states that later in the morning, Schaefer sent a series of text messages to Bibbs, saying, “Need yo help bro”…“I’m gucci but for some reason I don’t feel bad.” Bibbs responded, “She wasn’t a good person”…“There wasn’t any positive energy released from her body.” The pair then exchanged text messages for the next ten minutes, during which time they discussed the U.S. Men’s Basketball team, according to the complaint.
Schaefer and Mack were arrested the following day in another hotel in Bali.
The charge of conspiracy to commit the foreign murder of a U.S. national carries a maximum sentence of life in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorneys Bolling Haxall and Julie B. Porter; and Hope Olds and Christine Duey, trial attorneys from the U.S. Department of Justice’s Human Rights and Special Prosecutions Section.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Charleston man sentenced to five years in Federal prison for carrying a fireman during a drug crimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Charleston man was sentenced today in federal court in Charleston to five years in prison for carrying a firearm during a drug trafficking offense. James Philip Daugherty, 20, previously entered a guilty plea to carrying a loaded Ruger semi-automatic pistol on January 9, 2015, while he possessed crack cocaine that he intended to distribute in and around Charleston, West Virginia.
The investigation was conducted by the Kanawha County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Rada Herrald was in charge of the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Cedar Rapids Man Pleads Guilty to Heroin and Fentanyl Conspiracy Resulting in Four Injuries, Two Deaths in 2015Read the Press Release
A man who conspired to distribute heroin and fentanyl that led to several overdoses and deaths pled guilty today in federal court in Cedar Rapids.
DeShaun Anderson, age 43, from Cedar Rapids, Iowa, was convicted of conspiracy to distribute heroin and fentanyl resulting in serious bodily injury and death.
At the plea hearing, Anderson admitted he conspired with others to distribute heroin and another powerful opiate, fentanyl, in Cedar Rapids. Anderson admitted that, on four occasions, users suffered serious bodily injury as a result of using the substances either he or his co-conspirators distributed. He also admitted that two individuals died as a result of using substances distributed by the co-conspirators. All of the deaths and overdose injuries admitted by Anderson occurred between late February and mid-April of this year. Court documents reflect that, between January and April 2015, at least four other individuals lost consciousness, but did not suffer serious injuries, after using drugs distributed by Anderson or his co-conspirators.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Anderson remains in custody of the United States Marshal pending sentencing. Anderson faces a mandatory minimum sentence of 20 years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, $100 in special assessments, and at least 6 years, and up to a lifetime, of supervised release following any imprisonment.
The case is being investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00046-LRR.
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California Man Sentenced for Drug and Gun ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that on September 23, 2015, a Sacramento, California, man was sentenced to 97 months in prison for possession with intent to distribute methamphetamine and marijuana and possession of a firearm in furtherance of a drug offense. Anthony Shaquille Harris was sentenced to 37 months for the drug charge and a consecutive sentence of 60 months on the gun charge. He will serve three years on supervised release after he completes the prison terms. He was also ordered to pay $200 in special assessments.
Harris was arrested by officers of the Lincoln Police Department on February 16, 2015, after officers executed a search warrant at the Lincoln apartment where Harris was staying. During that search, officers found approximately 160 grams of methamphetamine and a small amount of marijuana. Officers also found a 9mm handgun with a loaded magazine, a shotgun, and various types of ammunition.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Cabot Man Sentenced to 25 Years for Sexual Exploitation of A Minor by A ParentRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with David Shepard, Assistant Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigations (FBI), announced today that United States District Court Judge Susan Webber Wright sentenced Matthew Hiner, age 28, of Cabot, to 300 months, or 25 years, in federal prison for Sexual Exploitation of a Minor by a Parent.
On August 22, 2013, an undercover agent from the FBI Child Exploitation Task Force, operating out of a satellite office in Washington, D.C., was online in a public chat room and began chatting with someone using the username "daddylooking4fam," later identified as Hiner. Username "daddylooking4fam" posted "i’m a single 25 year old active bi dad of a 5 year old son from usa."
The agent then engaged in a private chat conversation with "daddylooking4fam." During this chat, "daddylooking4fam" told the officer that he had shared custody of a 5-year-old child. "Daddylooking4fam" said that he was "looking for a like-minded family to merge with and raise a very loving and active family with." "Daddylooking4fam" then asked the agent to chat on a private Yahoo! chat.
The agent then engaged in a private Yahoo! chat with a Yahoo! user utilizing the screen name "Matthew Hiner." The user of "Matthew Hiner" sent the agent five photographs which Hiner described as depicting himself and a 5-year-old child. The first photograph depicted a photograph of a child who Hiner described as a 5-year-old child to whom he had access. The second photograph depicted an adult male standing in front of a house. The adult male was identified as Hiner. The remaining three photographs depicted sexually explicit images of Hiner and the child.
Hiner was arrested on August 23, 2013. After being read his Miranda rights, Hiner admitted that he had been in incest chat sites and had engaged in sex acts with the five-year-old child and his friend’s 11- and 8-year-old sons. Hiner admitted to taking pictures of himself performing sex acts on the 5-year-old child, and admitted that he took the three pictures that were sent to the undercover officer. Hiner also took pictures of the 11-year-old and himself engaging in sex acts.
There is no parole in the federal system. When Hiner is released upon completion of his 25 year sentence, he will serve a lifetime of supervised release. Conditions of his supervised release require him to register as a sex offender and have no contact with minors under the age of 18. Hiner still faces three rape counts and one count of sexual assault in the 2nd degree in Pulaski County Circuit Court.
"Our office is committed to protecting the innocence of society’s most vulnerable victims, our children, especially when they are being abused by those they trust the most." Thyer stated. "Today’s sentence cannot undue the harm done by Hiner but it does send the message that actions like his will not be tolerated and will result in lengthy prison sentences."
"The Little Rock Field Office of the FBI is dedicated to investigating and stopping the kind of heinous acts of abuse which were committed by Hiner on innocent children," Shepard said. "We would like to thank our partners at the United States Attorney’s Office for their continued dedication to prosecuting predators like Hiner."
The FBI led the investigation. Assistant United States Attorney Kristin H. Bryant prosecuted the case for the United States.
Bridgeport Man Who Purchased Tableting Machine to Produce Oxycodone Pills is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JASON OLIVIERA, 35, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to three years of probation, the first six months of which OLIVIERA must serve in home confinement, for illegally importing a tablet machine to produce oxycodone pills. Judge Underhill also ordered OLIVIERA to perform 50 hours of community service.
According to court documents and statements made in court, on July 23, 2013, OLIVIERA and David Wolvovsky were arrested at Wolvovsky’s home in Fairfield after they received delivery of a package containing a tableting machine that had been ordered from China. On that date, Wolvovsky stated to investigators that he and OLIVIERA had purchased the machine through an individual he had met on the Internet, and that they had also purchased what he had believed to be a large quantity oxycodone powder from the same individual. Wolvovsky then stated that, before the machine had arrived, he had tested the powder and determined that it was not true oxycodone powder. A subsequent search of Wolvovsky’s residence revealed a package containing approximately one kilogram of the fake oxycodone powder. The search also revealed opiate test kits, packaging materials, tablet dying/imprinting machinery and $21,034 in cash.
On March 13, 2015, OLIVIERA waived his right to indictment and pleaded guilty to one count of unlawfully importing a tableting machine.
On July 24, 2014, Wolvovsky pleaded guilty to the same charge. On November 21, 2014, he was sentenced to four years of probation, including six months of home confinement. He also was ordered to pay a fine of $2,000, forfeit the $21,034 that was seized at the time of his arrest and perform 100 hours of community service.
This matter was investigated by the DEA New Haven Tactical Diversion Squad and Homeland Security Investigations. The DEA Tactical Diversion Squad includes members from the Greenwich, Shelton, Hamden, Vernon, West Hartford, Bristol and Willimantic Police Departments. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Bossier City man sentenced to 15 years in prison for receiving child pornography on computerRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Bossier City man was sentenced to 180 months in prison for receiving child pornography.
Kenneth Ray Jurls, 40, of Bossier City, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of receiving child pornography. He was also sentenced to five years of supervised release and must register as a sex offender. According to evidence presented at the May 20, 2015 guilty plea, law enforcement agents detected someone downloading child pornography using a peer-to-peer internet file sharing program. Law enforcement agents searched Jurls’ home on July 16, 2014 and seized his computer. A forensic examination of the computer revealed Jurls had been downloading child pornography for years. More than 1,000 images and videos of child pornography were found on his computer.
“Sooner or later a child predator’s illegal activity will come to light,” Finley stated. “This defendant contributed to the abuse of children by downloading and trading massive amounts of child pornography online. My office will hold those accountable who possess, trade and view this type of material.”
Homeland Security Investigations, Louisiana Attorney General’s Office and the Bossier City Marshal’s Office investigated the case. Assistant U.S. Attorney F. Michael O’Mara prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. 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, visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone app (http://www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Bloomington Pain Management Doctor Indicted for Accepting Kickbacks as Part of Large Scale Health Care Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of ELENA LEV POLUKHIN, 58, for writing prescriptions for pain medication as part of a health care fraud conspiracy in which POLUKHIN received kickbacks from Best Aid Pharmacy. POLUKHIN is charged with conspiracy to commit health care fraud, soliciting and receiving kickbacks, health care fraud, aggravated identity theft and distribution of controlled substances. The defendant made an initial appearance today before Magistrate Judge Steven E. Rau in U.S. District Court in St. Paul, Minn.
“As charged, this defendant abused her position as a doctor, took kickbacks and participated in a significant fraud of Medicare and Medicaid,” said U.S. Attorney Luger. “In addition to funneling kickbacks through a charitable non-profit, Dr. Polukhin wrote unwarranted prescriptions for pain cream and prescribed opioids without any legitimate medical purpose. As Minnesota continues to struggle with our pain pill problem, it is cases like this that so clearly demonstrate the lengths to which some will go to abuse the health care system.”
“Minnesota is not immune to the prescription drug epidemic that continues to plague our nation at an alarming rate,” said Drug Enforcement Administration Assistant Special Agent in Charge Dan Moren. “Dr. Elena Polukhin contributed to this epidemic by keeping patients hooked on addictive pain killers and placing an emphasis on generating profits, by fraudulently billing Medicare and Medicaid, versus fulfilling her obligation to enhance the sound mind and body of her clients.”
"Those who commit health care fraud will be actively pursued by law enforcement. The FBI, along with its partners, will hold health care providers to account if they prey upon those seeking treatment and commit fraud against taxpayers," said Federal Bureau of Investigation Special Agent in Charge Richard Thornton.
“Physicians and pharmacists are entrusted to make decisions that are medically necessary and that are in the best interest of their patients, not for their own personal financial gain”, said Lamont Pugh III, Special Agent in Charge – Chicago Region, U.S. Department of Health and Human Services, Office of Inspector General. “The OIG will continue to work with our law enforcement partners to identify fraud schemes that jeopardize patient safety and well-being and hold those who execute these schemes accountable.”
According to the indictment and documents filed in court, ELENA POLUKHIN was a physician specializing in physical medicine and rehabilitation. She was a participating provider in Medicare and Medicaid. Most of her patients were Medicare and Medicaid beneficiaries. POLUKHIN was the sole owner and CEO of Rehabilitation Consultants in Bloomington, Minn. Rehabilitation Consultants specialized in pain management and rehabilitation.
According to the indictment and documents filed in court, from at least February 2011 through December 2014, POLUKHIN conspired with others to fraudulently bill Medicare and Medicaid for topical pain-relief creams that she prescribed. The defendant referred virtually every patient prescribed topical pain-relief cream to a single pharmacy, Best Aid, which prepared and dispensed the topical pain-relief creams.
According to the indictment and documents filed in court, BORIS LEO RABICHEV, the manager and part-owner of Best Aid who was charged separately by information, and RICHARD WAYNE CUSTER, a pharmacist at Best Aid who was also charged separately by information, compounded pain creams using bulk-powder forms of the various ingredients called for by the prescriptions and dispensed in the pain creams to customers. Best Aid then submitted claims for reimbursement to Medicare and Medicaid that falsely represented that the pain creams had been made using tablet, capsule or liquid forms of the various ingredients in the pain creams. By including these false representations, Best Aid generated inflated reimbursements on the pain creams. In exchange for POLUKHIN referring all of the prescriptions for these pain creams to Best Aid, RABICHEV paid POLUKHIN more than $40,000 in kickbacks.
According to the indictment and documents filed in court, RABICHEV, at POLUKHIN’s request, made monthly kickback payments to POLUKHIN in the form of checks payable to the Roife-Nissenbaum Trust (RN Trust). The RN Trust was a 501(c)(3) charitable trust founded by POLUKHIN, who also acted as its chair of the board and president. The RN Trust purportedly supported several programs and services, including scholarships to students; a directory of medical providers; fitness programs; humanitarian missions and international collaborations; a mental health and chemical dependency program; medical research; and a “starving artists project.” Between at least June 2012 and March 2014, Best Aid wrote at least 20 checks to the RN Trust for the purpose of paying more than $43,000 of kickbacks to POLUKHIN.
According to the indictment and documents filed in court, POLUKHIN also knowingly wrote prescriptions, on at least one occasion, for morphine and oxycodone in the absence of a legitimate medical purpose and outside the course of usual professional practice.
This case is the result of an investigation conducted by the Drug Enforcement Administration (DEA) Tactical Diversion Squad, which is comprised of agents, officers and deputies from the DEA, Federal Bureau of Investigation, Food and Drug Administration, Minneapolis Police Department, Plymouth Police Department, Ramsey County Sheriff’s Office, Washington County Sheriff’s Office, the Minnesota Army National Guard, and the U.S. Department of Health and Human Services – Office of Inspector General.
The DEA Tactical Diversion Squad has established a hotline if you have information or questions concerning Rehabilitation Consultants and/or Dr. Elena Polukhin – please call 612-344-4189. To provide information online related to Rehabilitation Consultants and/or Dr. Polukhin, please visit www.deadiversion.usdoj.gov and select the “Report Illicit Pharmaceutical Activities - RX Abuse Reporting Link.”
This case is being prosecuted by Assistant United States Attorney John E. Kokkinen.
Defendant Information:
ELENA LEV POLUKHIN, 58
Minnetonka, Minn.
Charges:
- Conspiracy to commit health care fraud, 1 count
- Soliciting and receiving kickbacks, 20 counts
- Health care fraud, 3 counts
- Aggravated identity theft, 3 counts
- Distribution of controlled substances, 2 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Beaverton and Eugene Police Departments Receive Federal Grant Funds for Body Worn CamerasRead the Press Release
PORTLAND, Ore. – Yesterday, Attorney General Loretta Lynch announced that the Justice Department has awarded grants totaling more than $23.2 million to 73 local and tribal agencies in 32 states to expand the use of body-worn cameras and explore their impact. The grants, awarded by the Department’s Office of Justice Programs (OJP), are part of President Obama’s proposal to purchase 50,000 body-worn cameras for law enforcement agencies within three years.
“This vital pilot program is designed to assist local jurisdictions that are interested in exploring and expanding the use of body-worn cameras in order to enhance transparency, accountability and credibility,” said Attorney General Lynch “The impact of body-worn cameras touches on a range of outcomes that build upon efforts to mend the fabric of trust, respect and common purpose that all communities need to thrive.” http://www.justice.gov/opa/speech/attorney-general-loretta-e-lynch-delivers-remarks-white-house-champions-change-event.
The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment and require that applicants establish a strong implementation plan and a robust training policy before purchasing cameras. The long term costs associated with storing this information will be the financial responsibility of each local agency.
“I am pleased that two police departments in Oregon are recipients of these federal funds,” said Acting U.S. Attorney Billy J. Williams. "The use of body-worn cameras will assist our law enforcement partners and the communities they serve by providing greater transparency into the challenging work done every day."
BJA has launched a comprehensive online toolkit that consolidates research, promising practices, model policies and other tools that address issues surrounding body-worn cameras, including implementation requirements; image retention; concerns of policy makers, prosecutors, victim and privacy advocates; and community engagement and funding considerations. The toolkit is available at: https://www.bja.gov/bwc/.
OJP’s Bureau of Justice Statistics is collecting data on body-worn camera usage through surveys of law enforcement agencies. It is also designing data collection forms for future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases.
For additional information about the BWC Pilot Implementation Program, visit http://www.bja.gov/bwc/pdfs/BWCPIP-Award-Fact-Sheet.pdf.
Arkansas Man Sentenced to Ten Years in Prison for Possession of Child PornographyRead the Press Release
Hattiesburg, Miss - Joshua Herron, 29 of Arkansas, was sentenced on Monday, September 21, 2015, by U.S. District Judge Keith Starrett to serve 10 years in federal prison followed by a lifetime of supervised release for possession of child pornography, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Donald Alway.
Herron was found to be in possession of child pornography while on supervised release from a previous child pornography conviction. He was serving in the National Guard at Camp Shelby when he was first indicted and convicted for possession of child pornography in February, 2010. He was released from prison on August 2, 2013 and placed on supervised release which was later revoked when he was found to be in possession of images of child pornography again.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Glenda R. Haynes.
Tuesday 22 September 2015
Westbank Drug Dealers Plead Guilty and Admit Role in Two MurdersRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAY WOODRUFF, age 21, and FRANKIE HOOKFIN, age 24, both of Waggaman, pled guilty today to conspiring to distribute a kilogram or more of heroin and 280 grams or more of crack cocaine and to murdering a man to further their group’s drug trafficking activities.
WOODRUFF and HOOKFIN each pled guilty to two counts of the Superseding Indictment, which charged twelve defendants with drug trafficking, a variety of weapons offenses, and six shootings resulting the death of four people and the injury of two others. Count 1 charged WOODRUFF and HOOKFIN with conspiring to distribute a kilogram or more of heroin and 280 grams or more of crack cocaine, which carries a mandatory minimum sentence of at least ten years up to life in prison. WOODRUFF and HOOKFIN also pled guilty to Count 12, charging them and two others with causing the death of a man through the use of firearms, which is punishable by any term of years up to life in prison. U.S. District Judge Lance M. Africk set sentencing on December 10, 2015.
“Violent offenders have no place on our streets,” stated U.S. Attorney Polite. “If you terrorize our communities through drug trafficking and gun violence, just as these defendants did, then you risk being in jail for the rest of your life.”
According to court documents, WOODRUFF and HOOKFIN were part of a drug trafficking organization that moved significant quantities of heroin and cocaine base on the West Bank. Beginning in 2012, the group engage in a series of violent acts, beginning with a drive by shooting into a another vehicle where the driver and his front seat passenger were shot with an AK-47 while two young children, who were not hit, were in the back seat. The group is alleged to have participated in five additional shootings, two of which ended in death. WOODRUFF and HOOKFIN pled guilty to the murder of Emeal Washington and admitted to their participation in the murder of Doreatha Richardson, in addition to two other shootings. In addition to the shootings, members of the group are charged with weapon and drug conspiracies, in addition to several substantive distribution counts.
HARRY SMOOT, ISAAC SMITH, RICHARD THOMAS, TERRELL WADE, LANCE SINGLETON, and CHRISTOPHER BROWN have previously pled guilty and are awaiting sentencing. TERRENCE KELLEY and CLIFFORD SONNIER are scheduled for trial on September 28, 2015. JOEQUELL LEWIS and ANDRE ADDISON are scheduled for trial on October 26, 2015.
The Superseding Indictment is a product of an ongoing investigation into the violent acts in furtherance of the drug trafficking by the Harvey Hustler gang and its various offshoots on the West Bank. It represents the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang (“MAG”), including the United States Attorney’s Office, the Jefferson Parish District Attorney’s Office, Special Agents of the Federal Bureau of Investigation, and officers of the Jefferson Parish Sheriff’s Office.
Assistant United States Attorneys Greg Kennedy, David Haller, and Myles Ranier and Special Assistant United States Attorney Collin Sims, who is a former Assistant United States Attorney and the Criminal Chief at the St. Tammany Parish District Attorney’s Office, are in charge of the prosecution.
Webster Man Charged with Forging Irs Release of LevyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Brian Becker, 40, of Webster, NY, was arrested and charged by criminal complaint with falsely impersonating an IRS official and interfering with the administration of the tax laws. The charges carry a maximum penalty of three years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Becker was the subject of a collections action by the Internal Revenue Service that resulted in the garnishment of his wages and his wife’s wages. Thereafter, the defendant forged an IRS Release of Levy, which he provided to his employer and his wife’s employer. As a result of the fraudulent releases, the employers stopped garnishing the wages of both Becker and his wife.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jonathan W. Feldman. Becker was released on conditions.
The criminal complaint is the result of an investigation by Special Agents of the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert E. O’Malley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Wayne Man Sentenced to Two Years Probation for VA FraudRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Lawrence A. Stewart, 48, of Wayne, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to two years of probation and fined $8,000 for theft of public money. He was also ordered to pay $53,852.72 in restitution to the Veterans Administration ("VA"), which he paid prior to sentencing. The defendant pled guilty on April 8, 2015.
According to court records, from about October 2011 until January 2015, Stewart received additional VA disability compensation based on unemployability when he was, in fact, gainfully employed. Stewart repeatedly provided falsified documentation to the VA, underreporting the extent of his employment and the income he received.
"By taking money you were not entitled to, you took it from the sole agency whose purpose it to serve veterans," Judge Woodcock told the defendant before imposing the sentence.
The investigation was conducted by the VA Office of the Inspector General.
Two Men Sentenced for Possession of MethRead the Press Release
CORPUS CHRISTI, Texas – Two men from Lafayette, Indiana, have been sentenced following their convictions of conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Kenneth Magidson. Daniel Marvin, 48, and William Parker, 35, pleaded guilty Feb. 18, 2015, and March 16, 2015, respectively.
Today, Senior U.S. District Judge John Rainey sentenced Marvin to 135 months in federal prison, while Williams was ordered to serve a 120-month-term of imprisonment. Both were also ordered to serve five years of supervised release following their sentences.
In December 2014, Border Patrol (BP) agents at the Sarita checkpoint were conducting primary inspections when they became suspicions of two vehicles that approached the checkpoint at approximately the same time. During an x-ray inspection of the first vehicle, which was driven by Marvin, agents discovered a small safe that contained a bundle of methamphetamine wrapped in black tape, a small scale, $1,300 U.S. currency and a loaded 9mm handgun. In a further inspection of the second vehicle, which was driven by Parker, agents located a modified container to conceal contraband that included a baggie and syringe filled with methamphetamine and a small scale. Initially, the two men stated that they were travelling alone; however, they later admitted to travelling to South Texas together to pick up the vehicle that contained the safe and drugs. Laboratory analysis determined that the methamphetamine weighed approximately 500 grams and had a purity level of 96%.
In federal custody since their arrests, Marvin and Parker will remain in custody and serve their sentences at a U.S. Bureau of Prisons facility to be designated in the near future.
The convictions stem from an investigation by the Drug Enforcement Administration and BP. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Two Guilty of Conspiracy to Distribute Heroin in Southeastern VirginiaRead the Press Release
NORFOLK, Va. – Phillip Jerome Murphy, 41, of Franklin, pleaded guilty today to charges of conspiracy to distribute heroin and possessing a firearm during a drug trafficking crime. A fellow Bloods gang member, Collie Sanks, 37, of Emporia, pleaded guilty to conspiring to distribute heroin on Sept. 17, 2015.
According to court documents, Murphy and Sanks were leaders of a Bloods street gang known as the Red Stone Rydahs, which operated in the Franklin area. Murphy and Sanks began distributing significant quantities of heroin in Franklin, Smithfield and Emporia in approximately 2012. As frequently as twice per month, Murphy and Sanks would travel to New York to purchase bulk quantities of heroin and then travel back to southeastern Virginia to distribute the drug. Both men sold heroin themselves, and also employed other individuals to assist them in their distribution activities. On several occasions, Murphy completed heroin sales within extremely close proximity to an elementary school that was in session. In addition to numerous undercover heroin purchases from both Murphy and Sanks, search warrants executed at residences associated with each man yielded heroin, cocaine, narcotics packaging materials, and firearms.
Murphy and Sanks were charged by criminal complaint on July 10, 2015, and Murphy was subsequently indicted by a federal grand jury on Aug. 19, 2015. Murphy faces a mandatory minimum penalty of 20 years in prison and a maximum penalty of life in prison when he is sentenced on Jan. 6, 2015. Sanks faces a maximum penalty of 40 years in prison when sentenced on Dec. 9, 2015. 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; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and Phillip Hardison, Chief of the Franklin Police Department, made the announcement after Murphy’s plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys William D. Muhr and V. Kathleen Dougherty 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 Nos. 2:15cr103 (Murphy) and 2:15cr115 (Sanks).
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Turn in unused prescription drugs this SaturdayRead the Press Release
This Saturday from 10 a.m. to 2 p.m. local time, come to one of the almost 5,000 collection sites around the nation to return all unwanted, unneeded, or expired prescription drugs for safe and anonymous disposal. This is the U.S. Drug Enforcement Administration’s (DEA’s) 10th National Prescription Drug Take-Back Day in the past five years. Collection sites in every local community, manned by DEA and its local law enforcement and community partners, can be found by going to www.dea.gov or calling 800-882-9539. All states and some territories will be participating Saturday (with the exception of Pennsylvania and Delaware, which held their events earlier in the month).
The National Prescription Drug Take-Back Day addresses vital public safety and health issues. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that many abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, many Americans do not know how to properly dispose of their unused medications, often flushing them down the toilet or throwing them away – posing safety and environmental hazards.
“Our goal is to reduce the risk of addiction and the 46,000 overdose deaths a year that come with prescription drug abuse. Take Back Day is a great opportunity for folks to help reduce the threat,” DEA Acting Administrator Chuck Rosenberg said. "Please clean out your medicine cabinet and make your home safe from drug theft and abuse.”
DEA’s previous nine nationwide Take-Back events collected 4,823,251 pounds—more than 2,411 tons—of drugs.
Tennessee Air National Guard Member Found Guilty in Military Recruiting Scheme TrialRead the Press Release
Aaron Osborne, 53, of Clarksville, was convicted by a federal jury yesterday, after a seven day trial, of carrying out a scheme to defraud a military recruiting program, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Specifically, Osborne was convicted of aiding and abetting the theft of government funds.
Evidence presented at trial showed that in 2006 the National Guard Bureau implemented a recruiting program called the Guard Recruiter Assistance Program (G-RAP). Under G-RAP, a guard member acting as a Recruiter Assistant (RA) could receive up to $4,000 in incentive payments if the RA’s recruit eventually joined the guard and went to basic training.
During the time the scheme was carried out, Osborne was a full-time recruiter at the 118th Wing and was ineligible to participate in G-RAP. The evidence showed that Osborne routinely referred to RA Max Andolsek, the names of potential recruits who had already contacted the recruiting office where Osborne worked. Rather than process those recruits through the traditional recruiting channel as required, Osborne referred those recruits to Andolsek, in violation of G-RAP policies.
Five of the recruits testified at trial that they had previously met with Osborne and/or contacted his office about joining the Guard, prior to meeting Andolsek. With Osborne’s assistance, Andolsek collected over $9,000 in G-RAP incentive payments as a result of the fraud. The evidence also showed that Osborne received kickbacks from Andolsek totaling approximately $2,100.
Andolsek previously pleaded guilty on March 24, 2014, to conspiracy to commit theft of government property and conspiracy to make false statements. He is scheduled to be sentenced on November 30, 2015.
Osborne will be sentenced by U.S. District Kevin H. Sharp at a later date. He faces a maximum of 10 years in prison. Both Osborne and Andolsek will be required to pay restitution to the Department of Defense.
The case was investigated by the Federal Bureau of Investigation and the Tennessee Bureau of Investigation. It was prosecuted by Assistant U.S. Attorneys Stephanie N. Toussaint and William L. Deneke.
Tampa Auto Dealer Pleads Guilty to Money Laundering ConspiracyRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Raymond Rodriguez (52, Tampa) has pleaded guilty to money laundering conspiracy. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Rodriguez and his wife owned and operated Rodriguez Auto Wholesale in Tampa. Between 2009 and the end of 2012, Raymond Rodriguez, acting alone and with others, knowingly sold vehicles to individuals who had paid with proceeds from illegal narcotics sales and/or stolen identity refund fraud. Rodriguez, who knew that the funds had been obtained illegally, agreed to disguise the large cash transactions from the government in a number of ways. First, he agreed to accept large cash payments for vehicles without filing Form 8300 with the Internal Revenue Service, as required by law. He also agreed to place vehicles in the names of straw buyers. By doing this, law enforcement and other government agencies would not be aware of the true owners of the cars or the illegal proceeds used to purchase them. Rodriguez also promised purchasers that he would keep a lien on certain vehicles, despite receiving payment in full, so that if those vehicles were seized by law enforcement authorities, he could reclaim the vehicles and return them to the purchaser and/or their family members.
In total, between 2009 and 2013, Rodriguez and his co-conspirators laundered at least $1,751,648 in illegal drug and SIRF proceeds through Rodriguez Auto Wholesale, via the sale of approximately 87 vehicles.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Syracuse Receives Second Round of Federal Funding for Gun Violence ReductionRead the Press Release
SYRACUSE, NEW YORK – For the second time Syracuse has received a Project Safe Neighborhoods federal grant of nearly $300,000.00 for the continued support of gun violence reduction efforts. A similar grant was received in 2013. The grant funds a coalition of law enforcement agencies and community groups which combine their resources to reduce gun related violence in the City of Syracuse, announced United States Attorney Richard S. Hartunian.
"We are firmly committed to continuing this multi-agency and interdisciplinary effort to reduce death and injury from gun violence in Syracuse. There is no higher priority than combining resources to save the lives of our young people. The second round of funding provided by this grant will allow us to further expand and enhance these vital public safety and community support programs," said U.S. Attorney Hartunian.
"We appreciate the continued support of our partners in "Syracuse Truce." Since 2013 the collaboration between law enforcement and community services have proved to be an effective tool in combating gun and gang violence in city of Syracuse, while allowing a more positive relationship between the police and the community. We look forward to this relationship continuing,"said Syracuse Police Chief Frank Fowler
This latest funding for Syracuse also follows a 2013 federal grant of 1.5 million dollars to support the U.S. Department of Justice’s Comprehensive Gang Model, a program in place in other cities troubled by gang and gun violence.
United States Attorney Hartunian expressed his appreciation to the Syracuse Truce Executive Committee, the Executive Director for the Syracuse Salvation Army, Syracuse Model Neighborhood Facilities, the Mayor’s Office, the Syracuse Police Department, the Onondaga County District Attorney’s Office, The John F. Finn Institute of Public Safety and the Rosamond Gifford Foundation for their efforts in again obtaining this grant, and for their ongoing work combating gun and gang violence.
Under the Department of Justice’s Project Safe Neighborhoods Program, the grant will provide $300,000 to fund "Syracuse Truce," an innovative collaboration between law enforcement and community service agencies to reduce gun crime and gang violence and diminish tension between law enforcement and the community. Starting in the fall of 2014, Syracuse Truce was implemented with the assistance of the Rosamond Gifford Foundation. Since 2001, the Department of Justice’s Project Safe Neighborhoods Program has sought to reduce gun and gang crime in America by forming partnerships to enhance local programs and provide them with additional tools necessary to be successful. In Syracuse, the partnership of law enforcement agencies and community leaders has included establishment of a gang violence task force, collaboration of federal and local officials to review and prepare gun cases for prosecution in the most appropriate forum, federal prosecution of members of 8 gangs in Syracuse since 2003, and education and prevention efforts.
Syracuse Truce involves "focused deterrence" by integrating the community message that gun and gang violence will not be tolerated with offers of assistance to reduce criminal activity. Beginning in August 2015, two new initiatives, Syracuse Save our Youth, which focuses its efforts on neighborhoods in the south side of the City of Syracuse and Cure Violence, which provides street level outreach to potential violent offenders, began operating in coordination with the Syracuse Truce Partnership. In addition to day-to-day enforcement of the criminal law, gun crime committed by one gang member will result in enhanced law enforcement scrutiny of the entire gang. The Syracuse Truce strategies include:
Enhanced Enforcement – Approximately 40 street saturation patrols, warrant details, code enforcement and probation/parole home visits of offenders in the gang’s area will be conducted on the South and West side of the City of Syracuse.
Street Outreach - The Syracuse Model neighborhood Facilities group will communicate with
those most affected by gun violence and help mobilize the affected communities.
Call-In Meetings - High risk offenders (on probation/parole) are mandated and/or invited to attend meetings to hear about the consequences of continued criminal activity which they can relay back to fellow gang members. Options for assistance in changing their lives are provided by social service providers including Syracuse Model Neighborhoods Facilities, CNY Works, Salvation Army, OCC, Jobs Plus!, New Justice Services, Syracuse Trauma Team, Boys and Girls Club, and Center for Community Alternatives.
Community Organizations - Individuals from neighborhood organizations and clergy are invited to call-in meetings to provide a strong message that violence will not be tolerated and assistance will be provided to those who want to change their lives in a positive way.
Evaluation - The John F. Finn Institute of Public Safety conducts process and outcome evaluations of the project. The Finn Institute has been a long time partner in Operation IMPACT (Now G.I.V.E.) and Project Safe Neighborhoods initiatives in Onondaga County.
Smith County Sex Offender Sentenced for Transporting Minors for ProstitutionRead the Press Release
TYLER, Texas – A 33-year-old Tyler, Texas registered sex offender has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Anthony Nelson pleaded guilty on Nov. 10, 2014, to transportation of minors and was sentenced to 276 months in federal prison today by U.S. District Judge Michael H. Schneider.
According to information presented in court, in November and December of 2013, Nelson was assisted by others in transporting individuals, including two minors, in interstate commerce with the intent that the individuals engage in prostitution. During the investigation it was also revealed that Nelson was a registered sex offender having served eight years in the Texas Department of Corrections for the 2001 aggravated sexual assault of a minor in Smith County, Texas. Nelson was indicted by a federal grand jury on Mar. 26, 2014, and charged with child exploitation violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
“Anthony Nelson is on his way to prison where he will serve a very long sentence of imprisonment,” said U.S. Attorney Bales. “He deserves every day of that lengthy term and I hope that every day he is consumed with guilt and self-recrimination. There is no more important work for the U.S. Attorney’s office than to protect and come to the aid of those who cannot protect themselves. Nelson and his ilk will always be squarely in our sights and for that reason, I commend the work of the prosecution team for putting a stop to Nelson and his outrageous conduct.”
“Our children are our most valuable resource,” said Katrina W. Berger, special agent in charge of HSI Dallas. “As such, our special agents from Homeland Security Investigations operate an active program called Operation Predator to rescue victims, and identify and pursue prosecution against child predators. We routinely work with our law enforcement partners to achieve these goals.”
This case was investigated by Homeland Security Investigations (HSI), Louisiana State Police, Bossier Parish Sheriff’s Office, Shreveport Police Department, Longview Police Department, Smith County Sheriff’s Office, Tyler Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, and the Smith County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
Six convicted of heroin, cocaine traffickingRead the Press Release
CLARKSBIRG, WEST VIRGINIA – Six individuals were convicted of heroin and cocaine trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Larry Dustin Saunders, 40, of Clarksburg, sold heroin in April 2015 near Broadway Playground in Harrison County, West Virginia. He pled guilty today to one count of “Aiding and Abetting the Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.
Tevin L. White, 24, of Clarksburg sold heroin in January 2015 near a public housing authority facility, known as Locust View Apartments, in Harrison County, West Virginia. He pled guilty today to one count of “Aiding and Abetting the Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.
Davina Bland, 21, of Clarksburg, sold cocaine near Monticello Avenue Playground in Harrison County, West Virginia. She pled guilty today to one count of “Distribution of Cocaine Base within 1,000 feet of a Protected Location.” She faces between one and forty years in prison and a fine of up to $2,000,000.
Robert Sean Hott, 30, of Fairmont, West Virginia, sold heroin in April 2015 near a public housing authority facility, known as Oakmound Apartments, in Harrison County, West Virginia. He pled guilty today to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location – Aiding and Abetting.” He faces between one and forty years in prison and a fine of up to $2,000,000.
Brian K. Wilson, 30, of Boothsville, West Virginia, allowed his residence to be used to store and distribute heroin. He pled guilty today to one count of “Maintaining Drug-Involved Premises.” He faces up to 20 years in prison and a fine of up to $500,000.
Sabree L. Clevenger, 20, of Salem, West Virginia sold heroin in January 2015 in Harrison County, West Virginia. She pled guilty today to one count of “Distribution of Heroin – Aiding and Abetting.” She faces up to 20 years in prison and a fine of up to $1,000,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the serious sness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Sarah Montoro prosecuted Bland, Assistant U.S. Attorney Stephen Vogrin prosecuted Saunders, Assistant U.S. Attorney Zelda Wesley prosecuted Wilson and Clevenger, and Assistant U.S. Attorney Stephen Warner prosecuted Hott and White on behalf of the government. Former Assistant U.S. Attorney Shawn Morgan also prosecuted each of the defendants on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated each of the defendants.
U.S. Magistrate Judge John S. Kaull presided in the Wilson and Clevenger plea hearings. U.S. District Judge Irene M. Keeley presided in the remaining plea hearings.
Seven Arrested in San Antonio on Federal Drug Trafficking and Money Laundering ChargesRead the Press Release
In San Antonio this morning, federal authorities arrested seven individuals indicted for their role in a heroin distribution scheme announced United States Attorney Richard L. Durbin, Jr., Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division, and Internal Revenue Service – Criminal Investigation Special Agent in Charge William Cotter, San Antonio Division.
Arrested this morning without incident include: 51-year-old Salvador Gonzalez; 38-year-old Carlos De La Cruz Perez (aka “Charlie”); 29-year-old Adrian Gonzalez; 25-year-old Hector Mario Ginez; 40-year-old Raul Sanchez (aka “Boom Boom”); 40-year-old Eneveida Margarita Ruvalcaba-Gonzalez; and, 43-year-old Jose Lopez-Grimaldo.
A federal grand jury indictment unsealed today charges the defendants with one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin. Salvador and Adrian Gonzalez are also charged with one count of conspiracy to commit money laundering. The indictment also seeks the criminal forfeiture of 17 properties in San Antonio, Seguin and Floresville, TX, allegedly used by Salvador and Adrian Gonzalez to further their heroin trafficking scheme as well as a $7 million money judgment.
According to the indictment, since January 1998, the defendants have conspired to use their residences and businesses, namely a string of Acapulco Barber Shops, to distribute heroin and launder their drug distribution proceeds. During this investigation, authorities have seized over 15 pounds of heroin, approximately $420,000 in U.S. Currency, 16 firearms and 11 vehicles.
“The arrests made as part of Operation Razor Cut are part of DEA’s continuing efforts to target illicit drug distribution throughout South Texas. Drug trafficking and abuse takes a tremendous toll on our communities as a whole. We will continue to work closely with our federal, state and local law enforcement partners in order to enhance the quality of life for the citizens in this region,” stated DEA Special Agent in Charge Joseph M. Arabit.
“For more than 17 years, these defendants have been responsible for drug trafficking in the San Antonio area,” said William Cotter, IRS CI Special Agent in Charge, San Antonio Field Office. “And like many criminals they tried to hide their ill-gotten gains through legitimate purchases – such as businesses and homes. Fortunately for American taxpayers, IRS Criminal Investigation special agents are uniquely qualified to follow complex financial transactions and uncover the source of the illegal funds.”
All of the defendants remain in federal custody. Upon conviction, the defendants face between ten years and life in federal prison on the drug trafficking conspiracy charge and up to 30 years in federal prison for the money laundering conspiracy charge.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the Drug Enforcement Administration and the Internal Revenue Service–Criminal Investigation together with U.S. Customs and Border Patrol, Terrell Hills Police Department, Seguin Police Department, Bexar County Sheriff’s Office, Bexar County District Attorney’s Office and the San Antonio Police Department. Assistant United States Attorney Joey Contreras is prosecuting this case on behalf of the Government.
Saratoga Attorney and Co-Conspirator Indicted in Alleged Scheme to Defraud InvestorsRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted John Jason Gentry Mullins and Bradley Howell in an alleged conspiracy to defraud investors of more than a million dollars, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge David J. Johnson.
According to the indictment unsealed earlier today, Mullins, 59, of Saratoga, was an attorney with a San Francisco business address and was admitted to practice in California. Mullins and Howell, 31, of Louisville, Ky, allegedly conspired to defraud investors by convincing them that they could obtain financial instruments, such as bank guarantees and standby letters of credit, in return for small down payments. As part of the scheme, Mullins and Howell allegedly told investors that Mullins, a licensed attorney in California, would serve as an escrow agent in these transactions and that after money was wired to them, the two would obtain the financial instruments. The indictment describes several transactions in which Mullins and Howell allegedly convinced investors to wire hundreds of thousands of dollars to the conspirators for the ostensible purpose of obtaining the instruments. Also according to the indictment, rather than establish the escrow accounts, the defendants used the money for personal expenses; for example, on a least two occasions, Mullins used the money to purchase a condominium. Mullins and Howell were charged with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and nine counts of wire fraud, in violation of 18 U.S.C. § 1343. In addition, Mullins is charged with two counts of engaging in monetary transactions in property derived from specified unlawful activity, in violation of 18 U.S.C. § 1957.
Mullins made an initial court appearance this morning in San Francisco before United States Magistrate Judge Sallie Kim. He will appear again before Judge Kim for a bond hearing this Thursday, September 24, 2015, at 9:30 a.m., and then before United States District Judge Susan Illston on Friday, October 2, at 11:00 a.m. for further proceedings. Howell made an initial court appearance in Louisville; he will appear in San Francisco before Judge Illston on Friday, October 2, 2015, at 11:00 a.m.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The defendants face a maximum term of imprisonment of 20 years if convicted of the conspiracy charge or the wire fraud charges. Mullins also faces a maximum term of 10 years’ imprisonment for each count if convicted of engaging in money transactions in property derived from unlawful activity. Additional terms of supervised release, penalties and restitution may be ordered upon conviction. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Special Assistant U.S. Attorney Daniel P. Talbert with the assistance of Beth Margen and Trina Khadoo. The prosecution is the result of an investigation by the FBI.
Pima Prevention Partnership Receives Nearly $500,000 in Federal Grant Funds to Support Reentry Services to Latino YouthRead the Press Release
PHOENIX – Today, U.S. Attorney John S. Leonardo announced that $483,334 in federal grant funds have been awarded to the Pima Prevention Partnership to support Latino youth who are re-entering their communities. The grant funds were awarded by the Office of Juvenile Justice and Delinquency Prevention (“OJJDP”), which is a component of the Department of Justice’s Office of Justice Programs (“OJP”).
“I am very pleased with this significant grant funding to the Pima Prevention Partnership to provide reentry services to Latino youth to help them transition back into the community from secure confinement, including out-of-home placements. These services are designed to reduce the risk of re-traumatizing young people who have often been the victims of abuse and neglect,” said Leonardo.
Information about OJP and its programs can be found at: http://www.ojp.usdoj.gov.
Information on OJJDP specific: http://www.ojjdp.gov/about/about.html
RELEASE NUMBER: 2015-086_PIMA_PREV_GRANT (2015-CZ-BX-0020)
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Pennsylvania Priest Convicted of Sexually Abusing MinorsRead the Press Release
JOHNSTOWN, Pa. – A priest of the Diocese of Altoona-Johnstown, Pennsylvania, was found guilty after an eight-day jury trial of offenses related to his sexual abuse of three minor boys during trips to Honduras over a five-year period, U.S. Attorney David J. Hickton announced today.
Joseph D. Maurizio Jr., 70, of Central City, Pennsylvania, was convicted of engaging in illicit sexual conduct in foreign places, possession of child pornography and international money laundering. He is scheduled to be sentenced on February 2, 2016, at 10 a.m.
U.S. Attorney Hickton stated, “The jury’s conviction affirms the courage of these victims, the tenacity of the investigators and the resolve of our prosecutors to ensure justice. We remain steadfast in our commitment to protect children from predators here and pursue those who travel beyond our borders to offend. We are especially vigilant where a person uses a position of trust to victimize the most vulnerable among us.”
"What Maurizio did to the children in Honduras while swindling unsuspecting Americans for money to support his pedophilia is atrocious," said John Kelleghan, HSI Philadelphia Special Agent in Charge. "The jury's verdict is testament that society will not tolerate this behavior, and HSI will continue to use its transnational investigative capabilities to bring American child predators to justice -- no matter where they commit their crimes."
“Investigations of this importance are only possible when each individual agency lends their manpower and expertise to the goal of achieving justice,” added Edward M. Wirth, Assistant Special Agent in Charge, IRS - Criminal Investigation. “The Internal Revenue Service, Criminal Investigation will continue to provide the financial expertise in these investigations and will readily assist in the analysis of the financial activities of those who violate the laws of our country.”
According to the evidence introduced at trial, the defendant created a charitable organization, known at the time as Honduras Interfaith Ministries (HIM), which was funded by donations from members of the community, including parishioners of Our Lady Queen of Angels Church in Central City. The evidence showed that HIM became the largest donor to Pro Nino, a non-profit organization that provided shelter and rehabilitative services to poor, abandoned and at risk children residing in a rural town outside of San Pedro Sula, Honduras. The trial evidence further demonstrated that Maurizio often used his position as Pro Nino’s largest donor to gain unfettered access to the boys that lived there.
In addition, the evidence showed that Maurizio used HIM funds to pay for 13 separate trips between the United States and Honduras between 2004 and 2009, during which he sexually abused three minor boys between the ages of 12 and 17. The government presented evidence that, prior to three of these trips, Maurizio transferred $8,000 from accounts located in the Western District of Pennsylvania to accounts and individuals located in Honduras, and that he used these funds to purchase gifts including clothes, shoes and jewelry that he gave to the minor boys in order to gain their trust and to ensure their compliance during the sexual acts he perpetrated against them. The evidence presented at trial also showed that, during his final trip to Honduras, Maurizio paid two minor boys, ages 14 and 15, to engage in sexual acts with him.
In addition, trial evidence showed that, during a search of the rectory of Our Lady Queen of Angels Church, federal investigators recovered digital media depicting the young boys Maurizio sexually abused, and images of minors engaging in sexually explicit conduct.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Internal Revenue Service’s Criminal Investigation in Pittsburgh. The case is being prosecuted by Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Stephanie Haines of the Western District of Pennsylvania.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Parker Man Sentenced to Nearly 25 Years in Federal Prison for Abusive Sexual Contact with a MinorRead the Press Release
PHOENIX – Today, Sonnett Alexander Williams, 47, a member of the Colorado River Indian Tribes, was sentenced by U.S. District Judge Roslyn O. Silver to 293 months in prison, followed by a term of lifetime supervised release. Williams pleaded guilty on April 7, 2015 to abusive sexual contact with a minor.
Between Aug. 1, 2010 and Aug. 7, 2011, within the Colorado River Indian Tribes Indian Reservation, Williams sexually abused the victim who was under the age of 12 and also a member of the Colorado River Indian Tribes.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-0931-PHX-ROS
RELEASE NUMBER: 2015-088_Williams
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Owner of Polygraph.com Sentenced to Two Years in Prison for Training Customers to LieRead the Press Release
A former Oklahoma City law enforcement officer and the owner of Polygraph.com has been sentenced to two years in prison for training customers to lie and conceal crimes and other misconduct during polygraph examinations.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Commissioner Matthew Klein of U.S. Customs and Border Protection’s Office of Internal Affairs and Special Agent in Charge Scott L. Cruse of the FBI’s Oklahoma City Division made the announcement.
Douglas G. Williams, 69, of Norman, Oklahoma, pleaded guilty on May 13, 2015, to two counts of mail fraud and three counts of witness tampering. Chief U.S. District Judge Vicki Miles-LaGrange of the Western District of Oklahoma imposed the sentence.
According to admissions made in connection with his plea, Williams owned and operated Polygraph.com, an Internet-based business through which he trained people how to conceal misconduct and other disqualifying information when submitting to polygraph examinations in connection with federal employment suitability assessments, background investigations, internal agency investigations and other proceedings. In particular, Williams admitted that he trained an individual posing as a federal law enforcement officer to lie and conceal involvement in criminal activity from an internal agency investigation. Williams also admitted to training a second individual, posing as an applicant seeking federal employment, to lie and conceal crimes in a pre-employment polygraph examination. Williams also admitted to instructing the individuals to deny receiving his polygraph training.
The investigation was conducted by U.S. Customs and Border Protection’s Office of Internal Affairs and the FBI’s Oklahoma City Division. The case was prosecuted by Trial Attorneys Heidi Boutros Gesch and Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Ohio man sentenced for heroin, crack cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Devon J. Ball, 29, of Columbus, Ohio, was sentenced today to 15 months in prison for heroin and crack cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Throughout October and November 2014, Ball repeatedly conspired with others to possess and distribute heroin and crack cocaine in Marshall County, West Virginia. He pled guilty in May 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin and Cocaine Base.”
Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge John Preston Bailey presided.
Ohio man sentenced for heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Stephen Mynatt, 32, of Garfield Heights, Ohio, was sentenced today to 57 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Mynatt sold heroin in Marshall County, West Virginia in April 2014. He pled guilty in April 2015 to one count of “Aiding and Abetting the Distribution of Heroin.”
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, and the Marshall County Drug and Violent Crime Task Force, both HIDTA-funded initiatives, investigated.
Senior U.S. District Judge Frederick P. Stamp presided.
Officer of Country Bancorporation Charged with Stealing more than $800,000 from Banks Controlled by the CompanyRead the Press Release
Heidi Wagler, age 50, from Wayland, Iowa, has been charged with one count of embezzlement by a bank officer. The charge is contained in an Information filed on September 21, 2015, in United States District Court in Cedar Rapids.
The Information alleges that, between June 2004 and October 2013, Wagler, while an officer of the company, caused banks controlled by Country Bancorporation to issue her $864,835 in additional compensation to which she was not entitled.
If convicted, Wagler faces a possible maximum sentence of 30 years’ imprisonment, a fine of up to twice the loss resulting from her offense, a $100 special assessment, and five years of supervised release following any imprisonment. Wagler could also be ordered to pay restitution to any victims.
Wagler’s first appearance in federal court in Cedar Rapids for an arraignment and plea hearing is set for October 6, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the FBI and FDIC.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-00089.
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North Carolina Landowner Sentenced for Impeding and Obstructing Administration of Internal Revenue CodeRead the Press Release
A Chapel Hill and Durham, North Carolina, millionaire businessman was sentenced to prison yesterday for his involvement in a decades-long scheme to evade paying his federal income taxes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
“The sentence imposed on Mr. Tilley demonstrates the department’s commitment to prosecuting and seeking incarceration of and restitution from those who repeatedly evade their tax obligations and impede and obstruct our nation’s tax laws,” said Acting Assistant Attorney General Ciraolo. “No one is above the law and Mr. Tilley will pay a heavy price for his criminal conduct.”
Thomas Tilley, 80, was sentenced by Chief U.S. District Judge William L. Osteen Jr. of the Middle District of North Carolina to serve 32 months in prison to be followed by one year of supervised release, and ordered to pay $7,676,757 in restitution to the Internal Revenue Service (IRS). At the sentencing hearing, Judge Osteen found that Tilley obstructed justice by providing misleading information to probation and the court after pleading guilty and revoked his acceptance of responsibility credit based on this conduct. Tilley pleaded guilty on Nov. 21, 2014, to one count of corruptly endeavoring to impede and obstruct the administration of the Internal Revenue Code, which carries a statutory maximum sentence of 36 months in prison.
“Individuals like Thomas Tilley, who engage in complex schemes to impede the administration of the tax laws in order to enrich themselves and not pay their fair share, should take notice of today’s sentencing,” said Special Agent in Charge Thomas J. Holloman III of IRS-Criminal Investigation (CI). “If you engage in these type of schemes, IRS-Criminal Investigation will be there for the duration to ensure that you are brought to justice.”
According to court documents, beginning in 1993 and continuing through at least 2010, Tilley sent the IRS fraudulent financial instruments in an attempt to fraudulently discharge his tax debt; used nominee and sham trusts to purchase and sell real estate to conceal his assets; and placed false liens on properties to impede the IRS’ collection of his tax debt. Tilley also failed to file federal and state income tax returns for tax years 1994 through 2013, despite earning substantial income and, in 2009, claiming a net worth as high as $30 million and annual income of $822,000 on a financial statement.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-CI, who investigated the case, and Assistant U.S. Attorney Frank J. Chut of the Middle District of North Carolina and Trial Attorney Todd P. Kostyshak of the Tax Division, who prosecuted the case.
North Carolina Landowner Sentenced for Impeding and Obstructing Administration of Internal Revenue CodeRead the Press Release
WASHINGTON – A Chapel Hill and Durham, North Carolina, millionaire businessman was sentenced to prison yesterday for his involvement in a decades-long scheme to evade paying his federal income taxes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
“The sentence imposed on Mr. Tilley demonstrates the department’s commitment to prosecuting and seeking incarceration of and restitution from those who repeatedly evade their tax obligations and impede and obstruct our nation’s tax laws,” said Acting Assistant Attorney General Ciraolo. “No one is above the law and Mr. Tilley will pay a heavy price for his criminal conduct.”
Thomas Tilley, 80, was sentenced by Chief U.S. District Judge William L. Osteen Jr. of the Middle District of North Carolina to serve 32 months in prison to be followed by one year of supervised release, and ordered to pay $7,676,757 in restitution to the Internal Revenue Service (IRS). At the sentencing hearing, Judge Osteen found that Tilley obstructed justice by providing misleading information to probation and the court after pleading guilty and revoked his acceptance of responsibility credit based on this conduct. Tilley pleaded guilty on Nov. 21, 2014, to one count of corruptly endeavoring to impede and obstruct the administration of the Internal Revenue Code, which carries a statutory maximum sentence of 36 months in prison.
“Individuals like Thomas Tilley, who engage in complex schemes to impede the administration of the tax laws in order to enrich themselves and not pay their fair share, should take notice of today’s sentencing,” said Special Agent in Charge Thomas J. Holloman III of IRS-Criminal Investigation (CI). “If you engage in these type of schemes, IRS-Criminal Investigation will be there for the duration to ensure that you are brought to justice.”
According to court documents, beginning in 1993 and continuing through at least 2010, Tilley sent the IRS fraudulent financial instruments in an attempt to fraudulently discharge his tax debt; used nominee and sham trusts to purchase and sell real estate to conceal his assets; and placed false liens on properties to impede the IRS’ collection of his tax debt. Tilley also failed to file federal and state income tax returns for tax years 1994 through 2013, despite earning substantial income and, in 2009, claiming a net worth as high as $30 million and annual income of $822,000 on a financial statement.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-CI, who investigated the case, and Assistant U.S. Attorney Frank J. Chut of the Middle District of North Carolina and Trial Attorney Todd P. Kostyshak of the Tax Division, who prosecuted the case.
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Norfolk Longshoreman Convicted of Food Stamp FraudRead the Press Release
NORFOLK, Va. – Dwayne Carter, 38, of Norfolk, was sentenced yesterday to 29 months in prison for conspiracy to engage in food stamp benefits fraud. Carter was ordered to pay $1,928,633.10 in restitution to United States Department of Agriculture (USDA) and the Food and Nutrition Service (FNS).
Carter pleaded guilty on April 27, 2015. According to court documents, Carter is the son of James Robert Carter, who was the long-time owner and operator of the Merrimac Market, located on Merrimac Avenue in Norfolk. Merrimac Market, classified by the USDA and FNS as a small grocery store, began participating in the Food Stamp and Supplemental Nutrition Assistance Program (SNAP) in April 1993. From Jan. 1, 2010, to Nov. 7, 2013, the Carters used the Merrimac Market cash register to debit funds from customers who had presented and swiped their EBT card. The person behind the register would then pay the customers half the value of the amount that had been debited in cash. To avoid detection the Carters debited funds off of a card in multiple transactions over a period of minutes, hours or days. The Carters obtained approximately $1,928,663 from the USDA/FNS SNAP Program. James Robert Carter was convicted earlier this year and was sentenced on Jan. 16, 2015, to 30 months in prison and ordered to pay restitution in the amount of $2,275,889.59. The restitution amounts between the Carters are joint and several.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Williams Squires, Jr., U.S. Department of Agriculture, Office of Inspector General, Special Agent in Charge of the Northeast Region; and Thomas Jankowski, Special Agent in Charge, IRS-Criminal Investigation, Washington D.C. Field Office, made the announcement after sentencing by U.S. District Judge Robert G. Doumar, Sr. Assistant U.S. Attorney Stephen W. Haynie prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15cr17
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